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FY 1996/1997 CITY BUDGET
RECEIVED FROM —QYAJMdS4-'r+1LV&, AND MADE A PART OF THE REQPRD AT E COUNCIL MEETING OF Budget Public Hearing OFFICE OF THE CITY CLERK CONNIE BROCKWAY,CITY CLERK Budget Public Hearing (Revised Budget Proposal) September 3, 1996 Slide I Revised Budget Proposal • Reflects City Council's Straw Vote of 8/12/96. • Eliminates some previously recommended new revenues. • Proposes alternative new revenues. • Eliminates-some previously recommended expense increases. -� Reduces Transfers_ to restore Internal Services Fund reserves. No additional expense reduction recommendations that will further affect department operations. Slide z - September 3, 1996 Budget Public Hearing 1996/97 Recommended Budget (Revised Budget Proposal) 9 Total Recommended Budget $198,652,110 4.1% Increase Increases funded primarily by Developers and Water Fund • Recommended General Fund Budget $97,324,915 1 .3% Increase Slide 3 1996/97 Projected Resources All Funds = $19896529110 (Revised Budget Proposal) $ in Millions General Fund 97.8 Reserves 11.2 Other Funds 4.0 Transportation 7.6 Redevelopment 7.1 Internal S C. 14.7 Other Enterprise CapitalProjects 6.0 2.3 Refuse 8.7 Water 22.8 Debt Service 6.0 Slide 4 September 3, 1996 -7 ZF Budget Public Hearing 1996/97 General Fund Budget By Department - Total =$97,324,915 (Revised Budget Proposal) Police $32,757,311 Fire $16,309,911 PublicVVofks $16,26 1,812 non-Departmental 512,036,074 C;orrmuntty Svcs. $6, 57,833 Administralive Svcs.. $4 3, 82 Community Dev. $3,284,766 Ubrary Services $2,909,522 Dry AnItomey 57,274,664 Administration $909,604 City Treasurer $787,696 City Clark $524,6411 Oty Council $240,712 $0 $10,060,000 $20,060,000 $30,060,000 $40,060,000 Slide 5 General Fund Budget per Capita 20 Year History $600 $500 a $511 tasted orAnffilad'n $400 $300 1 $200 159 $100 $0 76 77 76 79 80 91 82 93 94 85 86 87 U 89 90 91 92 93 94 95 96 Slide 6 September 3, 1996 717. Budget Public Hearing General Fund Cost Increases (Revised Budget Proposal) Redevelopment(Reduced Revenue) $100,000 Liability Self Insurance 800,000 Workers Compensation 470,000 Supplemental Retirement 350,000 Equipment Replacement Needs 500,000 Merit Step Increases 425,000 Attrition/Holiday OT - Police Dept. 365,000 Other (uncontrollable increases) 264,328' Total $3,274,328 Slide 7 Recommended Expense Reductions (Same as Original Proposal) • Library $86,000 • Community Development 94,000 • Public Works 388,496 • Fire Department 330,189 • Police Department 337,000 • Non--Departmental 398,250 • Admininistrative Service 95,013 • Administration 80,154 • Community Service 221,953 • City Attorney 93,274 Total $2,124,329 Slide 9 September 3, 1996 Budget Public Hearing Reduction in Full-Time Positions (Same as Original Proposal) General Fund All Funds • Library -1.00 -1.00 • Community Development -2.00 -2.00 • Public Works -9.50 -15.25 • Fire Department * -1.00 -16.25 • Police Department -3.00 -4.00 • Admininistrative Services -.50 -1.50 • Administration -1.75 -3.00 • Community Services -3.00 -5.75 • City Attorney -1.00 -1.00 L Economic Dev./CDBG 0.00 +5.05 Total -22.75 -44.70 17 JPA Transfers Out Slide v Budgeted General Fund Positions 1 988/89 - 1 996197 (Recommended) 1020 1007 1000 997 980 981 960 959 940 938 920 900 - 891 880 89 90 91 92 93 94 95 96 97 Proposed Slide)0 September 3, 1996 Budget Public Hearing Employees per 1 ,000 Population 20 Year History 7.0 6.6otai R 6.5 �-. General Fundy 6.1 6.0 8 5.5 5.0 9 4.5 4.0 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 Slide 11 Changes. to Revenue Estimates General Fund e Property Tax ($678,000) e Utility Tax 175,000 e Fines, Forfeitures, & Penalties 8,000 e Use of Money & Property 181,000 e Engineering & Insp. Fees 190,000 e Other 45,000 TOTAL ($79,000) *Not related to Revised Budget Proposal Recommendations Slide 12 September 3, 1996 Budget Public Hearing Recommended New Revenues (Revised Budget Proposal *) Increase Parking Fees (Approved) $400,000 Increase Library Fee- New Dev. 100,000 New Parking Meters 44,000 Preferred Parking Plan - Beach 100,000 Increase Charges to Cover Costs .85,000 Enforcement- Business Licenses 75,000 Business License-Processing&Application 136,000 Business License-Audit 50,000 Building Planning Fees 196,000 Police Department Fees 84.000 Total ,$1,270,000 * Deletes previously recommended Sewer Fee($1 m)and Annual Business License Increase ($320k) Slide 13 Alternatives: Business License Fee Increases (Revised Budget Proposal) • Alternative.1: $20 per year license fee increase - $320,000. Not Recommended due to pending Ballot Measure -Prop. 218 • Alternative 2: Processing Fee Increases - - $136,000- -Recommend Approval 4 $6 per year increase in renewal processing fee -� $15 increase in new application processing fee Slide 14 September 3, 1996 Budget Public Hearing Business License Annual Renewal Fees • Huntington Beach - Current $6 • La Palma 30 - Recommended New Fee 12 • Laguna Beach 5 • Anaheim 27 • San Clemente 5 • Fullerton 10 • San Juan Capistrano 10 • Garden Grove 10 • Santa Ana 20 • La Habra 5 • Westminster 25 Slide 15 Business Licenses - New Application Processing Fees • Huntington Beach - Current $10 * Laguna Beach 5 - Recommended New Fee 25 • Orange 38 • Anaheim 27 * San Clemente 10 • Fullerton 15 • San Juan Capistrano 40 • Garden Grove 25 • Santa Ana. 20 • La Habra 5 • Westminster 75 • La Palma 30 • Yorba Linda 25 Slide 16 September 3, 1996 Budget Public Hearing Alternatives - New Recommended Fees • Building/Planning - $196,000/Year Building Permits & Inspections -� Planning Processing • Police Department-$84,000/Year Crime Reports: $15 vs $5 max. (current) DUI Fees: New collection procedure -� Booking Fees: Collections from convicted arrestees Slide 17 Library Development Fee (LDF) & Community Enrichment Library Fee (CELF) 1996/97 Estimated New Revenue $245,888 Recommended Allocation: -� Reduce General Fund Expenses 100,000 -� Increase Purchase of Library Books, materials, and supplies 122,185 -� Reduce Library Service Fund Expenses 23,703 TOTAL $245,888 Slide IB September 3, 1996 Budget Public Hearing Allocation of Library Development Fee - Policy Recommendations Allocate $0.08 per square foot of CELF residential fee to Cultural Services. -� $76,297 to Art Center in 1996/97 Average $82,759 per year for next 6 years Balance of CELF and LDF fees for Library Services. Alternatives: -� Allocate more of revenue to reduce General Fund Costs -� Conduct separate Cultural Activities Nexus Study Slide 19 Redevelopment Projections Cash Reserves (Revised Budget Proposal) $in Millions $10 7.9 $8.3 $8 $5.9 $6 $2.0 $2 $ 1.2 ($0.9) $0 ($2) 96 97 98 99 2000 2001 Slide 20 September 3, 1996 Budget Public Hearing FiSelf Insurance Funds Cash Reserves (Revised Budget Proposal) . n Millions 10 $9.1 $9 $8 $7 $6.0 $6 Was $1.2m $5 $a $3 $2 AN $1 $0.0 $0 90 91 92 93 94 95 96 est 97 est Slide 21 Self Insurance Funds $in Thousands Total Revenue Cash Fiscal Year Revenues Increase Reserve 1995 (Audited) $11 .5 - $0.020 1996 (Budget). 12.1 $0.6 0.250 1997(Recomd.) 14.3 2.2 . 0.829 1998 (Planned) 15.9 1 .6 1 .600 1999 (Planned) 16.8 0.9 2.678 2000 (Planned) 18.0 1.2 4.124 2001 (Planned) 19.2 1 .2 5.953 Slide 22 September 3, 1996 Budget Public Hearing Equipment Replacement Funds Cash Reserves (Revised Budget Proposal) $in Millions $7 $6.37 $6.20 $6 $5.40 $4.60 $5 Was 50.84m $4 $3 $2 $1 $0.59 $0 92 93 94 95 96 97 est. est Slide 23 General Fund Reserve (Revised Budget Proposal) $in Millions • Fiscal Policies Require a $9 s.2 Reserve of 3-5% $s • Projected Reserve: 3.5% $7 $6.2 • Needed for: $6 $5 Emergencies $4 -� Economic $3 Uncertainties $2 4 One-Time Expenses $1 - -� Infrastructure Repairs $0 93 94 95 96 97 Est Est Slide 24 September 3, 1996 Budget Public Hearing City Revenue Taken by the State $Millions $8 Total Loss = $7.0 $6.6 $6.7 $7 $31.1 Million $6 $5 $3.9 $4 $3 $2 z $0.9 $1 $0 90/91 91/92 92/93 93/94 94/95 95/96 96/97 Slide 25 City of Huntington Beach Major Revenues Compared to Major Expenses $ in Millions 55 so Police, Fire, & Marine Safety Expenses 49.7 50.6 45 40 38.1 . ' 42.8 43.4 35 Property & Sales Tax Revenue 33.0 30 25 87 88 89 90 91 92 93 94 95 96 97 Recomd Slide 26 September 3, 1996 Budget Public Hearing Property Tax - Distribution of Basic 1% Property Tax Levy High Schools Elementary 22.0% Schools Community 22.3% Colleges 9.3% Other 3.8% State (For Schools) City 15.6% County 16.5% 10.5% Slide 27 Per Capita Sales Tax Huntington Beach d_ $78 Westminster 94 Fountain Valley $ 34 Newport Beach $149 Costa Mesa MW$22 $0 $50 $100 $150 $200 $250 Slide 2s September 3, 1996 Budget Public Hearing Sales Tax - Allocation of Huntington Beach Sales Tax Revenue Health/Welfare State Gov't. 6% (County) 660° Transportation ' 3% Measure M 6% � '` (County-OCTA) Sales Tax %° Public Safety State 5.00 6% City 1.00 (County-95% Public Safety 0.50 City 5%) Measure M 0.50 City 13% Transportation 0.25 Health/Welfare 0.50 Total 7.75 Slide 29 Looking Ahead: Revenues • Slow Growth of Revenues Projected • Potential Revenue Losses 4 State Legislation- -� Redevelopment Payments to General Fund Statewide Ballot Initiatives -� Assessment Appeals Huntington Beach Mall Transition Slide 30 September 3, 1996 Budget Public Hearing Looking Ahead: Budget Needs • General Fund Reserve needs to be Increased • Budget Shortfalls Projected for Future Years • Insurance Reserves need to be Increased • Equipment Replacement Reserves need to be Increased • Maintenance needs have been Deferred • Unfunded Liabilities are Significant • Salary/Benefit Cost Increases Slide 31 Impact of a Delay in Addressing Financial Needs • Insurance/Unfunded Liability needs may Increase (May require use of General Fund Reserve) • Equipment Replacement- Higher maintenance costs and more equipment out of service • Increase amount of Deferred Maintenance • Incremental Decrease in ability to meet the needs of the Public due to Inflation, Population increases Slide 32 September 3, 1996 Budget Public Hearing Timetable Public Hearings Sept. 3 & 16 -� 1996/97 Budget -� Business License Fee Alternatives -� Planning/Building Fee Increases -� Police Department Fee Increases 1996/97 Budget Adopted Sept. 16 Public Hearing Oct. 7 -� Business License: Rentals Slide 33 September 3, 1996 • RECEIVED FROM va., AND MADE A PART OF THE REC D AT THE COUNCIL MEETING OF Budget Study Session OF THE CITY CLERK CONNIEB O KW Y,CI Y CLERK Budget Study Session June 24, 1996 Slide 1 Review of 1995/96 Budget Planning Efforts ` '"' ♦ The city council adopted Budget/Financial Planning Priorities in November 1995 . Reinvent the HB Budget xlilN Long Range Financial Planning Infrastructure Funding ♦ Several Years will be required to Address All Priorities Slide 2 June 24, 1996 Budget Study Session What are the Budget Needs? Genera/Fund Needs Amount/Yr. : a . Self Insurance Shortfalls $1-$2M . Equipment Replacement $1-$2M . Deferred Maintenance $1-$5M . Potential Revenue Losses $1-$4M *Budget Study Sessions . The Primary Focus of 7 Study Sessions Since February has been Phase 1 (1996/97 Budget) of addressing the above Needs Slide 3 Fiscal Year 1996/97: Phase of Multi-Year Approach .- Infrastructure - Recommendations .. expected by early 1997 ;;. ;General Fund Budget Needs Increase .................. Insurance Costs/Reserves $1 .5M Equipment Replacement Needs $0.5M Unfunded Liabilities (Ret. Supp.) $0.5M . Uncontrollable Cost Increases $1 .5M Total $4.OM Slide June 24, 1996 • �j Budget Study Session Recommended $41VI 1996/97 Budget Solutions . Parking Fees (approved) $400,000 . CELF 100,000 . Parking Meters 44,000 . Beach Parking 100,000 . User Fees 50,000 Sewer Fee 1,000,000 . Business License Fee 320,000 Revenue Increases $290142000 Expense Reductions $220002000 Slide 5 Public Hearings - Fee Increases r CELF July1 ``' Sewer Maintenance Fee September 3 Business License Fee September 3 >??r > Public Hearing notice for Business License Increase must be posted by mid July Slide June 24, 1996 Budget Study Session Alternatives < ► Schedule Public Hearings as indicated "'`` ':for September 3 Impact of Not Implementing $1 .31VI of New Revenue (Sewer & Business ti::'..:.....;. License) . Increase Expense reductions to $3.3M, or . Find other New Revenues (not likely), or . Delay addressing some Financial Needs Slide 7 Impact of a Delay in Addressing Financial Needs nsurance/Unfunded Liability needs may :; ncrease: May require use of General Fund ` Equipment Replacement - Higher maintenance < costs and more equipment out of service < lncrease amount of Deferred Maintenance, > > > Increasing Amount of Infrastructure Needs ncremental Decrease in ability to meet the a e eeds of the Public due to Inflation, Population ncreases Slide 8 June 24, 1996 r - ' Budget Study Session Summary ♦ Proposed Solutions to Fiscal Year 1996/97 Budget Issues Include $2 Million of Expense Reductions and $2 Million of New Revenue $= { ♦ Public Hearing notices on the Sewer Maintenance Fee and Business License Fee Increase need to be posted beginning in mid July Slide 9 June 24, 1996 City g of Huntington Beach INTER-DEPARTMENT COMMMUNICATION HUNTINGTON BEACH TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS FROM: ROBERT J. FRANZ, Deputy City Administrator SUBJECT: INCREASE IN THE CITY'S ANNUAL BUSINESS LICENSE FEE DATE: August 8, 1996 As you know, the recommended General Fund Budget for 1996/97 includes an increase in the annual business license fee of $20. This increase would generate an estimated $320,000 per year. Attached is a survey of local communities indicating how Huntington Beach fees compares to business license fees in other cities. Business license fees for all cities, including Huntington Beach, are categorized as a "tax" under State Law. Therefore, the City Council may want to consider alternatives to the increase of a local tax. As you may know, the "Right to Vote on Taxes" Initiative has qualified for the November ballot. If this measure were to be approved by the voters of California, any increase in the Huntington Beach business license tax approved after January 1, 1995 would require a voter approval (within two years) in order to continue collecting the increase. Staff has identified the following alternatives to a tax increase which would generate additional income from the administration of the City's Business License Ordinance: 1. A $6 per Year Increase in the Business License Renewal Fee -- The MSI Study documented that the City costs for renewing annual licenses is $12 per license per year. Currently we are collecting half of this amount, or $6 per year. Since the City is allowed to collect from business license holders the cost of processing the business license renewal as a fee (as opposed to a tax), the increase of the fee to cover the full cost of the City's processing could be implemented and collected without being impacted by the "Right to Vote on Taxes" Initiative (if approved). Estimated new revenue = $96,000 (based on 16,000 licenses times $6). 2. New License Processing Fee -- The City currently charges $10 for initial license processing of a new business. A more typical processing fee is $25 or more. Again, the establishment of this fee increase would not be affected by laws regulating taxes. Estimated new revenue = $40,000 (based on 225 new licenses per month times $15). 0020443.01 08/08/96 1:49 PM INCREASE IN THE CITY'S ANNUAL BUSINESS LICENSE FEE 3. Enforcement Activities -- As indicated in the Budget Message, a minimum increase in business license revenue of $75,000 per year is anticipated as result of assigning one code enforcement employee on a full-time basis to monitor enforcement of the City's Business License Ordinance. In addition to implementing this new program, staff plans to obtain new computer software and data base access so that existing business license renewals can be checked against other data. Based on the experience of other cities, this is expected to generate new revenue from existing business license renewals. Increased collections are anticipated due to under reporting by some businesses of the number of employees in the business, and the identification of business that have not obtained a City Business License. The combination of the above three measures is anticipated to generate over $200,000 in new business license revenue per year. If the City Council would like to implement the above three potential new revenues as an alternative, or in addition to, the $20 per year business license tax increase, 'staff would need to amend the Public Hearing Notice for the September 3, 1996, Budget Public Hearing. ROBE RA Z Deputy City A ministr or RJF:skd Attachment 0020443.01 -2- 08/08/96 1:49 PM Business License Fee Survey as ...............*............ ............................................ . . .................... ................................................. ...............%...... ............. ....................................... .... ........... ........ ..... ........ ... . ............ ... . ......... ........ . ..... .... ......... .. ... .. .... ........................................... ....................................... ............................................................. .. ...................... ............................................................. . .. ...... ........................ ......................... ................................................... . . .... ..................... ........ ...................................... ................................ ........................:.:.J:.:.B1U ............... . ... ..... ......................... ..... ................. .................. .............. a................................... ............. ...: .............. .................. ................ . .. .. ........ . .................. ....... ....... ............ .. . ......... ... .... ... .... ..... ............... ... ....... .............. . .................. ................ I. .......... ............. .................................................................... ....................................................(................................. . ..................... ............................ .................*****................ .............................................. .................. ............................. . ........ ........... ...................... ... ........... ... ..... ..... ................ X. .... ..... ......... e.V .............. 4, OR", ..................... ............. ......................................................... ......................... t U................................ M.Wha ... .................****............. ....................... ........................................ .............................. ...... ..... .... .......... ...................................................... .::.:...:. .......................... ......................... ............ ................ . ................. .........................*,"'. ................................................................... . ................... ......................%. .......... ............. . ......................................X....... Huntington Beach # of Employees $81 $477 1.9% Anaheim Gross Receipts $87 $1,037 3.5% Costa Mesa Gross Receipts $25 $200 1.5% Fountain Valley # of Employees $50 $347 2.5% Irvine Flat $50 $50 2.2% Newport Beach # of Employees $103 3 $1,000 2.1% Santa Ana Gross Receipts $1003 1 $2,172 6.2% Westminster Gross Receipts $75 4 $2,750 1.8% Notes: 1. Includes annual renewal processing fee 2. Based on 100 employees or $10 Million receipts 3. Minimum increases each year based on CPI 4. Increases each year through 2001 based on approved schedule Source: 1996 Kosmont Survey of Municipal Business Fees, Taxes, and Economic Incentives Business License Revenue Survey Number of Total Business Average Revenue Business Licenses License Revenue Per Business License Huntington Beach 16,000 $1,450,000 $91 Anaheim 19,000 $3,200,000 $168 Brea 3,800 $471,000 $124 Buena Park 3,200 $535,000 $167 Costa Mesa 8,800 $776,000 $88 Cypress 4,000 $460,444 $115 Fountain Valley 5,800 $340,000 $59 Fullerton 10,300 $970,000 $94 Garden Grove 12,584 $1,428,000 $113 Irvine 18,400 $850,800 $46 La Habra 4,000 $290,000 $73 La Palma 737 $147,197 $200 Laguna Beach 4,000 $469,000 $117 Los Alamitos 1,400 $272,000 $194 Newport Beach 15,628 $900,000 $58 Orange 16,000 $1,664,000 $104 Placentia 3,711 $582,682 $157 San Clemente 4,300 $418,000 $97 San Juan Capistrano 2,500 $180,000 $72 Santa Ana 24,000 $5,515,000 $230 Seal Beach 1,113 $163,000 $146 Stanton 1,200 $183,000 $153 Tustin 5,500 $225,000 $41 Villa Park 375 $21,000 $56 Westminster 4,300 $132,500 $31 Yorba Linda 5,200 $338,681 $65 Average (Excluding Huntington Beach) 7,194 $821,292 $111 G:%BOB\BUDGE RREV ENUES\[BLICSVY.XLS]Fullerton Source: 1994 Survey by City of Fullerton 8/8/96 Business License Survey Processing Fees Annual Renewal (New)Application Processing Fee I Processin Fee Huntington Beach - Current $6 $10 -Alternative New Fee $12 $25 Anaheim $27 $27 Brea Buena Park Costa Mesa Cypress Fountain Valley Fullerton $10 $15 Garden Grove $10 $25 Irvine La Habra $5 $5 La Palma $30 $30 Laguna Beach $5 $5 Los Alamitos Newport Beach Orange $38 Placentia San Clemente $5 $10 San Juan Capistrano $10 $40 Santa Ana $20 $20 Seal Beach Stanton Tustin Villa Park Westminster $25 $75 Yorba Linda $25 G:\BOB\BU DG E'RR EV EN U ESgBLICSVY.XLS]Fees Source: 1994 Survey by City of Fullerton 8/8/96 c CITY OF HUNTINGTON BEACH INTER-DEPARTMENT COMMUNICATION HUNTINGTON BEACH TO: Michael T. Uberuaga, City Administrator FROM: Melanie Fallon, Director of Community evelopment Shari Freiderich, City Treasurer SUBJECT: BUSINESS LICENSE INSPECTOR DATE: July 12, 1996 Approximately three (3) years ago, Community Development was given the responsibility of business licen r e}'�ent. This change resulted from the retirement of Business License Inspector Joe Since that time, the Code Enforcement staff has been responsible for enforcing Title 5, Business Licenses and Regulations of the Municipal Code. The Code Enforcement staff also enforces zoning regulations, the Uniform Housing Code, and a variety of municipal codes. Code Enforcement receives approximately 450 cases per month. These cases are distributed to the Code Enforcement staff according to designated areas. Business license violations are assigned in the same manner. This procedure does not allow for proactive business license enforcement. Subcontractors, gardeners, service people and tenants within commercial businesses operate daily without a current business license. The Code Enforcement Division presently generates approximately $21,000 in revenue per year from both expired business licenses and new business licenses. It is our opinion that one (1) individual, working full-time as a Business License Inspector, can produce substantially more revenue than Code Enforcement currently generates. In addition, an aggressive reporting system would be set up whereby Building Inspectors, Fire Inspectors and Code Enforcement Officers would refer all violations to the Business License Inspector for follow-up. The Building Division will also require the submittal of a subcontractor's list prior to final inspection (requires code amendment). We feel that this organizational change will be more efficient and will generate substantially more revenue for the City of Huntington Beach. Therefore, due to the current budget constraints, we recommend that one (1) existing Code Enforcement Officer be dedicated full-time to business license enforcement. If approved, a quarterly report will be submitted informing you of our economic progress. We would like to meet with you on this subject as soon as possible. The Treasurer's office staff has met with the Newport Beach Revenue Officer regarding the enhancement of revenues since they have increased their business licenses in the last ten years from 7,800 licenses to 16,000 licenses. If we were able to add 1,000 new licenses at an average cost of$75, it would bring an additional $75,000. The City of Newport Beach has accomplished the increase by doing the following: They have contracted with several companies to merge current business license information with other agencies records to identify those customers who do not have a current business license. This has been done on a contingency basis at no out-of-pocket cost to the City. The exceptions identified could then be provided to code enforcement to check business licenses. In addition, we will investigate if some of the code enforcement costs can be added to our SB90 claim to be reimbursed by the State. Their code differs from ours in that theirs has a provision that it is initially an infraction with a provision to remedy, which if not rectified it then becomes a misdemeanor. Our code states it is a misdemeanor, which could be changed. They attempt to withhold permits without receiving subcontractor lists, a procedure which we have started to implement. We are in the process of developing an action plan to identify each issue and put a plan in place to implement solutions MF:SF:MS:lek (796=2) a H CITY OF HUNTINGTON BEACH INTER-DEPARTMENT COMMUNICATION HUNTINGTON BEACH TO: Honorable Mayor and City Council Members FROM: Melanie S. Fallon, Community Development Director " VIA: Michael T. Uberuaga, City Administr �/ `� ___' SUBJECT: REORGANIZATION OF CODE ENFORCEMENT REPORTING DISTRICTS DATE: August 12, 1996 On August 1, 1996, the Code Enforcement Reporting Districts were reorganized to accommodate the revised funding.programs for the Code Enforcement section. Two positions are now funded by Community Development Block Grant and under federal regulations, the staff may only work in enhancement areas. Code Enforcement Officer Martha Villasenor has been reassigned to the Florida-Utica Enhancement Area where she will concentrate her efforts on property maintenance and housing code violations. Code Enforcement Officer Peggy Flanagan has been assigned to the Oak-view Enhancement Area where she will also concentrate on housing and property maintenance violations. This position is funded by CDBG funds as well. Previously, Ms. Flanagan was responsible for all of the enhancement areas. The re-assignment to Oakview will enable Ms. Flanagan to concentrate her efforts on this unique area of the city. If the City Council approves the 1996-97 proposed budget, Code Enforcement Officer John Johnston will be assigned full-time to enforcing Title 5, Business License Regulations of the Municipal Code. The purpose of this change is to capture additional revenue from unlicensed vendors and contractors throughout the City. Mr. Johnston is working closely with the business license staff to ensure that all businesses within the City are currently licensed. We anticipate generating at a minimum one thousand new business licenses per year with this new program. Therefore. the Code Enforcement Program which used to have five officers to enforce all City- wide complaints (with the exception of the enhancement areas) will now have three officers to enforce the city-wide complaints. This will mean an increased response time to citizen complaints from approximately two (2) to three (3) days and will eliminate weekend enforcement by the Code Enforcement staff. 1 Reorganization of Code Enforcement Reporting Districts Page 2 I have attached two (2) maps for your review. These maps indicate graphically how the Code Enforcement Reporting Districts have changed over the past year due to funding and staffing levels. Current funding Source for:......C..........6de Enforcement Off cers Code Enforcement:Qfficer Fundm <Sg ource PeggyFlanagan CDBG :Ma rtha Vlllasenor CDBG Vicki Morgan (intern) OCTA(vehicle abatement): Arnold Samardich General Fund Anthony Duarte General Fund Mike Fuentes General Fund John Johnston usines License enforcement General Fund.:: If you have any questions regarding this matter, please do not hesitate to contact me. 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Lowenberg, Chief of Police FROM: Jim Moore, Police Budget & Research RE: Suggestions for increasing revenue Bob Franz asked Us to further evaluate these four suggestions by the Department for increasing revenue and if deemed appropriate, implement them at this time. Our analysis and recommendations are as follows: Charges for Reports Traffic reports range in price from $15 for a counter report to $35 for a minor traffic accident report to S65 for a major accident report. Crime reports in Records are only $1.50 per page, tip to a maximum of$5. Our original suggestion was to raise the charge for crime reports to a more appropriate level to meet our costs and to reduce the charge for minor traffic accident reports from $35 to a more affordable amount. Through our study, we determined that the charge for a minor traffic accident report was reasonable due to follow-up investigation costs that are often required. But the charge for a crime report should be brought up to a fixed amount comparable to the Traffic counter report of $15. If this is initiated, we could expect to generate $16,000 in additional annual revenue. Transferring DUI Fees from Fines to Vehicle Release Fees In the past, lab fees for DUI cases were collected from a court fine pool whether or not the money was collected from the individual involved. The fine per conviction or plea was $50 to be reimbursed to the agency doing the analysis. These fines for DUI cases represented an income of$20,531 in 1994 and $30,674 in 1995. On March 1, 1996, the law changed so-that the only fines reimbursed to the department were those that were collected directly from the individuals based on their ability to pay. So in January and February of 1996, we received $5,635 under the old law. For the four month period of March through June 1996, fines dropped to $1,316 (none in March) under the new system. With the new system, we can expect approximately $5,264/year which would mean a net loss of$25,000. During 1994, we analyzed 681 DUI cases and 572 in 1995. For the first six months of 1996, we analyzed 401 cases which if extrapolated, would mean a possible 802 or more for 1996, since the heavier months are in October, November and December. The Department can charge the actual cost of this analysis and related expenses of approximately $70 per case. To insure the collection of most of these costs, we recommend that this lab fee be added to the vehicle release fee. If 50% of the DUI cases result in impounding a vehicle and of those, 90% actually pay to release their vehicle, the Department could potentially receive $38,000 in revenue at the $70 rate. Charge:Convicted Individuals Our Costs for Booking Government Code Sections 29550 - 29551, called the "Pringle Bill", allows Judges to order convicted persons to pay back cities the costs associated with booking during their arrest as part of a condition of probation. These charges range from $176 if booked at Orange County Jail or the normal charge of$150 when booked into our own jail.. Unfortunately, continuing probation for this charge becomes a bigger burden on the "system" than the importance.of reimbursement to the cities. As a result, this condition of probation is usually dropped. The burden of collection than falls upon the cities. One study from Anaheim found that it would cost more to administer and collect this fee than its face value of$150! Huntington Beach would face the same dilemma. If little or no efforts to recover these charges are made, only a small percentage will be collected and probably decline further over time. Based upon the assumption that we do not actively pursue these recovery charges, a very rough estimate is that Huntington Beach could receive a maxinnnn of$30,000 the first year from individuals fearful that probation could be continued. Using a 900 Telephone Number for Reporting Alarms Riverside County developed a plan for reducing false alarms and to bring in revenue by requiring alarm monitoring companies to report,an activated alarm using a 900 telephone number into the police agency. For each reported alarm, Riverside would receive $5 in telephone charges from the alarm monitoring company. We estimate that Huntington Beach could receive as much as $36,OOO the first year if this program was implemented. However, Riverside County has placed this controversial plan on hold because of the overwhelming objection by the local chapter of the Alarm Association since a false alarm ordinance is already in place. Also, a court injunction has been filed by the association and a decision is pending. I suggest that we implement the first three revenue proposals but postpone any decision on using a 900 telephone number for reporting false alarms pending litigation brought against Riverside County. This will represent a total of$84,000 in revenue. cc: Michael Uberuaga, City Administrator Robert Franz, Deputy City Administrator 2 jig. CITY OF HUNTINGTON BEACH CITY COUNCIL COMMUNICATION NUNIMTON MACH TO: Honorable Mayor and City Council LO� fie' FROM: Ralph Bauer, Mayor Pro Tempore � - DATE: August 16, 1996 SUBJECT: H Item -Additional Thoughts on the Budget I would like to request this memo be placed on the August 19, 1996 Council Agenda as an H item. As the budget process has progressed some concerns have arisen which I believe can, in part, be addressed by discussing the issues listed below. I request the City Council to give consideration to the following budget related items and informally give the City Administrator direction as the Council sees fit. The issues fall into two categories: A. Items of financial benefit in the very near future B. Items of a more general and philosophical nature which could be addressed in the next fiscal year Items of Immediate Benefit 1. The Library-Cultural Enrichment fee should go 100%to displacing General Fund expenses. This means adding $246,000 to the General Fund. 2. All CDBG monies being returned for re-programming for the 1996-1997 fiscal year should go towards replacing General Fund monies in services eligible for CDBG grants. The Council should be provided with this information as appropriate. 3. Request staff to prepare a report on cost of special events vs revenues and present the City Council with some policy options. 4. Institute the State Park Water Surcharge ($12,000). 5. In the near fiiture review and update existing and new M.S.I. fees and present these results to the City Council-at a study session. T�l H Item August 16, 1996 Page -2- Items for Review in the Next Fiscal Year 1. This year's preliminary budget process could be improved: For example, discussions of certain specific proposals for expense reductions continued after it was apparent that a majority of the Council did not support them. A process for early straw votes should be in place to avoid excessive public debate concerning things like Neighborhood Watch, DARE, Senior Citizen services. 2. Discuss with the Council the potential implementation of charges for the following items: A. Increased beach parking fees B. False 911 calls C. Fire inspection and fire code enforcement D. Status of legislation for technical fee E. Use of civilian helicopter pilots F. Consolidation of vehicle maintenance G. Consolidation of television production I. Those items mentioned as possible revenue in Bob Franz's memo dated 8/7/96 3. Bring to the Council a summary of real property eligible for sale and a process for such sale, so that when the market has improved we can move quickly to sell. The proceeds from that can be used for capital projects or equipment. The interest can be used to support the General Fund. 4. Return to the Council with a program for dealing with all deferred maintenance. For example, the deferred maintenance on our pier and beach is substantial. We can ill afford to continue our current course. The use of cash flow from the paid off beach improvement bonds for general fund purposes rather than using those funds for continued beach improvement was not a good long term strategy. The beach and pier are our most important asset. Thus a maintenance and capital investment program funded by increased beach parking and concessionaire revenues is essential. 5. Re-evaluate all contracts for increased cash flow to the city such that when they are renewed we will be ready with a new proposal. For example, our Bus Shelter Program provides less income than those in neighboring cities. When these contracts expire in 1998 a more favorable financial contract needs to be executed. The City Administrator, rather than the Treasurer, should negotiate the contracts. H Item August 16, 1996 Page -3- 6. In the next year a proposal should be brought to the Council for dealing with our !infrastructure replacement costs. This represents an unfunded liability. 7. In the next year a repayment proposal should be brought the Council for replenishing, over time, all of those special funds which fund special categories from which money has been taken to support the General Fund. This represents unfunded liability 8. It is requested that the Treasurer pursue a more aggressive billing and collection procedure. Further, an appropriate penalty scheme be developed for non-payment of fees, such as the business license fee. I believe this is already taking place. 9. A budget warning system should be in place to catch budget overspending early to avoid major reployment of departmental resources mid-year, such as occurred in the Police Department this year. 10. In a recent Wall Street Journal Article shared with the City Administrator, a number of functions were mentioned which could be carried out by lower cost contract employees. It is requested that this type of"privatization" be investigated and where appropriate bring to the City Council recommendations for instituting such programs. It should be mentioned that this technique has proven successful in lowering the cost of our ambulance program. I believe a Council committee is addressing this issue. 11. It should be noted that the great corporations of America(i.e. Dupont, IBM, Johnson and Johnson, American Telephone and Telegraph, and Shell Oil) all pay a competitive wage to attract the best people. To that extent Huntington Beach is unable to do this is the extent to which we will be unable to attract the best employees. A non- competitive salary is an unfunded liability. In closing, I should like to emphasize some economic realities. 1. The property tax and sales tax together($43 million) do not pay for our safety services ($50 million), other sources of income must be found to pay for these and all others the city provides. Frankly, when people say they pay their taxes and deserve a certain service, my response has been that the property and sales taxes they pay don't even fund the safety services we provide, let alone other services they would like. The other services are of course funded by a myriad of other income sources. H Item August 16, 1996 Page-4- 2. The city has embarked on a major program for attraction of both manufacturing and ;retail enterprises. Over the next few years we will attempt to raise in excess of$10 million ,of new revenue. In the next few years however, until this revenue is in hand, other sources of income, such as user fees, must be instituted. 3. If the average assessed valuation in Huntington Beach is $400,000 a new homeowner will pay about $4,000 annually in property tax. approximately 19% of this comes to the city. The average annual income to the city from property tax is thus $760 and the monthly income is $63. If this income is divided equally among the 12 direct and indirect services provided by the city the monthly average cost per service to the homeowner based on property tax is $5.25. There is no better bargain than that. If one includes sales tax and utility taxes the cost to the property owner is somewhat higher. 4. Cities are a service delivery system much like MacDonalds or Bank of America. As such they tend to be labor intensive. If we cut people, the service level will decline. To expect the same level of service with fewer people is unrealistic. The people of Huntington Beach must recognize that if there are fewer employees service levels will decline. 5. One measure of efficiency is the number of people required to deliver a service. This is also a measure of productivity. Huntington Beach has one of the lowest, if not the lowest, number of employees per capita of the hundred largest cities of the United States. Since we provide nearly all the services any city does, and since in a number of instances these services have received a high rating, Huntington Beach employees are efficient and productive in providing quality services when compared with 99 of our significant competitors. 6. It has been noted in private industry employee surveys, that although salary may not a always be the number one factor in employee morale, it is nearly always at least number two. To provide quality service employees morale must be high. Thus, a fair wage is important in providing quality service. In private industry you get what you pay for. It is no different in the public sector. RB:paj xc: Mike Uberuaga, City Administrator Pat Dapkus, Management Assistant (copy for City Clerk) Page 10 - Council/Agency Agenda - 08/19/96 H-1. Submitted By Council/Agency Member Dave Garofalo: H-2. Submitted By Council/Agency Member Tom Harman: H-3. Submitted By Council/Agency Member Vic Leipzig: H-4. Submitted By Council/Agency Mayor Pro Tern Ralph Bauer: (City Council) Fiscal Year 1996/97 City Budget (320.20) Communication from Councilman Bauer regarding the fiscal year 1996/97 City Budget. [(1) Council Liaison Committee to HRB and CAB to bring a policy to Council regarding Community Development Block Grant funds -- 7-0 (Straw Vote) (2) Continue for 30 days the issue of establishing a policy about special events so that Council understands budget implications (3) Report to be prepared regarding Instituting a State Park Water Surcharge of$12,000 to put toward deferred maintenance on pier (4) MSI Fee report to be made in near future (5) Projects such as DARE and Senior Services Budget and Neighborhood Watch program budgets to receive early straw votes early in budget process next year (6) Staff report regarding need to deal with city wide deferred maintenance requested] H-5. Submitted By Council/Agency Mayor Dave Sullivan: H-6. Submitted By Council/Agency Member Shirley Dettloff: H-7. Submitted By Council/Agency Member Peter Green: (10) NOTICE OF PUBLIC I-IEARING CITY OF HUNTI\GTON BEACH Vollc e of Puhlic Hearing on lie Proposed City Bw gel fnr FY 1996,97 Notice is hereby LI%cn that a public hearing %\ill be held by the Cite Council of the Cite of Huntington Beach. in the Council Chambers of the Civic Center. Huntington Beach located at 2000 IN-lain Street. at the hour of 7:00 PM, or as soon as possible thereafter on Tuesday•, the 3th of September; 1996 for the purpose of considering the Fiscal Ycar 1996/97 Cite budget. The proposed budg,:t for FY 1996/97 totals S 199;394.017 including General Fund Expenditures proposed at S98,066822. The complete; proposed bud«et can be reviewed by the public from 8:00 ANM to 5:00 P\4, Mondav throuLdi Fridav in the City Clerk's Office at CAN! Hall; 2000 Main Street. Huntington Beach. Copies of the proposed budget are also available for public review at the City's Central Library• located at 7111 Talbert A\cni!c (Goldcmvest St. and Talbert Ave.), and all branch libraries. All interested persons (especially senior citizens and handicapped individuals) are invited to attend the budget hearing to c.xl)ress their opinions for; or aeainst; the proposed budget with �tirirten or oral comments. \V'ritten conunumcntions to the Cite Council also may be mailed to the Cite Clerk. Further information may be obtained f om the Office of the Cite Clerk. 2000 Bain Street Huntington Beach, CA. 92648 - Phone = (714) 5--,6-.�227 v The City of Huntington Beach endeavors to accpnu»odate persons of handicapped status in the admission or access to; or treatment or crop►ovment in. Cite programs or activities. The Cite of Huntington Beach is an equal oppertunit\ cmploycr. Dated S/16/96. Cite of Huntington Beach bN?: Connie Brockway, City Clerk 2000 ;Hain St. Huntington Beach, CA 926.38 Telephone: (714) 536-5227 Notice to Cite C'!.rk This cope to nut in ne\\s print on 8/22/96 in both display forniat and in the legal section. _ a w J 1 j • J� CITY OF HUNTINGTON BEACH INTER-DEPARTMENT COMMUNICATION HUNTINGTON BEACH TO: Honorable Mayor and City Councilmembers FROM: Connie Brockway, City Clerk SUBJECT: Communication From Employees Of The Public Works Department Regarding Elimination Of Construction Manager Jack Miller DATE: August 19, 1996 The staff of the public Works Department has requested that the City Council read their attached communication regarding the elimination of the Construction Manager and their reasons for requesting that Council re-examine the decision. cc: City Administrator 96-1851n.doc A 8/14/96 Honorable Mayor and City Council Members: We in the Public Works Engineering Division,wish to address the pending layoff of Construction Manager Mr. John Miller. Due to the up-coming budget for 1996-97, some departments have been requested to reduce their staff in order to meet the budget. Mr. Miller's position is being eliminated due to this staff reduction. We would appreciate it if the City Council would re-examine the elimination of this valued Construction Manager. Mr. Miller has 35 years of experience and knowledge in Public Works design, construction, and contract administration. During his 35 year career, he has saved our city untold thousands of dollars in Public Works construction costs. People in all areas of the Engineering Division rely on Mr. Miller's expertise. He has continually demonstrated skill and professionalism in mediating effectivly the disputes between the City and Contractors on Public Works projects. In the last 4 years we, like many departments, have had to endure personnel reductions, including an over 50% reduction in our Inspection and Survey staffs. Mr. Miller has been instrumental in helping us to maintain an acceptable level of service to the public in spite of these reductions. Mr Miller has been involved in virtually every major project in the City in the last 30+years. The most notable being the reconstruction of the new Pier. He skillfully led that project from the beginning to it's very successful conclusion. Again, his dedication and knowledge saved the City many thousands of dollars and finished the project on time in spite of the general contractor filing for bankruptcy in mid-project. We would appreciate your consideration in re-examining the decision to eliminate Mr. Miller's position. The city needs the leadership and expertise he holds as Construction Manager. Mr. Miller's 35 year career and dedication has been a valuable asset to the City of Huntington Beach, and should not be over-looked. We sincerely appreciate your consideration in this matter. Thank you, Q� Your Public Works,Engineering Staff: c ' G� Page #2 - DPW Communication - RE : Elimination Of Construction Manager Position i, G� s I1.) ��, - � Council/Agency Meeting Held:_ 8_119194, ❑ Deferred/Continued to: jx ud'Approved Conditionally Ap rovedDenied ity Clerk's Signa e 7—p Council Meeting Date: 8/19/96 Department ID Number: as 96-040 CITY OF HUNTINGTON BEACH REQUEST FOR COUNCIL ACTION SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS SUBMITTED BY: MICHAEL T. UBERUAGA, City Administrat PREPARED BY: Robert J. Franz, Deputy City Administrato SUBJECT: Public Meeting Announcement of Pending Tax Increa Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment Al- Statement of Issue: A Business License Tax increase has been proposed as a part of the 96/97 budget process. The Government Code requires that specific public notifications take place before enacting tax increases. Funding Source: N/A Recommended Action: The Mayor should announce that a Public Hearing is scheduled on September 3, 1996 for the purpose of considering an increase to the City's Business License Tax. Alternative Action(s): Do not make the announcement in which case the public hearing will not be in compliance with State Laws. REQUEST FOR COUNCIL ACTION MEETING DATE: 8/19/96 DEPARTMENT ID NUMBER: as 96-040 Analysis: This announcement (at a public meeting) is required along with other public notices in print media to provide information to the public on proposed increases to taxes. Print media announcements have been made and will continue to published in the coming weeks pursuant to the Code. Environmental Status: Attachment(s): Page City Clerk's - TAXMEET.DOC -2- 08/07/96 4:42 PM CITY OF HUNTINGTON BEACH INTER-DEPARTMENT COMMUNICATION HUNTINGTON BEACH TO: Michael T. Uberuaga, City Administrator FROM: Melanie S. Fallon, Community Development Director 1� SUBJECT: Proposed MSI Fee Increases DATE: 8/20/96 Prior to reviewing all our MSI Service Centers we have reviewed our current fee§ and have identified some of the centers that are being charged substantially less than the cost of providing the service. The attached list shows those services that we are proposing to increase. The first items that are identified as S-007 through S-031 involve planning processes that are currently recovering 68% to 74% of the cost to provide the service. We are showing an increase to a 90% recovery using the current MSI criteria. These items will again be reviewed when the MSI Study is updated by the first of next year. The current Planning Processing Fee is meant to cover a portion of our counter services. This fee is shown as increasing from 8% to 10% of the Building Inspection Fee. Even at the increased rate this will support about 40% of a fully burdened Associate Planner. The Building items including S-061 through S-069 involve only one fee increase. This would be increasing our minimum inspection fee for all permits from $20 to $32.50. We have found that it takes a minimum of 30 min. for an inspector to travel to a home or business and perform an inspection. In addition, we many times have to return to the same site to review changes. The cost to the City far exceeds the $20 now being charged and $32.50 represents the fully burdened MSI cost. The last fee is simply an increased cost of issuing permits at our counter due to the increased complexity of the permit process. In summary, the majority of the fees are attached to the issuance of each permit. This will not single out any of our users, in fact the increase would be equitably distributed to all our users. If the fees are adopted at the September 16 Council meeting then the fee will be applied on November 15 or 60 days after this action. Attachment: Proposed MSI Fee Revisions cc: Ray Silver, Assistant City Administrator Robert Franz, Deputy City Administrator Ross Cranmer, Building & Safety Director Howard Zelefsky, Planning Director �. ib Proposed Fee Revisions---Prior to Complete Update Building and Planning Related Fees Current Recommended Estimated MSI # Service Center Units/Year Fee New Fee New Revenue S-007 Tent.Tract Map Review 9(8 lots ea.) $1,500+$11/lot $1,800 +$13/lot $2,716 S-016 Cond. Use Rev.-PC 9 $2,375 $2,850 $4,275 S-018 Cond. Use Rev.-PC (other) 30 $1,700 $2,025 $9,750 S-031 Envir.Assmnt Study 20 $870 $1,045 $3,500 N/A Planning Plan Rev. 1,250 8% Build. Insp. 10% Build. Insp. $12,269 S-061 Build. Plan Rev. 1,250 N/C N/C $14,375 S-062 Plumb. Plan Rev. 50 N/C N/C $250 S-063 Electrical Plan Rev. 170 N/C N/C $1,530 S-064 Mechanical Plan Rev. 70 N/C N/C $630 S-066 Building Insp. 4,600 $20 min. $32.50 min. $57,500 S-067 Plumb. Insp. 1,100 $20 min. $32.50 min. $13,750 S-068 Elec. Insp. 1,550 $20 min. $32.50 min. $19,375 S-069 Mech. Insp. 1,150 $20 min. $32.50 min. $14,375 N/A Permit Issuance 8,400 $20 $25 $42,000 Estimated Annual Revenue $196,295 G:\BU DG Ef\C HA RTS97\[M SI-2.XLS]Fees 8/21/96 r CITY OF HUNTINGTON BEACH INTER-DEPARTMENT COMMUNICATION HUKINGTON BEACH TO: Michael T. Uberuaga, City Administrator FROM: Melanie S. Fallon, Community Development Director A7%-ze. e-= *—'. SUBJECT: Proposed MSI Fee Increases DATE: 8/20/96 Prior to reviewing all our MSI Service Centers we have reviewed our current feep and have identified some of the centers that are being charged substantially less than the cost of providing the service. The attached list shows those services that we are proposing to increase. The first items that are identified as S-007 through S-031 involve planning processes that are currently recovering 68% to 74% of the cost to provide the service. We are showing an increase to a 90% recovery using the current MSI criteria. These items will again.be reviewed when the MSI Study is updated by the first of next year. The current Planning Processing Fee is meant to cover a portion of our counter services. This fee is shown as increasing from 8% to 10% of the Building Inspection Fee. Even at the increased rate this will support about 40% of a fully burdened Associate Planner. The Building items including S-061 through S-069 involve only one fee increase. This would be increasing our minimum inspection fee for all permits from $20 to $32.50. We have found that it takes a minimum of 30 min. for an inspector to travel to a home or business and perform an inspection. In addition, we many times have to return to the same site to review changes. The cost to the City far exceeds the $20 now being charged and $32.50 represents the fully burdened MSI cost. The last fee is simply an increased cost of issuing permits at our counter due to the increased complexity of the permit process. In summary, the majority of the fees are attached to the issuance of each permit. This will not single out any of our users, in fact the increase would be equitably distributed to all our users. If the fees are adopted at the September 16 Council meeting then the fee will be applied on November 15 or 60 days after this action. Attachment: Proposed MSI Fee Revisions cc: Ray Silver, Assistant City Administrator Robert Franz, Deputy City Administrator Ross Cranmer, Building & Safety Director Howard Zelefsky, Planning Director Proposed Fee Revisions---Prior to Complete Update Building and Planning Related Fees Current Recommended Estimated MSI# Service Center Units/Year Fee New Fee New Revenue S-007 Tent.Tract Map Review 9 (8 lots ea.) $1,500+$11/lot $1,800+$13/lot $2,716 S-016 Cond. Use Rev.-PC 9 $2,375 $2,850 $4,275 S-018 Cond. Use Rev.-PC (other) 30 $1,700 $2,025 $9,750 S-031 Envir.Assmnt Study 20 $870 $1,045 $3,500 N/A Planning Plan Rev. 1,250 8% Build. Insp. 10% Build. Insp. $12,269 S-061 Build. Plan Rev. 1,250 N/C N/C $14,375 S-062 Plumb. Plan Rev. 50 N/C N/C $250 S-063 Electrical Plan Rev. 170 N/C N/C $1,530 S-064 Mechanical Plan Rev. 70 N/C N/C $630 S-066 Building Insp. 4,600 $20 min. $32.50 min. $57,500 S-067 Plumb. Insp. 1,100 $20 min. $32.50 min. $13,750 S-068 Elec. Insp. 1,550 $20 min. $32.50 min. $19,375 S-069 Mech. Insp. 1,150 $20 min. $32.50 min. $14,375 N/A Permit Issuance 8,400 $20 $25 $42,000 Estimated Annual Revenue $196,295 G:\BUOGEl\CHARTS97\[MSI.2.XLS]Fees 8/21/96 r CITY OF HUNTINGTON BEACH rk7o INTERDEPARTMENTAL COMMUNICA TION TO: Honorable Mayor and City Council FROM: Robert J. Franz, Deputy City Administra SUBJECT: Analysis of Self Insurance Funds ' DATE: August 22, 1996 The 1996/97 Budget recommends increased charges to the General Fund for some of the City's internal service funds. Following is a summary original and revised budget recommendations: 1996/97 General Fund Budget Original Recommendation Revised Recommendation 1995/96 General Recommended General Fund Fund Fund Cost Increase Total Cost Recommended Total Cost Increase Liability Self Insurance $2,300,000 $ 1,200,000 $ 3,500,000 $800,000 $3,100,000 Worker's Compensation 1 $ 1,421,000 $ 470,000 $ 1,891,000 $470,000 $ 1,891,000 Supplemental Retirement 1 $ 450,000 $ 450,000 $ 900,000 $350,000 $ 800,000 Following is an analysis of each of the above 3 internal service funds which describes the need for increased funding. Liability Self Insurance Fund Background -- As is the case with Cities throughout California and most of the United States, the City self insures a large portion of the cost related to paying tort claims that are filed against the City. The first $1,000,000 of costs related to any claim is self insured. Judgments or settlements above $1,000,000 are covered through the Big Independent Cities Excess Program (BICEP), a Joint Powers Authority of 5 cities that provides additional claims coverage up to $25 million. The City has set up a Liability Self Insurance fund to finance its costs for the first $1,000,000 self insurance retention, BICEP annual premiums, commercial insurance costs for property insurance, earthquake insurance, specialized insurance needs and for claims management. Analysis of Self Insurance Funds Costs and Revenues -- As indicated in Exhibit D, total costs for this fund increased significantly in fiscal years 1991/92 through 1993/94 before declining in the past two fiscal years. General Fund transfers to the Liability Fund were reduced during these years, however, due to across the board General Fund budget reductions (see Exhibit C). These reductions were considered prudent (at the time) because of the existence of an adequate reserve in the Liability Fund (see Exhibit A) and the expectation that premiums, settlements, and legal costs would return to normal levels. Instead, numerous California and National natural disasters (Los Angeles earthquakes, fires in Laguna Beach/Malibu, hurricanes, floods) led to City property insurance premiums increasing from $151,318 in 1991/92 to $686,325 in 1994/95 (over 400%). In addition, several lawsuits resulted in unanticipated payments of over $100,000 each. Legal defense costs increased from $243,323 in 1990/91 to $1,323,818 in 1993/94 (15 month fiscal year) before declining in the past two years. Fundinq Source/Reserves -- The General Fund is the only annual transfer to the Liability Self Insurance fund. (The General Fund collects overhead/administrative costs from other enterprise funds such as the Water Fund, Emerald Cove, Fire Med, Central Net JPA, etc., to reimburse the City for its insurance costs.) Since the majority of the City's liability costs are related to street/road cases and police related cases, most of the liability insurance costs are General Fund related. Liability fund cash reserves have declined to an estimated $4,800 at the end of the current fiscal year. The City's outside auditors (KPMG Peat Marwick) have commented on the inadequacy of our self insurance reserves as part of their audits the past 2 years. The auditors met with the City Council in a study session in 1995 where the need for reserves was discussed. The annual audit also documents the amount of needed reserve. The reserve amount recorded in the audit is based on a review of all claims that have been filed against the City, a calculation of the estimated cost to defend the claim, and, where there is evidence of some potential City liability, an estimate of that liability. These estimates are prepared by claims adjusters independent of City staff. For the Liability Self Insurance Fund, the estimated future costs on September 30, 1995 was $4,082,000 and is anticipated to be a comparable amount on September 30, 1996. Since the City's Liability Fund cash reserve is estimated to total $4,800 on September 30, 1996, the auditors are expected to again point out the deficiency as part of their audit for 1995/96. 0020723.DOC -2- 08/28/96 9:20 AM Analysis of Self Insurance Funds Budget Plans/Needs -- The recommended budget for expenses for 1996/97 in the Liability Fund are $2,466,679. The (original) recommended transfer from the General Fund was $3,500,000. This would have resulted in a reserve of about $1,000,000 at the end of 1996/97. The revised budget recommendation would transfer $3,100,000 resulting in an estimated reserve of $638,121 at the end of 1996/97 (see chart below). Following is a chart projecting 1996/97 and four future years planned Budgets, assuming a beginning cash balance of$4,800: Liability Self Insurance Budget Plan: 1996/97 - 2000/01 Estimated Estimated Beginning Revenue Estimated Ending Future Fiscal Year Cash (General Expenses Surplus Cash Claim Fund Cost) Costs 1996/97 $ 4,800 $3,100,000* $2,466,679 $633,321 $ 638,121 $4,000,000 1997/98 638,121 3,300,000 2,659,000 641,000 1,279,121 4,000,000 1998/99 1,279,121 3,630,000 2,869,000 761,000 2,040,121 4,000,000 1999/00 2,040,121 1 3,993,000 3,100,000 893,000 2,933,121 4,000,000 2000/01 2,933,121 1 4,392,000 3,350,000 1,042,000 3,975121 4,000,000 *Revised Budget Recommendation for 1996/97 Worker's Compensation Self Insurance Fund Background -- The City also self insures the cost related to paying claims that are filed as the result of work related employee injuries. The medical and temporary/permanent disability payments are mandated by State law. Costs and Revenues -- Total costs for this fund have been fairly constant, although increasing. General Fund transfers to the Worker's Compensation Fund were reduced due to across the board General Fund budget reductions. As with Liability Self Insurance, these reductions were considered prudent (at the time) because of the existence of a fairly large reserve in the Worker's Compensation Fund. Worker's Compensation fund reserves have declined to an estimated $246,032 at the end of the current fiscal year. The annual transfer from the General Fund needs to be increased to cover annual expense estimates and restore the reserves. Funding Source/Reserves -- The General Fund finances the primary annual transfer to the Worker's Compensation Self Insurance fund. Enterprise funds such as the Water Fund, Fire Med, Central Net JPA, etc. also pay directly to the Worker's Compensation Fund based on their number of employees and payroll. The City's outside auditors (KPMG Peat Marwick) comments referred to under the discussion of the Liability Self Insurance Fund apply to Worker's Compensation also. For the Worker's Compensation Self Insurance Fund, the estimated future costs 0020723.DOC -3- 08/28/96 9:20 AM 1 Analysis of Self Insurance Funds amount on September 30, 1995 was $5,293,000 and is anticipated to be a comparable amount on September 30, 1996. Since the City's cash reserve is estimated to total $246,032 on September 30, 1996, the auditors are expected to again point out the deficiency as part of their audit for 1995/96. Budget Plans/Needs -- The recommended budget for expenses for 1996/97 in the Worker's Compensation Fund are $2,254,686 compared to the recommended transfer from the General Fund of $1,891,000. Transfers from Other Fund to the Worker's Compensation Fund cover the balance of the costs. The budget recommendation has not changed for Worker's Compensation, increasing total funding by $600,000, including a $470,000 increase from the General Fund. Following is a chart projecting 1996/97 and four future years recommended Budgets, assuming a beginning cash balance of$246,032: Worker's Compensation Budget Plan: 1996/97 - 2000/01 Fiscal Year Revenue Estimated Estimated Beginning (Total Estimated Ending Future Cash Transfers) Expenses Surplus Cash Claim Costs 1996/97 $ 246,0-32 $2,200,000 $ 2,254,686 $ 54,686 $191,346 $5,200,000 1997/98 191,346 2,450,000 2,319,846 130,154 321500 $5,200,000 1998/99 321,500 2,700,000 2,382,714 317,286 638,786 $5,200,000 1999/00 638,786 3,000,000 2,447,286 552,714 1,191,500 $5,200,000 2000/01 1,191,500 3,300,000 2,513,852 786,148 1,977,648 $5,200,000 Supplemental Retirement Benefit Fund Background -- The City also self funds the cost related to paying benefits to retirees required by MOU's with employee organizations. Funding Source/Reserves -- Total costs for this fund have increased in recent years as the number of retirees has increased. General Fund transfers to the Supplemental Retirement Fund have increased as the costs have increased. Beginning in 1995/96 transfers to the Fund are based on payroll, therefore all funds are charged proportionately based on the number of employees and payroll. The Fund has never had a reserve for payment of future retirement benefits. The benefit payment program for this fund was established in the early 1980's on a "pay-as- you-go" approach to payment of benefits. Under this approach amounts are budgeted each year to pay the benefits for that year. The alternative approach, "actuarial funding" of the benefit, requires the transfer of funds each year to a Supplemental Retirement Fund based on an actuarially determined amount. There are no legal or audit requirements regarding the method of funding used by the City. The City's 0020723.DOC 4- 08/28/96 9:20 AM Analysis of Self Insurance Funds outside auditors determine the amount of unfunded liability each year. For September 30, 1995 the unfunded liability was $13,643,668. Unlike Worker's Compensation and Liability, the auditors do not record the Unfunded Liability as a reduction to the Fund Balance in the Supplemental Retirement Fund. This is due to the optional policy approaches to funding the future costs ("pay-as you-go" vs. actuarial funding). Budget Plans/Needs -- The recommended budget for expenses for 1996/97 in the Supplemental Retirement Fund is $680,000. The General Fund transfer was proposed to be increased from $450,000 to $900,000 in 1996/97. The revised budget recommendation is to transfer $800,000 form the General Fund. Transfers from other Funds represent the balance of the total shown below. Following is a chart projecting 1996/97 and four future years recommended Budgets, assuming a beginning cash balance of $0: Supplemental Retirement Budget Plan: 1996/97 - 2000/01 Fiscal Year Revenue Estimated Estimated Beginning (Total Estimated Ending Unfunded Cash Transfers) Expenses Surplus Cash Liability 1996/97 $ 0 $ 1,000,000* $ 680,000 $ 320,000 $ 320,000 $13,200,000 1997/98 320,000 1,870,000 680,000 1,190,000 1,510,000 $12,000,000 1998/99 1,510,000 1,900,000 714,000 1,186,000 2,696,000 $11,000,000 1999/00 2,696,000 1,950,000 775,000 1,175,000 3,871,000 $10,000,000 2000/01 3,871,000 i 2,000,000 863,000 1,137,000 5,008,000 $ 9,000,000 *Revised Budget Recommendation for 1996/97 Summary The 3 Self Insurance Funds described in this memorandum have depleted their cash reserves. In order restore the reserves, significant increases in General Fund transfers is required. Staff has developed a multi year approach to restoring the reserves, beginning in Fiscal Year 1996/97. RJF:skd Exhibit A: Self Insurance Funds - Cash Reserves B: All Internal Service Funds - Cash Reserves C: All Internal Service Funds - Historical and Planned Revenues D: Liability Self Insurance Costs - 1990/91 to 1996/97 0020723.DOC -5- 08/28/96 9:20 AM Exhibit Self Insurance Funds - Cash Reserves Liability and Worker's Compensation Funds $10,000 $9,413 $9,051 $9,000 $8,264 $8,000 $7,237 $7,000 ' 5 599 $5,960 $5,953 y $6,000 = 1996/97 Nl Recommended o $5,000 Budget 3 562 "9. $4,000 :::: .......... $3,000 $1,755 $2,000 ii1•:i. $20 : : <x, $0 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 1986-1995 totals per Annual Audit Fiscal Year Planned INTHIST.XLS Self Insurance Funds 8/28/96 Exhibit B All Internal Service Funds - Cash Reserves $18,000 FRetiree ental Retirement • edical $16,000 ll Equipment Replacement ❑Self Insurance Funds $14,000 1996/97 $12,000 >; Recommended <> Budget N c $1 Q 000 =>wt< N O w?" O t c $8,000 :.....: 6 000 ....... $2,000 = ' $0 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 1986-1995 totals per Annual Audit Fiscal Year Planned INTHIST.XLS Internal Service Funds 8/28/96 Exhibit C All Internal Service Funds Historical and Planned Revenues Internal Service Fund Revenue Insurance Equipment Retiree Retiree Fiscal Grand ran e ........................... Year Total Total Liability WC Medical Replacement Medical Supplement Actual 1988 $9,477,421 $7,559,421 $3,077,750 $2,444,042 $2,037,629 $1,918,000 $0 $0 Actual 1989 10,162,440 7,661,734 2,984,288 2,867,446 1,810,000 1,880,000 620,706 0 Actual 1990 12,563,234 8,563,386 2,822,265 2,868,175 2,872,946 2,540,000 1,275,764 184,084 Actual 1991 11,651,147 8,141,505 2,076,783 2,772,146 3,292,576 2,476,000 623,064 410,578 Actual 1992 11,595,751 7,826,101 1,842,891 2,333,499 3,649,711 2,853,407 658,951 257,292 Actual 1993 11,252,170 7,725,039 1,631,966 2,439,067 3,654,006 2,470,870 781,139 275,122 Actual 1994* 13,285,449 9,665,882 2,675,757 2,171,613 4,818,512 2,251,000 1,077,653 290,914 Actual 1995 11,526,694 8,131,672 1,657,558 1,985,527 4,488,587 2,300,000 710,468 386,554 Budget 1996 12,066,000 8,602,000 2,360,000 1,850,000 4,392,000 1,956,000 880,000 630,000 Recommended 1997 14,312,000 9,842,000 3,100,000 2,200,000 4,542,000 2,590,000 880,000 1,000,000 Planned 1998 15,657,000 10,392,000 3,300,000 2,450,000 4,642,000 2,715,000 880,000 1,870,000 Planned 1999 16,810,000 11,172,000 3,630,000 2,700,000 4,842,000 2,858,000 880,000 1,900,000 Planned 2000 17,959,000 11,985,000 3,993,000 3,000,000 4,992,000 3,144,000 880,000 1,950,000 Planned 2001 19,172,000 12,834,000 4,392,000 3,300,000 5,142,000 3,458,000 880,000 2,000,000 " 15 month Fiscal Year INTHIST.XLS 8/28/96 Exhibit D Liability Self Insurance Fund Costs - 1990/91 to 1996/97 Operating Expenses FY 90/91 FY 91/92 FY 92/93 FY 93/94 FY 94/95 FY 95/96 F Y 96/97 15 Months Estimated Recommended Settlements $641,587. $665,519. $500,264. $2,025,477. $1,175,529. $625,000. $725,000. Property Insurance 201,678 151,318. 242,932. 367,948. 686,325. 500,000. 550,000. Aircraft&Watercraft Ins. 71,106. 63,775. 171,783. 126,841. 131,275, 120,000. 135,000. Excess Liability Ins. 616,670. 764,037. 554,819. 594,975. 557,196. 530,000. 460,000. Legal Services 243,323. 666,828. 589,432. 1,323,818. 332,062. 400,000. 400,000. Litigation Services 0. 0. 51,573. 206,720. 39,147, 30,000. 35,000. Contractural Services* 130,169. 116,669. 103,616. 115,953. 60,920. 110,000. 100,000. Miscellaneous 117,867. 185,639. 186,705. 0. 0, 2,000. 2,500. Other Expenses 5,556. 6.214. 24,759. 48,053. 23,839. 10.000. 19,710. Total $2,027,956. $2,619,999. $2,425,883. $4,809,785. $3,006,293. $2,327,000. $2,427,210. *Third Party Administrator (8/27/96) Attachment 8 - General Fund Revenue Summary ....:.:.: .:::..:.:.. ... .. . -. ...................::.:..:.:.:.;:.:..::::.. ....S..t1....................1*5.... fA1..R........ - :>::»::>::s::>::>::>::>::>::>::>::>::>::>:>:::»>::»>:><:>::>;<:>::>::>:::;:: >:.:«.;:.;:.;:.;:.;:.;: ::>::»::>::>... .. VE E.:::.::`SOUR E:. .. Property Taxes $24,800,000 $25,702,000 $25,024,000 $678,000 Sales Tax 16,700,000 16,600,000 16,600,000 Proposition 172 Sales Tax 1,100,000 1,144,000 1,144,000 Utility Tax 13,125,000 13,322,550 13,497,550 175,000 Transient Occupancy Tax 1,100,000 1,122,000 1,122,000 Other Local Taxes 4,970,000 5,432,450 5,432,450 Licenses & Permits 4,270,300 4,772,830 4,834,830 62,000 Fines/Forfeitures/Penalties 2,220,000 2,347,000 2,355,000 8,000 Use of Money& Property 6,683,155 6,587,250 6,868,250 281,000 Revenue from Other Agencies 10,325,627 8,536,000 8,536,000 Charges for Current Service 8,759,500 9,980,725 9,254,725 (726,000 Other Revenue 543,000 477,700 522,700 45,000 Transfer from Other Funds 2,990,000 ..........................................2. ,490,000 2,490,000 >:<::>:>:>:>::>:`:`:::»>:<:: :::>':::>::::::::::>:::>::::::>:Total:>::>:> 9 ' 6':5 ::>:>:`::>:<> 8'°51 > v>'::» .....$.............................................¢¢. .................tt........... ........................................................................................................r.........f...............................f.........i............................t.........f...............................f...........r........1.......... ..............................................................................................................................................................................................................p......................................................... .......................... . . .:::::::::::::::::::::::::::::.�: :: .:::::::::.:::::::::::::.::...::::::::::::::::::::...:........ .... .. ::::i:::::::::5<.s:.: ` 'i''i''i''i''''i'i:ii:i �e si.":n.�i'i i:�e .p.. �r.``:iiii J'0'°<,.: :''_.:-`S i?; i:ii iiii ''' liii.. :: .-S:i:i:: <4;: :3........ }}............................................................................:...................:.......:..................:y........................................a:.::.::.:::::..:.::::::::::.:::::::::::::::::::::::::::::::::.::: i'? :F:.................:.... > ...........l.:. �i..i.i........'{.......i...... ................ ....... ... ....... : . 7iiiiiiii... ii ' iiiiiiiii iiii ```� i Q tv.MW 95`61i . 5 . .i...i.i.i.i.i.i.i.i.i.i...i.. . . r : . t ... . '.'.. Reconciliation of Changes :::::: ::;<:::::>:::::;»:::»:.....:::::::.........::::::::<: :: :>::::>::::::::Cltia><i.. . ::: ; ::::::<:>:<: h rr >its:R rren... .......................................................... oifrce:::>:::>:::»:>':::>:::>::> ::>::Recom...en atiari:>::>::>:>::>::>:>::>::>:>:I`stiffria `< ' ............. a C[iait.. :> > >: m.......................................................................................................N................. ............. Property Tax ($678,000) ($678,000) Utility Tax 175,000 175,000 Licenses and Permits -Reduce Business License Tax ($320,000) -Increase Business License Fee 186,000 -Increase Building Fees 196,000 Licenses and Permits Sub Total 62,000 Fines/Forfeitures/Penalties 8,000 8,000 Use of Money& Property 100,000 181,000 281,000 Charges for Current Service -Sewer Fee ($ 1,000,000) -Police Department Fees 84,000 -Engineering/Inspection Fees 190,000 Charges for Service Sub Total (726,000) Other Revenue 45,000 45,000 TOTAL $754,000 $79,000 $833,000 BGTREV97.DOC 08/23/96 3:33 PM PROOF OF PUBLICATION STATE OF CALIFORNIA) SS. County of Orange ) I am a Citizen of the United States and a resident of the County aforesaid; I am over the age of eighteen years, and..not a party to or interested in the below entitled matter. I am a principal clerk of PUBLIC NOTICE ' Beach. -'so Of the pro' NOTICE OF{` posed budget. are` silo the HUNTINGTON BEACH INDEPENDENT a avallapl0 for pubec_review PUBLIC-HEARING at the C:(s Central library newspaper of general circulation, printed Cf -YOF located at 7111 Talbert Av- b HUNTINGTONBEACH' onus.(Goldenwest St. and Nc@69-.of Pabflo ` Talbert: Ave),-..and all and published in the City of Huntington branchllbrades. Hearing on the--- All,lnterssted persons(es- Beach Count/ of Orange, State of Proposed City pecialiy,senior citizens and '! O :,-Budget for handicapped Intllgtduals) i California, and that attached Notice is a �►tsgt3re�,: � Invlted to attend. the >Notice Is hereby" given budget hearing,to express true and 'complete_ copy.-as .was printed that a public hearing will their .opinions for, or be hold by the City Council against,the proposed bud- of the City of Huntington, get with written or oral and published -in- the Huntington Beach Beach, In the= Council ; comments. Written, com- Chambers of the Civic Con I munications to the: City and Fountain Valley issues of said ter, Huntingtgn=Beach Council also may be Gated at 2000-Maln Street, 1 mailed to the _City;Clerk. . newspaper to wit the issue(s) of: at the hour of 7:00 PM, or Further Information may be as soon as possible there-1 obtained from the Office of after on Tuesday,the 3th of ` the.City Clerk, 2000 Main September, 1996 for the Street Huntington -Beach, ' purpose of considering the CA.92648-Phone#(714) Fiscal Year 1996t97 City 53B-5227 budget. The City of .Huntington August 22, 1996 The proposed budget for i Beach endeavors to as FY 1996/97_.totals.� commodate persons of Aug ust t 29, 1996 $199,394,017 Including handicapped status.in the g General Fund Expenditures gdmisslon or access to,or , proposed at $98,066-822. . treatment- or employment The complete, proposed 1 In,City programs or aeUvl-- budget can be reviewed by.1 tlea:'T a City of.Huntington the public from8:00 AM-to ; Beach Is an. equal op- 5:00 PM,.:Monday through.{ portunity employer. - Fdday In the-City Clerk's .• Dated 8/1GIN I declare, under penalty of perjury, that offtca at city,.Hall,-200o city of Huntington Main Street, Huntington_ Beach; the foregoing is true and correct. — W.Connie srookwiy, City Cleik, 2000-Maln' St.,.Hunt)ngton:B6aoh;:x CA 921114%.Tolephone:::! Executed on August 29 1996 (714)W"UT Published- -Huntington at Costa Mesa, California. Beach-Fountaln Valley.In. dependent August 22, 29, 1998: 085-226 Signature PROOF OF PUBLICATION STATE OF CALIFORNIA)• SS. County of Orange ) I am a Citizen of the United States and a _ resident of the County aforesaid; I am PUBLICNOTICE Ing proposedfeepvlslona' over the age of eighteen years, and not a NOTICB-OF Y City-fees Is avallable for re- PUBLIC HEMINO _ view by the pubilc at City' I � CITY�OF"- Hall, 2000�Main!Street Fln". party to or interested in the below the=Cny *leWs--0f ce bi. i HUNTINOTON BEACH tween•the hours of 8:00 I entitled matter. I am a principal clerk of REVh31oN8'TOTHE A.M. and 5:00- Mon P P CIT1f FEES d ,t n Brest c"cetyizens are" the HUNTINCTON BEACH INDEPENDENT a Notice Is hereby !Ives - i r - that a public heaflng!'wlll. invited to=.attend the publlo;) newspaper of general circulation printed I of th d•b df.,Iuritln nCn opining and-'express their of the �G - ot-,Huntington j.opinions for or-agalnst the• Beach •-In the- Council I proposed fees, or -ask; and published in the City of Huntington chambe►softheClvlcCen. I questions concemingAlip I ter Huntington=Beach,":at 1 proposed revlslons to•the,', Beach, County of Orange, State of 1':the hour:of 700 P.M,or.as 1 Citys 'Police Qepartment=• soon thereafter-as possible fees or provide the City_' California and that attached Notice is a Jon-Tuedday the 3thofSep; j Council:with wrlften corn 1-tember, 1 ments-:Wrltten:communlca- =for the pur- . true and complete copy.as was printed l pcae of:cons) c4 re.- ; floss-to the-'Cityrgll to the 1 alone to various C �ees also may,be malted to the ; and published in the Huntington Beach 1 The tees °scar conslder= , City Clerk ingtonU0.,.Main i atlon are=for cost recovery Street"Huntington Beach, purposes and Include the 1 92648•_.or,Interested__per and Fountain. Valle issues of said. followingg:" pone mayy contact the-Fl-.: Y POLICE DEPARTMENT Hance Olvlalon to receive' newspaper to .wit the issue(s) of: -1: Increase Traffic Ac, additional Information j cldent Report Fees: about.the tees. I -2.Transfer DUI fees from The City of Huntington I fines to vehicle release`s Beach endeavors to-aq-•, fees. - _ - commodete-.persons. :of I 3 Establish a booking fed handicapped status•W the-. August 2 2 1996 j for anestees treatmadmisent or access to,or The additional annual rev= treatment or employment enue '`eherated tram In- I In Cny.programs or ectivl- Au u s t 2 9 1996 creased fees.Is estimated ` flea Ti Programs City of Huntington g to be$84,000: Beach -1s an.:..equal'.op- COMMUNITY DEVELOP- portunity employer MENT DEPARTMENT Dr,t�d 8/1 spies 1 euildinn-�gg ins¢ecdons City_ of Huntington.. 2 Permit Issuance = Beach_ - 3 PIan,Hevlew ,<- I declare under penalty of perjury, that 4 Miscellaneous Inspeo br Connb Bro*___W_f, ; i r ; tlon Services City Clerks 5000 Main"" the foregoing is true and .correct. The addltl°rial annual rev.. 8troetr Huntington- g g , enue enerated_-from Ins.- Beach•CA>t Z848 Tole- fees fees Is estimated j to be$196;000. phono:3S8n;12s7 1 CITY TREURER Pu6118hed=Huntington - AS 1 Annual Buslness U.. Beach-Fountain-Valley In- Executed on August 29 1996 I `censeRenewal:Current fee dependent August 22, 29, 1.. $8 Proposed fee.-$12 1998 2.Initial.Business ucenae. 084-178 at Costa Mesa, California. AppIlcation Current fee, - I.$I Pro,caed.fee-$25,.- The,!dt.ditional annual rev- =enue,`ggenerated-_from,,In-_ 'cropsedafees-ls:_estlmated to be`'$98,0W.The-Cfty's:. f cost accounting_consultant:. has-.doc`umented that city costs'".for-.processing_ar- nual: buslness llcertse re-; newals'1§`$12'peryear.The: lnciease'wou[dd.gg-bribrate an_. estimated-$98;1>DO annually to cover clrysai costs C Signature Costs for_-pproceng now buslho �IlCongo t.applica:I tions for the;Inftlal-Issuance; We Business=Cleanse 19' $25`(one•tlmicharge).The j Increase-would` enerate-am estimated$46tm0•annually, 1 t0_COverclty__Costs. Y E PROOF OF PUBLICATION STATE OF CALIFORNIA) ) SS. County of Orange ) I am a Citizen of the United States and a resident of the County aforesaid; I am over the age of eighteen years, and not a party to or interested in the below entitled matter. I am a principal clerk of the HUNTINGTON BEACH INDEPENDENT, a newspaper of general circulation, printed and published in the City of Huntington Beach, County of Orange, State of California, and that attached Notice is a true and complete copy as was printed and published in the Huntington Beach and Fountain Valley issues of said (main news section) newspaper to wit the issue(s) of: August 22 , 29 , 1996 (main news section) I declare, under penalty of perjury, that the foregoing is true and correct. Executed on August 29 , 199 6 at Costa Mesa, California. Signature NOTICE OF PUBLIC HEARING. CITY OF HUNTINGTON BEACH Notice of Public Hearing on the Proposed-City Budget for FY 1996197 Notice is hereby given that a public hearing will be held by the City'Council of the City of Huntington .Beach,in the Council Chambers of the Civic Center,Huntington Beach located at 2000 Main.Street,at the hour of 7:00 PM,or as soon as possible thereafter on Tt?esday,the 3th of September, 1996 for the purpose of considering the Fiscal Year 1996/97 City budget. The proposed budget for FY.1996/97 totals$199,394,017 including General Fund Expenditures proposed at$98,066,822. The,complete,proposed budget can be reviewed by the public from 8:00 AM to 5:00 PM, Monday through Friday in the City Clerk's Office at City Hall, 2000 Main Street, Huntington Beach. Copies of the proposed budget are also available-for public review at the City's Central Library located at 7111 Talbert Avenue(Goldenwest St.and Talbert Ave.),and all branch libraries. .All.interested-persons (especially senior citizens and handicapped individuals) are invited to attend the budget hearing to express their opinions for,or against,the proposed budget with written or oral comments.. Written communications to the City Council also may be mailed to the City Clerk. Further information may be obtained'from the Office of the City-Clerk, 2000 Main Street Huntington Beach, CA. 92648 - Phone#(714)536-5227 The City.of Huntin�non Beach endeavors to accommodate persons of handicapped status in the admission or access to,or treatment or employment in,City programs or activities. The City of Huntington Beach is j anequal-opportunity employer. - Dated 8/16/96 City of Huntington Beach by:Connie Brockway,City Clerk 2000 Main St. Huntington Beach,CA 92648 Telephone:(714)536-5227 - Published Huntington Beach—Fountain Valley -Independent August 22, 29, 1996. NOTICE OF PUBLIC HEARING CITY OF HUNTINGTON BLEACH REVISIONS TO THE CI77 FEES Notice is hereby given that a public hearing will be held by the City Council of the City of Huntington Beach', in the Council Chambers of the-Civic Center, Huntington Beach,at the hour of 7:00 P.M., or as, soon thereafter as possible on Tuesday the 3th of September, 1996.for the purpose of considering revisions to various City fees. The fees under consideration are for cost recovery purposes and include the following: POLICE DEPARTMENT 1. Increase Traffic Accident Report Fees. 2 Transfer DUI fees from fines to vehicle releases fees. 13: -Establish•a booking fee for arrestees. The additional annual revenue generated from increased fees is estimated to be$84,000. COMMUNITY DEVELOPMENT DEPARTMENT 1. Building Inspections 2 Permit Issuance 3. Plan Review 4. Miscellaneous Inspection Services The additional annual revenue generated from increased fees.js estimated to be$196,000. CITY TREASURER 1. Annual Business License Renewal: Current-fee-$6 Proposed fee-$12 2 Initial Business License Application: Current fee-$10 Proposed fee-$25 Theeadditional annual revenue generated from increased fees is,estimated to be $96,000. The City's cost accounting consultant has documented that city costs for processing annual business license renewals is $12 per year. The increase would generate an estimated$96,000 annually to cover city costs. City.costs for processing new business license applications for the initial issuance.of a Business License is $25 (one . time charge).The increase would generate an estimated.$40,000 annually to cover city.costs. A complete report detailing proposed revisions to City fees is available for review by the public at City. Hall, 2000 Main Street in the City Clerk's Office between the hours of 8:00 A.M. and 5:00 P.M., Monday through Friday. All interested citizens are invited to attend the public.hearing and express their opinions for, or against the proposed fees, or ask questions concerning the proposed revisions to the City's Police Department fees, or provide the'City Council N'vith written comments. Written communications to the-City Council also may be . mailed to the Cite.Clerk at 2000 Main Street Huntington Beach, 92648; or interested persons may contact the Finance Division to receive additional information about the fees. The City of-Huntington Beach endeavors to accommodate persons of handicapped status in the,admission or access to, or treatment or employment in, City programs or-activities. The City of Huntington Beach is an equal opportunity employer. d Dated 8/16/96 City of Huntington Beach by: Connie Brockway, City Clerk 2000 Main Street,Huntington Beach CA 92648 Telephone: 4�536-5227 Published Huntington Beach—Fountain Valley Independent .August 22, 29, 1996. r PROOF OF PUBLICATION STATE OF CALIFORNIA) ) SS. County of Orange ) I am a Citizen of the United States and a resident of the County aforesaid; I am over the age of eighteen years, and not a party to or interested in the below entitled matter. I am a principal clerk of the HUNTINGTON BEACH INDEPENDENT, a newspaper of general circulation, printed and published in the City of Huntington Beach, County of Orange, State of California, and that attached Notice is a true and complete copy as was printed and published in the Huntington Beach and Fountain Valley issues of said (main news section) newspaper to wit the issue(s) of: August 22 , 29 , 1996 (main news section) I declare, under penalty of perjury, that the foregoing is true and correct. Executed on August 29 , 199 6 at Costa Mesa, California. e Signature PUBLIC NOTICE::`. P"UBLIC_HWING PROOF OF PUBLICATION CITY-OF_ = HUNTINGTON,BEACH Notice of Public •Hearing on�thb Propo's`e dClty STATE OF CALIFORNIA) �f,,6ud9et998 feiret: S S• Notice,-Is here6yy_.given that-a'pu611c,,hearing.will- be Field byy the Glty,Council of the C(ty of Huntington.. County of Orange ) I Beach In :the Council: Chambers of_the CIvIc;Cen- ter, Huntingtbri Beach•:lo- sated at 2000 Mato Street,,.i I am a Citizen of the United States and a 1 at the hour of 70o PM,at i as "soon as possible there- after on Tuesda the 3th,of resident of the County aforesaid; I am September, purpose of oonsldering'the. over the age of eighteen years, and not a Fiscal d Year'-1998/87 City, party to or interested in the below The proposed°budget;f F Y ,:1 9 8,8/9:7� t o YW l a entitled matter. I am a principal clerk of Gen$16e38 untI. Including Qeneral Fund.FxpendRures. the HUNTINGTON BEACH INDEPENDENT, a he o pets prop Q budget can be reviewed.by newspa er of general circulation printed the public from.800 AM to. p 5:00"PM Mondey thro- h- and published in the City of Huntington I Friday In the City- ty ,'2000 Office at City'Hall 2000 Beach, County of Orange, State of Beac Street Huntington Beach Copies,ot the:pro•- California, and that attached Notice is a PcaedI for, are also---I available for public review_I at the C a Central Utirsry. true and complete copy as was printed located711t`Talbert,Av-_ enuet(Qoldenwest St and � and published in the Huntington Beach Talbert Ave;,.,and; an` branch,libraries': Ail.Interested'peraons._(es-.' and Fountain Valley issues of said peclaliy senforclgzens;and_. handicapped 'Indlvltluals) news a er to wit the issues) of: are�Igvtted to. attendYthe p p budg@�C aring to ezpr`ess iheIt t o(ilnI' for;;;or- at"ggelnstosed�6ud`'- with -„the'p�opwrltten, o� oral' comments:. 1N_rltten-com municatlohe to the City Council- -also,may .be 1 August 22 , 1996 marled to the City Clerk. Further Information may be obtained from the Office of the City Clerk, 2000,Main Street Huntington Beach, i CA.92648 c Phone#(714) 536-5227' t I declare under penalty of perjury that The -City of -Huntington , , Beach endeavors :to ac- commodate- persons of the foregoing is true and correct. handicapped status In the admission or access.to, or treatment :or employment In-Clay;programs:or activi- i ties.Thh0 City.of Huntington Beach Is an'. equal op- Executed on August 22 199 6 portunityemployer. Dated 8/16/90 at Costa Mesa, California. City: of Huntington Beach by:Connie.Bi6il way,` City Clork,s 2000_Main, St-0 Huntington Beach,. CA 42848;~Telephone- (7.,4)538S247 .9 Published Huntington. Beach Fountain Valley In- dependent August 22,.I 1998 - 084-179 Signature i li. CITY OF HUNTINGTON BEACH ow INTERDEPARTMENTAL COMMUNICATION TO: Michael T. Uberuaga, City Administrator FROM: Les M. Jones, II, Director of Public Works��� SUBJECT: State Parks Water Use Surcharge DATE: August 28, 1996 Proposal: Add a surcharge to the State Beach water bills. A twenty percent (20%) surcharge applied to the total bill would generate approximately$12,000 annually. The revenue would be credited to the Water Fund. Analysis: The City provides water service to the State Park System at Bolsa Chica and Huntington State Beach. These facilities have three large meters (6"), but relatively low water usage. The water bills are calculated as typical domestic services using the approved rate schedule. The formula includes water use and meter charges, a capital facility surcharge and City utility tax(5%). The Municipal Code authorizes a ten percent (101/o) surcharge for water service outside of the City boundaries. This surcharge is applied to water bills in Sunset Beach and Surfside. However, these customers are exempt from the City utility tax. The State Beaches are within the City boundaries, and not subject to this surcharge. Justification: The surcharge to the State Beaches will require documentation. The increased cost of providing water service should be analyzed. A detailed report can be furnished within thirty days. Implementation: The surcharge would be established as a new fee. The standard public notice would be required. The State Park Department should be notified. If approved by Council,the surcharge would be applied to the next monthly bill. LMJ/LD SURCRG.DOC City of Huntington Beach INTER-DEPARTMENT COMMMUNICATION HUNTINGTON BEACH TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS FROM: ROBERT J. FRANZ, Deputy City Administrator SUBJECT: EQUIPMENT REPLACEMENT FUND DATE: August 28, 1996 Background -- The City Council requested a report showing the history of Revenues and Expenses in the Equipment Replacement Fund. Attached is information showing the historical totals for this fund. You will note that annual expenses for replacement of equipment varies significantly from year to year. This is caused by the nature of replacing major equipment such as Fire apparatus and computer equipment. In the fiscal years of such major costs, total expenses may greatly exceed average expenses. The Equipment Replacement Fund, by charging General Fund departments annually at a stable but adequate amount, should accumulate reserve funds to finance the major equipment replacement expenses. A properly financed Fund, therefore, provides a stable General Fund annual cost that accommodates the peaks and valleys of actual equipment replacement needs. Needs -- Equipment Replacement Fund reserves have been depleted in the past two years. This is due to the "build up" of deferred replacements and the inability to further defer the replacement of some major equipment. The City's vehicle maintenance supervisor submitted a report two years ago identifying $4,850,000 of needed Public Works vehicle replacements and the need for annual vehicle replacements of $946,000. (Public Works maintained vehicles only: excludes police, fire and beach vehicle maintenance replacements.) We have begun using equipment lease/purchase more extensively to spread cost over several years and will continue doing so. Increased funding is needed in the next few years for replacement of major equipment such as the Countywide 800 MHz System ($5.9 million), Police dispatch computer system, Fire Department apparatus, mainframe computer systems, and the above referenced vehicle replacements. Budget Plans --A debt issue is planned for early 1997 to finance the 800 MHz costs. Following is a chart showing projected increased costs to the General Fund in the next five years to begin addressing some of the equipment replacement needs. 0020440.02 08/28/96 9:15 AM EQUIPMENT REPLACEMENT FUND General Fund Costs Equipment Replacement Fund Fiscal Year Actual or Projected Amount 1984/85 Actual $ 477,000 1985/86 Actual 4,658,000 1986/87 Actual 1,566,000 1987/88 Actual 1,581,000 1988/89 Actual 1,780,000 1989/90 Actual 21051,000 1990/91 Actual 2,035,000 1991/92 Actual 2,141,000 1992/93 Actual 2,148,000 1993/94 Actual 2,065,000 1994/95 Actual 2,147,000 1995/96 Estimated 1,862,000 1996/97 Recommended 2,590,000 1997/98 Projected 2,715,000 1998/99 Projected 2,858,000 1999/00 Projected 3,144,000 2000/01 Projected 3,458,000 The above projections are based on a 10% per year increase for the next five years at which time the status of the fund can be further reviewed. OBERT Z Deputy City Administrator RJ F:skd 0020440.02 08/28/96 9:15 AM Equipment Replacement Fund Revised $in Thousands Estimated Proposal 84/85 85/86 86/87 87/88 88/89 89/90 90/91 91/92 92/93 93/94 94/95 96/96 96/97 Cash,Beginning of Year 0 $2,368 $3,116 $3,584 $3,408 $8,211 $5,860 $4,760 $4,182 $3,991 $3,712 $ 2,653 $ 256 Sources of Funds: General Fund Charges $ 477 $ 1,658 $ 1,566 $ 1,581 $ 1,780 $2,051 $2,035 $2,141 $2,148 $2,065 $2,147 $ 1,862 $ 2,348 One-Time Transfers 2,000 500 - Interest Income 216 328 251 257 479 642 502 452 401 426 154 150 50 Debt Proceeds - - - - 4,822 - - - - - - Total Revenues 2,693 2,486 1,817 1,838 7,081 2,693 2,537 2,593 2,549 2,491 2,301 2,012 2,398 Uses of Funds: Non Debt Svc.Costs 325 1,738 1,349 2,014 2,278 4,563 3,000 1,735 1,501 1,419 1,422 3,110 2,055 Debt Service - - - - - 481 637 1,436 1,239 1,351 1,423 1,342 - Total Expenses 325 1,738 1,349 2,014 2,278 5,044 3,637 3,171 2,740 2,770 2,845 4,452 2,055 Surplus/(Shortfall) 2,368 748 468 (176) 4,803 (2,351) (1,100) (578) (191) (279) (544) (2,440) 343 Orange County Investments (515) 43 - Cash,End of Year $2,368 $3,116 $3,584 $3,408 $8,211 $5,860 $4,760 $4,182 $3,991 $3,712 $2,653 $ 256 $ 599 General Fund Charges Compared to Total Expenses $7,000 $7,000 $6,000 FMGeneral Fund Charges $8,000 -o- Total Expenses $5,000 $5,000 n r m $4,000 $4,000 0 0 L �- $3,000 $3,000 c $2,000 $2,000 $1,000 $1,000 $_ $0 8085 8586 807 87/88 88/89 89/90 90/91 91/92 92193 93,94 905 95M 907 Total Revenue and Expenses $7,000 $7,000 $6,000 Total Revenues $8,000 Total Expenses $5,000 $5,000 Ol r $4,000 $4,000 N 0 O L ~ $3,000 $3,000 c $2,000 $2,000 $1,000 $1,000 $0 $0 84/85 85/86 86/87 87/88 8M9 89/90 90191 91/92 92193 93194 94/95 95/96 96197 G.%BUDGET,CHARTS97NIGCASHXLS]History 8/22/96 City g of Huntington Beach INTER-DEPARTMENT COMMMUNICATION HUNTINGTON BEACH TO: HONORABLE MAYOR AND CITY COUNCIL MEMB FROM: ROBERT J. FRANZ, Deputy City Administrator 4.. --'e SUBJECT: ALTERNATIVES: ALLOCATION OF LIBRARY AND CULTU L ACTIVITIES REVENUE DATE: August 28, 1996 The City Council approved a new Library Development Fee (LDF) on August 19, 1996 ($0.25 per square foot for residential development, $0.03 for commercial/industrial development). The estimated $246,000 of new revenue from this fee in 1996/97 is restricted to use for Library purposes. Some Library Department expenses in the General Fund and Library Expansion Fund can be reduced, however, and the new fee can replace those reductions, within defined expenditure restrictions. In addition, the existing Community Enrichment Library Fee (CELF) can be used for both Library and Cultural activities, with fewer restrictions than the new Library Development fee. The result of the above is that there is some flexibility in allocating revenue from the two revenue sources (LDF and CELF). 1996/97 Allocation of Revenue -- The staff recommendation would result in a $100,000 General Fund expense reduction in 1996/97 (consistent with the original budget recommendation) and a $122,185 increase in funding for Library books, materials and supplies. Two other alternatives have been developed which would result in greater General Fund reductions and less of an increase in the purchase of books, materials and supplies. See Exhibit A. Policy Considerations -- Exhibit C is a six year projection of revenue from these two fees and a staff recommended policy for allocation of the revenue. The recommended policy would result in allocating $0.08 per square foot of the residential CELF fee for Cultural Activities and the balance of the development fee revenue (CELF and LDF revenue) for Library purposes. This results in the allocation of $76,297 for cultural activities in 1996/97 and an average of $82,759 over the next six years. This is slightly more than the amount projected for Cultural Activities on July 1, 1996 when the City Council took a straw vote for a higher fee after discussing the need for additional funding for Cultural Activities. Alternativeo policies regarding the per square foot allocations could be adopted by the City Council either now or in future years. Also, a nexus study of Art Center/Cultural Activities could be accomplished for the purpose of.either implementing an additional development impact fee or to gain greater flexibility regarding allocating the existing approved LDF revenue. (That is, the total $0.25 per f f ALTERNATIVES ALLOCATION OF LIBRARY AND CULTURAL SERVICES REVENUE square foot fee could be retained but split between Library and Cultural fees.) Following are policy issues for consideration by the City Council: Policy Issues: 1. Allocation of 1996/97 estimated revenue. 2. Permanent allocation of CELF revenue. 3. Nexus Study/Development Fee for Cultural Services Summary of Staff Recommendations on Policy Issues: 1. Allocation of 1996/97 Revenue -- Allocate 1996/97 revenue as indicated in Alternative 1 of Exhibit A. See discussion above and Exhibit A for staff recommendation. The alternative 2 and 3 allocations in Exhibit A result in a greater General Fund cost reduction. They do not, however, meet the Library goals of significantly increasing funding for library books, materials and supplies from a dedicated new non General Fund revenue source. 2. Permanent Allocation of CELF Revenue -- Allocate $0.08 per square foot of residential developlent CELF revenue to Cultural Activities with all other CELF revenue allocated to Library activities. The recommended allocation (Exhibits B and C) will result in the reduction of General Fund costs for the Art Center and, to a lesser extent, library books, materials, and supplies. Alternative allocations could result in greater General Fund reductions similar to the impact for 1996/97. 3. Nexus Study/Development Fee for Cultural Services -- No Recommendation. A study would take an estimated 60-90 days and may require review and/or establishment of additional policies/goals and objectives by the City Council regarding providing cultural services for City residents. (The Library nexus study was able to be completed in a shorter amount of time due to the existence of such written and City Council approved policies.) Conclusion -- Staff believes that the above recommendations implement the intent of the City Council when the new development fees were considered and approved after the public hearing process. Since there was not a City Council vote or detailed discussion of revenue allocation, staff has developed the above recommendations based on a combination of the existing budget recommendations and City Council comments during the review of the LDF proposal. Alternative allocations can be implemented with the existing approved fees or with a new nexus study focused on cultural activities. RJF:skd Exhibits A, B and C Attached 0020786.01 -2- 08/28/96 9:12 AM Exhibit A Allocation of 1996/97 Increased Library/Cultural Activities Revenue Alternatives Books/Materials/Supplies Alternatives Prelim. Budget 1996/97 Alt. 1* Alt. 2 Alt. 3 General Fund - Library $ 165,000 $ 141,297 $ 70,000 $ - Library Expansion Fund $ 100,000 $ - $ - $ 19,112 New Revenue Library Facilities Fund $ - $ 245,888 $ 245,888_ $ 245,888 Total $ 265,000 $ 387,185 $ 315,888 $ 265,000 Net Change $ 122,185 $ 50,888 $ 0 Cultural Services Funding Alternatives Prelim. Budget 1996/97 Alt. 1* Alt. 2 Alt. 3 General Fund -Art Center $ 81,000 $ 4,703 $ 4,703 $ - CELF Revenue-Art Center $ $ 76,297 $ 76,297 $ 81.000 Total $ 81,000 $ 81,000 $ 81,000 $ 81,000 Summary - General Fund Reduction Alternatives Alt. 1* Alt. 2 Alt. 3 Books/Materials/Supplies $ (23,703) $ (95,000) $ (165,000) Art Center Cost $ (76,297) $ (76,297) $ (81,000) Total $ (100,000) $ (171,297) $ (246,000) * Staff Recommendation (Alternative 1) G:\BOB\BUDGET\REV ENUES\[LARTFEES.XLS]Budget 8/27/96 Exhibit B POLICY RECOMMENDATIONS - ALLOCATION OF DEVELOPMENT FEES: LIBRARY AND CULTURAL ACTIVITIES - _..... ........ ........ .. ..... _ . ...... ....... ._ ...... -_ ......_ - ...... ........ ................. ........ ..... ...... .... ........ ....... .... - _....... ....... ........ ......... ........ .... _ _ ..... ..... .... ........ ......... .......... ........ . ... _.... ....... ......... ........ ......... ........ ........ ......... ........ - ..... .. ...... ... ......... ..._... ....... .. _..................................................... .......... ............._......... ............ .._......................_.......... ......_.. ......... _. - ......... .. . ...... lfbraryand Cultural Development I-ees Per Square foot Designation CELF LDF Total Residential $ 0.15 $ 0.25 $ 0.40 Commercial/Industrial $ 0.15 $ 0.03 $0.18 Notes: 1. LDF can be used for defined Library purposes.only (State Law). 2. CELF can be used for any City Council approved Library or Cultural activity. Policy Recommendations: 1. Allocate all LDF revenues for defined Library purposes. 2. Allocate all commercial/industrial CELF revenue to Library Services. 3. Allocate $ 0.07 of residential CELF revenue to Library Services. 4. Allocate $ 0.08 of residential CELF revenue to Cultural Services. CELF = Community Enrichment Library Fee LDF = Library Development Fee (approved 8/19/96) 0020754.01 08/27/96 6:22 PM Exhibit C Projected Revenue and Proposed Allocations Library and Cultural Development Fees 96/97 97/98 98/99 99/00 00/01 01/02 Average CELF Revenue Residential @$0.15 $143,057 $224,359 $240,647 $149,246 $105,684 $68,045 $155,173 Commercial/Industrial @$0.15 $37,298 $37,298 $37,298 $37,298 $37,298 $37,298 $37,298 Sub Total $180,355 $261,657 $277,945 $186,543 $142,982 $105,342 $192,471 LDF Revenue Residential @$0.25 $238,429 $373,931 $401,079 $248,743 $176,140 $113,408 $258,621 Commercial/Industrial @$0.03 $7,460 $7,460 $7,460 $7,460 $7,460 $7,460 $7,460 Sub Total $245,888 $381,391 $408,538 $266,202 $183,600 $120,887 $266,081 Total Revenue $426,244 $643,047 $686,483 $442,746 $326,582 $226,210 $458,552 + :Y•:isisiii':iiiiiii:.Y'...;'i4}tiiiii:•::iiiii:::i•:i^:j'•.j:iii.::v f� +{{�yf�.y.L� ,,1 ( *y�•'titi\iiiiii:'viii: ti>.' /.iii} ,y?: 131!:1%K, r;:tiiii�Mi- iIF:Yi:•.w.w:.:::�:::. ............... K{tin}iiiiiiii............. ................................ 1. Library-LDF Allocation: use for defined purposes only 96/97 97/98 98/99 99/00 00/01 01/02 Averaqe Residential $0.25 $238,429 $373,931 $401,079 $248,743 $176,140 $113,408 $258,621 Com/Ind. $0.03 $7,460 $7,460 $7,460 $7,460 $7,460 $7,460 $7,460 Total $245,888 $381,391 $408,539 $256,203 $183,600 $120,868 $266,081 2. Library Expansion Fund -CELF Allocation: use for costs of Library Expansion 96/97 97/98 98/99 99/00 00/01 01/02 Average Residential $0.07 $66,760 $104,701 $112,302 $69,648 $49,319 $31,754 $72,414 Com/Ind. $0.15 3$ 7,298 $37,298 3$ 7,298 3$ 7,298 $37,298 3$ 7,298 3$ 7.298 Total $104,058 $141,999 $149,600 $106,946 $86,617 $69,052 $109,712 3. Cultural Services -CELF Allocation: use for City Council approved Cultural Activities 96/97 97/98 98/99 99/00 00/01 01/02 Avera e Residential $0.08 $76,297 $119,658 $128,345 $79,598 $56,365 $36,290 $82,759 Total Allocation of Revenue $426,244 $643,048 $686,484 $442,746 $326,582 $226,210 $458,552 Projected Development in Square Feet-1996 through 2002 96/97 97/98 98/99 99/00 00/01 01/02 Residential 953,715 1,495,724 1,604,314 994,970 704,560 453,630 Comm/ Indust. 248,653 248,653 248,653 248,653 248,653 248,653 Total sq. ft. 1,202,368 1,744,377 1,852,967 1,243,623 953,213 702,283 G:\BOBtB UDG ETUR EVEN U ESXLART FEES.XLS]Budget 8/27/96 1 � AIR) g of Huntington Beach INTER-DEPARTMENT COMMMUNICATION HUNTINGTON BEACH TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS FROM: ROBERT J. FRANZ, Deputy City Administrator SUBJECT: INCREASE IN THE CITY'S ANNUAL BUSINESS LICENSE FEE DATE: August 28, 1996 The recommended General Fund Budget for 1996/97 includes an increase in the annual business license fee of $20. This increase would generate an estimated $320,000 per year. Attached is a survey of local communities indicating how Huntington Beach annual license fees compare to business license fees in other cities. Business license fees for all cities, including Huntington Beach, are categorized as a "tax" under State Law. The staff recommends that the City Council consider alternatives to the $20 per year increase. As you may know, the "Fox Initiative" has qualified for the November ballot (Proposition #218). If this measure were to be approved by the voters of California, any increase in the Huntington Beach business license tax approved after January 1, 1995 would require a voter approval in November of 1998 in order to continue collecting the increase. Staff has identified the following alternatives to a tax increase which would generate additional income from the administration of the City's Business License Ordinance (public hearing notices have been published for the following increases as well as the $20 per year increase described above): 1. A $6 per Year Increase in the Business License Renewal Fee --The MSI Study documented that the City costs for renewing annual licenses is $12 per license per year. Currently we are collecting half of this amount, or $6 per year. Since the City is allowed to collect from business license holders the cost of processing the business license renewal as a fee (as opposed to a tax), the increase of the fee to cover the full cost of the City's processing could be implemented and collected without being impacted by the "Fox Initiative" (if approved). Estimated new revenue = $96,000 per year (based on 16,000 licenses times $6). 2. New License Processing Fee -- The City currently charges $10 for initial processing of a new business license application. A more typical processing fee is $25 or more. Again, the establishment of this fee increase would not be 0020443.01 08/28/96 9:06 AM f INCREASE IN THE CITY'S ANNUAL BUSINESS LICENSE FEE affected by laws regulating taxes. Estimated new revenue = $40,000 per year (based on 225 new licenses per month times $15). 3a. Enforcement Activities -- As indicated in the Budget Message, a minimum increase in business license revenue of $75,000 per year is anticipated as result of assigning one code enforcement employee on a full-time basis to monitor enforcement of the City's Business License Ordinance. 3b. Audit Activities --In addition to implementing the new enforcement program, staff plans to obtain new computer software and data base access so that existing business license renewals can be checked against other data. Based on the experience of other cities, this is expected to generate new revenue from existing business license renewals. Increased collections of $50,000 or more are anticipated due to under reporting by some businesses of the number of employees in the business, and the identification of business that have not obtained a City Business License. The combination of the above three alternatives is anticipated to generate over $200,000 in new business license revenue per year. These alternatives are recommended instead of the $20 increase in the annual fee due to the uncertainties surrounding the "Fox Initiative". If the initiative were to pass, the City would risk not receiving the revenue and being required to reduce 1996/97 expenses further or identify other new revenues. The alternatives listed above, if approved by City Council, would be revenues that we are more certain to receive on an annual basis. aROBEkRT J. RANZ Deputy City Administrat RJF:skd Attachments: - Business License Fee Survey - Business License Revenue Survey - Business License Survey: Processing Fees - July 12 and August 13, 1996 memorandums: Enforcement Program 0020443.01 -2- 08/28/96 9:06 AM Business License Fee Survey ................................................... ..... .............................. - .............................. ....... .................... . ....................................................................................................... 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Huntington Beach # of Employees $81 $477 1.9% Anaheim Gross Receipts $87 $1,037 3.5% Costa Mesa Gross Receipts $25 $200 1.5% Fountain Valley # of Employees $50 $347 2.5% Irvine Flat $50 $50 2.2% Newport Beach # of Employees $103 3 $1,000 2.1% Santa Ana Gross Receipts $1003 $2,172 6.2% Westminster Gross Receipts $75 4 $2,750 1.8% Notes: 1. Includes annual renewal processing fee 2. Based on 100 employees or $10 Million receipts 3. Minimum increases each year based on CPI 4. Increases each year through 2001 based on approved schedule Source: 1996 Kosmont Survey of Municipal Business Fees, Taxes, and Economic Incentives Business License Revenue Survey Number of Total Business Average Revenue Business Licensed License Revenue Per Business License Huntington Beach 16,000 $1,450,000 $91 Anaheim 19,000 $3,200,000 $168 Brea 3,800 $471,000 $124 Buena Park 3,200 $535,000 $167 Costa Mesa 8,800 $776,000 $88 Cypress 4,000 $460,444 $115 Fountain Valley 5,800 $340,000 $59 Fullerton 10,300 $970,000 $94 Garden Grove 12,584 $1,428,000 $113 Irvine 18,400 $850,800 $46 La Habra 4,000 $290,000 $73 La Palma 737 $147,197 $200 Laguna Beach 4,000 $469,000 $117 Los Alamitos 1,400 $272,000 $194 Newport Beach 15,628 $900,000 $58 Orange 16,000 $1,664,000 $104 Placentia 3,711 $582,682 $157 San Clemente 4,300 $418,000 $97 San Juan Capistrano 2,500 $180,000 $72 Santa Ana 24,000 $5,515,000 $230 Seal Beach 1,113 $163,000 $146 Stanton 1,200 $183,000 $153 Tustin 5,500 $225,000 $41 Villa Park 375 $21,000 $56 Westminster 4,300 $132,500 $31 Yorba Linda 5,200 $338,681 $65 Average (Excluding Huntington Beach) 7,194 $821,292 $111 G:\BOB\BUDGET\REVENUES\[BLICS VY.XLS]Fu I lerto n Source: 1994 Survey by City of Fullerton 8/20/96 Business License Survey Processing Fees Annual Renewal (New)Application ProcessingFee Proce Huntington Beach - Current $6 $10 -Alternative New Fee $12 $25 Anaheim $27 $27 Brea Buena Park Costa Mesa Cypress Fountain Valley Fullerton $10 $15 Garden Grove $10 $25 Irvine La Habra $5 $5 La Palma $30 $30 Laguna Beach $5 $5 Los Alamitos Newport Beach Orange $38 Placentia San Clemente $5 $10 San Juan Capistrano $10 $40 Santa Ana $20 $20 Seal Beach Stanton Tustin Villa Park Westminster $25 $75 Yorba Linda $25 G:\BOB\BUDGE7\REV ENUES\[BLICSVY.XLS]Fees Source: 1994 Survey by City of Fullerton 8/20/96 CITY OF HUNTINGTON BEACH INTER-DEPARTMENT COMMUNICATION HUNTINCTON BEACH TO: Michael T. Uberuaga, City Administrator FRO`I: Melanie Fallon, Director of Community evelopment Shari Freiderich, City Treasurer SUBJECT: BUSINESS LICENSE INSPECTOR DATE: July 12, 1996 Approximately three (3) years ago, Community Development was given the responsibility of business license enforcement. This change resulted from the retirement of Business License Inspector Joe Lucy. Since that time, the Code Enforcement staff has been responsible for enforcing Title 5, Business Licenses and Regulations of the Mur;cipal Code. The Code Enforcement staff also enforces zoning regulations, the Uniform Housing Code, and a variety of municipal codes. Code Enforcement receives approximately 450 cases per month. These cases are distributed to the Code Enforcement staff according to designated areas. Business license violations are assigned in the same manner. This procedure.does not allow for proactive business license enforcement. Subcontractors, gardeners, service people and tenants within commercial = businesses operate daily without a current business license. The Code Enforcement Division presently generates approximately S21,000 in revenue per year from both- expired business licenses and new business licenses. It is- our opinion that one (1) individual-, working full-time as a Business License Inspector, can produce substantially more revenue than-Code Enforcement currently generates. In addition, an aggressive reporting system would be set up whereby Building Inspectors, Fire Inspectors and Code Enforcement Officers would refer all violations to the Business License Inspector for follow-up. The Building Division will also require the submittal of a- subcontractor's list prior to final inspection (requires, code amendment). We feel that this organizational change will be more efficient and will generate substantially more revenue for the City of Huntington Beach. Therefore, due to the current budget constraints, we recommend that one (1) existing Code Enforcement Officer be dedicated full-time to business license enforcement. If approved, a quarterly report will be submitted informing you of our economic progress. We would like to meet with you on this subject as soon as possible. The Treasurer's office staff has met with the Newport Beach Revenue Officer regarding the enhancement of revenues since they have increased their business licenses in the last ten years from 7,800 licenses to 16,000 licenses. If we were able to add 1,000 new licenses at an average cost of 575, it would bring an additional $75,000. The City of Newport Beach has accomplished the increase by doing the following: They have contracted with several companies to merge current business license information with other agencies records to identify those customers who do not have a current business license. This has been done on a contingency basis at no out-of-pocket cost to the City. The exceptions identified could then be prodded to code enforcement to check business licenses. In addition, we will investigate if some of the code enforcement costs can be added to our SB90 claim to be reimbursed by the State. Their code differs from ours in that theirs has a provision that it is initially an infraction with a provision to remedy, which if not rectified it then becomes a misdemeanor. Our code states it is. a misdemeanor, which could be changed. They attempt to withhold permits. without receiving subcontractor lists, a procedure which-we have stared to implement. We are in the process of developing an action plan to identify each issue and put a plan in place to implement solutions MF:SF:MS:1ek (796rs2) J , CITY OF HUNTINGTON BEACH INTER-DEPARTMENT COMMUNICATION HUNTINGTON BEACH TO: Michael T. Uberuaga, City Administrator Robert Franz, Deputy City Administrator FROM: Melanie Fallon, Director of Commu ' y Developmen % . Shari Friederich, City Treasurer � SUBJECT: BUSINESS LICENSE INSPECTOR DATE: August 13, 1996 The Department of Community Development and the City Treasurer's office have joined together to implement a more aggressive business license inspection and enforcement program through the Code Enforcement Section of Community Development. One Code Enforcement Officer will be directly responsible for the enforcement of business licenses, as regulated under Title S of the City's Municipal Code. The position has been assigned to Code Enforcement Officer John E. Johnston. In a recent meeting between the Community Development staff and the City Treasurer's office, we agreed that we will concentrate our efforts on enforcing the current business license ordinance in areas that have not had resources devoted to enforcement in the past and where we believe additional revenues exist. In brief, the following areas will be targeted to increase business license revenues and enforce existing ordinances: A. Businesses which currently collect sales tax in Huntington Beach which do not currently have business licenses. B. Subcontractors both at building sites and when any type of City permit is issued. s C. Gardeners, landscapers and pool maintenance businesses. D. Vendors. 1. Supermarkets. 2. Delivery trucks. E. Medical centers and hospitals. Business Licemelnspector Page 2 F. Sublet spaces. 1. Beauty/nail salons. .2. Travel agents. 3. Attorneys. G. Mobile vendors. H. Residential. 1. Triplex and larger complex property owners. 2. Home businesses. I. Fire Department coordination with yearly inspections for business licenses. J. Change City ordinance from a misdemeanor to an infraction for working without a business license similar to what other local cities have done. Over the next two and one-half months, we will keep you informed as to our progress and will provide greater details as the program matures. In addition, we will submit a quarterly report starting with the period ending December 31, 1996, detailing the status of how much additional revenue has been generated by this position. xc: Ron Lowenberg, Police Chief Michael Dolder, Fire Chief Howard Zelefsky, Planning Director Ross Cranmer, Building Director MF:SF::JEJ:Iek (g:796y 1) City of Huntington Beach INTER-DEPARTMENT COMMMUNICATION HUNTINGTON BEACH TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS FROM: ROBERT J. FRANZ, Deputy City Administrator SUBJECT: INCREASE IN THE CITY'S ANNUAL BUSINESS LICENSE FEE DATE: August 28, 1996 The recommended General Fund Budget for 1996/97 includes an increase in the annual business license fee of $20. This increase would generate an estimated $320,000 per year. Attached is a survey of local communities indicating how Huntington Beach annual license fees compare to business license fees in other cities. Business license fees for all cities, including Huntington Beach, are categorized as a "tax" under State Law. The staff recommends that the City Council consider alternatives to the $20 per year increase. As you may know, the "Fox Initiative" has qualified for the November ballot (Proposition #218). If this measure were to be approved by the voters of California, any increase in the Huntington Beach business license tax approved after January 1, 1995 would require a voter approval in November of 1998 in order to continue collecting the increase. Staff has identified the following alternatives to a tax increase which would generate additional income from the administration of the City's Business License Ordinance (public hearing notices have been published for the following increases as well as the $20 per year increase described above): 1. A $6 per Year Increase in the Business License Renewal Fee -- The MSI Study documented that the City costs for renewing annual licenses is $12 per license per year. Currently we are collecting half of this amount, or $6 per year. Since the City is allowed to collect from business license holders the cost of processing the business license renewal as a fee (as opposed to a tax), the increase of the fee to cover the full cost of the City's processing could be implemented and collected without being impacted by the "Fox Initiative" (if approved). Estimated new revenue = $96,000 per year (based on 16,000 licenses times $6). 2. New License Processing Fee -- The City currently charges $10 for initial processing of a new business license application. A more typical processing fee is $25 or more. Again, the establishment of this fee increase would not be 0020443.01 08/28/96 9:06 AM INCREASE IN THE CITY'S ANNUAL BUSINESS LICENSE FEE affected by laws regulating taxes. Estimated new revenue $40,000 per year (based on 225 new licenses per month times $15). 3a. Enforcement Activities -- As indicated in the Budget Message, a minimum increase in business license revenue of $75,000 per year is anticipated as result of assigning one code enforcement employee on a full-time basis to monitor enforcement of the City's Business License Ordinance. 3b. Audit Activities --In addition to implementing the new enforcement program, staff plans to obtain new computer software and data base access so that existing business license renewals can be checked against other data. Based on the experience of other cities, this is expected to generate new revenue from existing business license renewals. Increased collections of $50,000 or more are anticipated due to under reporting by some businesses of the number of employees in the business, and the identification of business that have not obtained a City Business License. The combination of the above three alternatives is anticipated to generate over $200,000 in new business license revenue per year. These alternatives are recommended instead of the $20 increase in the annual fee due to the uncertainties surrounding the "Fox Initiative". If the initiative were to pass, the City would risk not receiving the revenue and being required to reduce 1996/97 expenses further or identify other new revenues. The alternatives listed above, if approved by City Council, would be revenues that we are more certain to receive on an annual basis. Rd OBERT J.;FRANZ Deputy City'Administrat RJF:skd Attachments: - Business License Fee Survey - Business License Revenue Survey - Business License Survey: Processing Fees - July 12 and August 13, 1996 memorandums: Enforcement Program 0020443.01 -2- 08/28/96 9:06 AM Business License Fee Survey .................. ........... ...... ... .... ........... ............... ........ .................... ....... ........ ....... .. ............ ................. ........ .......... .... ........ .......... ............ ..... . ..... ..... ... ........... X...... ..... .......... . ............... ....... . .. . .... ................. . ...... . .... .... . . . .. . .. . ................ .................... ........... T" '-WM6 ....................... ....................................... ..... ............ ........... .......................... . . ... .............. ................... .... q . ...... . .......................... . .................... ............ ...... ......................... ................ ............. Huntington Beach # of Employees $81 $477 1.9% Anaheim Gross Receipts $87 $1,037 3.5% Costa Mesa Gross Receipts $25 $200 1.5% Fountain Valley # of Employees $50 $347 2.5% Irvine Flat $50 $50 2.2% Newport Beach # of Employees $103 3 $1,000 2.1% Santa Ana Gross Receipts $1003 $2,172 6.2% Westminster Gross Receipts $75 4 $2,750 1.8% Notes: 1. Includes annual renewal processing fee 2. Based on 100 employees or $10 Million receipts 3. Minimum increases each year based on CPI .4. Increases each year through 2001 based on approved schedule Source: 1996 Kosmont Survey of Municipal Business Fees, Taxes, and Economic Incentives Business License Revenue Survey Number of Total Business Average Revenue Business Licensesl License Revenue Per Business License Huntington Beach 96,000 $1,450,000 $91 Anaheim 19,000 $3,200,000 $168 Brea 3,800 $471,000 $124 Buena Park 3,200 $535,000 $167 Costa Mesa 8,800 $776,000 $88 Cypress 4,000 $460,444 $115 Fountain Valley 5,800 $340,000 $59 Fullerton 10,300 $970,000 $94 Garden Grove 12,584 $1,428,000 $113 Irvine 18,400 $850,800 $46 La Habra 4,000 $290,000 $73 La Palma 737 $147,197 $200 Laguna Beach 4,000 $469,000 $117 Los Alamitos 1,400 $272,000 $194 Newport Beach 15,628 $900,000 $58 Orange 16,000 $1,664,000 $104 Placentia 3,711 $582,682 $157 San Clemente 4,300 $418,000 $97 San Juan Capistrano 2,500 $180,000 $72 Santa Ana 24,000 $5,515,000 $230 Seal Beach 1,113 $163,000 $146 Stanton 1,200 $183,000 $153 Tustin 5,500 $225,000 $41 Villa Park 375 $21,000 $56 Westminster 4,300 $132,500 $31 Yorba Linda 5,200 $338,681 $65 Average (Excluding Huntington Beach) 7,194 $821,292 $111 G:\BOB\BUDGET\REVENUES\[BLICSVY.XLS]Fullerton Source: 1994 Survey by City of Fullerton 8/20/96 Business License Survey Processing Fees Annual Renewal (New)Application Processing Fee Processing Fee Huntington Beach - Current $6 $10 -Alternative New Fee $12 $25 Anaheim- $27 $27 Brea Buena Park Costa Mesa Cypress Fountain Valley Fullerton $10 $15 Garden Grove $10 $25 Irvine La Habra $5 $5 La Palma $30 $30 Laguna Beach $5 $5 Los Alamitos Newport Beach Orange $38 Placentia San Clemente $5 $10 San Juan Capistrano $10 $40 Santa Ana $20 $20 Seal Beach Stanton Tustin Villa Park Westminster $25 $75 Yorba Linda $25 G:\BOB\BUDG E7\REVENUES\[BLICSVY.XLS]Fees Source: 1994 Survey by City of Fullerton 8/20/96 i INCITY OF HUNTINGTON BEACH INTER-DEPARTMENT COMMUNICATION HUNTINGTON BEACH TO: \tichael T. L-beruaga, City Administrator FRO-NI: Melanie Fallon, Director of Community evelopment �— Shari Freiderich, City Treasurer SUBJECT: BUSLYESS LICENSE INSPECTOR DATE: July 12, 1996 Approximately three (3) years ago, Community Development was given the responsibility of business license enforcement. This chance resulted from the retirement of Business License Inspector Joe Lucy. Since that time, the Code Enforcement staff has been responsible for enforcing Title 5, Business Licenses and Regulations of the Municipal Code. The Code Enforcement staff also enforces zorung regulations, the Uniform Housing Code, and a variety of municipal codes. Code Enforcement receives approximately 450 cases per month. These cases are distributed to the Code Enforcement staff according to designated areas. Business license violations are as_igned in the same manner. This procedure does not allow for proactive business license enforcement. Subcontractors, gardeners, service people and tenants within commercial = businesses operate daily without a current business license. The Code Enforcement Division presently generates approximately S21,000 in revenue per year from both expired business licenses and new business licenses. It is our opinion that one (1) individual, working full-time as a Business License Inspector, can produce substantially more revenue than Code Enforcement currently generates. In addition, an aggressive reporting system would be set up whereby Building Inspectors, Fire Inspectors and Code Enforcement Officers would refer all violations to the Business License Inspector for fol)ow-up. The Building Division will also require the submittal of a subcontractor's List prior to final inspection (requires code amendment). We feel that this organizational change will be more efficient and wi11 generate substantially more revenue for the City of Huntington Beach. Therefore, due to the current budget constraints, we recommend that one (1) existing Code Enforcement Officer be dedicated full-time to business license enforcement. If approved, a quarterly report «ill be submitted informing you of our economic progress. We would like to meet with you on this subject as soon as possible. The Treasurer's office staff has met with the Newport Beach Revenue Officer regarding the enhancement of revenues since they have increased their business licenses in the last ten years from 7,800 licenses to 16,000 licenses. If we were able to add 1,000 new licenses at an average cost of 575, it would bring an additional 575,000. The City of Newport Beach has accomplished the increase by doing the following: They have contracted with several companies to merge current business license information with other agencies records to identify those customers who do not have a current business license. This has been done on a contingency basis at no out-of-pocket cost to the City. The exceptions identified could then be provided to code enforcement to check business licenses. In addition, «e will investigate if some of the code enforcement costs can be added to our SB90 claim to be reimbursed by the State. Their code differs from ours in that theirs has a provision that it is initially an imTaction with a provision to remedy, which if not rectified it then becomes a misdemeanor. Our code states it is a misdemeanor, which could be changed. They attempt to withhold permits without receiving subcontractor lists, a procedure which we have started to implement. We are in the process of developing an action plan to identify each issue and put a plan in place to implement solutions MF:SF:MS:Iek (7S6rs2) CITY OF HUNTINGTON BEACH INTER-DEPARTMENT COMMUNICATION HUWINGTON BEACH TO: Michael T. Uberuaga, City Administrator Robert Franz, Deputy City Administrator FROM: Melanie Fallon, Director of Commu ' y Developmen . Shari Friederich, City Treasurer SUBJECT: BUSINESS LICENSE INSPECTOR DATE: August 13, 1996 The Department of Community Development and the City Treasurer's office have joined together to implement a more aggressive business license inspection and enforcement program through the Code Enforcement Section of Community Development. One Code Enforcement Officer will be directly responsible for the enforcement of business licenses, as regulated under Title 5 of the City's Municipal Code. The position has been assigned to Code Enforcement Officer John E. Johnston. In a recent meeting between the Community Development staff and the City Treasurer's office, we agreed that we will concentrate our efforts on enforcing the current business license ordinance in areas that have not had resources devoted to enforcement in the past and where we believe additional revenues exist. In brief, the following areas will be targeted to increase business license revenues and enforce existing ordinances: A. Businesses which currently collect sales tax in Huntington Beach which do not currently have business licenses. B. Subcontractors both at building sites and when any type of City permit is issued. C. Gardeners, landscapers and pool maintenance businesses. D. Vendors. 1. Supermarkets. 2. Delivery trucks. E. Medical centers and hospitals. Business License Inspector Page 2 F. Sublet spaces. 1. Beauty/nail salons. 2. Travel agents. '3. Attorneys. G. Mobile vendors. H. Residential. L Triplex and larger complex property owners. 2. Home businesses. I, Fire Department coordination with yearly inspections for business licenses. J. Change City ordinance from a misdemeanor to an infraction for working without a business license similar to what other local cities have done. Over the next two and one-half months, we will keep you informed as to our progress and will provide greater details as the program matures. In addition, we will submit a quarterly report starting with the period ending December 31, 1996, detailing the status of how much additional revenue has been generated by this position. xc: Ron Lowenberg, Police Chief Michael Dolder, Fire Chief Howard Zelefsky, Planning Director Ross Cranmer, Building Director MF:SF::JEJ:Iek (g:796b 1) RECEIVEI: fu�`fia� oit�eacll! r , ClEain6er ofConrinerce Auc 23 iZ 4s f-id °9b August 29, 1996 Mayor Dave Sullivan and Members of the City Council 2000 Main Street Huntington Beach, CA 92648 Dear Mayor Sullivan: At our August 22, Board meeting, Mr. Uberuaga and Mr. Franz provided our directors with an overview of the 1996-97 City Budget. The discussion covered the projected budget shortfall, and the steps being recommended- department cuts and increased fees -to correct the problem. Our Board of Directors, which consists of a broad cross-section of various types of small, medium and large businesses, wants to express its concern for the proposed business license fee increase. The recommendation of a$20 increase in the base and/or the possible $6 increase in the renewal fee and a$15 increase to the new business license processing fee will make Huntington Beach's fee out of line with many of our neighboring cities. Within the last several years,many new fees have been imposed on the business community in order to balance the City budget. The Chamber Board urges you to hold the line on fees and generate new revenue through business retention and attraction. As you well know, our business community primarily consists of small businesses, and so does Chamber membership. During the past several months, we have had members express their concern on the rising cost of doing business in Huntington Beach. Cost of doing business increases are always harder on smaller businesses. We encourage you to resist this proposed raise in business license fees, and we pledge our support in working with you to keep our current businesses, attract new businesses to our city, and generate new dollars through property, sales and transient occupancy taxes. Sincerely, Barry Ell rbroek Chairman CC: Uberuaga Franz Silver 2100 Main Street,Suite 200 Huntington Beach,CA 92648 • 714/536-8888 (FAX)714/960-7654 ACCREDITeo 001 To: City Administrator, Michael`T. Uberuaga and Deputy City Administrator, Robert Franz cc: Honorable Mayor and City Council Members From: See Signatures Below C Dated: September 4, 1996 D - Subject: Elimination of Accounting Officer Position ; The Administrative Services Department, together with employees from other departments within the City, respectfully request that you reconsider the elimination of Wayne Lee's position for the following reasons: • Wayne Lee has served the City of Huntington Beach since May 16, 1969, and has a wealth of knowledge about every department's accounting functions. He knows the City's history and the legalities of what can and cannot be done. He remains knowledgeable by asking fellow workers about their job duties and helping out when there are staff shortages. • He was most instrumental in the creation of the new Payroll system, giving his total support to the personnel involved. He handles situations as they occur and is not afraid to make decisions as needed. • Mr. Lee provides moral support to his staff, always encouraging new ideas and helping to get them started. He is a supervisor willing to meet with employees and help resolve problems as they occur within his own department and others. • Wayne Lee is one of the few supervisors who takes the time to really listen to employees. If they make a mistake he doesn't judge the person, but rather helps them correct it in the best possible way. • He is the City employee who knows the most about the Public Employees Retirement System and is our liaison with that entity. He has helped almost every person as they retire from the City, answering their questions about the PERS system and their supplemental pension, if applicable. His knowledge of the deferred income program is also unrivaled. 1 • The Engineering and Water Divisions of Public Works depend on Wayne to facilitate all cash contracts with outside contractors. He helps ensure that all requirements are met by the contractor, from the contract's beginning to the end, when the retention is due. • Other departments' staff have stated that: "Wayne Lee is a man who treats all fellow employees with respect. He has never managed with an autocratic style. He has always instilled a positive attitude with fellow employees and those under his supervision. He has also maintained a high degree of proficiency with job-related tasks." "Wayne keeps himself accessible to all employees, both within his own Department and without." Wayne Lee's willingness to help all employees is rare in today's workplace. His knowledge and work ethics are wonderful assets for the City of Huntington Beach. We believe that he is much too valuable to be laid off, and doing so would be detrimental to all employees. It would seem there are better ways for the City to solve its financial problems, than to eliminate Wayne Lee's position. a 0 LA 2 y M x a ' ��• _�� i ��-� - ice- �__ _ , v Y� i 44 9 v4a* I, 11L III llka CLL i Attachment 1 Revisions to Proposed General Fund Budget 1996/97 Fiscal Year Preliminary General Fund Appropriations - Changes Budget Revised Difference Liability/Self Insurance-Increase General Fund Payment $1,200,000 $800,000 ($400,000) Workers Compensation- Increase General Fund Payment 470,000 470,000 0 Supplemental Retirement-Increase General.Fund Payment 450,000 350,000 (100,000) Equipment Replacement-Increase General Fund Payment 741,907- 500,000 (241,907) Sub-Total ($741,907) Other General Fund Appropriation Changes Reduce Expenses Funded by CELF (100,000) Add Oil Royalty Expenses(offset by Revenue Increase) 48,000 Net General Fund Appropriation Changes ($793.9071 Revenue Changes New/Increased Revenue Redevelopment payment to the General Fund 1,000,000 1,100,000 1100-1000 New Sewer Maintenance Fee 1,000,000• 0 (1,000,000) Business License Increase ($20 per year) 320,000 0 (320,000) Business License Processing/Application Fees 0 136,000 136,000 Business License-Audit 0 50,000 50,000- Building/Planning Fees 0 196,000 1-96,000 Police Department related Fees 0 84,000 84,000 Sub-Total ($754,000) Other General Fund Revenue Chances . Net Change in Ongoing Revenues ($79,000) Eliminate Transfer from Library Facilities Fund (100,000) Increased Oil Royalties 48,000 Net General Fund Revenue Changes t 88� 5.0001. BGTRV97X.DOC 09/10/96 8:16 AM I Richard L.Hotistadt 9972 Petunia Avenue Fountain Valley,CA 92708 September 12, 1996 City Clerk .; City of Huntington Beach v 2000 Main Street Z. Huntington Beach,CA-92648 SUBJECT: Revision to the City's Business Ordinance 1W License Fee for Renting Single Family Residences W. 2 Dear Honorable Mayor and City Council, m I have been an owner of a rental house in Huntington Beach for approximately 3 years. I purchased the property in Huntington Beach paying a premium price of the property as I felt Huntington Beach was a very nice community. The rent I collect in this property barely covers my expenses of mortgage,property taxes,insurance and ordinary maintenance. I feel that this fee is unjust as I already pay high property taxes which the City gets a 15% portion . The City is not providing me with any additional services from what other owner occupied single family residences get. Fees are supposed to be charged when a service is rendered. This fee is simply a tax without representation. I fell that it is about time that the City Council live within their budget instead of always finding ways to increase taxes. This type of fee (TAX) forces landlords to provide less maintenance to their property causing a degrading of the neighborhoods. I thought the City was trying to upgrade neighborhoods not reduce their quality. I also understand that this proposed $39.00 fee has plenty of hidden cost such as first time issuance fees and a yearly application fee. This kind of deception seems to be a standard operating procedure for Huntington Beach. Other Cities are increasing revenues by becoming more developer and business friendly so that additional sales taxes can be generated. Looking at Huntington Mall, it appears as though Huntington Beach does not practice this policy. It appears as though Huntington Beach practices the liberal,Tax,Tax, Spend, Spend policy. With all of the taxes that citizens of this country now pay,you would think enough is enough. Sincerely, Richard L. adt I - Memo Date: September 13, 1996 To: Mayor Sullivan and Councilpersons From: Jay Kreitz, Chairman Community Services Commission Shirley Carey, Vice Chairman Community Services Commission Regarding: Community Service Commission recommendations for changes in the FY 96/97 Capital Improvement Projects Budget for Park Acquisition and Develoment Fund. (middle column of proposed budget options) Comments: As designated representatives from the Commission we are concerned that all the council members are aware of the following correspondence and actions taken by the Community Service Commission. The reasoning behind these recommendations is clearly outlined in Jay Kreitz August 28, 1996 correspondence to the Council. The statments are based on motions that received unanimous support at the August 14th Community Service Commission meeting. The last Council minutes do not reflect that you received or discussed the issues outlined. The following information is enclosed for your review: August 28, 1996 Letter from Jay Kreitz,Chairman of the Community Services Commission Regarding Community Services Commission .Motions Includes changes in the FY 96/976 Capital Improvement Projects Budget for Park Acquisition and Development Fund. August 28, 1996 Inter-Department memorandum to Robert Franz, Deputy City Administrator from Ron Hagan, Director, Community Services recommending a modified Park Acquisition and Development Fund CIP Budget FY 96/97. August 28, 1996 Copy of the Original Budget,Community Services Budget and Modified Dept. Request. August 14, 1996 Copy of page 4 and 5 of Community Services minutes. Includes motions and discussion. Back Up Data (optional but available if needed): March 27, 1996 Memorandum to Jim Engle, Deputy Director from Jim Jones, Supervisor of Park Maintenance outlining problems with equipment and estimated cost or repair, replacement and/or removal. Total cost estimate - almost$800,000. 1996 Park / Recreational Facilities in preparation for General Plan. Lists all parks in City. Many of the tot lots will be impacted by playground equipment removal. Other parks have never had equipment installed. N ember 1994 Correspondence regarding the Park Acquisition and Development Fund For Art Center Funding($197,000 and $227,660). Repayment of the $197.000 transfer of funds needs to be discussed in the future. The gravi4i)f& problems associated with the removal of playground equipment is intensifying and will reach a peak progab&by next month. The removal of many standard swings, animal swings, slides and other play equipment ivp o�20 neighborhood parks and Central Park will certainly result in a tremendous outcry in this corn AsAtizens, the Commissioners wants to see the City of HB be proactive by trying to address this need in soil3ejus one manner. A $50,000 budget is not even a band-aid for this $million dollar project. vy,►=z Z 09-16-96 09: 5AM P02 ' Seph16-96 08: 04A Carey 714 378 9066 P '� �N;: .l • CITY OF HUNTINGTONV"te F 2000 MAIN STREET CALIFORNIA 92648 r' , COMMUNITY SERVICES COMMISSION (714) 536-5486 '•; August 28, 1996 The Honorable Mayor and City Council " City of Huntington Beach 2000 Main Street Huntington Beach CA 92648 Dear Mayor Sullivan and City Council: Re: Commune Services Commission Motions t i the Community Services Commission had ' A# its August 14, 1996 meeting, ty extensive discussion regarding needed capital projects and theirprioriti- zation. The commission, in addition to forwarding its recommendation of a ;+ projects to Council, unanimously moved that Council be apprised of the reasoning behind these recommended priorities: 1 . Over $1 million in replacement of play equipment is needed in the « ,: city's parks. This figure includes only play equipment that has been found to be dangerous in design and/or materials. In fact, at its August meeting, the commission was forced to recommend the removal of a set of arch swings at Central Park due to the like- lihood of injury and subsequent liability to the city. The swings to be removed are among the most heavily used in the city. The commission's subcommittee on la equipment will be reviewing play9 each park site and presenting its findings at a future meeting. For that reason, the commission has put park play equipment re- i = lacement as a top priority, and requested increased funding ac- i.. F cordingly. 2. HCP EIR and Specific Plan should, at this time, include only the por- tion of the park east of Golden West Street and should only move ;,-. forward if the Sports Facilities Improvement Assessment District 4 = asses; otherwise the money should be reallocated to existing i P Y 9 `E��: needs. l j'; YE_. i ir 714 378 9066 P :04A Carey Sep- 16-96 OS 3. Since there ore more projects than funds available, the $190,000 ! : for the library parking lot should be budgeted over a four year pe- riod. 4. The annual allocation for acquisition of HCP small lots is held in abeyance this year due to the greater need to fund playground - 0` equipment replacement. Previously, $50,000 per year was allo- cated for this purpose. I' The commission made the following motion: TI N: MOVED BY CAREY, SECONDED BY RYAN, THE COMMUNITY SERVICES COMMISSION RECOMMEND TO CITY COUNCIL APPROVAL OF THE FOLLOWING FY96/97 CAPITAL IMPROVEMENT PROJECTS BUDGET FOR THE PARK ACQUISITION AND DEVELOPMENT FUND: 1. PARK PLAY EQUIPMENT, BENCH AND TABLE REPLACEMENT $352,000 2. YOUTH SPORTS GROUP GRANT ASSISTANCE PROGRAM $2S,000 ,¢i::s 3. HUNTINGTON CENTRAL PARK EIR AND SPECIFIC PLAN (CONDITIONED ON APPROVAL $320,000 . ' OF INITIATIVE) 4. LIBRARY LOAN REPAYMENT(PLACEMENT ON A $50,000 =''` FOUR YEAR REPAYMENT PLAN) S. ELLIS/GOLDEN WEST NEIGHBORHOOD PARK ACQUISITION $50,000 ' 3 AYES: BIDDLE; CAREY; KREITZ; MANLEY: O'DONNELL; RYAN; REECE: SIMONS NOES: NONE t �` ABSTENTIONS: NONE ABSENT: BRAHMBHATT: STAUNTON: THOMAS THE MOTION CARRIED UNANIMOUSLY. $ Also, at the August commission meeting, Michael Mudd, the city s Cul- turalServices Manager, and Susan Beukema and Bill Holman, represent- ing the Friends and Neighbors of Seacliff (FANS). spoke and answered `- I" questions concerning the FANS proposal to fund and build a bandstand .:,r. 'in Huntington Central Park to provide a daytime venue for concerts. _ .., Proposed to be located northeast. of the Central Library, the bandstand _'"' will be designed gratis by NUVIS to city building codes and.park specifi- cations. Subsequent to this presentation, the commission made the foi- ' lowing motion: } Sep, 714 16-96 08:04A Carey 378 9066 P- ` MOTION: MOVED BY SIMONS, SECONDED BY CAREY, THE COMMUNITY SERVICES COMMISSION RECOMMEND TO CITY COUNCIL APPROVAL OF THE HUNTINGTON CENTRAL PARK BANDSTAND. AYES: BIDDLE; CAREY; KREITZ; MANLEY: O DONNELL; RYAN; REECE: SIMONS NOES: NONE ABSTENTIONS: NONE * ABSENT: BRAHMBHATT; STAUNTON; THOMAS MOTION CARRIED UNANIMOUSLY. _i 1 Sincerely, JA REITZ C tr �1''r�' `i Community Services Commission '�. JK:JBE:cr . `;. cc: Community Services Commission Jim B. Engle, Deputy Director, Community Servicesy Melanie Fallon, Director, Community Development ; • ;.- Ron Hagan, Director, Community Services Elaine Hankin, Chair, Allied Arts Board Michael Uberuaga, City Administrator yp� . t. Sep-16-96 08:05A Carey 714 378 9066 P .06`'� 6 05:46PM FROM POt CITY OF HUNTINGTON BEACH COMMUNITY SERVICES INTER-DEPARTMENT MEMORANDUM TO: Robert Franz, Deputy City Administrator Administrative Services FROM: Ron Hagan, Director, Community Services DATE: August 28, 1996 SUBJECT: MODIFIED PARK ACQUISITION AND DEVELOPMENT FUND CIP BUDGET FY 96N7 Staff has reviewed the Park Acquisition and Development Fund projects for FY 96197 with the Community Services Commission. Based on that discussion, I am proposing a modified budget to be presented to City Council as part of the budget addendum. For your information, the projects budget is attached along with a review of the original proposal, Community Services Commission budget, and the Community Services Department's modified budget. RH:JBE:as Attachments xc: Jim B. Engle John Roulette Jim Lewis 00=Oi10.01 Ot/11/96 11-22 AM Sep-16-96 08:05A Carey 714 378 9066 P . 07 rrF;t: PARK ACQUISITION AND DEVELOPMENT FUND CAPITAL IMPROVEMENT PROJECTS FY 96/97 Projoot Orlglnal Community Modified Description Department Services Department Request Commission Request Request 1. Park Play Equipment, $50,000 $3S2,000 $252,000 Bench and Table Replacement 2. Youth Sports Group Grant $25,000 $25,000 $26,000 Assistancs Program 3. Huntington Central Park EIR S450,000 $320,000' $320,000 and Specific Plan 4. Ubrary Loan Repayment $190.00 $50,000•' $190,000 5. Huntington Central Park $72,000 $0 $0 Encyclopedia Lot Acquisition 6. Ellis/Golden West Neighbor- $50,000 $50,000 $50,000 hood Park AcquisMon ' Move forward only with the east side of Huntington Central Park Specific Plan and EIR and only If Youth Sports Improvement District is successful, The Community Services Commission supports four year replacement program to pay $190,000 beginning with $50,00C In FY ge/97. 714 378 9066 P. Sep- 16-96 08:05A Carey Of3" COMMUNITY SERVICES COMMISSION August 14, 1996 MIN Page flour ADMINISTRATIVE ITEMS (CONT.) AYES: BIDDLE; CAREY; KREITZ; MANLEY; O'DONNELL; REECE; RYAN; SIMONS NOES: NONE ABSTENTIONS: NONE ABSENT: BRAHMBHATT; STAUNTON; THOMAS THE MOTION CARRIED UNANIMOUSLY. IMPROVELAIENT PROJECTS 8 D T-Mr. Engle went over the capital improvement projects and the projected revenue in the Park Acquisition and Development Fund for FY96197. With the commission's unanimous concern for the Immediate need for replacement of play equipment being removed for safety concerns, the following motion was made: MOTION: MOVED BY CAREY, SECONDED BY RYAN, THE COMMUNITY SERVICES COMMISSION RECOMMEND TO CITY COUNCIL APPROVAL OF THE FOLLOWING FY96/97 CAPITAL IMPROVEMENT PROJECTS BUDGET FOR THE PARK ACQUISITION AND DEVELOPMENT FUND: 1. PARK PLAY EQUIPMENT, BENCH AND TABLE REPLACEMENT $352,000 2.YOUTH SPORTS GROUP GRANT ASSISTANCE PROGRAM $25,000 3. HUNTINGTON CENTRAL PARK EIR AND SPECIFIC PLAN $320,000 (CONDITIONED ON APPROVAL OF INITIATIVE) 4. LIBRARY LOAN REPAYMENT $50.000 (PLACEMENT ON A FOUR YEAR REPAYMENT PLAN) 5. ELLISIGOLDEN WEST NEIGHBOR- HOOD PARK ACQUISITION $50,000 AYES: BIDDLE; CAREY; KREITZ; MANLEY; O'DONNELL; REECE; RYAN; SIMONS NOES: NONE ABSTENTIONS: NONE ABSENT: BRAHMBHATT; STAUNTON; THOMAS THE MOTION CARRIED UNANIMOUSLY. Sep- 16-96 08: 20A Carey 714 378 9066 P • 02 13-9 015:4F,P14 Fkn1.S COMMUNITY SERVICES COMMISSION August 14, 1996 MINUTES-603 Page five PDMINISTRATIVE ITEMS ICONT.1 The commission asked that the following explanations accompany some of the items when the motion on the budget is forwarded to Council: (1.) Play equipment needs to be increased from previous yeaes allocations of$50,000 per year because of the condition of existing play equipment, liability and safety concerns, and new equipment and accessibility guidelines. (2.) HOP Specific Plan and EIR should only move forward if the Sports Facilities Improvement Assessment District passes; otherwise the money should be reallocated to existing needs. (3,) Since there are more projects than funds available, the $190,000 for the library parking lot will be budgeted over a four year period. (4.) The annual allocation for acquisition of HCP small lots is held In abeyance this year due to the greater need to fund playground equipment replacement. - facsimile Cover Sheet To: Connie Brockway, City Clerk Company: City Of Huntington Beach �Phone: v •rya Fax:-4"4466- From: Jay Kreitz, Chairman and Shirley Carey, Vice Chair Company: HS Community Services Commission Phone: 714-968-7287 Fax: 714-378-9066 Date: September 16, 1996 Pages including this cover page: Dear Connie, This material was faxed to the City Coucil this morning. Pat indicated that i needed to get a copy to you. Sincerely, Shirley Carey J • v v � >w�Cj M � W i19-Lb J 5A?-A FUt SENT BY:SEIDLER-FITZGERALD 9-16-96 ; 9:08 PUBLIC FINANCE-* 17143741557;# 1/ 1 Seidler-Fitzgerald Public Finance A Ulvlsion of 1'tw.SHiiiier Cornfsrriies inc orpuritod-,Mmrd3or:Naw ltxk Sinck Cxc.heulgC.M. September 13, 1996 Mr. Michael T. Uberuaga City Manager City of Huntington Beach (714) 374-1557 . We have recently financed the acquisition of a private water system for the City of Santa Paula using a tax-exempt financing structure at a cost of 3.65%. This financing resulted in a substantial reduction in water service fees paid by the rate payers. If this unique and creative financing approach could be of benefit to you, please call me at (213) 624-4232. Sincerely, Richard . O Vice President RCO/pf f 51 25 SoLjth Figueroa Streei • Los An9cle,S. f;A 90071-3396•2I3-68.3-45(X)•Fax 213-688-1:1514 • PROOF OF PUBLICATION STATE OF CALIFORNIA) ) SS. County of Orange ) I am a Citizen of the United States and a resident of the County aforesaid; I am over the age of eighteen years, and not a party to or interested in the below entitled matter. I am a principal clerk of the HUNTINGTON BEACH INDEPENDENT, a newspaper of general circulation, printed and' published in the City of Huntington Beach, County of Orange, State of California, and that attached Notice is a true and complete copy as was printed and published in the Huntington Beach and Fountain Valley issues of said newspaper to wit the issue(s) of: August 22 , 1996 1 declare, under penalty of perjury, that the foregoing is true and correct. Executed on August 22 , 199 6 at Costa Mesa, California. Signature •NOTICE OF-PUBLIC HEARING CITY OF HUNTINGTON BEACH Notice of Public Hearing'on the Proposed Cit.fBudget for FY 1996197 Notice is hereby given that a public hearing will be held by the City Council of the.City of Huntington Beach,in the Council Chambers of the Civic Center,Huntington Beach located at 2000 Main Street,at the -hour of 7:00 PM,or as soon as possible thereafter on Tuesday,the 3th.of September, 1996 for the purpose of considering the Fiscal Year 1996/97 City budget. The proposed budget for FY.1996/97 totals $199,394,017 including General Fund Expenditures proposed.. at$98,066,822. The complete,proposed budget can-be reviewed.by the public from 8.00 AM to 5:00 PM, Monday through Friday in the City Clerk's Office, at City Hall, 2000 Main Street, Huntington Beach. Copies of the proposed budget are also available for public review at the City's Central Library located at 7111 Talbert Avenue(Goldemvest St.and Talbert Ave.),and all branch libraries. All interested persons (especially-senior citizens and handicapped individuals) are invited to-attend"the ' budget hearing to express their opinions for;or against,the proposed budget with written or oral comments. Written communications to the.City Council also may be mailed to the City Clerk. Further information may be obtained from the Office of the City Clerk, 2000 Main Street Huntington Beach, CA. 92648 - Phone#(714)536=5227 The City of_Huntington Beach endeavors to accommodate persons of handicapped status in the adinission or access to,or treatment or employment in, City programs or activities. The City of Huntington Beach is an equal opportunity.employer. . Dated 8116/96 City of Huntington Beach by: Connie Brockway,City Clerk 2000 Main St. Huntington Beach,.CA- 92648- Telephone: (714)536-5227 - `��. `ablished Huntington -Beach—Fountain Valley Independent August `�.' . 1996. City g of Huntington Beach INTER-DEPARTMENT COMMMUNICATION HUNTINGTON BEACH TO: MICHAEL T. UBERUAGA, City Administrator FROM: ROBERT J. FRANZ, Deputy City Administrator SUBJECT: BUSINESS LICENSE FEE DATE: June 5, 1996 Attached is a survey of several Orange County Cities Business. License Fees. The source of the data is consultant's annual publication of such fees for selected cities.. A $20 per year increase to our Business License Fee would not change our relative comparison to these selected cities and would increase revenues by about $320,000 per year. We would like to take the following two steps prior to September Budget Hearings: 1. Complete a more comprehensive survey of fees, and 2. Meet and work with the Chamber of Commerce regarding modifying the current Business License Fee Schedule. g T J. RANZCity Adminis RJF:skd Attachment 0019213.01 06/05/96 1:17 PM Business License Fee Survey ..... .. ........... ........ ... ............. ........... ............ .................................................................... ....... .. ................. ............. ........... . ................ ...... .......... ..... . . ... ... ............ ...... ................. ......... ...... . ............ . ............... .... .. .. .......... ....... .............. ............ PC ... ...................... .............. ....... .................... jjj) ...... ......... ...... . .. .. . ................. . ...... ................. ................ ........ .................... .................... ......... ... ........................ .. ............ ....................... Huntington Beach # of Employees $81 $477 1.9% Anaheim Gross Receipts $87 $1,037 3.5% Costa Mesa Gross Receipts $25 $200 1.5% Fountain Valley # of Employees $50 $347 2.5% Irvine Flat $50 $50 2.2% Newport Beach 9 of Employees $103 2 $1,000 2.1% Santa Ana Gross Receipts $1002 $2,172 6.2% Westminster Gross Receipts $75 3 $2)750 1.8% Notes: 1. Based on 100 employees or$10 Million receipts 2. Minimum increases each year based on CPI 3. Increases each year through 2001 based on approved schedule Source: Kosmont Survey of Municipal Business Fees, Taxes, and Economic Incentives 1990 TO: MAYOR, CITY COUNCIL AND CITY ADMINISTRATOR FROM: DON WATSON, CITY TREASURER SUBJECT: TITLE 5 BUSINESS LICENSES AND REGULATIONS Our Business License Ordinance needs to be updated and rewritten. The basic ordinance was written in 1960 and has been modified and patched for the past 30 years. The basic ordinance still refers to the City Clerk as the responsible official although that has not been the case for many years. The ordinance states that it was enacted solely to raise revenue for municipal purposes and is not intended for regulation. Our ordinance is written with the fees embedded in the various sections. Any adjustment of the fees requires a major effort to update the ordinance. The fees should be separated and set annually by resolution or through an automatic adjustment of the CPI (Consumer Price Index) . The ordinance needs to be updated to address such things as. Swap. Meets- and rental of boat slips:- The ordinance states it is basically for raising revenue and not regulation but we need to clarify how to handle applicants applying for boiler room(telephone solicitation) operations, door to door canvassing, sidewalk vendors, physical therapists, massage technicians,. singing.telegrams, and psychic healing to name a- few. All businesses signing contracts and receiving fees from the City should have a business license. We should have language• that would enable us to withhold renewal of a business license when. the applicant has refused to pay the City for valid charges for such things as excessive false alarms and hazardous material violations. In regard to revenue, the basic fee of $25.00 was established in 1960. In 1970 the basic fee was increased to S37.50 and in 1988 it was increased to $45.00. Neither of these increases have kept pace with the effects of inflation. For instance, if the $37.50 fee established in 1970 had been increased annually by the CPI , the basic fee would now be S130.00. We have gathered data from 88 cities concerning their business license fees. We have added the population figures the State Controller uses in apportionment of revenues. These reports reflect the average fee per license. For instance while the basic fee for Huntington Beach is $45.00, the average fee is $56.00. PAGE-TWO Survey Summary Average Licenses All 88 Cities 5306.00 Cities over 250,000 population 462.00 Cities under 250,000 population' 161 .00 Cities between 100,000 and 250,000 172.00 Cities in Orange County 96.00 Huntington Beach 56.00 Only 5 cities out of the 88 have a lower per license fee than Huntington Beach. It should be noted that of the 16,736 licenses in Huntington Beach, 13,595 are for $45.00 or less. A distribution of fees is attached. One additional report is attached which is somewhat outdated but is. perhaps indicative of where Huntington Beach stands in relation to 22 other Charter Cit-ies with a population over 100,000. This report was issued by the State Controller and for the fiscal year 1987/1988 shows the percentage of the general fund each City received from business license fees. 22 Cities 4.28% Statewide 5.80% ., Huntington Beach 1 .49% In our proposed budget for 1990/1991 this drops to 1 .01%. - Besides the low revenue produced by our present business license and that it is patched and outdated, we need to examine its equity and administrative ease. There are three major factors on which most business licenses are based: Gross Receipts Flat Rate Nu7mber of Employees Frequently some corm-bination of these methods are used. Our system is primarily based on a minimum fee and number of employees. While this is relatively easy L administer, It 15 not particularly egUit2ble. We charge the same for a barber as for a brain surgeon. We penalize a Small business because the rate per employee is lless after the first three. Having a large number of employees does not necessarily equate to profitability. A system based on cross receipts is somewhat more equitable. By assigning each business to a class, a different rate can be established for each. This rate can be assigned based on profitability of each class. Common cateo_ories include: Retailing Rental of Property Wholesaling Services Manufacturing Professionals Contractors Miscell _reous PAGE THREE Gross receipts are now being used by the majority of cities. It is somewhat more difficult to administer. To insure that revenues from business licenses keep pace with the economy many cities are tying their rates to the CPI or other economic indicators. To implement a completely revamped business license will require time to study, design, communicate with the business community, program the necessary information systems, order forms and train. We do not have the staff and expertise in house to accomplish all this. . The cost of a consultant to provide this service would be about S30,000. In the interim, Council could direct an increase in our base fee. This could be implemented relatively easy. For instance, based on the following increases, the City could increase revenues as shown: Increase Estimated Revenue $20.00 $260,000 25.00 400,000 50.00 800.000 75.00 1,200,000 We zre in the process of modifying the business license data base so that we can comply with State requirements. We are trying to do this with our present stair and the assistance of a part time temporary. These modifications will enable -us to share information with the State Board of Equalization. Plerse let me know if you reed any additional information. City Ci of Huntington Beach . g INTER-DEPARTMENT COMMMUNICATION HUNTINGTON BEACH TO: MICHAEL T..UBERUAGA, City Administrator FROM: ROBERT J. FRANZ, Deputy City Administrato SUBJECT: UPDATE CHARGES FOR CURRENT SERVICE DATE: June 6, 1996 In 1992 an outside consultant study was completed which documented-total City, costs for 213 "Service Centers" for which fees could be charged to users. Two major phases of implementation were completed in 1992/93 and 1993/94, increasing fees, charges, and cost recovery by $4.7 million per year. Over $900,000 per year of additional new and, increased fees have been implemented since 1993/94, (see summary). The major areas remaining to be implemented included recovery of costs for sewer collection ($3.7 million), storm drain maintenance ($2.0 million), street lighting ($3.2 million) and similar significant costs that would require city-wide fees. Some of these are being reviewed as potential 1996/97 budget shortfall solutions. We are currently conducting our once every two years update of the comprehensive schedule of user fees compared to City costs. Significant cost reductions have occurred in many areas which will result in the need to carefully review existing fees when the study is completed in the Fall of this year. The last update was completed in December of 1994. The update was used by the Police, Community Development and Community Services Departments to recommend new and updated fees in 1995 and 1996. (Examples: Room rental rates, adult recreation class fees, vehicle release fee, permit fees, business license renewal fee, water rates, parking meter rates, etc.) It is anticipated that net fee increases of a minimum of $50,000 per year will be recommended upon conclusion of the current update effort. In addition, as you know, the comprehensive schedule of user fees and City costs is being used to document City costs related to potential new revenue sources such as the sewer maintenance fee and storm drain maintenance fee. RJF:skd Attachments 0019216.01 06/06/96 8:22 AM f Since this program could not be implemented until some time in the last quarter of FY96/97, the impact on the General Fund budget for that year could be an estimated net increase of $100,000. In FY97/98, the additional revenue could be distributed between General Fund needs and the debt service for the south beach improvement master plan. If Council approves of the concept of a preferred beach parking plan, staff will prepare a detailed pro forma and parking lot design for Council's con- sideration. RH:cr cc: City Administrator Department Heads 0019076.01 06/04/96 11:26 AM New and Increased Charges to Cover City Costs (includes charges to Enterprise Funds to Cover General Fund costs) Summary of Implementation since 1992 by the City ....... . ...... ......................... ............--..................... .......X... ......... ..................... ........... ...... ....................... ............ .. .. ............... . ..... ..................... . ....... . ............ .. . ............ . .. ................. -......... .............. . ......... ....................... ............. ......... .. ....... ................................. .......... .............. ............ ......... .. .... ewke-ve,nue�: . .......... .......... ....... ...- N .......................................... .. ............ .... ... . ......... ............ ..... ... . ........ ...... . .PP.- Community Development Services $2,331,644 $553,570 $387,460 $941,030 $1,390,614 Public Safety Services 1,553,600 681,000 170,700 851,700 701,900 Leisure and Cultural Services 850,100 75,240 92,537 167,777 682,323 Utility and Enterprise Services 12,295,000 1,881,000 304,500 2,185,500 10,109,500 . Maintenance Services 13.092,400 505,000 56,541 561,541 12,530,859 Finance and Administrative Services 448,800 5,850 18,250 24,100 424,700 ...... ............... ..... .... .............................. . ...........................- ................................. ..................................... ... ..................... ....... . ...... Examples of Unrecovered Costs: Per..................... ........ -*. ................ e Per . ........... .. ...... ................ -X........... . Year_,:. ... ......... .. .... .... ...'rX. ............. ,,-.Ne"w.- Riewenud' "'M . .........-6 S eir v i 64:P: On es Water Utility(Prior to 1995 water rate changes) $3,372,700 Refuse Service 2,202,400 $4.21 $50.57 Street Cleaning 354,500 0.33 3.96 Storm Drain Maintenance 2,036,500 3.49 41.88 Sewer Collection 3,773,600 2.65 31.80 Street Usage by Utilities 544,239 N/A N/A Street Lighting 3,242,800 2.28 27.33 Median and Park Maintenance 907,900 0.56 7.65 Street Tree Maintenance 1,486,300 1.04 12.53 Alley Maintenance 263,100 2.49 29.88 Huntington Harbor Maintenance 52,400 1.65 19.80 Neighborhood Parks Maintenance 5,308,000 3.73 44.73 Blockwall Maintenance 1,228,000 0.88 10.56 I I .........................- ........ ........ Per 1/8 Acre Parcel (City Wide)-Assessment District needed for implementation Fees or Increased Charges Implemented since 1993/94 Include the following: n-ce..1 993194-:�:i� st:Annual.; X. ... ....... Gf.' Service Center .0. . . R' Ve Business License Renewal $10Near $150,000 Vehicle Release Service S50/Vehicle $150,000 Non Resident Library Service $20/PersonfYr. $65,000 Parking Structure varies $400,000 Community Services Dept. Programs varies $100,000 lComunity Development Dept.services varies $50,000 G:\BOB\SPRDSHTXSVCCNTR.XLS)Sheel1 615196 f Page 1 of 7 r CITY OF HUNTINGTON BEACH SCHEDULE 10A SUMMARY OF REVENUES, COSTS AND SUBSIDIES BY SERVICE UNIT FISCAL YEAR 1993-1994 BUDGET 1993-94 1993-94 PROFIT ANNUAL MSl UNIT NO. CITY FEE COST (SUBSIDY) PROFIT is SERVICE CENTER TYPE UNITS PER UNIT PER UNIT PER UNIT (SUBSIDY) {t) (2) (3) (4) (5) (6) (7) (8) COMMUNITY DEVELOPMENT SERVICES S-001 Preliminary Plan Review(SFR) Application NIA NA NA NA NA S-002 Preliminary Plan Review(MFR<10) Application 3 $500.00 S567.00 (S67.00) (S201) S-003 Preliminary Plan Review(MFR 10+) Application 3 $500.00 $1,254.00 (S754.00) ($2,262) S-004 Preliminary Plan Review(Non-Res). Application ... 2, $750.00 $1,144.00 _ (S394.00). (S788) S-005 Tentative Parcel Map Review Application 22 $150.00 S842.23 (S692.23) ($15,229) S-006 Tentative Parcel Map Waiver Application 15 $200.00 $241.47 (S41.47) (5622) S-007 Tentative Tract Map Review Application 6 $1,666.67 S2,282.17 ($615.50) (S3,693) S-008 Use Permit Review Application 55 $320.00 $328.36 (S8.36) ($460) S-009 Lot Line Adjustment Review Application 4 $250.00 S447.75 ($197.75). (S791) S-010 . Site Plan Amendment by Plan. Comm. Application 2 $350.00 S439.00 ($89.00) ($178) S-011 Site Plan Amendment by Zoning Admin. Application 8 S270:00 5373.00 ($103.00) (S824) S-012 Development Agreement Review Application 3 $12,750.00 $17,940.67 (S5,190.67) ($15,572) S-013 Coastal Development Review Application 36 $277.78 S987.19 ($709.42)- ($25,539) S-014 Local Coastal Program Amendment Application 4 $1,125.00 $1,767.50 ($642.50) (S2,570) S-015 Administrative Review Application 20 $315.00 S444.90 ($129.90) ($2,598) S-016 Conditional Use Review Application 10 $2,375.00 $3,227.10 ($852.10) ($8,521) S-017 Special Permit Review Application 18 S270.00 S386.67 ($116.67) ($2,100) S-018 Conditional Use Review(Other)- Application 70 $1,700.00 $2,404.93 ($704.93) ($49,345) S-019 Conditional Exception Review(PC) Application 20 S860.00 $1,247.55 ($387.55) (S7,751) S-020 Conditional Exception Review ZA) Application 15 $255.00 S362.40 ($107.40) ($1,611) S-021 Categorical Exclusion Letter Letter 6 $50.00 S75.17 (S25.17) ($151) S-022 Temporary Use Review Permit 14 $165.00 S170.00 ($5.00) ($70) S-023 Temporary Outdoor Event Permit Permit 30 $165.00 S286.17 ($121.17) (S3,635) S-024 Home Occupation Permit Application 1,200 $20.00 S22.92 ($2.92) ($3,509) S-025 Flood Plain Variance Application 1 S255.00 S940.00 ($685.00). (S685) S-026 General Pin Amendmnt Rvw&Revision Application 3 $7.875.00 $12,066.33 (S4,191.33) ($12,574) S-027 General Plan Conformance Report Application 20 $465.00 $684.00 ($219.00) (S4,380) S-028 Zoning Code Amendment Review Application 5 $3,900.00 S5,376.00 (S1,476.00) ($7,380) S-029 Zoning Letter Application 325 $100.00 S146.48 ($46.48) ($15,105) S-030 Zone Change Review Application 14 $4,250.00 $5.991.50 ($1,741.50) ($24,381) S-031 Environmental Assmnt Study(Neg. Dec.) Study 65 $870.00 $1,281.83 ($411.83) ($26,769) S-032 Environmental Impact Report Review Study 1 $6,000.00 S9,066.00 ($3,066.00) (S3,066) S-033 E.I.R. Preparation Requested 1 $2,900.00 $4,046.00 (S1,146.00) ($1,146) S-034 Mitigation Monitoring Project 85 $250.00 $160.26 $89.74 $7.628 5-035 Temporary Sign Review&Inspection Application 105 $100.00 $114.10 ($14.10) ($1,481) Page 2 of CITY OF HUNTINGTON BEACH SCHEDULE 10A SUMMARY OF REVENUES, COSTS AND SUBSIDIES BY SERVICE UNIT FISCAL YEAR 1993-1994 BUDGET 1993-94 1993-94 PROFIT ANNUAL MSl UNIT NO. CITY FEE COST (SUBSIDY) PROFIT SERVICE CENTER TYPE UNITS PER UNIT PER UNIT PER UNIT (SUBSIDY) (1) (2) (3) (4) (5) (6) (7) (8) S-036 Limited Sign Review Application 10 $165.00 S235.90 ($70.90) (S709) S-037 Planned Sign Review Application 10 $585.00 S847.60 (S262.60) (S2,626) S-038 Special Signs Permit Application 13 S815.00 S1,184.46 (S369.46)- (S4,803) S-039 Processing Of Appeal To PC Application 8 S318.75 S954.00 (S635.25) ($5,082) S-040 Processing Of Appeal To City Council Application 9 S850.00 $1,679.56 (S829.56) (S7,466) S-D41 Preliminary Landscape Plan Check Application 42 $0.00 S41.43 (S41.43) (S1,740) S-D42 Landscape Plan Check Plan 96 S55.00 $61.83 (S6.83) (S656) S-D43 Landscape Inspection Inspection 94 $0.00 S464.54 (S464.54) (S43,667) S-D44 Final Occupancy Review& Inspection Application 953 $83.95 $162.20 (S78.25)- ($74,572) S-045 Mobile Home Park Conversion Review Application 1 $0.00 S398.00 (S398.00) ($398) S-D46 Entitlement Extension Review Application 25 S125.00 S282.44 ($157.44) ($3,936) S-D47 Conditns,Covenants& Restrictn Review Request 10 S400.00 $300.00 S100.00 $1,000 S-048 Address Change Review Application 6 S125.00 S164.17 (S39.17) (S235) S-049 New Address Assignment Processing Application 72 S125.00 $159.82 (S34.82) (S2,507). S-050 Design Review Board Hearing Application 45 S250.00 S328.40 (S78.40). (S3,528) S-051 Gradino Plan Check 8 Inspection Plan 85 $1,223.34 S1,018.47 S204.87 S1.7,414 S-052 Final Parcel Map Check Map 7 S480.00 S833.86 (S353.86) ($2,477) S-053 Final Tract Map Check Map 12 S1,346.67 S884.58 S462.08 S5,545 S-054 Public Improvement Plan Check Plan 19 S524.00 $1,269.05 (S745.05) (S14,156) S-055 Public Improvement Inspection Inspection 700 S392.86 S315.36 $77.50 S54,250 S-056 Street Vacation Request Processing Request i S171.43 S2,386.43 (S2,215.00) (515,505) S-057 Compliance Review 8 Letter Application 70 $105.00 S146.36 (S41.36) (S2,895) S-058 Street Construction Review 8 Inspection Permit 600 S166.67 S254.91 (S88.25) ($52,947) S-059 Special Curb Marking Service Request 5 S100.00 S632.00 (S532.00) (S2,660) S-06D Precise Plan Street Alignment Plan 2 $2,684.00 S3,071.50 (S387.50) (S775) S-061 Building Plan Check Plan 577 S928.94 51,335.79 (S406.BS) (S234,752) S-062 Plumbing Plan Check Plan 96 $395.83 S332.69 S63.15 S6,062 S-063 Electrical Plan Check Plan 264 S416.67 S415.09 S1.58 S417 S-064 Mechanical Plan Check Plan 99 S424.24 S581.32 (S157.08) (515,551) S-065 Plan Check Extension Plan 60 $40.00 S43.48 (S3.48) ($209) S-066 Building Inspection Permit 6,021 $116.26 S107.67 S8.59 S51,738 S-067 Plumbing Inspection Permit 1,235 S109.31 S153.92 (S44.61) (S55,096) S-068 Electrical Inspection Permit 1.862 S142.32 S195.62 (S53.30) (S99,250) S-069 Mechanical Inspection Permit 1,334 S74.96 S144.17 (S69.21) (S92.329) S-07D Building Permit Extension Permit 15 $85.00 S91.73 (S6.73) (S101) S-071 Building Re-inspection Permit 88 S74.48 $83.82 (S9.34) (S822) S-072 Building Relocation Review 8 Irsp. Permit 1 S112.00 S732.00 (S620.00) ($620) Page 3 of 7 CITY OF HUNTINGTON BEACH SCHEDULE 10A SUMMARY OF REVENUES, COSTS AND SUBSIDIES BY SERVICE UNIT } FISCAL YEAR 1993-1994 BUDGET 1993-94 1993-94 PROFIT ANNUAL MSI UNIT NO. CITY FEE COST (SUBSIDY) PROFIT {t # SERVICE CENTER TYPE UNITS PER UNIT PER UNIT PER UNIT (SUBSIDY) i (1) (2) (3) (4) (5) (6) M (8) S-073 Building Demolition Review&Insp. Permit 17 $78.24 S64.18 $14.06 $239 S-074 Mobile Home Park Annual Permit Proc. Park 18 $1,083.33 S0.00 $1,083.33 $19,500 } S-075 Swimming Pool Plan Check &Insp. Permit 110 $254.55 $375.95 ($121.40) ($13,354) S-076 Plan Check/Inspection Misc. Services Hour N/A NA NA NA NA S-077 Obstruction Permit Permit 60 $50.00 S53.20 (S3.20) (S192) S-078 Drop-off Body(Bin)Permit Permit 90 $30.00 $32.06 (S2.06)- (S185) S-079 Street Sign Installation Job/Request 10 S220.00 S226.30 (S6.30) (S63) S-080 Specific Plan Review Text/Study 3 $0.00 $4,733.67- (S4,733.67) ($14,201) S-081 Dock Construction Plan Revw. &Insp. Application 16 $50.00 5153.75 ($103.75) ($1,660) PUBLIC SAFETY SERVICES S-082 Special Business Regulation Application 150 $18.56 S165.71 ($147.15) (S22,072) S-083 Temporary Alcohol Beverage Review Application 50 $0.00 S327.12 ($327.12)• ($16,356) S-084 Wide, Overweight, Overlong Load Rvw Permit 340 $23.97 S56.11 (S32.14) ($10,928) S-085 Bicycle Registration License 4,000 $3.00 S3.41 (S0.41) ($1,653) S-086 Vehicle Code Enforcement Citation 25,922 $27.60 S117.19 ($89.59) (S2,322,480) S-087 Parking Enforcement Citation 47,000 $17.67 $10.66 S7.01 $329.401 S-088 Special Parking Permit Permit 850 S2.68 S7.01 (S4.34) ($3,686) S-089 Zoning Code Enforcement Notice 2,300 $0.00 $195.71 ($195.71) ($450,135) S-090 Code Enforcement Re-inspection Inspection 1,380 $2.54 S53.03 ($50.49) ($6903) S-091 Noise Disturbance Response Call-back Call 2 $120.00 S351.00 (S231.00) (S462) S-092 Police False Alarm Response Response 8,500 $9.88 $86.63 (S76.75) ($652,401) S-093 Records Check/Clearance Letter Letter 120 $10.00 S28.19 ($18.19) (S2,183) S-094 Fingerprinting Card 1,300 $18.00 $11.87 $6.13 $7,974 S-095 Video/Audio Tape Reproduction Tape 180 $0.00 S47.99 ($47.99) ($8,638) S-096 Crime Statistic Report Report 12- $70.00 $336.50 (S266.50) ($3,198) S-097 Resp.to Subpoenas of PO Personnel Subpoena 150 $150.00 $578.24 (S428.24) ($64,236) S-098 Police Accident Investigat'n and Report Report 3,192 $35.00 $127.83 ($92.83) (S296,298) S-099 Vehicle Equipment Correct'n Inspection Inspection 1,500 $0.00 S7.28 (S7.28) ($10,917) S-100 Crime Scene/Police Photo Reproduction Photo 850. $13.36 S11.38 S1.98 S1,687 S-101 Abandoned/Abated Vehicles Release Vehicle 340 $0.00 $299.15 ($299.15) ($101,710) S-102 DUI Accident Response &Investigation Response 133 $130.56 $465.59 ($335.03) ($44,559) S-103 DUI Arrest Procedure Arrest 525 $79.15 $517.09 (S437.94) (S229,917) S-104 Narcotics Lab Processing Arrest 1,700 $50.00 $143.14 ($93.14) ($158,336) Page 4 of 7 CITY OF HUNTINGTON BEACH SCHEDULE 10A SUMMARY OF REVENUES, COSTS AND SUBSIDIES BY SERVICE UNIT FISCAL YEAR 1993 1994 BUDGET 1993-94 1993-94 PROFIT ANNUAL MSI UNIT NO. CITY FEE COST (SUBSIDY) PROFIT # SERVICE CENTER TYPE UNITS PER UNIT PER UNIT PER UNIT (SUBSIDY) (1) (2) (3) (4) (5) (6) m (8) S-105 Animal Control Varies N/A NA NA NA NA S-IDS Contract Booking &.Prisoner Housing Booking 600 $0.00 5188.68 ($188.68) ($113,206) S-107 Crosswalk Protection Crosswalk 38 $0.00 S9.108.71 ($9,108.71) (5346,131) S-10B Fire False Alarm Response Incident 197, $21.30 5541.62 (5520.32) ($102,503) S-109 Hazardous Materials Review&Insp. Permit 466 $375.54 S399.66 ($24.13) ($11,243) S-110 Hazardous Materials Clean-up Incident 250 S192.00 51,940.97 ($1,748.97) ($437,243) S-111 Fire Incident Report Copy Report 121 $6.69 $14.60 (57.91) (5957) S-112 Annual Fire Inspection Program Inspection 5.575 $0.00 $210.69 ($210.69) ($1,174,609) S-113 Fire Code Enforcement Inspection Inspection 600 $0.00 $212.37 (S212.37) (5127,421) S-114 State-Mandated Fire Inspection Inspection 38 $131.58 $204.68 ($73.11) ($2,778) - S-115 Risk Management Program Request 15 $0.00 51,069.73 ($1,069.73)- ($16,046) S-116 Water/Flood Pumping And Clean-Up Incident 60 50.00 S394.43 (S394.43) ($23,666) S-117 Medical Assistance Response Incident 7,500 5260.27 5821.66 ($561.40) (S4,210,470) S-11B Private Hydrant System Testing Request 50 $0.00 S105.16 ($105.16) (55,258) S-119 Fire Alarm &Sprinkler Plan Review/Insp- Various N/A NA NA NA NA S-12D Undergrd.Tank Instal/Removal Insp. Inspection 108 $0.00 $137.88 (S137.88) ($14,891) 5-121 Storage Tank Permit Inspection Permit 24 550.00 $261.83 (S211.83) ($5,OB4) S-122 Fire Suppression Stand-By Hour NIA NA NA NA NA S-123 Weed Abatement Lot 150 5200.00 $544.55 ($344.55) (551,683) S-124 Campaign &Misc Sign Abatement Incident 100 SO.00 552.35 (552.35)• (55,235) S-125 Tree/Shrub Overhang Abatement Incident 61 51.89 599.79 (597.90) (55,972) S-126 Spilled Load Clear,-Up Incident 500 $0.00 $126.05 (S126.05) (563,026) S-127 Alarm Permit Application/Renewal Rvw Permit 2,250 520.00 515.72 S4.28 59,640 t S-128 Oil Well Inspection Inspection 790 5100.00 S200.69 (S100.69) ($79,548) S-129 Oil Well Vent Inspection Inspection 30 S375.00 5604,77 (S229.77) ($6,893) S-130 Oil Well Drill/Redrill Permits Permit 0 NA NA NA NA S-131 Abandoned Oil Well Inspection/Review Inspection 50 $100.00 51,097.62 ($997.62) ($49,881) S-132 Oil Waste Water Service Customer 175 $85.00 5102.90 (517.90) ($3,132) LEISURE AND CULTURAL SERVICES S-133 Adult Spons Programs Team 1,174 S324.27 5341.75 (517.48) ($20,517) S-134 Youth Sports Programs Participant 2,300 $23.04 555.93 (532.89) ($75,641) S-135 Private Youth Bal!field Usage Hour 280 50.66 539.05 (S36.38) (510,747) S-136 Private Ad-.;!* Ba!!tie!d Usage Hour 1,340 S7.S3 512.46 (54.53) (56,070) Page 5 of 7 CITY OF HUNTING70N BEACH SCHEDULE 10A SUMMARY OF REVENUES, COSTS AND SUBSIDIES BY SERVICE UNIT FISCAL YEAR 1993-1994 BUDGET 1993-94 1993-94 PROFIT ANNUAL MS1 UNIT NO. CITY FEE COST (SUBSIDY) PROFIT SERVICE CENTER TYPE UNITS PER UNIT PER UNIT PER UNIT (SUBSIDY) (1) (2) (3) (4) (5) (6) (7) (8) S-137 Contract Recreation Classes Participant 12,000 $42.08 S56.99 ($14.90) ($178,854) S-138 Special Event/Excursion Coord. Participant 1,215 $21.07 $33.72 ($12.65) (S15,368) S-139 Adventure Playground Program Participant 15,000 $1.98 $1.84 $0.14 $2,115 S-140 Summer Day Camp Participant 460 S95.00 $117.32 (S22:32)- ($10,265) S-141 Tennis Program Participant 3,400 $38.82 S52.53 ($13.71)- ($46,615) S-1a2 Tennis Court Rental Hour 936 $2.00 S8.34 (S6.34). ($5,934) S-143 Recreational Swimming Swimmer 16,900 $1.00 S2.76 (S1.76) (S29,701) S-144 Swimming Lessors Swimmer 6,500 $20.63 $26.76 ($6.13) ($39,851) S-145 Junior Lifeguard Program Participant 700 S231.43 $267.71 (S36.28) ($25,396) S-146 Museum Services Visitor 5,200 -$0.00-- - -.S4.68 -.. (S4.68) ($24,361) S-147 Senior Citizen Recreation Programs Participant 61,650 $0.00 S4.41 ($4.41) ($271,899) S-148 Senior Citizen Outreach Program Participant 3,400 $2.94 1128.49 (5125.55) (S426,860) S-149 Senior Center Rental Rental Hour 558 $32.39 $65.57 ($33.18) (S18,514) S-150 Nature Center Services Visitor 32,500- -- - $0.00 $0.49 ($0.49)- ($15,783) S-151. Nature Tours Participant 6.500 $0.00 S1.62 ($1.62) -($10,519) - S-152 Late Library Materials Processing Item Overdue 38,836 $3.00 S2:45 $0.55 $21,263 S-153 Reservat'n of Mat'I&Inter Library Loan Item 794 $.1.78 S15.94 ($14.16) ($11,242) S-154 Replacement of Lost Library Items Item Lost 1,308 $12.42 S143.35 (S130.93) ($171,255) S-155 Library Typewriter 8,Photocopier Use Use 591,222 $0.10 S0.17 (S0.07) ($42,970) S-156 Media Rental Item 69,533 $1.22 S3.79 (S2.57) ($178,962) S-157 Library Research Service Search N/A NA NA NA NA S-158 4th of July Celebration Participant 270,000 $0.44 S0.23 S0.21 $57,728 S-159 Showmobile Rental Rental 8 S225.00 S652.63 (S427.63) ($3,421) S-160 Banner Hanging Service Banner 12 $75.00 $111.42 (S36.42) (S437) S-161 Beach Services Vistor 6,100,000 $0.33 S0.86 ($0.53) ($3,237,140) S-162 Huntington Central Park Operations Visitor 570,000 $0.02 $2.77 (S2.74) ($1,563,283) S-163 Golf Course NA N/A NA NA NA NA UTILITY AND ENTERPRISE SERVICES S-164 Water Service Customer 48,500 $315.62 $403.28 (S87.66) (S4,251,667) S-165 West Orange County Water Board Svcs NA N/A NA NA NA NA S-166 Water Delinquent Turn-Off/On Turn-Off/On 5.700 $49.20 S34.57 $14.64 $83,423 S-167 Private Back-Flow Device Test Test 191 $0.00 $249.49 (S249.49) ($47,652) S-168 Hydrant Flow Test Witness Request 10 $0.00 S128.40 (S128.40) (S1,284) Page 6 of 7 CITY OF HUNTINGTON BEACH SCHEDULE 10A SUMMARY OF REVENUES, COSTS AND SUBSIDIES BY SERVICE UNIT FISCAL YEAR 1993-1994 BUDGET 1993-94 1993-94 PROFIT ANNUAL MSI UNIT NO. CITY FEE COST (SUBSIDY) PROFIT SERVICE CENTER TYPE UNITS PER UNIT PER UNIT PER UNIT (SUBSIDY) (1) (2) (3) (4) (5) (6) (7) (8) S-169 Hydrant/Air Vacuum Damage Repair Request 40 $344.25 $952.53 ($608.28) (S24,331) S-170 ;private Water Pressure Testing Test 50 $0.00 $57.92 ($57.92)- (S2,896) S-171 Testing Of Private Water Sample Test 2 $0.00 $172.50 ($172.50) ($345) S-172 Temp. Meter Rental Proc/Replacmnt Meter 110 S322.27 S186.98 $135.29 $14,8B2, S-173 Water Connection Inspection Connection 600 $9.26 S137.21 (S127.96) - ($76.775) S-174 Refuse Service Customer 43,600 $182.40 $231.62 (S49.22) (S2,145,992) S-175 Street Cleaning 118 Acre 118,664 $0.05 $2.72 ($2.67) ($317,047) S-176 Utility Customer Set-up Customer 387 $0.00 $73.71 ($73.71) (S28,524) S-177 Utility Customer Update Customer 2,500 $0.00 $37.08 ($37.08) (S92,694) S-178 Temporary Water Turn-Off/On Request 175 $0.00 $60.57 ($60.57) ($10,599) S-179 Cust.Svc Response&Accnt Research Request 1,200 $0.00 S51.57 ($51.57) (S61,884) S-180 H2O Quality Testing(Required) Contractor 75 $0.00 $121.09 ($121.09). (S9,082) S-181 Same Day Turn-On Service Request 275 $15.00 S28.85 ($13.85) (S3,808) S-182 Storm Drainage Maintenance Customer 48,400 $0.00 S42.74 (S42.74) (S2,068,696) S-183 Sewer Collection 118 Acre 118,664 $0.00 $31.70 ($31.70)- (S3,761,657) S-184 Sewer Connection Inspection Permit 50 $0.00 $144.12 (S144.12) (S7,206) S-185 Sewer Blockage Repair Repair 250 $0.00 $119.75 ($119.75) (S29,938) S-186 Emerald Cove.Sr. Housing Operation Unit 164 S4,865.85 $6,754.68 ($1,888.82)• (S309,767) MAINTENANCE SERVICES S-187 Utility Street Usage Miles R-O-W 380 S3,684.21 S5,998.00 (S2,313.79) (SE79,239) S-188 Sign &Striping Service Job 50 $1,000.00 $795.30 $204.70 S10,235 S-le9 Street Lighting 1/8 Acre 118.664 $0.00 S27.34 (S27.34) (S3,244,591) S-19D Median &Parkway Maintenance 1/8 Acre 118,664 $0.00 S8.14 ($8.14) (S965,761) S-191 Street Tree Maintenance 1/8 Acre 118.664 $0.00 $12.81 ($12.81) ($1,519,790) S-192 Street Tree Removal/Replacement Incident 42 $71.43 S131.38 (S59.95) (S2,518) S-193 Sewer Line Locating Incident 55 $0.00 S163.09 ($163.09) (S8,970) S-194 Alley Maintenance Parcel 8,800 $0.00 S30.09 (S30.09) (S264,825) S-195 Main Promenade Parking(Downtown)-. Space 830 S271.08 $806.99 ($535.91) (S44.4,802) S-196 Huntington Harbour Maintenance Res'[ Parcel 3.450 S4.64 S20.02 ($15.39) (S53,079) S-197 Neighborhood Parks Maintenance 1/8 acre 118,664 $0.00 $45.75 ($45.75) (S5,428,864) S-198 $lockwall Maintenance 1/8 Acre 118,664 $0.00 S10.51 (S10.51) (S1,246,879) S-199 Stale Highway Maintenance Mile(Lane) 120 $583.33 $1,143.98 ($560.65) ($67,278) Page 7 of 7 CITY OF HUNTINGTON BEACH SCHEDULE 10A SUMMARY OF REVENUES, COSTS AND SUBSIDIES BY SERVICE UNIT FISCAL YEAR 1993-1994 BUDGET 1993-94 1993-94 PROFIT ANNUAL MSI UNIT NO. CITY FEE COST (SUBSIDY) PROFIT # SERVICE CENTER TYPE UNITS PER UNIT PER UNIT PER UNIT (SUBSIDY) (1) (2) (3) (4) (5) (6) (7) (8) { ADMINISTRATIVE AND FINANCE SERVICES S-200 NewiMoved Bus. License Appl. Rvw Application 800 $22.50 S29.37 (S6.87) (S5,494) S-201 Business Tax Renewal Processing Renewal 16,000 S6.00 S8.48 (S2.48) (S39,715) S-202 Returned Check(NSF)Processing Check 1,500 $15.00 S14.32, S0.68 $1,017 S-203 Records Research Service Hour N/A NA NA NA NA S-204 Document Printing&Copying Item N/A NA NA NA NA S-205 Agenda/Minute Mailing Service Subscriber 43 S51.28 $168.47 ($117.19)..- (S5,039) S-206 City Code Mailing Service Subscriber 55 $45.45 S189.40 (S143.95)- ($7,917) S-207 Document Certification Item 15 S3.00 S16.33 (S13.33) (S200). S-208, Addrest/Complex Map Book Book 25- S35.00 S55.60 ($20.60) ($515) S-209 Microfilming of Building Plans/Permits Item 10,000 $1.00 $3.30 ($2.30) (S22,998) S-210 Council Videotape Processing &Sale Videotape 24 $35.00 S42.13 ($7.13) (S171) S-211 . Lease of City Property. Site 37 $8,624.97 S71474.27 S1,150.70 $42,576 S-212 City Facility Rental Rental Hour 7,264 $14.07 $80.38 ($66.32) ($481,725) S-213 Services to Redevelopment Agency NA N/A NA NA NA NA • RECEIVED FROM AND MADE A PART OF THE REC?RD AT THE COUNCIL MEETING OF (J'-,o —y& OFFICE OF THE CITY CLERK CONNIE BROCKWAY,CITY CLERK City of Huntington Beach Sewer Service Fee Proposed Sewer Service Fee *Projected $1.25 million annual revenue *Funds only minimum level of maintenance *Does not fund preventative maintenance *Does not fund capital repairs Current Sewer Maintenance Costs Salaries $ 797,000 Routine Maintenance 213,000 Electricity 130,000 Electrical Maintenance 100.000 Total S 152405000 Monthly Sewer Fee Revenue S1 million S1 .25 million Typical Residence $ 1 .06 $ 1 .33 25 Unlit Apt Bldg S26.54 $ 33.25 (2" ,rater meter) Commercial BldLy $71 . 13 $ 89. 11 (6" «-ater meter) Residential Sewer Rates City Per Month Anaheim $ 0.89 Costa Mesa 1.92 Newport Beach 3.60 Fullerton 25% of water bill Seal Beach 22% of water bill (Cities using OCSD treatment facilities) 5 Sewer Service Fee Fee based on flow capacity of «-ater meter (size) & number of dwelling uivts served Neater meter sizes in the city 3/4" 83% 1 " 11% 1 1/2" 2% 21 3% 3" & lamer 1% J �19C 1964� 199 I'ruposed Sewer Service Dees 9433 Projected Annual Revenue $ 1,000,000 $ 1,250,000 $ 2,500,000 $ 4,000,000 $ 6,000,000 Recommended Calculation Method Greater of: Meter Flow Capacity or EDUs Monthly Fee Monthly Fee Monthly Fee Monthly Fee Monthly Fee per Unit per Unit per Unit per Unit per Unit D)Itil Bummer r jhillable rmuls 78,496 $ 1.06 $ 1.33 $ 2.65 $ 4.25 $ 6.37 Typical Costs Single Family Residential $ 1.06 $ 1.33 $ 2.65 $ 4.25 $ 6.37 25 Unit Apartment Building (2" meter) $ 26.50 $ 33.18 $ 66.35 $ 106.16 $ 159.24 50 Unit Commercial Complex (6" FM meter) $ 71.02 $ 88.91 $ 177.82 $ 284.52 $ 426.77 4b t • • W10/06 St wrcr.xt..S Shec[3 CA 96-05 City g of Huntington Beach IOU COUNCIL-ADMINISTRATOR COMMMUNICATION HUNTINGTON BEACH TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS FROM: MICHAEL T. UBERUAGA, City Adminis rat ; SUBJECT: BUDGET SHORTFALL SOLUTIONS DATE: June 20, 1996 The June 10, 1996 Budget Study Session concluded with a lack of clear policy direction to the staff regarding 1996/97 Budget Shortfall Solutions. The staff has recommended an approach of reducing ongoing expenses by $2 million and increasing ongoing revenue by $ 2 million to address the estimated $4 million General Fund shortfall for 1996/97. In order to increase ongoing revenues by $2 million (or more), the staff believes that one or more major new or increased revenue source(s) will need to be implemented. Our recommended approach to increase revenues is: 1) Implement a $1 per month/residential unit sewer maintenance fee (estimated $1 million per year new revenue); 2) a $20 per year increase in the Business License Tax (estimated $320,000 per year new revenue) and 3) the other new revenues listed in the attached summary. Public Hearings on the Sewer Maintenance Fee and Business License Tax increase need to be scheduled for the September 3 City Council meeting if they are to be considered as part of the 1996197 Budget. The initial Public Hearing notices must be posted 45 days in advance of the hearing, (no later than mid-July). Therefore, I would like further City Council discussion (on June 24, 1996) of these two potential new revenues before we schedule the public hearings. 0019510.01 06/20/96 10:19 AM Summary - Potential New Genera/Fund Revenue Sources Estimated New Reff, General Fund Cumulative No. Recommended for Inclusion in 1996/97 Budget Annual Revenue Revenue 1 Parking Fee Changes: Meters/Structure (APPROVED) $ 400,000 $ 400,000 2 Community Enrichment Library Fee Increase 100,000 500,000 3 Parking Meters Beach Blvd. and Magnolia Street 44,000 544,000 4 Beach Parking Lots-Preferred Parking Plan 100,000 644,000 5 Update Charges For Current Service 50,000 694,000 6 Sewer Maintenance Fee(New) 1,000,000 1,694,000 7 Business License- $20 Per Year increase 320,000 2,014,000 $ 2,014,000 Other Rcommended New Revenue Sources - But Not for Inclusion in 1996/97 Budd 8 Sale of City Property 9 Lease of City Property 10 Contract Scientific Investigation Lab Services To Other Agencies Other Potential New Revenues (not Recommended for 1996/97) 11 Parking Meters -Central Park/Library $ 200,000 12 Business License-Rental Units: Single Family&Duplexes 200,000 13 New Parking Meters-Inland side of P.C.H. 100,000 14 State Parks Water Use Surcharge 12,000 15 New Parking Meters-Brookhurst 15,000 16 Refuse Fee: 50 Cents Per Month Increase 250,000 17 Barrel Tax(Oil): 1 Cent Additional 30,000 18 T.O.T. (Transient Occupancy Tax/Bed Tax): 1%Additional 100,000 19 Storm Drain Maintenance Fee 1,040,000 20 Entertainment Fee 275,000 $ 2,222,000 G:\BOB\BUDGET\REVENUES\GFREVNEW.XLS]New Revenue-CC Print Date 6/20/96 Summary. 12:41 PM /� fe CITY OF HUNTINOTON BEACH L-16"7 COUNCIL - ADMINISTRATOR COMMUNICATION ,.vrr.+cta+sFwcN To: Honorable Mayor and City Council From: Michael T. Uberuaga, City Admini r�� Date: May 6, 1996 Subject: Budget Study Session Exercise Results Please find attached the packet of results of the budget exercises you performed at your City Council Study Session of Monday, April 29, 1996. Included in the results packet are: • Tables of the City Council's Ranking of Public Services, Department Head's Ranldng of Public Services, and the City Council's Preferred Method of Funding, • A summary of City Council (program and service) suggestions, and • Copies of the City Council's actual"Request of the City.Administrator to Examine Specific City Programs and Services" submittals. MTU:bs xc: Department Heads Attachments City of Huntington Beach City Council Study Session April 29, 1996 Budget Exercise Results City Council 's Ranking of Public Services AVERAGERANK TAXES/FEES 1 highest) 5 highest) 1 1 7/0 Porice services 5 2 2 7/0 Fire services 5 3 5.3 3/4 Maintenance of Infrastructure 4.1 4 5.6 611 Marine Safety services 4.3 5 5.7 1/6 Development Services 3.7 6 6 7/0 Administrative Support 3.6 7 7 3/4 Code Enforcement services 3.7 8 7.6 5/2 Library services 3.9 9 7.9 1/6 Beach Services 3.9 10 8.9 6/1 Recreational services 3.6 11 10 7/0 L Terre Planning 3 12 11 0/7 Cuttwal Services 2.7 Department Head's Ranking of Public Services RANK AVERAGE TAXES/FEES PUBLIC SERVICE DESIRABILITY 1 highest) 5 highest) 1 1 10/0 Police services 5 2 2.5 10/0 Fire Services 5 3 3.9 5/5 MaKenance of Infrasbucture 4.1 4 6.1 7/2 Marine Safety Services 4.3 4 6.1 0/9 Development Services 3.7 6 6.6 4/6 Code Enforcement services 3.7 7 7.5 9/1 Administrative Support 3.6 8 7.8 6/4 Library services 3.9 9 8 1/9 Recreational Services 3.6 10 8.3 6/4 Long-Term Planning 3 11 8.4 8/2 Beach Services 3.9 12 11.7 1 2/7 Jrquitural Services 2.7 City Council's Preferred Method of Funding Method of Funding Council per Method Reduce Expenditures Only 1 Raise Revenues Only 2 Reduce Expenditures and Raise Revenues Equally 50/50 3 Reduce Expenditures and Raise Revenues to a Specified Ratio 1 (2.6M/1M) 5/6196 City of Huntington Beach City Council Study Session April 29, 1996 Budget Exercise Results Suggestions to Review Specific Programs and Services Please note: The numbers on the left margin are control numbers for locating the specific comment on a master list 2*. No other weight should be applied to and no other inference should be drawn from these numbers. Business License 1. Strict Business License enforcement. Perhaps hire additional staff if needed. 23. Require business licenses for all businesses operating in city. 57. Business licenses for 1 and 2 units. Fees 29. Implement additional MSI recommendations. 41. Increase aggressiveness of Code and Law Enforcement fines(issuance?). 42. Review all contracts and leases for increases in fees. 49. Raise existing fees to cover overhead. 54. Institute $3.6 million in MSI fees. 51. Raise beach parking fees. 52. Increase fees for towed vehicles. 53. Charge homeowners for removal and/or planting of trees. 54. Oil pipeline fee. 56. State parks water use surcharge. 18506:BRS Council's programstservices suggestions 58. Community Enrichment fee. 59. Sewer maintenance fee. 60. False 911 calls. 62. Annual Fire Prevention inspection fee. 63. State mandated fire inspection. 64. Storm drain maintenance. 68. Fire code enforcement fees. 69. Trenching fee(street cuts). Intereovernmental 39. Acquire West Orange County Water District. 40. Withdraw from PCTA 46. Give state beach back to State. Organizational Structure-Reduce 4. Reduce Police Aero Bureau by 50%. 8. Eliminate/reduce Police participation in regional Narcotics Task Force. 12. Reduce tree trimming. 47. Reduce HBTV3 services. Orzanizational Structure-Re-Pear 2. Consolidate Police/Fire Vehicle Maintenance under Public Works. 17. Reorganize Library into Community Services. Reduce 1 department head. 27. Utilize R.S.V.P. in Code Enforcement. 31. Reduce outside legal work. 2 1 SSo6:BRs Council's programs/services suggestions 44. Institute program in Fire Department(produced?)by Pasadena Fire Chief(8 hour work shifts). 48. Increase aggressiveness in grant writing. 67. Revenue audits and collections. Parking Meters 19. (Create?) a Parking Meter Master Plan. 55. New parking meters: Brookhurst, Magnolia, Beach Bl. Personnel 7. Eliminate position of Adjutant in Police Department and replace with unworn Management Assistant position. 24. Negotiate a 0% payroll increase to bring all labor contracts through 1997. Agree to a 1997-98 fiscal(?)contract for 3 years. Privatize 3. Eliminate City.Attorney staff and utilize contract counsel. 10. Privatize road paving. 11. Privatize street sweeping. 14. Privatize the Art Center. I6: Privatize Public Works street maintenance, water distribution etc. 26. Privatize Code Enforcement. 34. Street sweeping privatization. 35. Privatize landscaping. 36. Privatize tree trimming. 37. Review all Public Works activities for privatization. 38. Privatize City Attorney's Office and/or go to billable hours. 3 18506:BRs Councils programslservices suggestions 45. Privatize all of Administrative Services. Regionalize 9. Regionalize Fire(services). 22. Regionalize more Public Safety services. 25. Fire/Police regionalization. 32. Look carefully at Aero positions-reeducation or regionalization with other cities paying their bills. 70. Regionalize Public Works street maintenance, water distribution etc. Social Senices 20. Review and evaluate all CDBG requests. Rank in order of citizens served divided by allocation. Eliminate regional and emphasize local. 21. Review all social services programs and transfer, where appropriate, to County. 33. Use CDBG funds to support general fund services. Taxes 18. Emphasize new"tax" and"user fee" sources. 28. Tax on rental properties. 30. Sewer fee. 61. Transient Occupancy Tax increase. 65. Entertainment (tax?). 66. Cigarette tax. Miscellaneous 5. Reduce use of city vehicles. 6. Reduce use of car phones. 4 I8506:BRs RECEIVED FROM . AND MADE A PART OF THE R CO D AT THE COUNCIL MEETING OF s 1 CDThe Waterfront... CONNIEBROCKWAY CITY CITY CLERK City Council Planning Commission Study Session June 24, 1996 2 D The Waterfront... Goal: Familiarize the City Council with the Current Status of the Waterfront Project, Land Use Options, and Future Actions 3 0 The Waterfront... Purpose of Study Session 4 D The Waterfront... History of Proposed Development 5 D The Waterfront... Existing Lease 6 D The Waterfront... Scope of Development Under Current DDA/DA: ♦ Four Hotels (one completed) ♦ Health Club/Spa ♦ Retail ♦ Residential 7 [D The Waterfront... Current Proposal: ♦ Hotel Tower 300 rooms ♦ Conference Center ♦ Timeshare (Hilton) 280 -320 Units ♦ Residential (Single Family)250-280 Units 8 0 Relationship of Waterfront to Downtown /31 Acres 1 y General Plan: ♦ Visitor-Serving Commercial ♦ Residential High Density(30 d.u./ac) 9 O Relationship of Waterfront to Downtown/31 Acres Downtown Specific Plan: ♦ District 7-Visitor-Serving Commercial ♦ District 8-Residential High Density ♦ District 9-Commercial Recreation 10 O The Waterfront... City Council/ Planning Commission Discussion » 0 The Waterfront... Process 12 O Developer Presentations ♦ Introduction ♦ Hotel Expansion ♦ Convention Center ♦ Timeshare ♦ Residential 13 0 The Waterfront... Discussion of Possible Next Steps 2 RECEIVED FROM vtR+ AND MADE A PART OF TH�F EC D AT THE COUNCIL MEETING OF OFFICE OF THE CITY CLERK CONNIE BROCKWAY,CITY CLERK Huntington Beach partment �mr ht. he Challenge Meeting the Challenge. . . slide s Overview Since 1991, The Huntington Beach Fire Department Has Reduced Annual Program Costs By: +Eliminating Programs +Increasing General Fund Revenues With Program Reimbursements 4 Redeploying Personnel and Equipment Meeting the Challenge. . . slide s 1991/92 • Reduced Number of Reserve Firefighters Positions From 50 to 30 Positions 1 Annual Savings of$80,000 Meeting the Challenge. . . slide 4 1992/93 • Reserve Firefighter Program Eliminated -30 Positions • Reassignment of Deputy Fire Marshal and Clerk Typist Positions Annual Savings of $108,000 Meeting the Challenge. . . slide s 1993/94 • Started City Ambulance Program 1. ➢ Adds$180,000 in Net Revenues Every Year and Improves Services • aramedic Redeployment Saves$239,000 Annually • Central Net Revenue of$100,000 Annually FY 93/94 Savings/ Revenue $519,000 Meeting the Challenge. . . slide 6 1994/95 • Eliminated Vacant Storekeeper Position • Increase in Cost Recovery Fees Annual Savings of $116,000 Meeting the Challenge. . . slide 7 1995/96 e Implemented City-Wide Paramedic Engine System to Provide Faster Paramedic spons e Reclassified Firefighters as �.� Firefighter/Paramedics e Eliminated 3 Firefighter Positions Annual Savings of $101,028 Meeting the Challenge . . . slide s To Date, the Annual Budget Savings & Revenue Total. . . Year Type Savings Revenue 91/92 Reduce Reserve Prog , iminate Reserve Prog108,000 193/94 PM ngine rog 339,000 180,000 194195 Storekeeper/Other 116,000 180,0O 96 a is Engines' 1-01,028 180,000 Total ,0 8 $640,000 Meeting the Challenge. . . slide s 1996/97 Budget Options • $3.6 Million City-Wide Reduction ➢Fire Department Reduction of$608,449 ➢Eliminates 20 Positions/3 Fire Engineers ➢Includes MetroCities Consolidation •$2.0 Million City-Wide Reduction >Fire Department Reduction of$330,189 >Maintains Fire Engineer Positions >Includes MetroCities Consolidation >Provides Funding for Station 6 Land Acquisition Meeting the Challenge. . . slide 10 1996/97 Budget Options • Original Target Amounts Based on February 1996 Projections •Since February, Additional Telecommunications Savings Identified >Increased to $137,665 •New Amounts Formulated Into Budget >Includes Funding Source for Fire Station Land Acquisition $3.6 Milli Cit -Wide RedWion February 1996 Highlights -Fire Dept$608,449 Option Telecommunications Savings $ 48,132 MetroCities Communications/JPA 175,000 FireMed Offsets Paramedic Differential 156,924 Eliminates 3 Fire Engineer Positions 224,166 Eliminates 1 Office Assistant Position 38,800 Other (-34,573) IdIbk$3.6 Milli Cit -Wide Redtion June 1996 Highlights -Fire Dept$608,449 0 tion Telecommunications Savings $ 137,665 MetroCities Communications/JPA 175,000 FireMed Offsets Paramedic Differential 156,924 Eliminates 3 Fire Engineer Positions 224,166 Eliminates 1 Office Assistant Position 38,800 Funding for Station 6 Land Acquisition (116,906) Other (-8,200) Meeting the Challenge. . . slide 13 IW$3.6 Million City-Wide Reduction Positions Occu ied Eliminated MetroCities Communications 10 14 Fire En ineer - 3 Office Assistant 1 1 HazMat Control-Transfer - Deputy Fire Marshal - 1 - HazMat Inspector - 1 E-- - -- -- J TOTAL POSITIONS 11 20 Meeting the Challenge. . . slide 14 Fire Department Impacts: -$3.6 Million City-Wide Reduction • Net Fire Department Reduction of$608,449 •Eliminates 20 Positions ➢14 Positions Included in New JPA •Eliminates Fire Engineer/ BC Aid Positions Reduces Command &Control Impacts Scene Safety,Operations and Communications Limited Flexibility for Immediate Replacement Due to Illness, Injury and Special Assignments •Includes MetroCities Communications JPA I I n City-Wide Reduction June1996 Highlights -Fire Dept$330,189 Option Telecommunications Savings $137,665 MetroCities Communications/JPA 175,000 FireMed Offsets Paramedic Differential 166,924 Maintains Fire Engineer Positions 0 Eliminates 1 Office Assistant Position 38,800 Funding for Station 6 Land Acquisition (123,949) Other (54,251) Meeting the Challenge. . . slide 1e $2.0 Million City-Wide Reduction Positions Occupied Eliminated MetroCities Communications 10 14 Fire En ineer - 0 Office Assistant 1 1 HazMat Control-Transfer -Deputy Fire Marshal - 1 - HazMat Inspector - 1 TOTAL POSITIONS 11 17 Meeting the Challenge. . . slide 17 Fire Department Impacts: -$2.0 Million City-Wide Reduction • Net Fire Department Reduction of$330,189 •Eliminates 17 Positions D 14 Positions Included in New JPA •Maintains Fire Engineer Positions •Provides Funding for Fire Station Land Acquisition •Includes MetroCities Communications JPA Meeting the Challenge. . . slide 15 Proposed Savings & Revenue $1,000,000 Includes Ambulance Revenue $750,000 $500,000 $250,000 _AMA $0 91/92 92/93 93/94 94/95 95/96 A B Meeting the Challenge. . . slide 1e Summary • Both Options Provide New Cost Reductions, MetroCities JPA, New General Fund Revenue From Existing Sources and Funding for Fire Station Land Acquisition • $3.6M Option Impacts Firefighting Command and Control Strategies -Cuts 3 Safety Positions • $2.OM Budget Option Maintains Existing Firefighter Staffing and Command Strategies Huntington Beach Fire Department R� 4 LL :4.}.iii: _ if v.::.;•;•'•-,'� f�ii':l'fl�ii:-:ii�i •: nriLG:i#5\�.\vtiti ---------------- Major Revenues Compared To Major Expenditures m General Fund RECEIVED FROM AND MADE APART OF THE R CORp(F THE COUNCIL MEETING OF M a j o r Rev. OFFICE OF THE CITY CLERK Major r Ex CONNIE BROCKwAY,CITY CLERK $ Millions $50 Police, Fire, & Marine Safety Costs $49.6 $45 $38.1 ftk%� 10M WHOM "No $40 Property & Sales Tax Revenue p �Y $42.0 $35 33.0 $30 $25 87 88 89 90 91 92 93 94 95 96 vv:•••vv.•ivw�vl...• r , .... ----- ----- ------- ---------------- ------------------------------------------------- ------ ------------------- ------------- Ma 'or Revenues - General Fund 1980 - 2001 $ in Millions $35 Without State Takeaway $30 $29.4 25.7® $25 Property iLTax $20 18.4 $16.8 $15 Sales Tax $10 5 Year Projections $5 $0 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 Est :..................................................................................... ' 1-ide ......... x„ .................... MEN= ------------------ --------------------------- ----------------------- Per Capita Sales Tax Huntington Beach 7 Westminster 94 ----------------------------------------- Fountain Valley 1 4 Newport Beach 149 Costa Mesa 225 $0 $50 $100 $150 $200 $250 n......................:............ .................. .......... ---....---............... «:::sal: d <:.. NOTICE OF PUBLIC HEARING 8'1 A 6 CITY OF HUNTINGTON BEACH REVISION TO THE CITY'S BUSINESS LICENSE TAX Notice is hereby given that a public meeting will be held by the City Council of the City of Huntington Beach, in the Council Chambers of the Civic Center, Huntington Beach, at the hour of 7:00 P.M., or as soon thereafter as possible on Monday the 19th of August, 1996 for the purpose of announcing that a revision to the City's Business License Ordinance will be considered at a future public hearing Notice is hereby given that a public hearing will be held by the City Council of the City of Huntington Beach, in the Council Chambers of the Civic Center, Huntington Beach,,at the hour of 7:00 P.M., or as soon thereafter as possible on Tuesday, the 3rd of September 1996 for the purpose of considering a revision to the City's Business License Ordinance. A revision to the Business License Tax is being recommended as a revenue raising measure. It is proposed that the annual basic charge for a Business License be increased by $20 per year. It is estimated that an additional $320,000 will be generated annually from this increase. A complete report detailing the reasons for the increase and the amount of new revenue to be generated is available for review by the public at City Hall, 2000 Main St. in the City Clerk's office.between the hours of 8:00 a.m. and 5:00 p.m. Monday through Friday. Interested persons may also contact the Finance Division at 2000 Main Street, Huntington Beach, 92648 to receive additional information. All citizens are invited to attend the public hearing and provide the City Council with written and oral comments and ask questions concerning the proposed increase to the Business License Tax. Written communications to the City Council may also be mailed to the City Clerk. The City of Huntington Beach endeavors to accommodate persons of handicapped status in the admission or access to, or treatment or employment in, City programs or activities. The City of Huntington Beach is an equal opportunity employer. Dated 7/12/96 City of Huntington Beach by: Connie Brockway, City Clerk 2000 Main St: Huntington Beach, CA 92648 Telephone: (714) 536-5227 ** Notice to City Clerk ** This copy to run in news print on 7/18/96, 8ttfX and again on s 194c Copy should run as a 1/8 page isplay . publication. PROOF-OF PUBLICATION STATE OF CALIFORNIA) SS. County of Orange ) I am a Citizen of the United States and a resident of the County aforesaid; I am over the age of eighteen years, and not a party to or interested in the below. entitled matter. I am a principal clerk of the HUNTINGTON BEACH INDEPENDENT, a newspaper of general circulation, printed and published in the City of Huntington (Main News Section) Beach, County of Orange, State of California, and that attached Notice is a true and complete copy as was printed and published in the Huntington Beach and Fountain Valley issues of said newspaper to wit the issue(s) of: July 18 , 25 , 1996 August 1 , 1996 (Main News Section) I declare, under penalty of perjury, that the foregoing is true and correct. Executed on August 1 , 199 6 at Costa Mesa, California. Signature C' s NOTICE OF PUBLIC HEARING CITY OF HUNTINGTON BEACH l REVISION TO THE CITY'S BUSINESS LICENSE TAX Notice i&hereby given that a public meeting will be held by the City Council of the City of Huntington Beach,in the Council Chambers of the Civic Center,Huntington Beach,at the hour of 7:00 P.M.,or as soon thereafter as possible on Monday the 19th of August, 1996 for the purpose of announcing that a revision to the City's Business License Ordinance will be considered at a future public hearing. Notice is hereby given that a public.hearing will be held by the City Council of the City of Huntington Beach,in the Council Chambers of the Civic Center,Huntington Beach,at the hour of 7:00 P.M.,or as soon thereafter as possible on Tuesday,-the 3rd of September 1996 for the purpose of considering a revision to the City's Business License Ordinance. A revision to the Business License Tax is being recommended as a revenue raising measure.It is proposed that the annual basic charge for a Business License be increased by$20 per year.It is estimated that an . additional$320,000 will be generated annually from this increase. A complete report detailing the reasons for the increase and the amount of new revenue to be generated is "available for review by the public at City Hall,2000 Main St.in the City Clerk's office,between the hours of 8:00 a.m.and 5:00 p.m.Monday through Friday.Interested persons may also contact the Finance Division at 2000 Main Street,Huntington Beach,92648 to receive additional information. All citizens are invited to attend the public hearing and provide the City Council with written and oral comments and ask questions concerning the proposed increase to the Business License Tax.Written I� communications to the City Council may also be mailed to the City Clerk. The City of Huntington Beach endeavors to accommodate persons of handicapped status in the admission or access to,or treatment or employment in,City programs or activities.The City of Huntington Beach is an equal opportunity employer. Dated 7/12/96 City of Huntington Beach by:Connie Brockway,City Clerk 2000 Main St. Huntington Beach,CA 92648 Telephone:(714)536.5227 Published Huntington Beach-Fountain Valley Independent July 18,25,August 1, 1996. j PROOF OF PUBLICATION STATE OF CALIFORNIA) SS. County of Orange ) am a Citizen of the United States and a ( " PUBLIC NOTICE- ;Ucense,Ordiriance w111 be-' -NOTICE OF .- i considered at a futuwpub resident of the County aforesaid;• I am PUBLIC HEARING i IIo hearing he y e Is given CITY OF Notic reb Y that:--a public,-_hearing•:virllP over the age of eighteen years, and not a HUNTINGTON BEACH be held by the City.Council :REVISI'ON TO THE of.-the C 'of Huntington, party to or interested in the below CIT.'S BUSINESS• Beach -the' Council- LICENSE TAX. Chambers of the Civic Cen- entitled matter. I am a principal clerk.of -Notice Is hereby, given ter,-Huntington Beach, at the HUNTINGTON BEACH INDEPENDENT, a that a_public meetnCIty-Council •the ntherefter P.M.,vile be held_byy�the CIty.Councll soon thereafter as possible of__the. Clty-of Huntington on Tuesday, the-3rd of newspaper of general circulation printed Beach- s 'the: ivic C!►1 September-1996 for the b Chambers of the Civic Gen- purpose of considering a ter, Huntington Beach;'_at revision to the City's Busi- and published in the City of Huntington the hour of 7:00 P.M.;or`as ness Ucense Ordinance. Beach, County of Orange, State of soon thereafter as possible A revision to. the Business on Monday'fthe 19th ofiAu- Ucense Tax.is being-roc= gust;_1998 torlth-e purpose ommended-_as a revenue California, and that attached Notice is a of annourtclnp.•that a-revi raising measure. It is pro- slot to the Ci 's•Business posed that the annual Bus!- true and. complete copy. as was printed - 7`� -nes charge for a aced ness Ucense be increased" esti- and p-ub-WiP_d--in the Huntington Beach m .d°:pe`t :rf ddi additional mated-_that an additional- and Fountain Valley issues of said annual$320,00i.fromll be.geneeate. annually:.from this.increase. newspaper.to wit the issue(s) of: A the reasons report detail- 'Ing the reasons for the.ln- crease arid"the-amount of new revenue to be-goner- I ated 1s avallable;for,'review July 18 �. 1996 by the public af,Ci .Hall; !2000 Malost.;an the-city Clerk's office;between the l hours of 8:00 a.m.and,5:00 July 2 5, 1996 l p.m. Monday through Fri- day.- Interested persons August S t 1 1996 i may also contact-the Fl- g r nance Division- at--2000 Main Street, Huntington I Beach, 92648 to=reaeve j additional,Information. - declare under penalty of perjury, that All oitizens lick-hta to }�� 1 attend the>•public-hearing / p `J p y/ !and provide-the City--Coun- ell with written and `oral the foregoing is true and correct. comments and ask.ques- tions concerning:the pro- posed•Increase to the.Busk ness Ucense Tax. Written i communlcatlons to the City Executed on Council--may also be August 1 , 199 6 mailed to the City`Clerk. - The -City -of--Huntington at Costa Mesa, California. Beach- endeavors to ac- commodate pefsons of handicapped status in the admission or access to, or treatment-or employment in, City`programs or-activi- tles..TT-he City of Huntington Beach.Is--an -equal op- porttinity employer. Dated-7/=12/96 City- of Huntington Beach. bye Connle Brockway, Signature f ICRY Cleric- 2000-Main' St., Huntington-Beach, CA 92648 Telephone- { i(714)536;5227 Published:Huntington Beach-Fountain Valley,in- dependent=July 18,25,"Au- gust 1 1996. 073-974 ; 6r- -- �. . . City g of Huntington Beach INTER-DEPARTMENT COMMMUNICATION HUNTINGTON BEACH TO: HONORABLE MAYOR AND CITY COUNCIL IMES FROM: ROBERT J. FRANZ, Deputy City Administrat SUBJECT: ALTERNATIVE NEW REVENUE SOURCES7 B GET DATE: August 7, 1996 The recommended General Fund Budget for 1996/97 includes new revenue sources that would generate an estimated $2,124,000. If those new revenue sources are not acceptable to the City Council, you may want to reconsider some of the potential new revenue sources that previously were identified in the attached listing. Also, staff is working to update the MSI Study which will be reviewed with the City Council after January 1, 1997. In advance of the updated MSI Study, we have identified some user fees that could be implemented prior to the 1997 review of the MSI update. Two departments, Community Development and the Police Department, have identified potential new user fees as follows: Community Development Related Fees -- City fees for building inspections, permit issuance, plan review and a few other selected services could be increased prior to the MSI Study update. Attached is a review prepared by the Community Development Department which summarizes their review and identification of increased fees that could be implemented. The estimated annual new revenue from these increases would total about $196,000 per year. Police Department -- The Police Department expects to complete their review of four potential new or increased fees by mid August. Those four potential increased revenues are as follows: 1. Increase charges for copies of traffic accident reports. 2. Transfer DUI fees from fines to vehicle release fees. 3. Charge a booking fee for arrestees. 4. Reduction of false alarms using a 900 telephone number. No estimate of potential new revenue has been prepared at this time pending the review of these revenue categories by the Police Department. -21 �e 0020442.01 08/07/96 9:08 AM Proposed Fee Revisions---Prior to Complete Update Building and Planning Related Fees Current Recommended Estimated MSI# Service Center UnitsNear Fee New Fee New Revenue S-007 Tent. Tract Map Review 9(8 lots ea.) $1,500 +$11/lot $1,800 +$13/lot $2,716 S-016 Cond. Use Rev.-PC 9 $2,375 $2,850 $4,275 S-018 Cond. Use Rev.-PC (other)" 30 $1,700 $2,025 $9,750 S-031 Envir.Assmnt Study 20 $870 $1,045 $3,500 N/A Planning Plan Rev. 1,250 8% Build. Insp. 10% Build. Insp. $12,269 S-061 Build. Plan Rev. 1,250 N/C N/C $14,375 S-062 Plumb. Plan Rev. 50 N/C N/C $250 S-063 Electrical Plan Rev. 170 N/C N/C $1,530 S-064 Mechanical Plan Rev. 70 N/C N/C $630 S-066 Building Insp. 4,600 $20 min. $32.50 min. $57,500 S-067 Plumb. Insp. 1,100 $20 min. $32.50 min. $13,750 S-068 Elec. Insp. 1,550 $20 min. $32.50 min. $19,375 S-069 Mech. Insp. 1,150 $20 min. $32.50 min. $14,375 N/A Permit Issuance 8,400 $20 $25 $42,000 Estimated Annual Revenue $196,295 G:\B U DG ETTCHARTS971[MSI-2.XLS]Fees 8m96 Other Potential New Revenue Sources "Not Included in 1996/97 Budget" Ref Estimated No De. .... on Annual; . Revenue 1. Sale of City Property - A report has been submitted identifying None - one some opportunities for sale of properties previously acquired for time revenue right of way or redevelopment purposes. One time revenue of up to $2 million may be possible 2. Lease of City Property - In addition to modifying lease rates as ? concession agreements and leases renew, potential new leases of City and/or Redevelopment owned property may be possible. 3. Contract Scientific Investigation Lab Services to Other ? Agencies - Orange County Sheriffs currently provide this lab service at no charge. Due to their high volume of work, analysis results are often delayed. The Sheriffs have recently been considering charging a fee to the various agencies for this service. If this occurs, the opportunity would exist for our lab to offer the same services at a competitive fee and provide quicker analysis results. The Police Department is currently analyzing this option. 4. Parking Meters. Parks & Library - New parking meters could be 200,000 installed in the parking lots of Central Park and the Library. (The one time cost for installing the new meters is an estimated $490,000.) The annual new revenue from these meters could be as high as $500,000. 5. Business License: Rental Units - Licenses are only required for 200,000 residential rental buildings with more than two units. An annual business license of $39 for single family homes used as rentals and $46 per year for duplexes used as rentals would generate an estimated $200,000 per year in new General Fund revenue. The City Council has rejected this modification twice. 6. New Parking Meters Inland Side of Pacific Coast Highway - This 100,000 program was rejected previously due to the downtown residential community's opposition to the metering and residential permit system that had been developed. This program remains as an option. 7. State Parks Water Use Surcharge - The City provides water 12,000 service to the State Park System at Bolsa Chica and Huntington State Beaches. A surcharge for water service could be charged a 10% surcharge would generate $6,000 per year. REVUST.DOC 08/07/96 9:21 AM Other Potential New Revenue Sources "Not Included in 1996/97 Budget" Ref Estimated No Descnpt�on ' Annual Revenue 8. Parking Meters - Brookhurst - New parking meters could be 15,000 installed on Brookhurst Street. The estimated annual net new revenue from these meters would be $15,000 per year. 9. Refuse Fee - A 50(�,_ per month increase in the residential refuse 250,000 fee would generate roughly $250,000 per year in new revenue to the General Fund to offset General Fund costs for billing, postage, collection, supervision, customer follow-up, contract negotiations, monitoring of the recycling program, etc. 10. Oil Production Tax - The City's oil production tax per barrel is 30,000 increased each year by the amount of the Consumer Price Index. Every 1 q_� per barrel addition tax should generate in excess of $30,000 of General Fund revenue. The City Council has rejected this increase twice. 11. Transient Occupancy Tax - The City's transient occupancy tax is 100,000 10% of the room rental rate. Every one percent increase would provide an approximate $100,000 revenue to the General Fund. If this tax is increased, it would be preferable to have the increased revenue earmarked for tourist business related needs rather than reducing the General Fund shortfall. 12. Storm Drain Maintenance Fee - The MSI Study identified total 2,000,000 costs for the maintenance of the City's storm drainage system of (General Fund $2,036,000 per year. $1,040,000 of this cost is for General Fund =$1,040,000) maintenance costs. A $3.49 per month charge would cover the maintenance and fixed asset replacement costs for the storm drain. system. REVUST.DOC 08/07/96 9:20 AM City g of Huntington Beach INTER-DEPARTMENT COMMMUNICATION HUNTINGTON BEACH TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS FROM: ROBERT J. FRANZ, Deputy City Administrator SUBJECT: REFUSE COLLECTION SERVICE COSTS DATE: August 7, 1996 Staff was asked to provide a breakdown of the costs involved in administering the Refuse Collection Service Program. Attached are the following documents that provide the cost breakdown: 1. 1996/97 Refuse Collection Service Costs. 2. Personnel Costs Distribution (Public Works). 3. 1993 Summary title "Curbside Refuse Collection Costs". 4. May 20, 1993 letter from Management Services Institute (MSI). OBE RT J. F ANZ Deputy City Administra RJF:skd a. � 0020463.01 08/07/96 9:46 AM City of Huntington Beach 1996/97 REFUSE COLLECTION SERVICE COSTS Est. Cost Monthly Cost 1996/97 Per Residential Unit EXPENSES Contract costs- Rainbow Disposal $8,226,024 $15.37 Public Education 77,832 0.15 Senior Citizen Exemptions (600) 110,664 0.21 Bad Debt (0.5%) 40,576 0.08 CITY COSTS Personnel (Public Works) (1) 188,354 0.35 Billing/Collection/Overhead (2) 250,000 0.47 Other 4,450 0.01 Total Expenses $8,897,900 $16.64 REVENUE Residential Service Billings $8,857,560 $16.55 SHORTFALL $40,340 $0.09 (Based on 44,600 customers) 1) The August 1991 MSI study documented Public Works Department costs of$474,957 related to Refuse Collection services. Currently, only the costs itemized on the next page ($188,354) are being charged to the Refuse Collection Fund. The balance of the costs are being paid by the General Fund. 2) Includes cost of postage, mail handling, computer billing system, City Treasurer Department collection, accounting, printing, paper, envelopes, etc. for monthly billing for 44,600 customers. The total City cost for these services exceeds $250,000. The MSI study documented costs of$391,448. The excess is paid by the General Fund. G:\BUDG ET\CHARTS97\[REFUSE.XLS]Costs 8/7/96 Personnel Costs Distribution Refuse Collection Service Costs Proposed 1996197 Budget Personal Services (Public Works) Position % of Salary Cost Public Works Director Jones 30% $ 38,569 Dept. Administrative Assistant Boucher 25% $ 13,543 Dept. Sr. Analyst Daily 25% $ 17,499 Refuse Sr. Analyst Sankey 100% $ 70,177 Refuse Customer Service Representative Arenella 100% $ 48,566 $ 188,354 Refuse Fund Personal Services does not include direct charges for the following: Position Involvement in Refuse Activities Maintenance Operations Manager Noble Division Head/Maintenance Operations inc. Refuse Administrative Secretary Herman Division Secretary-Operational staff support for refuse issues. Street Crewleader C. Gray Responds to reported items in public right-of-way Street Crew (various) Picks up items, or requests Rainbow's assistance. Landscape Crewleader Martinez Supervises clean-up, litter removal in downtown area Office Assistants (Corporate Yard) B. Gray Answers customer calls about refuse or discarded items Walters Dispatches street crew; refers caller to Customer Service or refers caller to Rainbow. REF.DOC 1i J CITY OF HUNTINGTON BEACH CURBSIDE REFUSE COLLECTION SERVICE COSTS In addition to the city's required contract payments to Rainbow. Disposal , the Management Services Institute (MSI) Study documented other costs to the City to provide curbside refuse collection service to approximately. 44,000 households. These other costs are approximately or $4.25 per month per residence, compared to $11 .57 per month paid directly to Rainbow (July 1 , 1993). The costs can be placed into four broad catagories; 1) direct costs, 2) general city. overhead, 3) departmental overhead, and 4) street infrastructure costs. Staff developed a four year program in May of last year to increase rates to cover $1 .85 per month of the $4.25 per month of costs. 48¢ per month was implemented July 1 , 1992 and 520 is recommended for adoption July 1 , 1993. DIRECT CHARGES The first category consists of the salary and benefits of a full time customer service representative and a portion of an administrative secretary and department analyst, for a total of $173,874 for fiscal year 1993/94. GENERAL OVERHEAD The second category contains the portion of general city overhead allocated to this service. General City overhead is 7.5% and consists of the costs of City Council , City Administration, City Clerk, City Treasurer, City Attorney, Administrative Services, and non—departmental expenses. The category recognizes costs such. as billing, collection, postage, data processing, accounting, auditing, budgeting, cash management, compliance with State law on fee increases, public hearings, etc. Also included is time spent on activities such as compliance with recycling law, and coordination with County officials on landfill issues. For refuse collection service, this cost totalled $391 ,448 for the fiscal year ending June 30, 1991 , (MSI Study) . REFUSE COLLECTION SERVICE GENERAL GOVERNMENT OVERHEAD FOR REFUSE SERVICE .BASED ON FISCAL YEAR 1990--1991 BUDGET Direct Portion of Additions Actual Bldg. Occup. Fixed Asset Budget Charge Charge Total Department/Program (1) (2) (3) (4) City Council $ 6,453 $ 3,950 $ 324 $ 10,727 City Administrator 34,675 5,776 393 40,844 "Productivity 13,182 1 ,246 0 14,428 Public Information 14,293 4,578 2,027 20,898 Video/Cable Television 12,104 3,850 0 15,954 City Clerk 20,381 5-,776 339 26,496 City Treasurer 16,501 2-,945 452 19,898 Business License 138 27 4 169 City Attorney 68,260 10,080 956 79,296 Administrative Services 18,351 680 150 19,181 Accounting 26,594 3,851 263 30,708 Budget Analysis 7,074 679 25 7,77`8 Data Processing 5,872 492 2,015 8,379 Personnel 30,728 2,605 303 33,636 Printing 8,978 6,569 490 16,037 Real Property Management 298 126 329 753 Risk Management 3,836 3.736 153- 7,725 Public Works Maintenance: City Hazardous Waste 335 3,867 868 5,070 Warehouse Services 5,850 3,419 235 9,504 Non-Departmental (Misc.) 23.499 468 _ 0 23.967 TOTALS $ 317,402 $ 64,720 $ 9,326 $ 391 .448 -2- �" V WPADSERT:907 CURBSIDE REFUSE COLLECTION SERVICE COSTS DEPARTMENT OVERHEAD The third category contains the portion of the Public Works Department overhead which is properly assigned to the curbside refuse collection service function. Departmental overhead for this service contains proportionate charges for the administration and management of the Department. Public Works Department administration of this service includes not only the supervision of employees directly involved in customer services, but also the time spent with the contractor on compliance issues, contract modifications, future planning, budgeting, rate review, County landfill issues, recycling program and related issues. Examples of this service include resolving complaints which could n`ot be resolved in the field, attending periodic meetings to negotiate a-nd review the contractor' s performance, and - reporting, to the City Council and Administrator. Internally, associated costs include working on a daily basis with other departments on such issues as refuse code violations, recycling, billing and collection coordination, budget preparation and justification, and public information development and dissemination. Collectively these assigned costs totaled $474,957 for the fiscal year ended June 30, 1991 , based on the MSI review of all time spent on these activities by Public Works Department employees, along with the proportinate allocation of the costs of capital , office space, etc. in proportion to the amount of time spent. The $474,957 has been reduced to $409,512 for 1993/94 due to the transfer of some 1990/91 overhead costs to direct costs to the Refuse Collection Service Fund. INFRASTRUCTURE COSTS The fourth category is the proportinate cost of street infrastructure repair that is attributable to the Refuse Collection service. The use of City streets by the refuse contractor causes damage to streets due to both normal use and the extra weight/damage due to heavier than normal vehicles using residential streets on a regular basis. Although cities do not normally include street infrastructure repair costs as part of their refuse collection service costs, the MSI System correctly allocates a portion of this City cost to the refuse collection service, amounting to $1 ,266,244 per year (10% of the total annual repair costs) or roughly $2.40 per residence per month. Staff does not —3— WPADSERT:907 • l CURBSIDE REFUSE COLLECTION SERVICE COSTS recommend recovering this cost from residents until further analysis of these costs is conducted. Instead, staff recommends continuation of the funding of street infrastructure repair costs from State and Federal gas tax revenues, supplemented by General Fund revenue received from the new franchise fee being paid by Rainbow Disposal on both their commercial accounts and their transfer station operations. TOTAL COSTS The total cost. to provide curbside refuse collection service to the residences of the City of Huntington Beach for fiscal year 1993/94 are estimated as follows: 1993/94 1993/94 Monthly Cost Cost Per Residence Contract Costs: Rainbow Disposal Contract $. 6,100,000 $ 11 .57 AB_939 Public Education Component 79,200 0.15 City Costs: Direct Expenses $ 173,874 0.33 General Overhead 391 ,448 0.74 Departmental Overhead 409,512 0.78 Sub-Total $ 974,834 $ 1 .85 Street Infrastructure Costs 1 ,266,224 2.40 Total Estimated City Costs (1993/94) $ 8,420,25E $ 15.95 Lee Recommended 1993/94 Rate (Revenue) 6,705,600 12.72 1993/94 General Fund Subsidy $ T .71® $ 3.23 -4- WPADSERT:907 CURBSIDE REFUSE COLLECTION SERVICE COSTS RECOMMENDED RESIDENTIAL REFUSE COLLECTION FEE The current (1992/93) monthly residential refuse collection fee is $12.00 which covers the monthly charge to the City from Rainbow Disposal plus some of the administrative costs. Staff recommends this fee be increased to $12.72 per month, effective July 1 , 1993 which will cover the Rainbow Disposal costs of $11 .57 per month plus AB 939 costs of $0.15 per month and $ 1 .00 per month of City costs. This will cover 54% of the General Fund costs currently being subsidized with general taxpayer funds (excluding street infrastructure costs) . In future years, this subsidy can be reduced by incrementally increasing the monthly rate to cover all costs except street infrastructure costs. if implemented. over a 4 year timeframe the increases in monthly rates would occur as follows: TIMETABLE - REDUCTION OF GENERAL FUND SUBSIDY OF REFUSE COLLECTION COSTS Fiscal Monthly Rate City General Fund Year Increase Subsidy* 1992/93 (approved) $ 0.48 $ 1 .37 1993/94 (proposed) 0.52 0.85 1994/95 (future) 0.50 0.35 1995/96 (future) 0.35 0.00 Four Year Total : Rate Increase $ *Exclusive of Street Infrastructure Costs RJF:sd -5- WPADSERT:907 16 FPU-M h151 l!:prl r.rye 1111VIanagernent Services Institute Ike o01 Polk.no 2321 W,LA PALMA AVENUE,SUITE A.ANAHE/M;CA 92801 (714)220.1717 FAX(714)220.9112 I May 20, 1993 Mr. Robert Franz, Dir. of Admin.Services City of Huntington Beach . 2000 Main Street - Huntington Beach, California 92648 Dear Bob, This letter is in response to your request that MSI explain the overhead and infrastructure charges to the Refuse Collection Service (S-174) in the Cost Control System Report dated August, 1991. MSI Methodology on Refuse Contract Refuse is provided by contract at a 1990-91 cost to the City of approximately $5.2 Million. MSI left the total cost of the contract in the base for computing both the general overhead- and the Public Works Department overhead. Some people have suggested that a contract dollar takes less effort to administer than a labor dollar. This is both true and false. On some occasions, MSI has reduced a contract by 50% for inclusion in the ."overhead base" to reflect this fact. However, in the present case of refuse, it is MSI's experience that over the long-term, refuse will generate as many problems and require as much administrative effort as a similar dollar amount in employee salaries. Discussion of Overheads It. is important to stay focused on the fact that overhead rates are i designed to spread overhead costs to operating functions. To the extent that overhead is not recovered on refuse collection, it must. i be recovered on something else or on everything else. Analysis of the city's General overhead Rate MSI calculated the City's ,general overhead rate to be 7 . 5% based on the total general overhead costs to be recovered for 1990-91 of $8, 829 ,773 as detailed in Attachment A. Of this total, $391, 448 is allocated to refuse collection. The average general overhead rate of MSI's client cities (about one-fifth of California cities) is 10. 92%. The conclusion from this fact is that the City has insufficient general administration for its size. j i de Analysis of the Public Works Departmental Overhead. Department Overhead. To determine the public works departmental overhead, MSI calculated the cost of the department's general administration which was comprised of the Director. of Public Works, the Administrative Assistant and the Senior Departmental Analyst positions. This cost was split one-quarter to each of the four divisions of Public Works. The department overhead share for refuse collection was $42,746. Division Overhead. In addition to the department overhead, the division positions of Division Manager, Engineering Technician, Administrative Secretary, and Office Assistant were allocated to all services performed by the Maintenance Division. The costs of division overhead were $826,541 and involved the analysis of over thirty different budgetary units. Included in the operational costs for this sectional overhead was phone service, data processing, liability insurance and other costs of a general nature. Of the total division overhead amount, $432,211 was allocated to the refuse service. Department 4 Division Overhead Combined. - The combination of these two levels of departmental overhead totals $474, 957. The rate for these two levels was 9 . 1e. Summary on Overheads If the refuse contract had been excluded from the overhead base, the City's General Overhead Rate which was charged to all City services would have increased from 7.5% to 7.8% and the Departmental Rate for the Maintenance Section would have gone from 9.1% to 18 . 9%. Although different approaches always exist, MSI's professional opinion is that the approach we used is both valid and will be in the City's best interests in the long-term. Infrastructure Replacement A charge of $1, 266, 244 was included in the refuse service center to assist in the recovery of street replacement costs. - MSI allocates 50$. of the cost of street replacement to the various utilities that exist above and below the street surface so that the franchise fee, paid by those utilities, is matched to the usage of the City rights-of-way. 10$ of the total cost was assigned to refuse collection. In reality, the damage caused by heavy refuse trucks on residential streets probably exceeds the cost estimate that MSI has used. It is recommended that the City Engineer attempt to more accurately compute the damage and that the City use the revised cost in the future. i 1 I'll L �� ♦� .V • • M• 1 M•••• � .. �� - Direct Costs In 1990-91, the City incurred approximately $95, 306 in direct costs for a Customer Service Representative, postage, collection and billing for the Refuse Collection Service. Another direct cost that the City has recently begun incurring is due 'to compliance with AB939 Recyling requirements. Although the refuse service contractor must implement the program, City staff have spent many hours developing the recycling program. The costs of this development- and on-going monitoring of the contractor's implementation have not yet been quantified. I hope that this information has answered you questions. Sincerely, Albert R. ("Rick") Rermer, Jr. CPA President I Attachment A CITY OF HUNTINGTON BEACH SCHEDULE 7 OVERHEAD RATES FISCAL YEAR 1990-1991 BUDGET OVERHEAD ADJUSTED COSTING TOTAL LESS OVERHEAD DEPARTMENT GENERAL BUDGET ADJSTMNTS BASE OVERHEAD BASE AMOUNT RATE RATE (1) (2) (3) (4) (6) (6) (7) (8) GENERAL GOVERNMENT $13,730.493 $760.500 $/4.490.993 $9.929.773 33.661.220 58,829.773 7.5% DEPARTMENTS: Community DmIopment $4.155,095 $4.427 $4.100,122 $301,301 $3,858.921 $301,301 7.6% Firs Department $17,599,996 $13.097 $17.813.093 $674,800 $10,938,993 3*74.800 4.0% Police Department $33,450.258 $ 0.361 $33.490.009 $2,341,127 $31,149.442 $2.341,127 7.6% Community Services $8.396,332 $20.897 $8,417.Z29 $830,226 $7,787,004 $890.226 8.196 Library S4,013,185 $3,416 $4.016,691 $443,784 33,672.917 3441.764 12.4% Public Works: Engineering/Admin $18,730.825 $7,835 $18,738,660 S366,SS7 $18.372,103 S386.SS7 2.0% Maintenance $10,917.339 S17,S64 $10.934.623 $911,371 $10,023.252 S911,371 9.1% Park/Tree Malnt. SS.238,7S5 $2.793 SS,239,538 $332.249 $4,907.299 $332.249 8.8114 Water 514,012,958 $10,342 $14,029.500 $1,096,890 $12,932,810 $1,0"11500 8.5% Redevelopment U,112,460 $740 S3,113,200 $333,826 S2.779.374 S333,826 12.0% $133,355.976 $888,772 $134.244.748 $18,291,693 $117,983,08S $16.261.643 sssssssas asssaassss sssaafata asasaaaasa sssssssasaa Budget Ad)ustmonts $45.602.039 Combined General&Departmental Rate: 13.8% Total Budget S178,985,015 assssnaasas .a........aaaa.a.aaa.s NOTES TO SCHEDULE 'BUDGET ADJUSTMENTS'—deductions for capital outlay,contingency appropriations, appropriations estimated to be unspent,transfers,and depreciation a debt service not included in the overhead base. COSTING ADJUSTMENTS'—additions for costs related to fixed assets In overhead. CITY OF HUNTINGTON BEACH Schedule 8B GENERr4L:COVERNMENT OVERHEAD FISCAL YEAR 1990--1991 BUDGET ADDITIONS DEDUCT ACTUAL BLDG.00CUP. FIXED DIRECT BUDGET CHARGE ASSET CHGE. SUBTOTAL CHARGES TOTAL DEPARTMENTIPROGRAM (1) (2) (3) (4) (5) (6) City Council $145,559 $89,096 $7,300 $241,955 $241.955 City Administrator S782,143 $130,290 $8,870 $921,303 $921,303 i Productivity S297,343 $28.102 $0 $325,445- $325,445 i Public Information 5400,116 $103,268 $45,720 S549,104 ($77,721) $471.383 i Video/Cable Television '' $273,017 $861860 $0 $359,877 $359,877 City Clerk $528,970 $130,291 $7,638 $666.899 ($69,238) $597,661 rity Treasurer $668,455 $66.422 $10.200 $745.077 ($296,233) $"8,844 Business License $195,075 S33,211 $5,660 $233,946 ($230,134) $3,812 City Attorney $1,621,853 $227,366 $21.570 $1,870.789 ($82,144) $1,788,645 Administrative Services $436,361 $15,329 $3,390 $455,080 ($22,410) $432,670 i Accounting $797,593 ;$86,Bw $5,930 $890,383. ($197,708). $692,675 Budget Analysis $159,567 $15,329 $660 $175,456 $175,456 . i Data-Processing $946,018 $79,197 $347-0860 $1,373,075 ($7,164,078) $188,997 Personnel $693,138 $58,758 $6,830 $758.726 $758,726 Printing $202,515 $148,173 $11,060 $361,748 $361,748 i Real Property Management $217,175 $94,523. $247.181 $558,879 ($541,903) $16.976 Risk Management $86,478 $84,305 $3,460 $174,243 $174,243 Public Works Maintenance: City Hazardous Waste $6,093,340 $87.217 $19,581 $6,200,138 ($6,085,76% $114,369 Warehouse Services $191,257 $113,820 S7,690 $312,767 .($98,388) $214,379 Non-Departmental(misc.) $5,693,481 $113,368 $0 $5,806,649 ($5,266,240) $540,609. TOTALS $20,429,454 $1,791.785 $760,500 $22,981,739 ($14,151,966) $8,829,773. I • I i i - 56 MSI SERVICE CENTER WORRSHEET FOR FEES AND CHARGES SERVICE PROVIDED CITY REF.110. REFUSE SERVICE HUNTINGTON BEACH S-174 SERVICES PRIMARILY PERFORMED BY FUND EXP.ACCT. PW-Maintenance General AA-PW-421 REVENUE RECEIVED EActua - PotentiaLl FUND REV.ACCT. Refuse Charges General 723 REVENUE AUTHORIZATION DATE LAST REVISED: 6/18/9 0 Resolution 6158 SUBSIDY RATIONALE: None DESCRIPTION OF SERVICE REVENUE COLLECTION SCHEDULE: Providing refuse service to Upon receipt of bill residential and commercial/indus- REVENUE COLLECTED BY: trial customers. Treasurer- UNIT OF SERVICE DESIGNATION: Customer CURRENT FEE STRUCTURE Residential service rate of $9. 85 per month. Commercial rates: 1 yard - $37 .77 2 yards - $61.43 - 3 yards - $7-8. 59 FISCAL YEAR 1990-1991 REVENUE AND COST COMPARISON TOTAL EST. REVENUE : $5, 196, 700 UNIT REVENUE : $119 .33 TOTAL COST $7, 399, 134 UNIT COST $169. 90 PROFIT (SUBSIDY) : <$2,202,434> PROFIT (SUBSIDY) : <$50. 57> % of COST RECOVERED : 70. 2% UNITS OF SERVICE 43 , 550 SL16GESTED X RECOVERY AND FEE STRUCTURE PERCENT: 100% SPECIAL CONDITIONS: None Increases are required, and could be phased in over a period of 3 years. Residential service rate of $14 . 00 per month•. Commercial Rates: 1 yard - $ 53. 80 2 yards - $ 87. 50 3 yards - $111. 95 [T-223] cManagement Services Institute, Inc., Anaheim, arc , - MSI SERVICE CENTER WORKSHEET FOR COST DETAIL met rwovloco CITY OF P".MO. REFUSE SERVICE HUNTINGTON BEACH S-174 TOTAL UNITe 43550 KEY FILE DEPARTMENT SECTION TYPE UNITS A ST_COSTS PUBLIC WORKS STR INFRASTRUCTURE B MTC—ADMN PUBLICWORKS MAINT/ADMIN(420,421) 43560 C D E F G Note:COLUMN A.STREET REPLACEMENT. COLUMN B w UTILITY BILLING SERVICE. DPENSE TYPE TOTAL _ A B C D E F G SALARIES 3 WAGES $28,468 $28,468 FRINGES $11.904 S11.804 MAINTENANCE&OPERATION $6,168,812 $5,168,812 BUILDING OCCUPANCY $10.132 $10,132 SECTION OVERHEAD DEPARTMENT OVERHEAD $474,967 $474,057 GENERAL OVERHEAD $1101,448 $301,448 FIXED ASSET REPLACEMENT $2,275 $2,276 OTHER COSTS(see note), $1.311.148 $1,266,244i $44.804 TOTAL $7,309.134 $1.266,244 132,8Zi0 EXPENSE TYPE PER UNIT A B C D E F G SALARIES 6 WAGES $0.66 $0.65, FRINGES $0.27 $0.27 MAINTENANCE S OPERATION $118.00 $118.89 BUILDING OCCUPANCY i0.23 $0.23 SECTION OVERHEAD DEPARTMENT OVERHEAD $10.0/ $10.91 GENERAL OVERHEAD $8.00 $8.99 FIXED ASSET REPLACEMENT $0.06 80.05 OTHER COSTS(see note) ><30.11 $1.03 TOTAL BY UNIT s/69.90 $140.82 NOTE-'PER UNIT•oakum Is bend upon'TOTAL UNITS'and represents an average cost per total units. (a)Management Servloes Institute,Inc.,Anaheim,CA:March,1980 L City g of Huntington Beach INTER-DEPARTMENT COMMMUNICATION HUNTINGTON BEACH TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS FROM: ROBERT J. FRANZ, Deputy City Administrator SUBJECT: EQUIPMENT REPLACEMENT FUND DATE: August 7, 1996 The City Council requested a report showing the history of Revenues and Expenses in the Equipment Replacement Fund. Attached is information showing the historical totals for this fund. You will note that annual expenses for replacement of equipment varies significantly from year to year. This is caused by the nature of replacing major equipment such as Fire apparatus and computer equipment. In the fiscal years of such major costs, total expenses may greatly exceed average expenses. The Equipment Replacement Fund, by charging General Fund departments annually at a stable but adequate amount, should accumulate reserve funds to finance the major equipment replacement expenses. A properly financed Fund, therefore, provides a stable General Fund annual cost that accommodates the peaks and valleys of actual equipment replacement needs. ROBERT J. RA Z Deputy City dministrat z�� RJF:skd 0020440.01 08/07/96 10:28 AM Equipment Replacement Fund $in Thousands Estimated Proposed 84/86 85/86 86/B7 87/88 88/89 89/90 90/91 91/92 92/93 93/94 94/96 95/96 96/97 Cash,Beginning of Year 0 $2,368 $3,116 $3,584 $3,408 $8,211 $5,860 $4,760 $4,182 $3,991 $3,712 $ 2,653 $ 256 Sources of Funds: General Fund Charges $ 477 $ 1,658 $ 1,566 $ 1,581 $ 1,780 $2,051 $2,035 $2,141 $2,148 $2,065 $2,147 $ 1,862 $ 2,590 One-Time Transfers 2,000 500 Interest Income 216 328 251 257 479 642 502 452 401 426 154 150 50 Debt Proceeds - - - 4,822 - - - - - - Total Revenues 2,693 2,486 1,817 1,838 7,081 2,693 2,537 2,593 2,549 2,491 2,301 2,012 2,640 Uses of Funds: Non Debt Svc.Costs 325 1,738 1,349 2,014 2,278 4,563 3,000 1,735 1,501 1,419 1,422 3,110 2,055 Debt Service - - - - - 481 637 1,436 1,239 1,351 1,423 1,342 - Total Expenses 325 1,738 1,349 2,014 2,278 5,044 3,637 3,171 2,740 2,770 2,845 4,452 2,055 Surplus/(Shortfall) 2,368 748 468 (176) 4,803 (2,351) (1,100) (578) (191) (279) (544) (2,440) 585 Orange County Investments (515) 43 - Cash,End of Year $2,368 $3,116 $3,584 $3,408 $8,211 $5,860 $4,760 $4,182 $3,991 $3,712 $2,653 $ 256 $ 841 General Fund Charges Compared to Total Expenses $7,000 $7,000 $6,000 IM General Fund Charges $6,000 Total Expenses $5,000 $5,000 N $4,000 $4,000 0 0 t $3,000 $3,000 dr $2,000 $2,000 $1,000 $1,000 $- i Flit$0 84/85 85M 86187 87/88 88189 89190 90/91 9V92 92193 93/94 94/95 95/96 907 Total Revenue and Expenses $7,000 $7,000 $6,000 Total Revenues $6,000 �- Total Expenses $5,000 $5,000 to q $4.000 $4,000 0 r $3,000 $3,000 v► $2,000 $2,000 $1,000 $1,000 $0fll$0 84185 85186 86187 87188 88/89 89/90 90/91 91/92 92/93 93/94 9495 95/96 96197 G.'aUDGETGHARTS97�JIQCASHXLS]History 8/7/96 CITY OF HUNTINGTON BEACH INTERDEPARTMENTAL COMMUNICA TION TO: Honorable Mayor and City Councilmembers FROM: Michael T. Uberuaga, City Administrator _:5��?�, SUBJECT: BUDGET STUDY SESSION DATE: August 8, 1996 Following is a listing of agenda items for the August 12, 1996 budget study session. We will be making a brief staff presentation on the proposed budget, but do not plan on an in depth reiteration of the detail that is included in the Budget Message. Please bring the Budget Message and Summaries document with you for the Study Session. 1. Proposed Budget for 1996/97- Michael T. Uberuaga 2. Recommended New Revenues: Sewer Maintenance Fee - Don Noble • Business License Fee Increase - Robert Franz • Library and Cultural Development Fee - Ron Hayden/Dan Villella (no attachments) 3. Alternative New Revenue Sources - Robert J. Franz 4. MSI System- Rick Kermer( no attachments) 5. Redevelopment Budget- David Biggs (no attachments) 6. Status Report on the Able Program - Ron Lowenberg 7. Equipment Replacement Fund -(information item) 8. Refuse Collection Costs -(information item) 9. Follow-Up to City Council Requests - (information item) 10. Discussion BUDGSTDY.DOC 08/08/96 4:43 PM . a 4 HUNTINGTON BEACH CITY OF HUNTINGTON BEACH 7111 TALBERT AVENUE • HUNTINGTON BEACH, CALIFORNIA 92648 • TEL: (714) 842-4481 March 20, 1996 Honorable Mayor and City Council City of Huntington Beach 2000 Main Street Huntington Beach, CA. 92648 G Dear Mayor Sullivan& Councilmembers: It is our understanding that the City Council will be discussing options for raising reveRye tq �rorn balance the City budget. Among those considerations is the Community Enrichment Librar%Fee In 1991, we supported an increase to this fee as part of the Library expansion funding mecha t-SM- r- C 0 r7 CT1 Due to the budget concerns and the construction of new homes, the Library Board and the Library Patrons Foundation believe it is time to increase the Community Enrichment Library Fee (CELF). This fee seems fair in that it has been five years since the last increase. Also, because the fee goes into a special Library account, the funds can be used to offset Library reductions. As an example, the Library's book budget has been decreased approximately 50% over the last five years and staffing has been reduced 20%. We have been supporting the Library for many years and helped to build the excellent system now in place. New homeowners are very fortunate to have this Library available. If the fee were raised to $.30 per square foot, the additional cost would only be approximately $300 on a $300,000 home. Surely this is a bargain to have access to such an outstanding Library. Your decision to raise the CELF would not impact current City residents. They have been paying taxes for years to operate the Library. It is fair that new residents pay a little more for the privilege of having access to such an outstanding Library System. Again, the Library Board and Library Patrons Foundation appreciates the support of the City Council. The City Council made it possible to expand the Central Library, you can now make it possible to secure its future. Sincerely, Norma Brandel Gibbs, President Wade Hawley, Chair Library Patrons Foundation Library Board of Trustees 1 HUNTINGTON BEACH CITY OF HUNTINGTON BEACH 7111 TALBERT AVENUE • HUNTINGTON BEACH, CALIFORNIA 92648 • TEL: (714) 842-4481 TO: Honorable Mayor and City Council FROM: Library Board of Trustees DATE: March 20, 1996 SUBJECT: LIBRARY BOARD ACTION At its meeting of March 19, 1996, the Library Board of Trustees took the following action: MOTION: MOVED BY SILVERMAN AND SECOND BY KUPERBERG, THE LIBRARY BOARD RECOMMENDS THAT THE CITY COUNCIL CONSIDER AN INCREASE IN THE COMMUNITY ENRICHMENT LIBRARY FEE TO $.30 S.F. TO BE IMPLEMENTED AS SOON AS FEASIBLE WITH THE UNDERSTANDING THAT ONCE THE CITY IS BUILT OUT, THERE WILL BE LITTLE OPPORTUNITY FOR REVENUE FROM THE COMMUNITY ENRICHMENT LIBRARY FEE FUND, BY A UNANIMOUS VOTE. Respectfully submitted, Fn Fn A�r� w l f�l k Q� 70 Wade Hawley, Chair = Library Board of Trustees �; T o-) WH:gc cc: Michael T. Uberuaga, City Administrator Ron Hayden, Library Services Director 9 4 CHO HUNTINGTON BEACH CITY OF HUNTINGTON BEACH 'nD 7111 TALBERT AVENUE • HUNTINGTON BEACH, CALIFORNIA 92648 • TEL: (714) 842-4481 C-) rn r < T1a m March 20, 1996 " Honorable Mayor and City Council City of Huntington Beach 2000 Main Street Huntington Beach, CA. 92648 Dear Mayor Sullivan& Councilmembers: The Huntington Beach Library affiliated groups appreciate the support the City Council has given to the Library, both past and present. In these difficult economic times, we are very fortunate to have an excellent Library System and a City Council who cares about providing quality educational opportunities. The ten Library affiliated organizations, whose memberships consist of business people, educators and former City Mayors, understand the importance of balancing the City's budget. It is an enormous task involving careful consideration. To assist in balancing the budget, we understand that the City is considering installing additional parking meters at the Central Library. All of the affiliated groups are opposed to this option. The parking meters would be an inhibitor to learning and using the Library facility and would send the wrong message. Through your support, the City is recognized as the leader in providing Library services. The City was presented with two prestigious Helen Putnam Awards for Excellence regarding Library services. The entire State of California recognizes the City for its outstanding community effort in supporting the Library System. The Library affiliated groups have worked hard to assist in expanding the Central Library. We will continue to raise funds now that the expansion is completed. We believe that other revenue resources are more practical and palatable. Therefore, we ask that you reconsider installing parking meters until all other options are studied. Finally, we would be pleased to meet with our Council Liaisons to explore alternative funding sources. Sincerely, Wade Hawley, Chair orma Brande Gibbs, President Library Board of Trustees Library Patrons Foundation Continued............ Page 2.... Caryl rvey, Presi nt Irma, Loper, President Friends of the Library Fri s f t e C ren' Library Jf✓ r7ck(k It oC(jt,C�JI Rita Blackburn Iyatricia Powers, President Literacy Volunteers of America Huntington Beach Playhouse Patricia Cohen, President - Don�Riscol, Presided '\ Orange County Genealogical Society Arts Associates --11, /i5x� Pat Williams, President Mar of FinWtone, President Huntington Beach Art League H.B. Sister City Association Continued............ Draft General Plan Public Hearing No . 1 March 25 , 1996 Presentation- Outline ♦ Introduction ♦ Public Hearing Procedure ♦ Issues from the February 26 and March 11 Study Sessions ♦ Environmental Impact Report ♦ Air Quality Element ♦ Noise Element ♦ Environmental Hazards Element ♦ Hazardous Materials Element ♦ Utilities Element Presentation Outline (Cont.) ♦ Urban Design Element ♦ Historic and Cultural Resources Element ♦ Recreation and Community Services Element ♦ Public Facilities and Public Services Element ♦ Environmental Resources and Conservation Element ♦ Economic Development Element >> N > ............... Public Hearin Procedure ..... .................... } ........... ♦ Consent Calendar . Pull issues for discussion . Set aside pulled items . Straw vote on remainder of the Element . Discuss pulled items . Straw vote on each pulled item . Next Element 4 - Issues From February 26, 1996, and March 11 , 1996 Study Sessions ♦ Gun Range (N 1 . 12. 1 , N 1 . 12.2, I-N 2, I-N 4, I-N 11) ♦ Utility Expansions (AQ 8. 1 .4, I-AQ 1) ♦ Proposed Alterations to the General Plan (See Staff Report) . Environmental Hazards Element (I-EH 13.c) . Hazardous Materials Element (Technical Synopsis, Issues - No. 10) . Public Facilities and Public Services Element (Technical Synopsis) . Environmental Resources and Conservation Element (ERC 2. 1 .2 and ERC 2. 1 .6) Issues From February 26, 1996, and March 11 , 1996 Study Sessions (Cont.) ♦ Proposed Alterations to the General Plan (See Staff Report) . Air Quality Element (AQ 8. 1 .4, I-AQ 1) . Utilities Element (U 5 . 1 .3, I-U 2) . Urban Design Element (Technical Synopsis) Environmental Im act Report P ♦ Results of the Environmental Impact Report ♦ Response to Comments ♦ Alternatives ♦ Mitigation Measures ♦ Statement of Overriding Considerations ♦ Statement of Findings and Facts Air Quality Element ...... ................. ................. ♦ Pages IV-31 through IV-47 . . ... ... . ♦ Vehicle Work Trips ♦ Transit Trips ♦ Carpool and Vanpool Trips ♦ Truck Trips ♦ Vehicle Trip Distances ♦ Bicycle/Walking Trips ♦ Vehicle Emissions ♦ Particulate Emissions Air Quality Element (Cont.) ... .. ............ ................................------ ♦ Sensitive Receptors ............ ♦ Energy Conservation ♦ Inter-Agency Coordination ♦ Refuse Reduction ♦ Major Issues . Utility expansions (See proposed AQ 8. 1 .4 and I-AQ 1 in the Staff Report) tij;: Noise Element ... . ...... .............. ..... ...... . ... .... ...... ........ .. ............. ........ ...... ................... ....... ...................... ........ ..................... ........ .................................... .................................... .................................. ................................... ................................... .................................. ................................... ..........::':.. ......... . ................ ♦ Pages ................. V 32 through V-4 5 ♦ Noise Ordinances, Regulations and Guidelines ♦ Ambient Noise Impacts on the Community ♦ Traffic and Mechanical Equipment Related Noise Impacts ♦ Noise Impact Encroachment of Commercial and Industrial Land Uses ♦ Noise Impacts of Mixed-Use Structures ♦ Construction Noise Impacts ♦ Noise Impacts/Encroachments Within Multi-Occupant Structures :::::::f::::.....'.:::::::: :;:..: :... ............ ................ .. ........ • '.............. :::::::::::::::....:5.':::::ii::::: Noise Element Cont. ...... . ............ ....... ................. ♦ Noise Impacts of Entertainment and Restaurant/Bar Land Uses ♦ Noise Impacts of Rail Use ♦ Noise Impacts of Aircraft Operations ♦ Noise Impacts of Oil Operations ♦ Analysis and Mitigation of City-Wide Stationary (Fixed Source) Noise Impacts ♦ Major Issues . Impacts of Gun Range (N 1 . 12. 1 , N 1 . 12.2 Pg. V- 41142; I-N 2, I-N 4 Pg. V-42,43 ; I-N 11 Pg. V- 43144) Environmental Hazards HrNs { .......... ♦ Pages V- 1 through V-31 ♦ Geologic/Seismic Safety ♦ Erosion ♦ Methane ♦ Flooding ♦ Tsunami ♦ Peat ♦ Major Issues No major issues Hazardous Materials Element ♦ Pages V-46 through V-56 ♦ Reduction of Hazardous Waste ♦ Major Issues . No major issues ZO sfi%ids `-%s z ! %st^.::,... f s f i Utilities ElementN . ....... . go ............ ♦ Pages III-71 through III-86 ♦ Water ♦ Wastewater Treatment and Facilities ♦ Storm Drainage ♦ Solid Waste ♦ Gas Supply, Telecommunication, Electricity ♦ Major Issues . Utility expansions (See proposed AQ 8. 1 .4, I-AQ 1 in the Staff Report) Urban Design Element-- • Pages II-72 through II-98 ♦ Addresses public property and public right-of-way. Private property design criteria is contained in the Land Use Element ♦ Establishing and strengthening Community identity . Nodes . Corridor identity . Public art ♦ Buffers and barriers ♦ Major Issues . Landscaping issues (Figure UD-7 Pg. II-94) Historic and Cultural Resources Element .. .......... .......... ... .......... ..... ................. ... ............... ........ .......... ♦ Pages II-100 through II- 129 .... � '' ............ ♦ Historical resources ♦ Cultural resources ♦ Major Issues . Accuracy of the historical information (Table HR-2 Pg. II- 108 and II- 109) . Incorporate the adopted Cultural Master Plan (I-HCR 17 Pg. II-128) Recreation and Community Services ...... Element ♦ Pages III-53,53 through III-70 ♦ Recreational programming ♦ Acquisition ♦ Park planning, design and development ♦ Renovation and upgrading of existing parks and facilities ♦ Community parks and neighborhood parks (Matrix) ♦ Beaches ♦ Operations and maintenance ♦ Economics and financing Recreation and Community Services Element (Cont.) .... ♦ Major Issues -♦ . The provision of active recreation and sports facilities (RCS 2, RCS 2. 1 .2, RCS 3 Pg. III-59,63) . Separation of City and School recreational facilities (Table RCS- 1 and Table RCS-2 Pg. III-61 through III- 62) Public Facilities and Public Services Element ♦ Pages III-31 through III-52 ♦ Police ♦ Fire and Paramedic ♦ Marine Safety and Resources ♦ Educational Facilities ♦ Library Services ♦ Governmental Administrative Services and Capital Facilities ♦ Major Issues . Vacant school site development (Policy 4.23 Pg. III-47) Environmental Resources and Conservation Element ♦ Pages IV-1 through IV-130 IL ♦ Open space ♦ Biological resources ♦ Mineral resources ♦ Aesthetic resources ♦ Water, electricity, and gas conservation ♦ Major Issues . Extent of environmental protection on private and public property (ERC 2. 1 .2, 2. 1 .6, 2. 1 .9 Pg. IV-21 ,22) . Equal treatment of resources in the document (I-ERC 1 Pg. � IV 25,26 through IV-26,27) . Protection of significant trees (I-ERC 5 Pg. IV-28,29) Economic Development Element ♦ Pages II- 130 through II- 159 ♦ Economic growth ♦ Fiscal review ♦ Technical assistance provision ♦ Marketing ♦ Commercial use ♦ Industrial use ♦ Visitor serving uses ♦ Commercial and industrial nodes Economic Development Element (Cont.) .......... ♦ Visitor serving nodes ♦ Upgrade and modernize high activity nodes and districts ♦ Major Issues . Accuracy of the information (Technical Synopsis Pg. II- 130) Housing Element ............--------------- ............ ♦ This Element will not be updated during this process. The update will occur at a later date. ?+1 ; Growth Management Element f ♦ This Element will not be updated during 9Y . this process. The update will occur at a later date. s +! r Cotal as Element ............ ...................................................... -- -------- ........................................................... ................... .�. ............................................... --- ............................................... -- ---{ �::. �: .................... .��:............ ....... ♦ This Element will not be updated ... ...........................................................................durin this process. The update will .......................... occur at a later date. L C b I }} rI f{ I 1 Nil Im IQ u I } F Huntington Beach r Police Dept. Budget Presentation 418196 HU14TINGTON BEACH POLICE DEPARTMENT TABLE OF ORGANIZATION GORIA STOR CH CHIEF OF POLICE CHIEF R. LOWENBERG CWAMIlITY LIAISON TEAM UNI M.P.ISON KELLY DARE NEIGHBORHOOD WATCH BUSINESS WATCH ADULT CRIME PREVENTION PROGRAMS CHILD CRIME PREVENTION PROGRAMS SUZIE WAJDA JAN THOMAS R.S.V.P. ADMINISTRATION DIVISION INVESTIGATION DIVISION UNIFORM DIVISION SERVICES DIVISION G�RAL`E'R"`E PRISCILLA PARKER CAPT. E. McERLAIN CAPT.W.MAMELLI CAPT. C. POE CAPT. P. GILDEA ADRNSTRATION SUPPORT BUREAU BUDGET AND RESEARCH UNIT GENERAL NVESTIGATTON BUREAU SPECIAL INVESTIGATION BUREAU TRAFFIC/AERO BUREAU PATROL gSUBPOEI.AllAll SYSTEMS GROUP FLEET MANAGEMENT COMMMCATTONS UNIT JAIL LOWT LT.W.C.STUART JIM MOIRE LT.C.COPE LT.A.SOLLECRO LT.B.KELLY ROGER HAM SAM CAMPOLITO SGT.P.CLEMEKS SGT.T.DONNELLY PROFESSIONAL FINANCE CAP.IARR FCE INTELLIGENCE NORTH�� PROPERTY UNIT STANDARDS UNIT SGT.R.BURGESS G UNIT AERO UNR LT.L.OCMOAHOWARD TATE SGT.S.JORNSON STATE/FEDERAL-CRIME REPORTING SGT.M.WILLETT SGT.L EDWARDS SGT.W.MEERS JUVENILE/PROPERTY INR __ ALARM OFFICE PERSONNEL lNR SGT.W.VAN CLEVE NARCOTICS UNR PARKING ENFORCEMENT UNIT LT.J.ARHOLD JIM CARR GRAPHICS/SPECIAL REPORTS COURT LWSON OFC.A.FUCK SYLVIA FRANKLIN SGT.C.BRIGHT K.PETERSON OFC.M.METOYER ECONOMIC CRIMES LNR WATCH COMMAiDER TELETYPE COMPUTER SYSTEM ACCOUJTING SGT.P.LINKER CROSSING GUARDS LT.C.THOMAS AL SCRWGS TRAINING WR JEANE LAND F.WHTTTON ' SGT.E.DER SCIENTIFIC INVESTIG WATCH ID.CO,BAAER SECURITY d ELECTRONICS DEPARTMENTAL MA/AJAL ESTON SCHWECKE TRAFFIC ENFORCEMENT UNIT LT.G.BROOKS DARRIN DIXON ATION IAUT PAYROLL DEBBIE ZARAGOZA GAIL BALLONE WK.GOP.TRANSITION MANAGER RADIO SHOP MOTOR UNR ACCIDENT INVESTIGATION UNIT LT J.CUTSHAW BUCK MACLEAN SGT.W.PETERSON NIGHT MOTORS DAY MOTORS I CASE TEAM SGT.W.MARTN SGT.G.MEZA 1/1396 + •. RECEIVED FROM ?0' TTti CS D AND MADE A PART OF THE RE�27 A;RIE COUNCIL MEETING OF 7 OFFICE OF THE CITY CLERK CONNIE BROCKWAY,CITY CLERK BUDGET REDUCTION EXERCISE COMMUNITY SERVICES 1995/96 BUDGET .$698729000 • 10% REDUCTION = $ 6809000 • CA'S TARGET REDUCTION = $ 4059000 • FEE BASED PROG'S = $356549000 • TAX SUPPORTED PROG'S = $3,2%000 • OPTIONS: - FUND SOCIAL SERVICE PROGRAMS FROM CDBG - REDUCE COMMUNITY CENTER HOURS - REDUCE MARINE SAFETY & BEACH MAINTENANCE - REDUCE SENIOR CITIZEN SERVICES - REDUCE CULTURAL SERVICES - ACROSS THE BOARD VS ELIMINATING PROGRAMS 1990191 BUDGET WAS $7.1 MILLION Last 5 years we have: Reduced Community Center Hrs. Reduced Handicapped programs Reduced Lifeguards Reduced Beach Maintenance Eliminated 5 FT & 30 PT positions, and also: Absorbed the Parking Structure, Art Center, Film Commission, Specific Events, & 4th of July COMMUNITY SERVICES BUDGET OVERVIEW BY DIVISION BEACH DIVISION ACTIVITY F.T. PERSONNEL 95196 BUDGET ADMINISTRATION 1 $60,000 MARINE SAFETY 11 $1,550,000 BEACH MAINT. 6 $6849000 PARKING'FACILITIES 4 $6629000 PIER MAINT. 0 $89000 PARKING METERS 2 $1359000 VEHICLE MAINT. 3 $2279000 JR. GUARD PROGRAM 0 $200,000 HCP.\_ RANGER 1 $100,000 TOTALS 28 $33626,000 DIVISION REVENUE 95/96 $2,100,000 GENERAL FUND COST $1,526,000 PARKS & RECREATION ACTIVITY F.T. PERSONNEL 95/96 BUDGET ADMINISTRATION 4 $300,000 COMMUNITY CENTERS 7.5 $480,000 RECREATION PROGRAMS 0 $1,035,000 TOTALS 11.5 $1,815,000 DIVISION REVENUE 95/96 $1,445,000 GENERAL FUND COST $370,000 PERMANENT, FULL-TIME EQUIVALENT POLICE PERSONNEL BY BUDGETARY PROGRAM S11 ORV CI HLIAV Chief Captain Lieutenant Sergeant Officer Total Sworn Total Civilian Vacant Civilian Positions Department Total •� 3 � o O O O O •� � C `e c = Z Z z z e c Vj 3 a � c, c c m `c u `c a u c `a c u :. c � PROGKA.1/ o $ u re- o - c Department Total I F IT 0 4 F 4T 0 101 101 0 31 29 _' 18; 180 ?3-? 224 9 143 130 13 3 41 11 1 2 1 1 1 0 0 01 01 0 376 354 1 21 E'veciniveDivision 1 11 0 01 01 0 IT l I o 0 01 0 S1 .51 0 -1 0 4 4 0 0 0 0 11 0 o ol 0 0 0 ol 1I Il IU 3 20 F-vec•+tmc —"- I 1 0 1 I 0 1 1 0 2 2 0 323 Comm.Liaison — ! -! -0 I l 0 3 3 0 4 4 0 320A`orc.Fbrf tD.A1tE1-- -- -- - - --- -- - - —— S - 5 0 5 - 5 - U — -- S 5 0 Administration Division 0 01 01 11 1I 0 1 / 01 3 3 . 0 3 3 61. 81 8 -.0 8:5 85 ::>0 0 0 0 0 0 .::U 0 `::0 322 Personnel I ! 0 1 / 0 2 -)1 0 2 21 0 6 6 U 3 3 0 9 9 0 325 Training -- - -- -- -- I ! 0 / 1 0 2 2 0 2 2 0 — 4 4 0 326 Hudger f Research"-- - — -- —- - — — -- — —0 (I 0 3.5 3.5 0 — -—— -- —— 3.5 3.5 0 Investigation 0 0 0 I ! 0 2 I 2 0 S ..'S I_0 74I.T:41.; .:0 49 1 49 1 0 �,.51.26.3.,.; -:;:1. `b; :.:0 _::/ 0 0; :0 0: -0 -:0 '6.5 :75.5 1 328 1 ice&Intel. 1 / 0 1 ! 0 4 4 0 6 6 0 1 I 0 - - 0 329 Investigation "—-- — I I 0 ,! 1 -0 3 3 0 25 25 U 30 30 0 9 9 0 ———— 39 39 0 330Narcotic.c ---- -" — — ---- I 1 0 10 10 0 11 11 0 I I 0 12 12 0 33/Sc.•rcnt.Invest. 0 0 0 165 15.5 1 1 165 15.5 1 336 C;angs Set-vices Division 01 01 0 11 11 0 0 . 0 0 2 2: 0 2 i 2 sa 1::.,0, ::0 :;0 1<:0 :;0 93:1 81 12 321 Facilities.%Minr. 0 0 0 4 4 0 4 4 0 324 Records I 1 0 1 ! 0 32 27 5 3 / 1 33 28 5 333 Communications I 1 0 1 1 0 22 20 2 2 23 21 2 334Jail ------ — — -- 1 1 0 I 1 0 18 14 4 4 19 15 4 339 Si-stems Group 0 0 0 8 8 0 8 8 0 346F1eei.1lonag. — — 0 0 0 4 4 0 4 4 0 34-Property( Evid. 0 0 0 2 1 1 1 2 1 1 UniforruDivision ro TOO I 1 U 6 6 0 2/..19 2 138 :131- :166. 157 9 13; : 13 ;_ 0 0: ,.0: . :0 '0 0 0 >.b .::U 0 0 ..0 .1:9 _!?0 9. 32-Aero I 1 0 6 6 0 - 0 2 2 0 _ 9 9 0 332 Patrol 1 I 0 5 5 0 17 15 2 108 101 ? 131 1221 9 1 1 0 132 123 9 335 Traffic I 1 0 3 3 0 24 24 0 28 28 0 1 I 0 29 29 0 33_Crossing Guards 0 0 0 1 1 0 I 1 0 338 Parking Enforce. 0 0 0 8 8 0 8 81 0 *C-'hnrt rine.c not indtirle per yonnel frinrlr.rl rulrh:r C'OPS.1/ORE GmIll. Provided by Police RlldQet and Research 4?3-96 3:00 P.1/ PREVIOUS POSITIONS LOST TO DOWNSIZING IN THE LAST FOUR YEARS SWORN.- 10 Positions Eliminated: 1 Police Lieutenant .2 Police Officers Frozen: 1 Sergeant 6 Officers CIVILIAN.• 24 Positions Eliminated: 1 Administrative Aide II - (grant appl., statistics, product research, etc.) 1 Secretary - (Services Division) 4 Clerk Recurrents- (Personnel and Records) 1 ID Tech 1 Mechanic 1 Photo Assistant 5 Student Workers- (Building, Vehicle, & Aero Maint.) 2 Police Clerks- (Records) 1 Maintenance Worker 1 Parking Enforcement Officer 1 General Services Officer Frozen: 3 Police Clerks 1 Detention Officer 1 Field Service Officer ,1 SUMMAR Y OF PROPOSED CUTS Personnel/Operating Cost Savings Savings PERSONNEL: SWORN: 6 Police Officers SWORN SAVINGS: 485,000 CIVILIAN: 4 Positions 1 - Info. Specialist II 62,000 1 - Education Specialist 50,000 1 - Pol. Clerk Sr. 21,000 1 - Sr. Aide 6.500 CIVILIAN SAVINGS: 139,500 TOTAL PERSONNEL SAVINGS: 624,500 OPERATING: TOTAL OPERATING SAVINGS: 141,000 TOTAL SAVINGS: 765,500 AREAS OF ORGANIZATION IMPACTED BY BUDGET CUT AD" ASSISTANT CHIEF OF POLICE CHIEFS ADJUTANT COMMUNITY LUUSON TEAM - DARE NEIGHBORHOOD WATCH BUSINESS WATCH R.S.V.P. r ADMINISTRATION INVESTIGATION !DIVISION] NIFOR SERVICES DIVISION DIVISION DIVISION ADMINISTRATIVE SUPPORT BUREAU BUDGET AND RESEARCH UNIT CSP JUVENILE TRAFFIC/AEROBUREAU PATROL BUREAU TRAINING UNIT STATE/FEDERAL CONTRACT CRIME AERO UNIT VIDEO REPORTING C c PRODUCTION TRAFFIC ENFORCEMENT UNITDEPARTMENTAL MANUAL [PREVENTION SR.AIDRACT MOTOR UNIT ACCIDENT INVESTIGATION UNIT Prioritized 2.4% or $765,500 Stepped Reduction of'the Existing 95196 Police Department Budget Service Service Sworn Civilian Salary Operating Accum. Impact Reduction Positions Positions Savings Savings CSP Contract- Cancel 40,000 40,000 Gang counseling service would not be provided by Gang Prevention contract CSP. Gang related crimes could increase. CSP Contract- Cancel 73,000 113,000 Juvenile diversion counsiling service would not be Juvenile contract provided by CSP. Juvenile related crimes could Diversion increase. Sr. Aide Eliminate 1 6,500 119,500 Additional workload would be distributed to Training tempory remaining personnel. Some delays in processing position training requests could be experienced. Manual Eliminate 1 21,000 140,500 Responsibility for manual revisions would be Updating and 1/2T clerical transferred to another employee and delays could be BCS statistical position expected. Delays could result in mandated BCS reporting reporting. Video Eliminate 1 62,000 5,000 207,500 The department requires a signficant amount of production position video production. This task would have to be transferred to the City's production unit. DARE Reduce 2 160,000 10,000 377,500 DARE instruction would be eliminated in private DARE schools and possibly some public schools. Neighborhood Eliminate 1 50,000 3,000 430,500 Coordinator position would be eliminated. Watch position Volunteer could be appointed. Aero Eliminate 1 85,000 515,500 Sergeant currently assigned to unit would fill position vacated position. Sergeants duties would increase which could negatively impact supervisory capabilities. Accident Eliminate 1 80,000 595,500 Inspection of taxi and towing companies would be Investigation. position eliminated. Vehicle inspections for VIN verification would be delayed and Traffic Bureau front counter support would be eliminated on Fridays. DARE Eliminate 2 160,000 10,000 765,500 All DARE instruction would be eliminated. DARE Juvenile drug usage could increase. 6; 4 624,5004>1,OQ0 7G5,500 Additional Budget Cuts Considered For 10% Reduction Level Service Sworn Civilian Salary Accum. Service Reduction Positions Positions Savings Operating Savings Impact 6 4 624:500 141;000 '165,500 Aero Reduce flight 2 160,000 2009000 1,125,500 This may reduce some daytime flight hours hours by 1/3 depending on what happens with the ABLE JPA. Systems Group Eliminate 1 709000 1,1959500 With the closure of Fire Dispatch, remaining CAD CAD Spcl. would be responsible for computer Specialist maintenance. Some delays in service would be expected and specialty computer programs may have to be contracted. Crime Eliminate 1 50,000 3,000 1,248,500 Crime Prevention Specialist position would be Prevention program eliminated. Crime could increase without this monitoring. Training Eliminate 1 80,000 1,328,500 Duties of officer would be transferred to training Training sergeant and other personnel. Some delays or Officer elimination of training programs could be expected. position Gang Eliminate 2 160,000 2,575 1,491,075 Eliminating program may result in increased gang Enforcement program criminal activity Community Eliminate 1 80,000 1,571,075 All media correspondence would be handled by Relations Officer position Lieutenant when available. Position also substitutes for absent DARE officers which would not be necessary if program is eliminated. Aero Reduce flight 2 160,000 2009000 1,931,075 This will eliminate daytime flights and some night hours by an hours. additional 1/3 Personnel Eliminate 1 80,000 2,011,075 Eliminate position in either background Personnel investigation or recruiting. Officer 15 6 1464,500 5a6,575 2,011,075 Additional Budget Cuts Considered For 10% Reduction Level Service Sworn Civilian Salary Accum. Service Reduction Positions Positions Savin s Operating Savings Impact 15 6 1464,500 546,575 2,011,075 Vice & Eliminate two 2 160,000 2,171,075 Reduction in investigations could result in increased Intelligence officer vice crimes. positions Scientific Eliminate 3.5 5 360,000 20,000 2,551,075 Forensic analysis would have to be handled by the Investigation Criminalists Sheriffs. Considerable delays wquld be expected. & 1 Evidence collected from less serious crime scenes Criminalist may not be analyzed at all. Supvr. positions Aero Eliminate 3 3 334,040 281,040 3,166,155 All flights provided by the city would be eliminated. program Any aero service would have to be contracted. SWAT Eliminate 25,000 3,191,155 SWAT would be contracted. Delays in response program time would occur. 20 14 2318,540 872,615 3,191,155 MANAGEMENT CRITERIA FOR DETERMINING PROPOSED CUTS • Primary Department need maintains existing officer staffing in line- level functions (Uniform, Traffic & Investigative Services). ♦ These functions represent basic enforcement services which must be provided to the public. Staffing reductions in these areas would jeopardize departmental objectives and officer safety. ♦ Effects of reductions in enforcement services are very predictable and are usually noticeable in the short-term. ♦ Results of prevention programs are less predictable and effects are ttsttally recognizable in the long-term. • Statistical Service Demands were considered. ♦ Calls for service and workloads are increasing (49%from 81,000 to 121,400 calls in the past ten years). ♦ Number of times no unit is available to respond to a call is increasing (5% of the time or 440 hours in 1995). ♦ Average response times for Priority I calls are increasing well above the Department's objective level of 5 minutes (44%from 5.02 to 7.25 minutes). • Examined areas where previous cuts had already adversely impacted police service. ♦ Prior reductions of supervisory personnel and resultant increases in workload have increased span of control and threaten enforcement of Department policy and risks potential liability. ♦ Previous personnel reductions in line-level support functions have increased workload and overtime and delayed throughput, DIVISION OVERVIEW CONTINUED HUMAN SERVICES ACTIVITY F.T. PERSONNEL 95/96 BUDGET PSS 1 $609000 f. SENIOR CENTER 3 $175,000 SENIOR OUTREACH 7.5 $300;000 OAKVIEW CENTER 2 $160,000 TOTALS 13.5 $6859000 DIVISION REVENUE 95/96 $64,000 GENERAL FUND COST $6219000 CULTURAL EVENT & FILM SERVICES ACTIVITY F.T. PERSONNEL 95/96 BUDGET ADMINISTRATION 2 $1459000 ART CENTER 1 $81,000 -MUSEUM, BAND, SUPPORT TO SPECIAL EVENTS 0 $10,000 TOTALS 3 , , $2369000 DIVISION REVENUE 95/96 $45,000 GENERAL FUND SUPPORT $191,000 COMMUNITY SERVICES ADMINISTRATION ACTIVITY F.T. PERSONNEL 95/96 BUDGET DIR, DEP, SUPT, & OFFICE STAFF 7 $510,000 (PHONE, UTILITIES, PRINTING, ETC.) SUMMARY TOTAL BUDGET 96/96 $69872,000 REVENUE 95/96 $3,654,000 GENERAL FUND COST $3,2189000 DIFFICULT PROBLEM Across the board cuts would mean reductions in all programs. Would result in reduced hours for Lifeguards, Community Centers, Senior services, Youth Sports, etc. Also reduces case loads for social services such as PSS, Oakview, Seniors Outreach, etc. Also reduces Beach Maintenance. Eliminating programs mean a loss of services to a whole segment of the community. Staff recommends 1 . Try to maintain a balance of Community Service programs to all segments of the community. 2. Fund portions of Seniors Outreach, PSS and Oakview from CDBG Staff recommends $129,410 2. Make remainder of necessary cuts across the board from each division, as opposed to eliminating whole programs. COMMUNITY SERVICES POTENTIAL REDUCTIONS FOR 1996/97 Option A = Across the Board Cuts Option B = Eliminating Whole Programs ALTERNATIVE 1 - CA'S TARGET OF$405,000 Potential Reduction Option A Option B - Reduce or fund portions of Seniors Outreach & Oakview from CDBG $129,000 - Reduce Nature Center from 7 day per week to 4 $ 30,000 - Reduce Marine Safety Boat operations to summer wkend's $ 60,000 - Close Community Centers on Fri nights & Sat's $ 32,000 - Reduce recurrents at Seniors Outreach & Senior Center $ 42,000 - Close Wkend's & Eve's Oakview $ 239000 - Reduce recurrent for PSS $ 89500 - Reduce office recurrent for Santa prog,-rentals, phones $ 81000 - Layoff Wordprocesser and do not provide agenda & min's for Boards, Commissions, 4th of July $ 389000 - Reduce beach porta - potties from 28 to 14 $ 103000 - Reduce SANDS from 4 times per yr. to 2 times per yr. $ 209000 - Close Newland Museum $ 4,500 - Eliminate Seniors Outreach and transfer meals program to Center $150,000 - Eliminate Cultural , Event, & Film Division $110,000 - Eliminate Oakview program $145,000 Totals Alternative 1 $405,000 $405,000 Positions elimiated FT 4 FT 9 PT 33 PT 8 COMMUNITY SERVICES POTENTIAL REDUCTIONS FOR 1996197 Option A =.Across the Board Cuts Option B = Eliminating Whole Programs ALTERNATIVE 2 - 10% CUTS - $680.000 Potential Reduction Option A Option B - All of Alternative 1 $405,000 $405,000 - Close all towers north of condos to State Beach $100,000 - Close all Community Center supervision drop in & go to rentals & classes $ 80,000 - Do not resurface all courts $ 15,000 - Reduce remaining boat wkend's for Marine Safety $ 60,000 - Eliminate Nature Center and HCP enforcement $100,000 - Eliminate PSS $ 85,000 - Eliminate Edison & Murdy Community Centers & lease for Commercial purposes $ 90,000 Totals for Alternative 2 $680,000 $680,000 Positions eliminated FT 5 FT 17 PT 60 PT 23 e e �J ie CITY OF HIJNTINCTON BEACH e COUNCIL - ADMINISTRATOR COMMUNICATION Papawo w WACK To: Honorable Mayor and City Council From: Michael T. Uberuaga, City Administer Date: May 6, 1996 Subject: Budget Study Session Exercise Results Please find attached the packet of results of the budget exercises you performed at your City Council Study Session of Monday,April 29, 1996. Included in the results packet are: • Tables of the City Council's Ranking of Public Services,Department Head's Ranking of Public Services, and the City Council's Preferred Method of Funding, • A summary of City Council(program and service)suggestions, and • Copies of the City Council's actual"Request of the City Administrator to Examine Specific City Programs and Services" submittals. MTU:bs xc: Department Heads Attachments City of Huntington Beach City Council Study Session April 29, 1996 Budget Exercise Results City Council's Ranking of Public Services 1 highest) 5 highest) 1 1 7/0 Police Services 5 2 2 7/0 Fire Services 5 3 5.3 3/4 Maintenance of Intrastrucdure 4.1 4 5.6 6/1 Marine safety services 4.3 5 5.7 1/6 Develci~t services 3.7 6 6 7/0 Adminisitrawe Support 3.6 7 7 3/4 Code Enforcement services 3.7 8 7.6 5/2 Library services 3.9 9 7.9 1/6 Beach services 3.9 10 8.9 6/1 Recreatlonal services 3.6 11 10 7/0 Term Pla 3 12 11 017 Cultural Services 2.7 Department Head's Ranking of Public Services RANK AVERAGE TAXES/FEES PUBUC SERVICE DESIRABIUTY 1 highest) 5 highest) 1 1 10/0 Police services 5 2 2.5 10/0 Fire services 5 3- 3.9 5/5 Maintenance of Infrastructure .4.1 4 6.1 7/2 Marine Safety Services 4.3 4 6.1 0/9 Develoment services 3.7 6 6.6 4/6 Code Enforcement services 3.7 7 7.5 9/1 Administrative Support 3.6 8 7.8 6/4 Library services 3.9 9 8 1/9 Recreational services 3.6 10 8.3 614 Term Planning 3 11 8.4 8/2 Beach Services 3.9 12 11.7 2/7 lCuftww services 2.7 City Council's Preferred Method of Funding Method of Funding Council per Method Reduce Expenditures Only 1 Raise Revenues Only 2 Reduce Expenditures and Raise Revenues Equally 50/50 3 Reduce Expenditures and Raise Revenues to a Specified Ratio 1 (2.6M/1M) �� 5/6/96 City of Huntington Beach City Council Study Session April 29, 1996 Budget Exercise Results Suggestions to Review Specific Programs and Services Please note: The numbers on the left margin are control numbers for locating the specific comment on a master fist o*. No other weight should be applied to and no other inference should be drawn from these numbers. Business License 1. Strict Business License enforcement. Perhaps hire additional staff if needed. 23. Require business licenses for all businesses operating in city. 57. Business licenses for 1 and 2 units. Fees 29. Implement additional MSI recommendations. 41. Increase aggressiveness of Code and Law Enforcement fines(issuance?). 42. Review all contracts and leases for increases in fees. 49. Raise existing fees to cover overhead. 50. Institute$3.6 million in MSI fees. 51. Raise beach parking fees. 52. Increase fees for towed vehicles. 53. Charge homeowners for removal and/or planting of trees. 54. Oil pipeline fee. 56. State parks water use surcharge. 18506:BRs S1 Council's programs/services suggestions 58. Community Enrichment fee. 59. Sewer maintenance fee. 60. False 911 calls. 62. Annual Fire Prevention inspection fee. 63. State mandated fire inspection. 64. Storm drain maintenance. 68. Fire code enforcement fees. 69. Trenching fee(street cuts). Intergovernmental 39. Acquire West Orange County Water District. 40. Withdraw from PCTA. 46. Give state beach back to State. Organizational Structure-Reduce 4. Reduce Police Aero Bureau by 50%. 8. Eliminatelreduce Police participation in regional Narcotics Task Force. 12. Reduce tree trimming. 47. Reduce HBTV3 services. Organizational Structure-Re-gear 2. Consolidate Police/Fire Vehicle Maintenance under Public Works. 17. Reorganize Library into Community Services. Reduce 1 department head. 27. Utilize R.S.V.P. in Code Enforcement. 31. Reduce outside legal work. 2 18506:BRS V• Council's programs/services suggestions 44. Institute program in Fire Department(produced?)by Pasadena Fire Chief(8 hour work shifts). 48. Increase aggressiveness in grant writing. 67. .Revenue audits and collections. Parking Meters 19. (Create?)a Parking Meter Master Plan. 55. New parking meters: Brookhurst, Magnolia,Beach Bl. Personnel 7. Eliminate position of Adjutant in Police Department and replace with unswom Management Assistant position. 24. Negotiate a 0%payroll increase to bring all labor contracts through 1997. Agree to a 1997-98 fiscal(?)contract for 3 years. PHvatiZe 3. Eliminate City Attorney staff and utilize contract counsel. 10. Privatize road paving. 11. Privatize street sweeping. 14. Privatize the Art Center. 16. Privatize Public Works street maintenance, water distribution etc. 26. Privatize Code Enforcement. 34. Street sweeping privatization. 35. Privatize landscaping. 36. Privatize tree trimming. 37. Review all Public Works activities for privatization. 38. Privatize City Attorney's Office and/or go to billable hours. 3 18506:ses Council's programs/services suggestions 45. Privatize all of Administrative Services. Regionalize 9. Regionalize Fire(services). 22. Regionalize more Public Safety services. 25. Fire/Police regionalization. 32. Look carefully at Aero positions-reeducation or regionalization with other cities paying their bills. 70. Regionalize Public Works street maintenance, water distribution etc. Social Services 20. Review and evaluate all CDBG requests. Rank in order of citizens served divided by allocation. Eliminate regional and emphasize local. 21. Review all social services programs and transfer,where appropriate,to County. 33. Use CDBG funds to support general fund services. Taxes 18. Emphasize new"tax" and"user fee" sources. 28. Tax on rental properties. 30. Sewer fee. 61. Transient Occupancy Tax increase. 65. Entertainment(tax?). 66. Cigarette tax. Miscellaneous 5. Reduce use of city vehicles. 6. Reduce use of car phones. �� 4 18506:BRS Council's programs/services suggestions 13. Sell our flood control facilities to the Orange County Flood Control District. Realize initial(small)sale amount and long term operational(and liability)reductions. 15. Sell city(real?)property. 43. Purchase street fighting. 5 18506:sRs 0�� H fe CITY OF HUNTINGTON BEACH INTER-DEPARTMENT COMMUNICATION HUNTINGTON BEACH To Robert Franz, Deputy City Administrator Administrative Services From Ron Hagan, Director, Community Service Date May 28, 1996 .Subject Parking Meters on Beach Boulevard and Magnolia Street Per your request, the following is the cost for installation and maintenance of parking meters on Beach Boulevard and Magnolia Street and projected revenue: Beach Boulevard .................................................... Installation of sixty-nine meters* at $300 each $20,700 *We will relocate meters from beach parking lot A, thus saving the $400 per meter cost for new meters. Annual maintenance of sixty-nine meters at $15 each $1.,035 First year cost $21..,735. Magnolia. Street Installation of forty-five meters at $300 each $13,500 Annual maintenance of forty-five meters at $15 each $675 First year cost .Total First Year Cost $35,910 Annual Maintenance Cost $1 ,710 0019020.01 05/28/96 9:03 AM PROJECTED REVENUE .............................................................. Beach Boulevard Sixty-nine meters at 50a~ hour* (40 percent occupancy) $27,600 Magnolia Street Forty-five meters at 50(:;t- hour (40 percent occupancy) $1.8,000 TOTAL ESTIMATED ANNUAL REVENUE $45,600 First year net revenue $9,690 Second year annual revenue $43,890 *Staff recommends 50¢an hour rate instead of$1.00 recreation zone rate because of location and proximity to beach. 0019020.01 05/28/96 8:59 AM aNa, ' q r j ,/ .0-� �71 t.96 440,Al Budget Study Session :... :. ..:.::.::.:::.:.::.::.::.::.:::.:.:....:::.::: :....". ....::::::...:::::::.::.................... ............. }..:.::.: ..: ......:..:::..:::::::.::.::.::::.:.. ... .:.:.:.:::.:::. ...:.::.:..%.:::::. ....... ...................:. ::::.v rr . —........ .... —,......... .%... :r y::. a eStud ...... . . . . . . . . . . . .._.. . ... . . . .._. -'- . -.... .... .. ..... . . . . . . ........_ .. .. . . ........ -_..._ . . . _...._ _.... ....._ ........_ ...... . . _ .. . . . ._.....__.. ..... ._ __ ... ... _ _ _ ... _ _ _ . . . . ... . . % % .........._.........__....._......._ ___ __ __ _ __ .M.. ._........ ._. _ _ . . _. . __ _ _ es � n *": ....... ....... . . . . . . . . . ...... . .............._... .. ...._......... . . . �-.-............................................. ...... ....... -:-:-:::.............: �.�����..............�..�.�.....................�.....................�........................... ....... ..........%. .... ...............�......................... ....--....-- ................. ...._..........._......... .... . ... ........ . ... _ ..............._...... . .......--.....—-.............................................. . . . . . .. . . ...— ... ... .... . .... . ....�.......�....�.............�........�...�.....� ......................�.�.......�,.:.::-,.":::::::..,—%�.. �...................�...............%.... ............... _. .... ...... .. . . . ........ _ _.._........ ............... .... . . ....— ................ ........ .. .. _ _ . . ....... .. . ... . ----_ _ .... . .. . . .. ...... ... _._. .. . %..,.. ......... ............ . ... .. ...........���...�..�....�......�.�..............*.,.,.,.::�:.........�.�.......�...........�.............,...,.....,-: �..--... ...............� ........o. :... -::"— .... .... —..—.............—.............%....:::::...-.:.-.:,-.-:: ...: -........ .— . .—.... .....1. ..-...:.............. ....... .. ......................................�. ....... .........................%.....�......-.-.-.-.-.-�.-..................... .........� .......... ... .... . ... .. . . .. ......�....... .:: : .........,--, .. . ..........�—... � :. .. .—.. . .:I..Februar 12 . .......... .................................... % !...:..::-.:.:::::. na ......... . .........::... .............. ..::: ............... ................... .:.:.v:.::::::: . .........:::.::.. . . ...... ::::. ............. :::::::::::::..% .......... ..:::... ::::: :::::: .' ... �ttus: Report :::: .::::. . :Ref nng the Problem ::: ----- err. Pro�ecUons l4.. Aiternativ Solutions ..:. ::;::::;:::. :::::: . :::::::::::::::: 5 Timetable ;.:: p. ........ . iscuss�on February 12, 1996 Budget Study Session --------------------------- t e. r. a us I. o t :::.:....:.::.:.::..:.:.. ..........:::.......::: ......... ..... ..:::.:::.:.:::........... u #get � ancial Planning ate#trent the f�untington Seach.8 udget nt�tr $v I�I�Ilion �n ReductionslNew '> RevenueslSaving5 Prioritize City Services/Expenses Review SalarylBenent Cos Review Potential Ne Revenuer > >> •Regionalization C ppor u-`Alr>> <>< Privatiza jon: • IAA. u::::: s_::»:::< ::<:::>:: :.. n bus L Ran e :::.::: .. g : .... nana1 ng Yea Revenue Proiections . 6 Year Expnse Pro�ect�on Year Capital Expense Proect�ons February 12, 1996 , . Budget Study Session :v::i.{ . ".. .... ...::::.:::......... ......%.......::...... .. .::v :::::....... :k.'•iiii ::::: :: :::::: ::: : :::. : m . :: :.:::::::::::::: :; nil i n :..Y::. r:i.:: u :�: J I. .... ::.... ::.:.:>: aerR . . :>:::: Needs Anal s ...:::::::;:: ::: ......... :. .. ... ..:..::.::.::.:.:..:: ::::: ► otential Funding Sources ::::::::::.: .. ................._....-._-.... .....-......._................... _..... _ ........ .... . ...... _ . . ..:........:::.::... .................................. . ... ::..... ........................................... hN ri:::::::::::::::.:::.::. :.::.. ..:::.:.-..::.::%-.-%:.::.::.:::.::.::.::.:.::..:::::::. .:: :> iy .. .:: .. :: - . Refit n Tie Problem :: h Reinvent the Bud et? g What are the I sues: : . .... . . .. ... . ..... _ ...... 11 February 12, 1996 Budget Study Session ' .. he Problem n!►:.:>::::::.:>:::::<R:::>:: >::::>:::;:....:ral Fund Budget ,is Balanced eR . i eMel~a[ Fund Reservesare Minima :>:... >:: ...... Prc�3ected to be inadequate after 1995J96 : i • 3ecline of Reserves �1992 9 995 >::_ >:.:. Recession . State Takeaways . Oran e C ount Ba ........ .. g y_ nkru #c One Time •. ::: osts 'e.Litiat ion:..:Las e ss .: ----------------------- al Fund R.�serve �tiwo ♦ EiEOt $9 $B3 RBdgdtiq jr1 38 >::: 6 9 .... 39 �95 . ><:>.. ;One Time Costs Ss :: :::.::: 01- Bankruptcy Claims $� $4 S ♦ Fiscal Policies $1 Require a Reserve s2 of 3-5% :. .... f >< > Projected Reserve :::. <:ti3.;.:....>:::. ►:;::.::::��g 0 February 12, 1996 Budget Study Session ...................... vv:r ............: - 1en �'he Problem : : }{ .... ss 5 Growth ofRevenues r� ec e J . < : -]ssue ;Potential Revenue Losses s State Legislation ::.::... ♦ :Redevelopment Payments: General Pro osition 6 Asses rn n A s e t eats Huntin ton Beach NEotl:Ta <'r `> `< > : ` <>''<` - :: •; .. g.:. nst .::.::::.::.:::::;::::.. . .: Issiue Seru; ce [3emands ark;:> res < >> <>< ;''::°°' e..Ver�u n . :R a ....Vie. eral Fund s: c < ::.:. e. Show G rswth Pro a ted .: :: :: ::::::::::::::.:#s:..:.::.::.;..:;::::....... ............................... ..... ...................... J . :: : r .. :: . ...:. :.... .: .._ sy - Without State Takeaway 29.4> >. 5 .. 23 . Property Tax `S20 168 13 Sales Tax .. :...:;;.;;;:. .::::::.. ... ::: $1a S Year Pr�e�do ns : $.5X. S 0 80 81 82 8. 84 85 B6 B7_i8P 89.9D.sJ3 92 iST3';�4i:Sarno:8$' 9X:>?�8 E'98':?DOE:Etl3 ?........ February 12, 1996 Budget Study Session ------------- .:.:.::.:::::::::::::: ... :r ::::::::::::...... ............................ ::Cr.•r::vn.v..�::::::.:::::::::....... ..... ........... ..:.::::. :vvkx .v;:,i..v.�:..w:::::::})};:•viiiiiiiiiiiiiii:^:'•.........:.:: .-.- rrvxv::�:::iii::,iiii:i`:ijii::i:::::j::iiiiiii::i::::::::�:::i::::'�.•::::�::: ::.::..:- -. :.�. Tax - 01 stab uti o n 'isSiiiiti'•iiii?iiiJ}y}iiii:'::.:'+'v:Yvi:v}}'.>?i: .:.. ........ .y;hi:•i}:•�:iiiii:�}?ii:;::iv::qii:�ii:j::ii:i�}ii:::i: :.. 2:tt::vv<}{::i:�i:�ii>:?:>i:. :y?::'i:iii::; �.1 ... .:,:;_:;: Basic 1 /o Lev . �. .......... .................. .. :....::.:..: : :..v.:. .:: . .::: . ................ .. .... ....... ..... ::::High Schools: Eietrntar3r ........... ........... g .. :< »:> :,.> .... ..:.. Colleges :... :Pd??: .....:.... ICGt 15..6/o .._ ?ii.'����iiiiiii::.:':.Y:v:... ...:v:.:;.;i.�.v:,:{:::::: ....- --..: �:: h afax - AIoation of �u ion Bead Revenue ':"'Hea3tiIVuelfare Colin Stete' S6%: ....... 3. ,.. :.. ...........:............. Measuie M ;> 6% Public Safety:;: 6% City ;...:.., February 12, 1996 Budget Study Session .. : .: e e opm Projections =s5 �. dash Reserves h')v .:.... :: S? Sfi 1 # : ..... m ash Reserves :: $ .:.; .,. .... .;:: ........:::;:: > .........$5 S4 3. $2 si 3<:>::>:::s€€€€> ><<:>< ... .: so ' 98 ................................................._..............._..... . ..._ k?:: e surance Fund S 4! e dash R ewes -1 $ e. : Iilte►ns. ;... . :::::::; s .:......... s $ <:>::> :>>:.........s ::.:.... :.$3 $1.76 $� UO2 . 92 934 95: X. February 12, 1996 Budget Study Session ` j'''' n R+ emen. Funds : .:::::.::. .:. . Hsu Cash Re se. . ryes. 3 ........::.::::.:::::::.. . _a s :> s . sa S3 ,: $2 $1 .� $0 92. 93 €; :::.:.;:<.:. ... s abi---------------- a ,:::::..>:.::::.: est►m ted :..... ....:..,. ... :..... �qrt 3CIai3x3 S5 8 <; >.. . !!db. rs Comp 55.3 . . .. . 3 Uac&S/L $4 8 Retirement1 6 . 7 Def. Maint: $0 $5 $1t S1 '.; :::;:: .....::...:.............;: tfons February 12, 1996 Budget Study Session .:`.:::'Ye: eu':,U rn d . R .a : : Esc pease roWection.. :::: First Draft ::::::::::::::::::: ... .:::::::.: 1. :::::::::::::::::: ....:::::::::::::::;::::::::::::::::..:::: :.::::::::.:>::.::.:::... . en e�-a nd..# s m ti o n s ::::::::::::::::.::.....:::::::.::........ . _Ex ease ....................... ..................... ........ ...........................::::... ::::::::::::::::.:::::::::::::::::::.:::::::.::::::::: :.:::. :.::.:::.:::::.: .:... :::::::::::.::......: :.::::: i fainta �urre: . staffing levels 2°1�-3..°�' inf lat�on increa es 'ransfer Police Officers from .arc ::':::.. .Fund Maintainfunding evel .fTemp o PERS cost reductions pro-ecte ..... Increase Worker's corn fundir . _ . . February 12, 1996 Budget Study Session :::" !JO :.�•udAssum tions.. ... E'.t7SeS c on t. '.;:.. crease fundrn for Retiree beneT s 9 atntan other bene#it costs at Curren {eyels .::::.:'. lnerease funding fo Equlame Increase fundn to .iabl� . Malnta n minim Ca . t 1. ' u fn Ti mate :::C : :: n..M l�o i ns n u eral F n t d To a '�995f9 $956192 1 ... :_ `:....1 96197. 100 ... :2 195.7 ..... .:.:::.:. 1997198 03.1 1 :::::<:: ;1999/00 108..8 1 .2 2000/01 . e February 12, 1996 Budget Study Session ::... , aTA a stimates nM Io s ....... .....:::::. .. .......... ..::::.::..........:::.:. ........ .....:::::...................... ....:. fi U ::::>::::: :::::::::::: :. :::::: ene aI F nd Tot a N. >> 99519 . .... $95 5 $174.9 _ : .' 995I97 9S 6 ` ` 13.2 ... ..:::::::: �1997/98 98.1 ' 7$ 2 ' > ». _ 998 1 /99 99 >:; ::.:: 999 0 1 0 ........... 2000 0 ......:::.::::::.' .. ..' : :.:.::::.::.::: ::.:: : > : ::: : : : : ::.................................w............... ... ........ ....a........................ l...........F...................................... ....... i.I .... nd h .... ra11s ...........::::::::::::................. ................................. ........... ::..:::..:...:..:: ..... ... ............................... ................................:: ............................. ... :.. .................::::.::..:..:. . ........::. 0 ...::....:.......::::::::.::.. ................................................................... .......... .... .........-.......... .. ....... . ... ... ........ i............................................... $9 ........................ ............ .. ....... ........ ... ......... .. ..... . .......... ............I.................................... ......- ......... .. ........ .... ....... . ......... . . .......V.... x . ..... ................... ..... ... ... ..... 7. $6 ::.. $5.: :::: 4; . »::;.. $3..... $Z .... .96/97 97/98: 98199 99 II.> >#30ta9.. . €:>r ......`: : February 12, 1996 Budget Study Session Yvv4v. v ~ r `r f General Fund :..:: ::: { z. ::::: :::::: :: heeds tiS\tiiY ► f insurance Shortfalls E us ment Re lacement p p . ferrQd Maintenance Poten teal Rev. ` u.:.* en a Losses..:. : .� : •State;Legislation ent m Redev elo ....... ......... .::.:::<.::.::.: ern atIv� o uttons erce Redudtions evenue Increases __ alarylBenefit Cost Reductions fetter Efficiency Privatization :.::::::::::.:...: R ... • egionali ation ::: «< :: P rod uctiv'it 1 m rov errmen Y ; p February 12, 1996 Budget Study Session ::::.... . .::.: ...........................aerr Reductions :... h :k:: :::::::: :r....N .... :: : :.:: . �4iI►►$ M� Io �n Reductions were ,.: :..:... <_ dentie b De artments .;. : p Uorksho s Prioritization :.::::: p ...........................: :.: .: ._.. current Status . 2.8 Million Reduction 4C P•. .::::os tins > ::< ' $3 7 Million Reduction 5 Rstt�fl :< '> < > Department : resenta# a s : mp acts '=` < IRWIN p :TI�neta��e <::::<►__Stud i Feb2 yC E .5 .0 l : 1y _� tdyesson pity Council March 1>1 :.::>::: . :.:_: .. __► fin alize Staff Priorities 4l1196 :. > :...� ublf lCommunity;Review Apra June :.:<.>: Study Session-C�ty. Council sty::::.: < > 1996/97 Budget Submitted $t' �J : >`: : Public Hearings het '1996/97 Bud et do `t » .3 ::::::>::::>:::.>:::::<:>:::: February 12, 1996 Potential General Fund Budget Reductions Administrative Services Reduction Division Annual Cost Reduction Mgt. Position Accounting $819000 1 /4 Position Accounting $202000 Mainframe Costs Info '. Systems $74,000 i { Temporary Real Estate $359000 Salaries j Reclass. Mgt. Personnel $28,000 Position to Non- Mgt* Total $2382000 Proposed Budget Cuts Office of the City Clerk Temporary Salaries Reduced from $14,700 to $9,360 Savings = $4,700 1993-94 Budget included 1/2 Perm. Part-time 1994-95 Budget deleted this position but left $14,700 temporary money (Savings was in Benefits) Proposed: Reduced from $14,700 to $10,000 Savings = $4,700 Training & Schools Reduced from $3,600 to $400 (Notaries only) Savings = $2,900 Overtime Reduced from $3,000 to $1,500 Savings = $1,500 Dues and Memberships Reduced from $1,300 to $400 (Notaries only) Savings = $900 Meetings - Delete entire meeting budget$650 Savings = $650 Totai Savings = $10,650 C& CBAn 96cbmeml96-0241n.doc ADMMSTRATION 1996-97 BUDGET PROPOSALS 5% 7.5% 10% Reduction Reduction* Reduction Reduce Staff $35,480 $60,057 $84,633 Support Reduce PIO $26,286 $26,286 $26,286 Operating Budget Transfer Alternate <$16,346> <$16,346> <$16,346> Commute Cost to General Fund Total $45 420 $69,997 $94 573 * Recommended Option 1990- 1995 BUDGET REDUCTIONS Net Reductions 6 Positions 33%of Total Positions of Staff Support 1990 - 1996 With Proposed 1996-97 8 Positions 44%of Total Positions Budget Reductions of 10% 2/12/96 5 rh a�fi����Yv,, )yKi,+�k� � �. ts>K �y ;' �nt��•�y..,�;Y�r`i 1N„'� It � f8 t�d,,ar*��'"�,', yW}` '�+ x .�fi 3 I �f�� ��t�"r��� �,,Y I R Vt i��ta�t`k. ��'`r r �: �.� � - 4+�2r"e�':tE�1,xr it a,, °� -t}cPTar� uf�ya 'v �. 1� < y$y1�te✓`� ,y � �'j S ��,l+ 'r a'��r �'1's,; "4"�'�7�d'�� ��i t`�✓ fr Y �r s �f� �.�i k �,�°k41 �[ :'Y�, � r , b,��,,+ rlT�"n4 t��. 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Y � 4Y+� �.� �+.,f....,M'�' F Sp�h. �,r�{+i V/ ;SfL i'.� , (�?s�''� � .ss•�1�',�'�'�,tr°N`����sa`'ga�,t�*,d °! ^1 "r '��� •r4ij' r t !^ e"`°� ��1 r. �a' E3 � JY1 r4 +POOn f' '+k P.Yy,4 �f ',+•� �d" �Q ✓�+ aY1�_,�P+^y?, Fft ''wlC pkti�Q/� O O N�Sd Mt. wi �,y;P��� �b�� .•��+'3 a " 9 • � v �;����� P J(�;> '� F,y,� � „�,rlar ;, � C�'��, ,�P. � N��'O�sa ti•., � +grNii y �. .• k� e '} "'+�j+'JP�f+ t ` ✓�,.�L'"'�a ,: .� ^f s,�l �^� ��rf�Y ;E1r,fp 'trr i��ard 4'W a f.r 1� 1' �� � :Yt✓k', d� {.�G�n>rt'J)V li y} `Sdi�'�tee; f n ;'�t{"�� '�' 'K,c S"�'�6�,�J ��"��°�'F �u . �p��k-1 �y`('��. y� ,� j �„ 'u�,R'�r 3�'��^?j��•. r i ?. g�k,�;1,,��w� t yid y�+��� A'1i �� +t'`�`� r� IC' r�M ����4,�go'�.�ff•c f+ r1 ^ '(w � �ii'A •�"v�Xi ��Y." F-aYS.'v��`+6 L�.�.F • •1 177 T 0 � � t��+l�'���dM��;� �aei'�y .. ..::•® �' � v�'"1�.ti1n �ZY'.¢ , oil at N CD { ' f pyfgia Cil .. 3 CO) CD 1� r� . Em 4 u ' !� • "NVI��1° S X:. � ' iY • �t ��� Y�y.","N p,l.a p9 rY'-J er o W „ .. F, d' 4 ,�Y• ,'r, y r�iNt a4ia t, ,F ., t S >EJ v'I� '�3 M t V = .,_ , ..'v,,. v,.c.lu..i"h�at.Ja". .. ( .•,.tf9 .,fi.�.n..c.ti�i�.�... COMMUNITY SERVICES BUDGET OVERVIEW ----------------------------------------------------------- ------------- TOTAL 1995/96 ;BUDGET $698369006 TOTAL REVENUE PROGRAMS 393529787 s: TOTAL NON-REVENUE PROGRAMS 394839219 ti•_ _._._._._._•_._._._._._._._. •_ ._._ _._._ _._ _ _ _ _ _ _ _ _ _ _._._._._._._ _._._ ._._ l 1995/96 Personnel Costs $59131,402 197049605 Operating Costs a COMMUNITY�SERVICES BUDGET BUDGET REDUCTION IMPACTS % REDUCTION _�'j ACTIVITY PERSONNEL AMOUNT OF ELIMINATED REDUCED SAVIINGS t 2.2 Cultural: Services Div. 2 $1559000 19 ' Oak View Com Ctr. 2 $13011000 4.1 4 $2859000 2.0 Senior Outreach 5 $12000 6.1 9 $4059000 . AREAS OF ORGANIZATION IMPACTED BY BUDGET CUT ADMIN ASSISTANT CHIEF OF POLICE CHIEF'S ADJUTANT COMMUNITY LIAISON TEAM FDARE NEIGHBORHOOD WATCH. BUSINESS WATCH R.S.V.P. ADMINISTRATION INVESTIGATION UNIFORM SERVICES DIVISION DIVISION DIVISION DIVISION ADMINISTRATIVE SUPPORT BUREAU BUDGET AND RESEARCH UNIT CS.P TRAFFIC/AERO BUREAU PATROL BUREAU JUVENILE TRAINING UNIT STATE/FEDERAL CONTRACT CRIME AERO UNIT VIDEO REPORTING PRODUCTION C'SP TRAFFIC ENFORCEMENT UNIT GANG DEPARTMENTAL MANUAL PREVENTION SR. AIDE CONTRACT MOTOR UNIT ACCIDENT INVESTIGATION UNIT L goes not G�I Iccrs on the. -V No \o as SUMMARY OF CUTS Personnel/Operating Cost Savings Savings PERSONNEL.: SWORN: 6 Police Officers SWORN SAVINGS: 485,000 CIVILIAN: 4 Positions 1 - Info. Specialist II 62,000 1 - Education Specialist 50,000 I -Pol. Clerk Sr. 21,000 1 - Sr. Aide 6,500 CIVILIAN Sf1VINGS 139,500 TOTAL PERSONNEL SAVINGS: :624,500 OPERATING: TOTAL OPERATING SAVINGS: 141000 TOTAL SAVINGS:.... _7b5_S00 2. 7 07o �C-S ro n s d�S r`oA- � +� t yy\ �G�z+ S GGn'c Prioritized 2.4% or $765,500 Stepped Reduction of the Existing 95196 Police Department Budget , Service Sworn Civilian Salary Accum. vice Operating Impact Reduction Positions Positions Savings Savings CSP C ntract - Cancel 40,000 40,000 Gang counseling service would not be provided by Gang Prevention contract CSP. Gang related crimes could increase. CSP Contract- Cancel 73,000 113,000 Juvenile diversion counseling service would not be Juvenile contract provided by CSP. Juvenile related crimes could Diversion increase. Sr. Aide Eliminate 1 6,500 119,500 Additional workload would be distributed to Q` temporary remaining personnel. Some delays in processing position training requests could be experienced. Manual Eliminate 1 21,000 140,500 Responsibility for manual revisions would be Updating and 1/2T clerical transferred to another employee and delays could be X BCS statistical position expected. Delays could result in mandated BCS reporting reporting. Video production Eliminate 1 62,000 5,000 207,500 The department requires a significant amount of position video production. This task would have to be X transferred to the City's production unit. Vse- DARE Reduce 2 160,000 10,000 377,500 DARE instruction would be eliminated in private re+'r�c� do notallo�Jci� l�Qn DARE Yol�c.e. schools and possibly some public schools. Uv!qOff,��r Neighborhood liminate 1 50,000 3,000 430,500 Coordinator position would be eliminated. Watch position Volunteer could be appointed. Acro Eliminate 1 85,000 515,500 Sergeant currently assigned to unit would fill position vacated position. Sergeants duties would increase which could negatively impact supervisory _ ca abilities. Accident Eliminate 1 8O,000 595,500 Inspection of taxi and towing companies would be Investigation. position eliminated. Vehicle inspections for V1N verification would be delayed and Traffic Bureau liront counter support would be eliminated on Fridays. DART: Eliminate 2 160,000 10,000 765,500 All DARE instruction would be eliminated. DARE Juvenile drug usage could increase. 6 1 4 1. 624,500 1.41,0001 765,500 A Ho 4' CITY OF HUNTINGTON BEACH INTER-DEPARTMENT COMMUNICATION HUNTINGTON BEACH Memorandum DATE: February 7, 1996 To: Michael T. Uberuaga, City Administrator FROM: Ronald E. Lowenberg, Chief of Police RE: Service reductions resulting from budget cuts over the past four years In addition to the seventeen positions previously lost which included: 1 Administrative Aide II, 4 Clerk Recurrents, 1 ID Tech, 1 Mechanic, 1 Photo Assistant, 5 Student Workers, 2 Police Clerks, 1 Maintenance Worker and 1 Parking Enforcement Officer, cuts over the past four years resulted in the additional elimination of 1 Police Lieutenant, 1 General Services Officer and one Secretary positions. Further budgetary reductions also forced us to freeze twelve positions including 1 Police Sergeant and 6 Police Officers (which were never filled), 3 Police Clerks, 1 Detention Officer and 1 Field Service Officer for a total of thirty-two positions either lost or frozen. This represents an 8% staffing reduction since the downsizing trend began. These personnel losses have resulted in a number of service reductions to the detriment of the community, our employees and this department primarily in the form of increased work backlog, closures and the elimination of important tasks. Records is among the units hardest hit by these cuts. Downsizing has resulted in the closure of the public counter one day per week, delay in data entry has grown by 1-2 weeks, auditing of data entry for accuracy can no longer be performed and with an 11% increase of dictated reports in the last four years, transcribers are required to work a growing number of overtime hours to keep up. Cross-training of Record's personnel can no longer be provided which is further exasperating the overtime situation. Record's supervisors are required to handle more routine tasks and cannot adequately oversee the maintenance of record files when documents are removed. Further service reductions includes closing the police counter during the hours of 1:30 a.m. to 6:30 a.m. and recently, we no longer staff the Huntington Harbour and Huntington Center sub- stations with police officers. The reduction of Accident Investigators has shifted this responsibility to the motor officers causing a decline in traffic enforcement and the loss of lab personnel has caused the reduction of fingerprint analysis and CAL ID data input. Over this time period, reductions in operating has eliminated 50% of the specialized training necessary for officer safety or maintaining an acceptable level of expertise in certain areas. Declining expenditures in equipment replacement has resulted in an aging fleet of vehicles forcing our maintenance costs higher and much of the department's aging analytical equipment is growing obsolete which is beginning to impact its accuracy and effectiveness for processing evidence. JULP Public Works Budget Reductions ♦ Personnel $452,673 ♦ Operating 248.009 Total $7009682 ♦ 10 Positions Eliminated Reduction of Service Levels Service Public City Depts Painting x X Park Maintenance x X Survey & Inspection X X Construction Mgt. X Design X Warehouse X 1 Painting Maintenance ♦ Eliminate program, except graffiti removal ♦ Defer all routine & special painting of City facilities ♦ Painting services can be budgeted by indivudual Dept. and privately contracted ♦ Deterioration & corrosion of facilities will be accelerated Park Maintenance ♦ Reduce contract services ♦ Increase staff work area by 72 acres ♦ Reduce service levels 10 • Litter, leaf, grass removal • Play area maintenance ♦ Eliminate annual ball diamond renovation ♦ Eliminate parking lot/pathway cleaning ♦ Special event support must be contracted out Construction Management, Survey & Inspection ♦ City project budgets must include costs for contract construction management ♦ Increase duties of inspectors to include traffic signals; delays project inspection ♦ Eliminate bus shelter inspection & management ♦ Accident tracking moves to Police Dept. ♦ Survey services xvill be charged to the project or requesting department Engineering Reorganization ♦ Further reduce staffing for mandated Water Pollution Control Program (NPDES) ♦ Eliminate all General Fund based design services ♦ Assign staff to manage Water Fund CIPs ♦ Increase labor charges to enterprise funds 3 Summary ♦ Savings are all short term 4* Costs are increased in long term ♦ Quality & appearance of facilities deteriorates ♦ Continued deferred maintenance accelerates infrastructure failure ♦ Enterprise funds balances are overtaxed & decreased; misuse potential increased R 4 CITY OF HUNTINGTON BEACH INTERDEPARTMENTAL COMMUNICA TION TO: Michael T. Uberuaga, City Administrator FROM: Robert Franz, Deputy City Admini r SUBJECT: Potential Sale or Lease of Surplus City Property DATE: June 3, 1996 Attached is a summary of five (5) City owned properties that could be surplused and sold for an estimated $2 million or more. Three (3) additional City owned properties are listed could be surplused but are not recommended for the reasons listed. These 3 properties, however, could be considered for either short term or long term leases. City Staff from Economic Development, Community Development, Community Services and Administrative Services have reviewed these potential surplus properties and recommend their sale or lease. Any sale proceeds should be considered one time revenue available to finance one time costs. Lease revenue from the 3 potential lease sites is estimated to minimal. A primary benefit from leasing those sites is the value of eliminating maintenance problems/eyesores and obtaining some productive use of the properties at no cost to the City. If so directed by the City Council, staff will initiate the process to declare these properties surplus and then obtain bids for the properties. Surplus.doc 6/3/96 2:07 PM AA CITY OF HUNTINGTON BEACH SUMMARY - POTENTIAL SALE OR LEASE OF SURPLUS PROPERTY # Potential Property for Sale Estimated 1/alue 1. Unimproved 6+ Acres Adjacent to Irby Park $ 1,500,000 to $ 2,000,000+ 2. Four Lots at Alabama/Nashville 350,000+ 3. 602 Yorktown 90,000± 4. 620 Yorktown 90,000+ 5. 2501 England 20,000±/ 75,000+ _.. ......... .............. .......... - ......... ........ ......... .. _.. ... ........... _............_..................................._.............. .................................................................................. . ........ ..... ......... ........ _...................................................................._ .................................................................................. - -.......... ..................... ............__............................ .............. .................................................................................. ......... Potent�afPropert�es;:for Lease A. Abandoned Railroad Right-of-Way (East of Lake St. - 3.5 acres) B. Magnolia Triangle - 1.5 Acres C. 4.3 acres -Adams/Santa Ana River �O 0019038.01 06/04/96 8:56 AM s ZONING INDEX MAP 9-5-11 DM 9 DMn LEGEND ! t- 19-6-10-SECTION-TOWNSHIP-RANGE 16-5-I I 15-5-11 14-5 1 DM 22-DISTRICT MAP 22 DM 18 DM17 DM;5 24-5\12 p-5-11 �0-5-11 21-5-11 22-5-11 23-5-11 24-5=:lx •; DM 2B� pM-21 j DNy23 OM�4 DMA DIM 26 DM'27Ij 30.5-11 _ 29-5.11 �� 28. t11 27-5-11 26-5-11 25- -11 I� — -- AM 35 DM34 33 � DM32 D'M31 DM30 I \� �C_32-5 11 33-5-11 DN.36\ DM 37 .=/,JfJt�138 ADM 39>i DM 40 �s r_': 5 6-11 \4-�� 3 E-II 2io .� I-6 II 6-6-10 5-+6-10 CM4 D \ DM3 2 3�DN I DM6 DM5' 9 6•II IC E II II 6 12-E-1. 7-6-10 8-6-10 i CN,10 DtJ d DM,i3 DM 7 �DMB 18-6-1 17-6-IO CITY OF °6 DM,;4 DM' D i; DM19 el HUNTINGTON BEACH ; -- ORANGE COUNTY CALIFORNIA 24-E-' !9-40 �. K D' POTENTIAL SURPLUS CITY PROPERTY 1. Unimproved 6.117±ac. located north of Marilyn Drive and east of Dale Vista Lane, adjacent to Irby Park. The City Council declared this property surplus (1989) Approximately 26 to 33 homes and park addition might be developed from this RI property. Soils Reports indicate a serious peat bog problem underlying the surface - from 2' to 12' thick in areas. The original developers in this area, being aware of the condition, dedicated the land to the City. A builder might find it economical to remediate the soil condition and construct homes depending on the current real estate market conditions. There are several architectural drawings showing possible residential lot and street scenarios for the property Pricing this property for sale is difficult because of the unknown cost of remediating the soil. Preliminary estimate of sale today might range from $1,500,000 to $2,250,000. 2. 4 Vacant Lots - Remnant of Old City Yard at Alabama St/Nashville south of Adams 'This parcel of land consists of four (4) lots with the equivalent of RMH-A Zoning, might support 4 single family residents or if lot consolidation occurs, a seven unit apartment complex. Redevelopment is considering the property for a low income housing site. Estimated current range of value for the parcel - $300,000 to $400,000. 3. 602 Yorktown, The north 20' of this 60' wide lot plus a radius on England Street was needed for the Yorktown Street right-of-way project. The City was required to acquire the entire property including the residence, that was demolished, to allow the street r/w improvements to be installed. We now have a remainder lot approximately 40' x 125' which should support a single family residence with a zone variance. Given this scenario, the lot as it now stands may be worth $90,000+ 17T Surplus.doc 6/3/96 2:04 PM 4. 620 Yorktown, The north 20' of this 60' wide lot plus a radius on Florida Street was needed for the Yorktown Street right-of-way project. The City was required to acquire the entire property including the residence, that was demolished, to allow the street r/w improvements to be installed. We now have a remainder lot approximately 40' x 125' which should support a single family residence with a zone variance. Given this scenario, the lot as it now stands may be worth $90,000+ 5. 2501 England Street, The south 20' of this 50' x 115' lot plus a radius on England Street was needed for the Yorktown Street right-of-way widening project. The City acquired the entire lot including the residence located on the property which is scheduled to be removed. Upon removal we will have a vacant lot 30' by 115' which might support a single family residence given a zoning variance. Given that variance the vacant lot might be worth $75,000. Without the variance the lot might be sold to the contiguous owner @ $20,000. Surplus.doc 6/3/96 2:07 PM POTENTIAL CITY PROPERTY FOR LEASE A. Abandoned Railroad Right-of-way The City owns a 40' wide railroad right-of-way that is parallel to and east of Lake Street, terminating at Utica Avenue on the north and Pecan Avenue on the South, approximately a mile in length. The property may not be built on due to the General Plan designation as a transportation corridor, however, various options might be devised that would allow the City to lease portions of the 3.47± acre property for interim uses, restricting uses to that which would be compatible to the surrounding users. A few ideas that have been discussed: a) Non-intrusive storage units or parking. b) Low intensity nursery activity such as now exists under Southern California Edison power lines. c) Temporary garden spot rentals -El Toro Leisure model. d) Plant an orchard g) Various recreation activities such as Rollerblade track or aerobic exercise center. B. Magnolia Triangle at Banning St. This 1.458±parcel is zoned Coastal Conservation - Coastal Zone - Flood Plain and is part of the White Hole. It was acquired as part of the Magnolia St. extension going south to Pacific Coast Highway. The property is contiguous to single family residences to the east and would require a zone change for possible development. If rezoned for residential, the site could possibly be sold for $500,000 to $600,000. Without a zone change, the site could possibly be leased for low entensity nursery activity, palm tree nursery, garden spot rentals, etc. C. Talbert Reservoir Site A vacant parcel of 4.33 acres which would be of value if not encumbered by an easement for electrical lines covering nearly 60% of the total. Development opportunities are therefore limited, and consideration should be given to rezoning the parcel RA (from R1) and selling (or leasing) it for a nursery or agricultural site. The property could also possibly serve as a park or equestrian center. Property presently leased as a wholesale nursery site @ $946.47 per month hSurplus.doc 6/3/96 2:04 PM I" HB City of Huntington Beach • library • administration • To: Michael T. Uberuaga, City Admin ra r From: Ron Hayden, Library Services Dire Date: 6/3/96 Subject: Community Enrichment Library Fee (CELF) Attached please find the RCA regarding the Community Enrichment Library Fee to be discussed at the City Council Budget Study Session on June 10, 1996. Attached also is information on the impact of the Library's book budget reductions from FY89/90 - FY96/97. During this time, the Library's book purchasing power has been reduced by approximately 50%. Due to these reductions and the increased costs of books, the Library's book fund has been underfunded $958,000. Because of the significance of the loss of book revenue, the reduction in library staffing and the increased demand placed upon library services due to new development, staff is recommending an increase in the CELF from the current $.15 per square foot to $.30 per square foot on new construction. cc Robert Franz, Deputy City Administrator NOHUNTINGTON BEACH PUBLIC LIB FL RY S Y S T E M Z i �� i' CITY OF HUNTINOTON BEACH INTER-DEPARTMENT COMMUNICATION HUNTINGTON BEACH To Robert Franz, Deputy City Administrator Administrative Services From Ron Hagan, Director, Community Services Date June 4, 1996 Subject Preferred Parking Management Plan The following is being prepared for Council consideration with regard to on- going General Fund revenue from beach parking. The idea is to create a beach parking plan that would implement the con- cept of preferred parking. The new Pier Plaza improvements along with TS Restaurant's Duke's Surf City Restaurant will be completed in 1997. Commu- nity Services staff is currently working on a preferred beach parking proposal to coincide with the opening of Pier Plaza and the TS restaurant. Accord- ingly, staff has reviewed parking operations at other southern California des- tination attractions and is interested in the concept of preferred parking. The concept would work as follows: Preferred/popular parking areas, i.e., closest to the pier, would have the highest daily fee. Parking areas not as close to the pier area but still within easy access to the beach would have a standard daily fee. Parking areas further from the pier and the overflow area across PCH would have the lowest daily fee. There also may be differing rates for prime time parking, e.g., all day beachgoer would pay less than a two-hour visitor to the beach. Since the city is now in the design process for Pier Plaza and will soon begin the some for the south beach improvements, it is imperative for Council to give staff direction concerning the preferred parking plan concept. To im- plement this program, the entry throats to the parking lots will have to be designed to allow beach patrons to enter their desired parking area. The stalls would be color coded to differentiate the various parking areas. Based on last year's beach parking volumes, a daily preferred parking rate program could raise approximately $300,000 in additional revenue per year to the city. 0019076.01 06/04/96 11:26 AM a Since this program could not be implemented until some time in the last quarter of FY96/97, the impact on the General Fund budget for that year could be an estimated net increase of $100,000. In FY97/98, the additional revenue could be distributed between General Fund needs and the debt service for the south beach improvement master plan. If Council approves of the concept of a preferred beach parking plan, staff will prepare a detailed pro forma and parking lot design for Council's con- sideration. RH:cr cc: City Administrator Department Heads 0019076.01 06/04/96 1 1:26 AM �` Summary - Potential General Fund Expenditure Reductions Annual Savings DepartmentlProgram Description $3.6 Million $2 Million Total Total LIBRARY Administration Privatize Photocopying $15,000 $15,000 Reception/Information Replace Librarian with Clerk 7,459 7,459 Facilities Maintenance Replace 1 Permanent Position with Temporary 43,000. 47,694 Technical Service Replace 1 Permanent Position with Volunteers 33,000 Facility Maintenance Temporary Position and supplies-Decrease Maintenance 27,000 14,772 Circulation Reduce 2 Temporary Pages- Slower shelving of Books 13,518 Reference Replace Library Clerk Senior w/Temporary 14,073 Other 1,075 Library Subtotal 153,050 86,000 COMMUNITY DEVELOPMENT Code Enforcement Transfer 1 Permanent Positions to CDBG funding 67,000 67,000 Code Enforcement Eliminates 1 Permanent Positions-Reduce responsiveness 62,000 Planning Reduce 1 position in Advanced Planning 59,000 Reduce Operating Costs Consultant costs will be reduced in 1996/97 37,000 37,000 Add 1 Intern Abandoned Vehicle Abatement Program (10,000) (10,000) Community Development Subtotal 215,000 94,000 PUBLIC WORKS Maintenance Administration One Position-Reduce Custodial Services 15,721 Construction Management Two positions-Increase Charges to City Projects 58,724 58,724 Painting Three positions-Eliminate most maintenance painting 196,448 196,448 Engineering Administration One position(transfer)Eliminate General Fund Design Staff 124,152 Traffic Engineering One Position-Delay Electrical Inspection Services 13,168 13,168 Central Warehouse One Position- Shorten Warehouse Hours 39,476 Building Maintenance One Position-Contract Plumbing as needed 60,113 Building Maintenance One Position- Contract Repairs thru Insurance Co. 55,521 55,521 Electrical Maintenance One Position-Reduce Services to other Departments 61,635 Equipment Maintenance One Position- Slower Vehicle/Equipment Services 42,885 42,885 Streets Temporary Salaries -Summer help for Street Cleaning 33,000 20,000 Public Works Subtotal 700,843 386,746 FIRE DEPARTMENT Telecommunication Telecommunications Audit 48,132 137,665 Communications Transfer Communications to North Net J.P.A. 175,000 175,000 Paramedic Paramedic Differential Reimbursement 156,924 156,924 Suppression Eliminate 3 B/C Aid Positions 224,166 Training Clerical Position Eliminated 38,800 38,800 Other Adjustment for Fire Engineer positions (34,573) (46,051) Land Acquisition Annual Funding for Fire Station 6 (132,149) Fire Department Subtotal 608,449 330,189 �� 6/4/96 Annual Savings Department/Proaram Description $3.6 Million $2 Million Total Total POLICE DEPARTMENT Gang Prevention Program Eliminates Gang Counseling Service 40,000 40,000 Juvenile Diversion Program Eliminates Juvenile Diversion Counseling 73,000 73,000 Training Eliminates One Temporary Position 6,500 Reporting Eliminates 1/2 Permanent Position- 21,000 Video Production Eliminate One Permanent Position 67,000 DARE Eliminate Two Permanent Positions 170,000 160,000 Neighborhood Watch Eliminate One Permanent Position 53,000 Aero Eliminate One Permanent Position 85,000 85,000 Accident Investigation Eliminate One Permanent Position 80,000 _ 80,000 DARE Eliminate Two Permanent Positions -Removes Program 170,000 Police Department Subtotal 765,500 438,000 NON DEPTARTMENTAL Operating Transfer General Fund water costs to Water Fund 385,000 211,000 Non-Departmental Subtotal 385,000 211,000 ADMINISTRATIVE SERVICES Accounting Eliminate 1.25 permanent positions-Reduce Actg. Services 101,000 101,000 Info. System. Mainframe Computer Costs 74,000 1,000 Real Estate Eliminate one Temporary Position 35,000 Personnel Reclass Mgt.. Position to Non-Mgt.. 28,000 28,000 Administrative Services Subtotal 238,000 130,000 ADMINISTRATION Administration Permanent Position-2 60,057 60,057 Administration P.I.O.non salary costs 26,286 Alternate-Commute Transfer some costs to General Fund (16,346) (16,346) Administration Subtotal 69,997 43,711 COMMUNITY SERVICES Oakview Transfer funding to CDBG 54,000 54,000 Oakview Eliminate 1 Permanent and 2 Temporary Positions 72,000 Oakview Reduce 2 Temporaries 10,000 Project Self Sufficiency Transfer funding to CDBG 83,333 83,333 Seniors Outreach Transfer funding to CDBG 28,120 28,120 Seniors Outreach Eliminate 2 Permanent Part-Time Sr. Outreach positions 67,000 Cultural Arts Eliminate 1 Permanent Position 45,594 Community Band Eliminate City Funding Support 3,245 Nature Center Reduce 2 Temporaries 17,711 12,500 Newland House Reduce 2 Temporaries 6,000 6,000 Parking Structure Reduce hours of Security contract 20,000 20,000 Administration Reduce 1 Temporary 8,000 8,000 Community Services Subtotal 405,003 221,953 CITY ATTORNEY Attorney Eliminate 1 Permanent Position. Consolidate duties. 54,274 Attorney Temporary Salary cost reduction 28,000 28,000 Attorney Outside Contract Legal Services. 10,000 10,000 Attorney Reduce non-salary costs. 8,000 17,000 City Attorney Subtotal 100,274 55,000 TOTAL POTENTIAL GENERAL FUND EXPENDITURE REDUCTIONS $3,641,116 $1,996,599 G:\BUDGETYREDUCTNS.XLSIAune 6/4/96 Summary - Potential New Genera/Fund Revenue Sources Estimated New Ref. General Fund Cumulative No. Recommended for Inclusion in 1996/97 Budget Annual Revenue Revenue 1 Parking Fee Changes: Meters/Structure(APPROVED) $ 400,000 $ 400,000 2 Community Enrichment Library Fee Increase 100,000 500,000 3 Parking Meters Beach Blvd. and Magnolia Street 44,000 544,000 4 Beach Parking Lots- Preferred Parking Plan 100,000 644,000 5 Update Charges For Current Service 50,000 694,000 6 Sewer Maintenance Fee(New) 1,000,000 1,694,000 7 Business License--$20 Per Year increase 320,000 2,014,000 $ 2,014,000 Other Rcommended New Revenue Sources - But Not for Inclusion in 1996/97 Budget 8 Sale of City Property 9 Lease of City Property 10 Contract Scientific Investigation Lab Services To Other Agencies Other Potential New Revenues (not Recommended for 1996/97) 11 Parking Meters -Central Park/Library $ 200,000 12 Business License-Rental Units: Single Family&Duplexes 200,000 13 New Parking Meters-Inland side of P.C.H. 100,000 14 State Parks Water Use Surcharge 12,000 15 New Parking Meters-Brookhurst 15,000 16 Refuse Fee: 50 Cents Per Month Increase 250,000 17 Barrel Tax(Oil): 1 Cent Additional 30,000 18 T.O.T. (Transient Occupancy Tax/Bed Tax): 1%Additional 100,000 19 Storm Drain Maintenance Fee 1,040,000 20 Entertainment Fee 275,000 $ 2,222,000 G:\BUDGET\FIN-BRD\[GFREVNEW.XLS]New Revenue-CC �' Print Date 6/5/96 Summary 12:26 PM Potential New General Fund Revenues "Recommended for Inclusion in 1996/97 Budget" Ref Estimated No pescnption Annual Revenue 1. Parking Fee Changes (Approved) - On March 18, 1996 the City $ 400,000 Council approved changes to parking meter rates, parking structure rates and other changes to the management of the City's various parking operations. Increased revenue is anticipated to result from these changes, conservatively estimated to total $400,000 per year. 2. Community Enrichment Library Fee - See attached report. This 100,000 existing fee is 15 cents per square foot of new development. An increase to 20 or 30 cents would generate substantial additional revenues through buildout of the City at which time a fairly low level of annual revenue would be received. A public hearing to consider this change has been scheduled for June 17, 1996. 3. Parking Meters - Beach Boulevard and Magnolia Street - See 44,000 attached report. New parking meters could be installed on Beach and Magnolia Streets. (The one time cost for installing the new meters is an estimated $36,000). The estimated annual net new revenue from these meters would be $45,000 per year. 4. Beach Parking Lots - Preferred Parking Plan - See attached 100,000 Report. A change form current "Flat Fee" to a 2 or three different levels of parking fees depending on the Beach parking location is proposed to be implemented prior to the 1997 Summer season, generating an estimated $100,000 per year of new revenue. 5. Charges for Services - See attached Summary. City departments 50,000 annually review fees for all services, and recommend adjustments where appropriate. The MSI Study was used for a major two year review of all fees in 1991/92. Staff has updated the MSI Study once and will be completing a second update this year. The annual review/update of user fees usually generates a $50,000 to $100,000 in new revenue. 6. Sewer Maintenance Fee - See attached Summary. The MSI Study (General Fund identified a total cost for the city sanitary sewer system as $3.8 =$1,000,000) million per year, of which $1.1 million is General Fund costs. The study identified a potential fee of $2.65 per month per unit to cover all.costs which could be collected through the City's utility bill. G:\BOB\WORD\REVLIST.DOC 06/05/96 12:26 PM Potential New General Fund Revenues "Recommended for Inclusion in 1996/97 Budget" Ref Estimated No Description Annual . Revenue 7. Business License - See attached report. The City averages 320,000 issuing approximately 16,000 business licenses. By increasing annual license fees by $20, the General Fund annual revenue would increase by an estimated $300,000. Prior and recent studies have identified Huntington. Beach Business License Fees as lower than average G:\BOB\WORD\REVLIST.DOC 06/05/96 12:26 PM Other Recommended New Revenue Sources "Not for Inclusion in 1996/97 Budget" Ref Estimated No Description Annua[ Revenue 8. Sale of City Property - See attached report. Some opportunities ? may exist for sale of properties previously acquired for right of way or redevelopment purposes. 9. Lease of City Property - See attached report. In addition to ? modifying lease rates as concession. agreements and leases renew, City staff will continue to monitor potential new leases of City and/or Redevelopment owned property. 10. Contract Scientific Investigation Lab Services to Other ? Agencies - Orange County Sheriffs currently provide this lab service at no charge. Due to their high volume of work, analysis results are often delayed. The Sheriffs have recently been considering charging a fee to the various agencies for this service. If this occurs, the opportunity would exist for our lab to offer the same services at a competitive fee and provide quicker analysis results. The Police Department is currently analyzing this option. G:\BOB\WORD\REVLIST.DOC 06/05/96 12:26 PM Other Potential New Revenue Sources "Not for Inclusion in 1996/97 Budget" Ref Estimated No Descnpt�on Annual Revenue 11. Parking Meters, Parks & Library - New parking meters could be 200,000 installed in the parking lots of Central Park and the Library. (The one time cost for installing the new meters is an estimated $490,000.) The annual new revenue from these meters could be as high as $500,000. 12. Business License: Rental Units - Licenses are only required for 200,000 residential rental buildings with more than two units. An annual business license of$39 for single family homes used as rentals and $46 per year for duplexes used as rentals would generate an estimated $200,000 per year in new General Fund revenue. The City Council has rejected this modification twice. 13. New Parking Meters Inland Side of Pacific Coast Highway - This 100,000 program was rejected previously due to the downtown residential community's opposition to the metering and residential permit system that had been developed. This program remains as an option. 14. State Parks Water Use Surcharge - The City provides water 12,000 service to the State Park System at Bolsa Chica and Huntington State Beaches. A surcharge for water service could be charged a 10% surcharge would generate $6,000 per year. 15. Parking Meters - Brookhurst - New parking meters could be 15,000 installed on Brookhurst Street. The estimated annual net new revenue from these meters would be $15,000 per year. 16. Refuse Fee - A 50(:�,_ per month increase in the residential refuse 250,000 fee would generate roughly $250,000 per year in new revenue to the General Fund to offset General Fund costs for billing, postage, collection, supervision, customer follow-up, contract negotiations, monitoring of the recycling program, etc. 17. Oil Production Tax - The City's oil production tax per barrel is 30,000 increased each year by the amount of the Consumer Price-Index. Every 1� per barrel addition tax should generate in excess of $30,000 of General Fund revenue. The City Council has rejected this increase twice. G:\BOB\WORD\REVLIST.DOC 06/05/96 12:26 PM Other Potential New Revenue Sources "Not for Inclusion in 1996/97 Budget" Ref Estimated No Description Annual Revenue 18. Transient Occupancy Tax - The City's transient occupancy tax is 100,000 10% of the room rental rate. Every one percent increase would provide an approximate $100,000 revenue to the General Fund. If this tax is increased, it would be preferable to have the increased revenue earmarked for tourist business related needs rather than reducing the General Fund shortfall. 19. Storm Drain Maintenance Fee - The MSI Study identified total 2,000,000 costs for the maintenance of the City's storm drainage system of (General Fund $2,036,000 per year. $1,040,000 of this cost is for General Fund =$1,040,000) maintenance costs. A $3.49 per month charge would cover the maintenance and fixed asset replacement costs for the storm drain system. 20. Entertainment Fee - There are currently about 10 entertainment 275,000 establishments in Huntington Beach which charge admission. In addition, there are two theater complexes within the City. The number of patrons using these establishments varies widely and would require extensive study to be precise. However, a prior study indicated that between 2,000 and 4,000 people per day could be a usable number. Other cities considering this type of fee talk in terms of 25(;,-, per patron. (25c;�- x 3,000 x 365 = $273,750). G:\BOB\WORD\REVLIST.DOC 06/05/96 12:26 PM REPORTS ATTACHED o Community Enrichment Library Fee o Parking Meters: Beach Blvd. and Magnolia Street o Beach Parking Lots: Preferred Parking Plan Update Charges for Current Services Sewer Maintenance Fee Business License Fee o Potential Sale or Lease of Property o (April) Budget Study Session Exercise Result `O 0019233.01 06/06/96 9:15 AM RECEIVED C.qY C'EO CITY OF HUNTINGTON B ' �F IF CITY COUNCIL COMMUNICATION I'{ 8 HUNi1N MN/EACH Jug TO: Connie Brockway, City Clerk FROM: Ralph Bauer, Mayor Pro Tempore DATE: June 4, 1996 SUBJECT: H ITEM Please place the following on the next Council agenda under H items. 1. Request for a summary of all M.S.I. fees which have been only partially assessed or not assessed. Approximately two years ago Administrative Services presented the Council with a document which outlined all of the M.S.I. fees not as yet assessed. At that time it was indicated that an update was needed before the Council could consider implementing any of these fees. At the next Council budget session it is requested that the staff bring back the updated summary of all M.S.I. fees not yet implemented. RB:paj xc: Honorable Mayor and City Council Mike Uberuaga, City Administrator i City g of Huntington Beach [OLD INTER-DEPARTMENT COMMMUNICATION HUNTINGTON BEACH TO: MICHAEL T. UBERUAGA, City Administrator FROM: ROBERT J. FRANZ, Deputy City Administrator SUBJECT: BUSINESS LICENSE FEE DATE: June 5, 1996 Attached is a survey of several Orange County Cities Business License Fees. The source of the data is consultant's annual publication of such fees for selected cities. A $20 per year increase to our Business License Fee would not change our relative comparison to these selected cities and would increase revenues by about $320,000 per year. We would like to take the following two steps prior to September Budget Hearings: 1. Complete a more comprehensive survey of fees, and 2. Meet and work with the Chamber of Commerce regarding modifying the current Business License Fee Schedule. ROB T J. RANZ Deputy City Administ RJF:skd Attachment 0019213.01 06/05/96 1:17 PM Business License Fee Survey .............................. .......... ..................... ................ ....... .... .... ... ............................... ........... ...... ... . .............. . ....... ..................... .. ....... ............. ...... ...... ............ .......... ..... ..... ............. . ........... ... .... ...................... ................. ............... ........ ............ .................... . ....... ............ ........... . ................ ..................... ... ........ ..... ............... . ......... ......................... ..... ........ .......... .. ........ ....................................................... . ........ ......................................... ................ ......... ......... ............ ........ ....... .................... .. ...... ..... ..... ..... .................... . . ........................ ...... P........... . ............. ............... ................ . ............ .............I... .... ........ .................. ... . ................. .;.. . . .............. . . ........... ................. ...... ................... ..... ............ . ...... ..... .. ....... .................. ...... ................... ..I . ........... ... ....... ..... ................... .... ............ .C .............. ...................... ....................................................... .......... ...................... ...... ..... ...... ................ ........ ..... ..... . .. ....... .. .......... ......... .................................................... ........ ...... . . .... .......... ........ ................ ...................... ... ......... .... . ....... .................. ............... .... ........ . ................................ ............................................ ................ Huntington Beach # of Employees $81 $477 1.9% Anaheim Gross Receipts $87 $1,037 3.5% Costa Mesa Gross Receipts $25 $200 1.5% Fountain Valley 4 of Employees $50 $347 2.5% Irvine Flat $50 $50 2.2% Newport Beach 9 of Employees $103 2 $1,000 2.1% Santa Ana Gross Receipts $1002 $2,172 6.2% Westminster Gross Receipts $75' $2,750 1 1.8% Notes: 1. Based on 100 employees or$10 Million receipts 2. Minimum increases each year based on CPI 3. Increases each year through 2001 based on approved schedule Source: Kosmont Survey of Municipal Business Fees, Taxes, and Economic Incentives ti rn Ln �y i - 0liC'l7, 1990 TO: MAYOR, CITY COUNCIL AND CITY ADMINISTRATOR FROM: DON WATSON, CITY TREASURER SUBJECT: TITLE 5 BUSINESS LICENSES AND REGULATIONS Our Business License Ordinance needs to be updated and rewritten. The basic ordinance was written in 1960 and has been modified and patched for the past 30 years. The basic ordinance still refers to the City Clerk as the responsible official although that has not been the case for many years. The ordinance states that it was enacted solely to raise revenue for municipal purposes and is not intended for regulation. Our ordinance is written with the fees embedded in the various sections. Any adjustment of the fees requires a major. effort to update the ordinance. The fees should be separated. and set annually by resolution or through an. automatic adjustment of the CPI(Consumer Price Index) . The ordinance needs to be updated to address such things as Swap Meets and rental of boat slips. The ordinance states. it is basically for raising. revenue and not regulation but we need to clarify how to handle applicants applying--for boiler room(telephone solicitation) operations, door to door canvassing, sidewalk vendors, physical therapists, massage technicians, singing.teleg.rams, and psychic- healing to name a few. All businesses signing. contracts and receiving fees from the City should have a business license. We should have language that would enable us to withhold-renewal of a business license when. the applicant has refused to pay. the City for valid charges for such things as excessive false alarms and hazardous material violations. In regard to revenue, the basic fee of $25.00 was established in 1960. In 1970 the basic fee was increased to $37.50 and in 1988 it was- increased to $45.00. Neither of these increases have kept pace with the effects of inflation. For instance, if the $37.50 fee established in 1970 had been increased annually by the CPI , the basic fee would now be $130.00. We have gathered data from 88 cities concerning their business license fees. We have added the population figures the State Controller uses in apportionment of revenues. These reports reflect the average fee per license. For instance while the basic fee for Huntington Beach is $45.00, the average fee is $56.00. PAGE TWO s Survey Summary Average Licenses All 88 Cities $306.00 Cities over 250,000 population 462.00 Cities under 250,000 population 161 .00 Cities between 100,000 and 250,000 172.00 Cities in Orange County 96.00 Huntington Beach 56.00 Only 5 cities out of the 88 have a lower per license fee than Huntington Beach. It should be noted that of the 16,736 licenses in Huntington .Beach, 13,595 are for $45.00 or less. A distribution of fees is attached. One additional report is attached which is somewhat outdated but is perhaps indicative of where Huntington Beach stands .in relation to 22 other Charter Cities with a population over 100,000. This report was issued by the State Controller and for the fiscal year 1987/1988 shows the percentage of the general fund each City received from business license fees. 22 Cities 4.28% Statewide 5.80% fiuht'i-ngton "Beach 1 .49% In our proposed"budget for 1990/1991 this drops to 1.01%. Besides the low revenue produced. by our present business license and that it is patched and- outdated, we need to examine its equity and administrative ease. There are three major factors on which most business licenses are based: Gross Receipts Flat Rate Number of Employees Frequently some combination of these methods are used. Our system is primarily based on a minimum fee and number of employees. While this is relatively easy to administer, it is not particularly equitable. We charge the same for a barber as for a brain surgeon. We penalize a small business because the rate per employee is less after the first three. Having a large number of employees does not necessarily equate to profitability. A system based on gross receipts is somewhat more equitable. By assigning each business to a class, a different rate can be established for each. This rate can be assigned based on profitability of each class. Common categories include: Retailing Rental of Property Wholesaling Services Manufacturing Professionals Contractors Miscellaneous a� 7. PAGE THREE Gross receipts are now being used by the majority of cities. It is somewhat more-difficult to administer. To insure that revenues from business licenses keep pace with the economy many cities are tying their rates to the CPI or other economic indicators. To implement a completely revamped business license will require time to study, design, communicate with the business community, program the necessary information systems, order forms and train. We do not have the staff and expertise in house to accomplish all this. The cost of a consultant to provide this service would be about $30,000. In the interim, Council could direct an increase in our base fee. This could be implemented relatively easy. For instance, based on the following: increases, the City could increase revenues as shown: Increase Estimated Revenue $10.00 $160,000. 25-.00 400,000• 50.00 800,000 75.00 1,200,000 We are in the process of modifying the business license data base so that we can comply with--State requirements. We are trying to do this. with our present staff and the assistance of a part time temporary. These modifications will enable -us to share information with the State Board of Equalization. Please let me know if you need any additional information. i ? City g of Huntington Beach [OLD INTER-DEPARTMENT COMMMUNICATION HUNTINGTON BEACH TO: MICHAEL T. UBERUAGA, City Administrator FROM: ROBERT J. FRANZ, Deputy City Administrato SUBJECT: UPDATE CHARGES FOR CURRENT SERVICE DATE: June 6, 1996 In 1992 an outside consultant study was completed which documented total City costs for 213 "Service Centers" for which fees could be charged to users. Two major phases of implementation were completed in 1992/93 and 1993/94, increasing fees, charges, and cost recovery by $4.7 million per year. Over $900,000 per year of additional new and increased fees have been implemented since 1993/94, (see summary). The major areas remaining to be implemented included recovery of costs for sewer collection ($3.7 million), storm drain maintenance ($2.0 million), street lighting ($3.2 million) and similar significant costs that would require city-wide fees. Some of these are being reviewed as potential 1996/97 budget shortfall solutions. We are currently conducting our once every two years update of the comprehensive schedule of user fees compared to City casts. Significant cost reductions have occurred in many areas which will result in the need to carefully review existing fees when the study is completed in the Fall of this year. The last update was completed in December of 1994. The update was used by the Police, Community Development and Community Services Departments to recommend new and updated fees in 1995 and 1996. (Examples: Room rental rates, adult recreation class fees, vehicle release fee, permit fees, business license renewal fee, water rates, parking meter rates, etc.) It is anticipated that net fee increases of a minimum of $50,000 per year will be recommended upon conclusion of the current update effort. In addition, as you know, the comprehensive schedule of user fees and City costs is being used to document City costs related to potential new revenue sources such as the sewer maintenance fee and storm drain maintenance fee. RJF:skd Attachments f� 0019216.01 06/06/96 8:22 AM w �Y 4 New and Increased Charges to Cover City Costs (includes charges to Enterprise Funds to Cover General Fund costs) Summary of Implementation since 1992 by the City . ....... . .... .............. ame. V;L T ......... .. 1. .......... ............ .. ....... ................ . .............. .OMO.. sONOWWO".A 1W Community Development Services $2,331,644 $553,570 $387,460 $941,030 $1,390,614 Public Safety Services 1,553,600 681,000 170,700 851,700 701,900 Leisure and Cultural Services 850,100 75,240 92,537 167,777 682,323 Utility and Enterprise Services 12,295,000 1,881,000 304,500 2,185,500 10,109,500 Maintenance Services 13,092,400 505,000 56,541 561,541 12,530,859 Finance and Administrative Services 448,800 5,850 18,250 24,100 424,700 ........... ................ .a.. .... .... ..... .. . . 5 1: 02 A 4" 31.� 4 8*-.--J............................. ...... ..................... T - 7. 00 :4 ...... ..... -83 ...... Examples of Unrecovered Costs: ............................................................... .......... .. . .......... ............. ............... ........ .......... .. ..... ............. ....... ..............e. . ............. ..... . ...... -POS: .5 M. i6vft i6::: Y. v;. 0M.C. 'a ................ ............. T Water Utility(Prior to 1995 water rate changes) $3,372,700 Refuse Service 2,202,400 $4.21 $50.57 Street Cleaning 354,500 0.33 3.96 Storm Drain Maintenance 2,036,500 3.49 41.88 Sewer Collection 3,773,600 2.65 31.80 Street Usage by Utilities 544,239 N/A N/A Street Lighting 3,242,800 2.28 27.33 Median and Park Maintenance 907,900 0.56 7.65 Street Tree Maintenance 1,486,300 1.04 12.53 Alley Maintenance 263,100 2.49 29.88 Huntington Harbor Maintenance 52,400 1.65 19.80 Neighborhood Parks Maintenance 5,308,000 3.73 44.73 Blockwall Maintenance 1,228,000 0.88 10.56 ......... ........... . .. . . .................... .......... :X:.................. .... T .......... .......... ........ .. . .......... ............................. .. ......... ............ .. .......... ...... ..... ... . ......... ............... . Per 1/8 Acre Parcel (City Wide)-Assessment District needed for implementation Fees or Increased Charges Implemented since 1993/94 Include the following: .............t.... Waa ... .. ..... ........... .OY:SON.4 On*_,,, ......... Business License Renewal $1 ONear $150,000 Vehicle Release Service $50/Vehicle $150,000 Non Resident Library Service $20/Person/Yr. $65,000 Parking Structure varies $400,000 Community Services Dept. Programs varies $100,000 lComunity Development Dept.services varies $50,000 G:\BOB\SPROSHT4SVCCNTR.XLS]Sheet1 6/5/96 ' Page 1 of 7 CITY OF HUNTINGTON BEACH SCHEDULE 10A SUMMARY OF REVENUES, COSTS AND SUBSIDIES BY SERVICE UNIT FISCAL YEAR 1993-1994 BUDGET 1993-94 1993-94 PROFIT ANNUAL MSI UNIT NO. CITY FEE COST (SUBSIDY) PROFIT SERVICE CENTER TYPE UNITS PER UNIT PER UNIT PER UNIT (SUBSIDY) (1) (2) (3) (4) (5) (6) (7) (8) COMMUNITY DEVELOPMENT SERVICES S-001 Preliminary Plan Review.(SFR) Application N/A NA NA NA NA S-002 Preliminary Plan Review.(MFR<10) Application 3 $500.00 $567.00 ($67.00) ($201) S-003 Preliminary Plan Review(MFR 10+) Application 3 $500.00 $1,254.00 ($754.00) ($2,262) S-004 Preliminary Plan Review-(Non-Res) Application 2 $750.00 $1,144.00 ($394.00) ($788) S-005 Tentative Parcel Map Review Application 22 $150.00 $842.23 ($692.23) ($15,229) S-006 Tentative Parcel Map Waiver Application 15 $200.00 $241.47 ($41:47) ($622) S-007 Tentative Tract Map Review Application 6 $1,666.67 $2,282.17 ($615.50) ($3,693) S-008 Use Permit Review Application 55 $320.00 $328.36 ($8.36) ($460) S-009 Lot Line Adjustment Review Application 4 $250.00 $447.75 ($197.75) ($791) S-010 Site Plan Amendment by Plan. Comm. Application 2 $350.00 $439.00 ($89.00) ($178) i S-011 Site Plan Amendment by Zoning Admin. Application 8 $270.00 $373.00 ($103.00) ($824) S-012 Development Agreement Review Application 3 $12,750.00 $17,940.67 ($5,190.67) ($15,572) S-013 Coastal Development'Review Application 36 $277.78 $987.19 ($709.42) ($25,539) S-014 -Local Coastal Program Amendment Application 4 $1,125.00 $1,767.50 ($642.50) ($2,570) S-015 Administrative Review Application 20 $315.00 $444.90 ($129.90) ($2,598) S-016 Conditional Use Review Application 10 $2,375.00 $3,227.10 ($852.10) ($8,521) S-017 Special Permit Review Application 18 $270.00 $386.67 ($116.67) ($2,100) S-018 Conditional Use•Review(Other) Application 70 $1,700.00 $2,404.93 ($704.93) ($49,345) S-019 Conditional Exception Review(PC) Application 20 $860.00 $1,247.55 ($387.55) ($7,751) S-020 Conditional Exception Review-(ZA) Application 15 $255.00 $362.40 ($107.40) ($1,611) 1 S-021 Categorical Exclusion Letter Letter 6 $50.00 $75.17 ($25.17) ($151) S-022 Temporary Use Review Permit 14 $165.00 $170.00 ($5.00) ($70) S-023 Temporary Outdoor Event Permit Permit 30 $165.00 $286.17 ($121.17) ($3,635) 1 S-024 Home Occupation Permit Application 1,200 $20.00 $22.92' ($2.92) ($3,509) S-025 'Flood Plain Variance Application 1 $255.00 $940.00 ($685.00) ($685) S-026 General Pln Amendmnt Rvw 8,Revision Application 3 $7,875.00 $12,066.33 ($4,191.33) ($12,574) S-027 -General Plan-Conformance Report Application 20 $465.00 $684.00 ($219.00) ($4,380) S-028 Zoning Code Amendment Review Application 5 $3.900.00 $5,376.00 ($1,476.00) ($7,380) S429 Zoning Letter Application 325 $100.00 $146.48 ($46.48) ($15,105) S-030 Zone Change Review Application 14 $4,250.00 $5,991.50 ($1,741.50) ($24,381) S-031 Environmental Assmnt Study(Neg.Dec.) Study 65 $870.00 $1,281.83 ($411.83) ($26,769) S-032 Environmental Impact Report Review Study 1 $6,000.00 $9,066.00 ($3,066.00) ($3,066) S-033 E.I.R. Preparation Requested 1 $2.900.00' $4,046.00 ($1,146.00) ($1,146) S-034 Mitigation Monitoring Project 85 $250.00 $160.26 $89.74 $7,628 S-035 Temporary Sign Review&Inspection Application 105 $100.00 $114.10 ($14.10) ($1,481) Page 2 of 7 CITY OF HUNTINGTON BEACH SCHEDULE 10A SUMMARY OF REVENUES, COSTS AND SUBSIDIES BY SERVICE UNIT FISCAL YEAR 1993-1994 BUDGET 1993-94 1993-94 PROFIT ANNUAL MSI UNIT NO. CITY FEE COST (SUBSIDY) PROFIT # SERVICE CENTER TYPE UNITS PER UNIT PER UNIT PER UNIT (SUBSIDY) (1) (2) (3) (4) (5) (6) (7) (8) S-036 Limited Sign Review Application 10 $165.00 $235.90 ($70.90) ($709) S-037 Planned Sign Review Application 10 $585.00 $847.60 ($262.60) ($2,626) S-038 'Special Signs Permit Application 13 $815.00 $1,184.46 ($369:46)- ($4,803) S439 Processing Of Appeal To PC Application 8 $318.75 $954.00 ($635.25) ($5,082) S-040 Processing Of Appeal To City Council Application 9. $850.00 $1,679.56 ($829.56) ($7,466) S-041 Preliminary Landscape Plan Check Application 42 $0.00 $41.43 ($41.43) ($11740) S-042 Landscape Plan Check Plan 96 $55.00 $61.83 ($6.83) ($656) S-043 Landscape Inspection Inspection 94 $0.00 $464.54 ($464.54) ($43,667) S-044 FinaliOccupancy Review& Inspection Application 953- $83.95 $162.20 ($78.25)` ($74,572) S-045 Mobile Home Park Conversion Review Application 1 $0.00 $398.00 ($398.00) ($398) S-046 Entitlement Extension Review Application 25 $125.00 $282.44 ($157.44) ($3,936) S-047 Coriditns,Covenants B.Restrictn Review Request 10 $400.00 $300.00 $100.00 $1,000 S-048 Address Change Review Application 6 $125.00 $164.1.7 ($39.17) ($235) S-049 New Address Assignment Processing Application 72 $125.00 $159.82 ($34.82) ($2,507) S-050 - Design Review Board Hearing Application 45 $250.00 $328.40 ($78.40) ($3,528) S-051 Grading Plan Check&Inspection Plan 85 $1,223.34 $1,018.47 $204.87 $17,414 S-052 Final Parcel Map Check Map 7 $480.00 $833.86 ($353.86) ($2,477) S-053 Final Tract Map Check Map 12 $1,346.67 $884.58 $462.08 $5,545 S-054 Public Improvement Plan Check Plan 19 $524.00 $1,269:05 ($745.05)- ($14,156) S-055 Public Improvement Inspection Inspection 700 $392.86 $315.36 $77.50 $54,250 S-056 Street Vacation Request Processing Request 7 $171.43 $2,386.43 ($2,215.00) ($15,505) S-057 Compliance Review&Letter Application 70 $105.00 $146.36 ($41.36) ($2,895) S-058 Street Construction Review&Inspection Permit 600 $166.67 $254.91 ($88.25) ($52,947) S-059 Special Curb Marking Service Request S. $100.00 $632.00- ($532.00) ($21660) S-060 Precise Plan Street Alignment Plan 2 $2,684.00 $3,071.50 ($387.50) ($775) S-061 Building Plan Check Plan 577 $928.94 $1,335.79 ($406.85) ($234,752) S-062 Plumbing Plan Check Plan 96 $395.83 $332.69 $63.15 $6,062 S-063 Electrical Plan Check Plan 264 $416.67 $415.09 $1.58 $417 S-064 Mechanical Plan Check Plan 99 $424.24 $581.32 ($157.08) ($15,551) S-065 Plan Check Extension Plan 60 $40:00 $43.48 ($3.48) ($209) S-066 Building Inspection Permit 6,021 $116.26 $107.67 $8.59 $51,738 S-067 Plumbing Inspection Permit 1,235 $109.31 $153.92 ($44.61) ($55,096) S-068 Electrical Inspection Permit 1,862 $142.32 $195.62 ($53.30) ($99,250) S-069 Mechanical Inspection Permit 1,334 $74.96 $144.17 ($69.21) ($92,329) S-070 Building Permit Extension Permit 15 $85.00 $91.73 ($6.73) ($101) S-071 Building Re-inspection Permit 88 $74.48 $83.82 ($9.34) ($822) S-072 Building Relocation Review&Insp. Permit 1 $112.00 $732.00 ($620.00) ($620) Page 3 of 7. CITY OF HUNTINGTON BEACH SCHEDULE 10A SUMMARY OF REVENUES, COSTS AND SUBSIDIES BY SERVICE UNIT FISCAL YEAR 1993-1994 BUDGET 1993-94 1993-94 PROFIT ANNUAL MS) UNIT NO. CITY FEE COST (SUBSIDY) PROFIT # SERVICE CENTER TYPE UNITS PER UNIT PER UNIT PER UNIT (SUBSIDY) (1) (2) (3) (4) (5) (6) (7) (8) S-073 Building Demolition Review&Insp. Permit 17 $78.24 $64.18 $14.06 $239 S-074 Mobile Home Park Annual-Permit Proc. Park 18 $1,083.33 $0.00 $1,083.33 $19,500 ._ S-075. Swimming Pool Plan Check&Insp. Permit 110 $254.55 $375.95 ($121.40) ($13,354) S-076 Plan Check/inspection Misc. Services Hour N/A NA NA NA NA S-077 Obstruction Permit Permit 60 $50.00 $53.20 ($3.20) ($192) S-078 Drop-off Body(Bin)Permit Permit 90 $30.00 $32.06 ($2.06) ($185) S-079 Street Sign Installation Job/Request 10 $220.00 $226.30 ($6.30) ($63) S-080 Specific Plan Review Text/Study 3 $0,00 $4,733.67 ($4,733.67) ($14,201) S-081 Dock Construction Plan•Revw. &Insp. Application 16 $50.00 $153.75 ($103.75) ($1,660) PUBLIC SAFETY SERVICES S-082 Special Business Regulation Application 150 $18.56 $165.71 ($147.15) ($22,072) S-083 Temporary Alcohol Beverage Review Application -50 $0.00 $327.12 ($327.12) ($16,356) S-084 Wide,Overweight,Overlong.Load Rvw Permit 340 $23.97 $56.11 ($32.14) ($10,928) S-085 Bicycle Registration License 4,000 $3.00 $3.41 ($0.41) ($1,653). S-086 Vehicle Code Enforcement Citation 25,922 $27.60 $117.19 ($89.59) ($2,322,480) S-087 Parking-Enforcement Citation 47,000 $17.67 $10.66 $7.01 $329,401 S-088 Special Parking Permit Permit 850 $2.68 $7.01 ($4.34) ($3,686) S-089 Zoning Code Enforcement Notice 2,300 $0.00 $195.71 ($195.71) ($450,135) S-090 Code Enforcement Re-inspection Inspection 1,380 $2.54 $53.03 ($50.49) ($69,683) S-091 -Noise Disturbance Response Call-back Call 2 $120.00 $351.00 ($231.00) ($462) S-092 Police False Alarm Response Response 8,500 $9.88 $86.63 ($76.75) ($652,401) S-093 Records Check/Clearance.Letter Letter 120 $10.00 $28.19 ($18.19) ($2,183) S-094 Fingerprinting Card 1,300 $18.00 $11.87 $6.13 $7,974 S-095 Video/Audio Tape Reproduction Tape 180 $0.00 $47.99 ($47.99) ($8,638) S-096 Crime Statistic Report Report 12 $70.00 $336.50 ($266.50) ($3,198) S-097 Resp. to Subpoenas of PD Personnel Subpoena 150 $150.00 $578.24 ($428.24) ($64,236) S-098 Police Accident Investigat'n and Report Report 3,192 $35.00 $127.83 ($92.83) ($296,298) S-099 Vehicle Equipment Correct'n Inspection Inspection 1,500 $0.00 $7.28 ($7.28) ($10,917) S-100 Crime Scene/Police Photo Reproduction Photo 850 $13.36 $11.38 $1.98 $1,687 S-101 Abandoned/Abated Vehicles Release Vehicle 340 $0.00 $299.15 ($299.15) ($101,710) S-102 DUI Accident Response&Investigation Response 133 $130.56 $465.59 ($335.03) ($44,559) S-103 DUI Arrest Procedure Arrest 525 $79.15 $517.09 ($437.94) ($229,917) S-104 Narcotics Lab Processing Arrest 1,700 $50.00 $143.14 ($93.14) ($15B,336) Page 4 of 7 CITY OF HUNTINGTON BEACH SCHEDULE 10A t SUMMARY OF REVENUES, COSTS AND SUBSIDIES BY SERVICE UNIT FISCAL YEAR 1993-1994 BUDGET 1993-94 1993-94 PROFIT ANNUAL MSI UNIT NO. CITY FEE COST (SUBSIDY) PROFIT �► SERVICE CENTER TYPE UNITS PER UNIT PER UNIT PER UNIT (SUBSIDY) (1) (2) (3) (4) (5) (6) (7) (8) S-105 Animal Control , Varies N/A NA NA NA NA S-106 Contract Booking&Prisoner Housing. Booking 600 $0.00 $188.68 ($188.68) ($113,206) S-107 Crosswalk Protection Crosswalk 38 $0.00 $9,108.71 ($9,108.71) ($346,131) S-108 Fire False Alarm Response Incident 197 $21.30 $541.62 ($520.32) ($102,503) S-169 Hazardous Materials Review&Insp. Permit 466 $375.54 $399.66 ($24.13) ($11,243) S-110 Hazardous Materials Clean-up Incident 250 $192.00 $1-,940.97 ($1,748.97) ($437,243) S-111 Fire Incident Report Copy Report 121 $6.69 $14.60 ($7.91) ($957) S-112 Annual Fire Inspection Program Inspection 5,575 $0.00 $210.69 ($210.69) ($1,174,609) S-113 Fire Code Enforcement Inspection Inspection 600 $0.00 $212.37 ($212.37) ($127,421) S-114 State-Mandated Fire Inspection Inspection 38 $131.58 $204.68 ($73.11) ($2,778) S-115 Risk Management Program Request 15 $0.00 S1,069.73 ($11069,73) ($16,046) S-116 Water/Flood Pumping And Clean-Up Incident 60 $0.00 $394.43 ($394.43) ($2-3,666) ap S-117 Medical Assistance Response Incident 7,500 $260.27 $821.66 ($561.40) ($4,210,470) S-118 Private Hydrant System Testing Request 50 $0.00 $105.16 ($105.16) ($5,258) S-119 Fire Alarm &Sprinkler Plan Review/Insp Various N/A NA NA NA NA S-120 Undergrd.Tank Instal/Removal Insp. Inspection 108 $0.00 $137.88 ($137.88). ($14,891) S-121 Storage Tank Permit Inspection Permit 24 $50.00 $261.83 ($211.83) ($5,084) S-122 Fire-Suppression Stand-By Hour N/A NA NA NA NA S-123 Weed Abatement Lot 150 $200.00 $544.55, ($344.55) ($51,683) S-124 Campaign&Misc Sign Abatement Incident 100 $0.00 $52.35 ($52.35) ($5,235) S-125 Tree/Shrub Overhang Abatement Incident 61 $1.89 $99.79 ($97.90) ($5,972) S-126 Spilled Load Clean-Up Incident 500 $0.00 $126.05 ($126.05) ($63,026) S-127 Alarm Permit Application/Renewal Rvw Permit 2,250 $20.00 $15.72 $4.28 $9,640 gi S-128 Oil Well Inspection Inspection 790 $100.00 $200.69 ($100.69) ($79,548) 5-129 Oil Well Vent Inspection Inspection 30 $375.00 $604.77 ($229.77) ($6,893). S-130 Oil Well Drill/Redrill Permits Permit 0 NA NA NA NA 8-131 Abandoned Oil Well Inspection/Review Inspection 50 $100.00 S1,097.62 ($997.62) ($49,881) S-132 Oil Waste Water Service Customer 175 $85.00 $102.90 ($17.90) ($3,132) LEISURE AND CULTURAL SERVICES S-133 Adult Sports Programs Team 1,174 $324.27 $341.75 ($17.48) ($20,517) S-134 Youth Sports Programs Participant 2,300 $23.04 $55.93 ($32.89) ($75,641) S-135 Private Youth Ballfield Usage Hour 280 $0.66 $39.05 ($38.38) ($10,747) S-136 Private Adult Ballfield Usage Hour 1,340 $7.93 $12.46 (S4.53) ($6,070) 9, Page 5 of 7 CITY OF HUNTINGTON BEACH SCHEDULE 10A SUMMARY OF REVENUES, COSTS AND SUBSIDIES BY SERVICE UNIT FISCAL YEAR 1993-1994 BUDGET 1993-94 1993-94 PROFIT ANNUAL MSI UNIT NO. CITY FEE COST (SUBSIDY) PROFIT # SERVICE CENTER TYPE UNITS PER UNIT PER UNIT PER UNIT (SUBSIDY) (1) (2) -(3) (4) (5) (6) (7) (8) S-137 Contract Recreation Classes Participant 12,000 $42.08 $56.99 ($14.90) ($178,854) S-138 Special Event/Excursion Coord. Participant 1,215 $21.07 $33.72 ($12.65) ($15,368) S-139 Adventure Playground Program Participant 15,000 $1.98 $1.84 $0.14 $2,1.15 S-140 Summer Day Camp Participant 460 $95.00 $117.32 ($22.32) ($10,265) S-141 Tennis Program Participant 3,400 $38.82 $52.53 ($13.71) ($46,615) S-142 Tennis Court Rental Hour 936 $2.00 $8.34 ($6.34) ($5,934) S-143 Recreational Swimming Swimmer 16,900 $1.00 $2.76 ($1.76) ($29,701) S-144 Swimming Lessons Swimmer 6,500 $20.63 $26.76 ($6.13) ($39,851) S-145 Junior Lifeguard Program Participant 700 $231.43 $267.71 ($36:28) ($25,396) S-146 Museum Services Visitor 5,200 $0.00-------$4.68------ ($4.68)- ($24;361) S-147 Senior Citizen Recreation Programs Participant 61,650 -$0.00 $4.41 ($4.41) ($271,899) S-148 Senior Citizen Outreach Program Participant 3,400 $2.94 $128.49 ($125.55) ($426,860) S-149 Senior Center Rental Rental Hour 558 $32.39 $65.57 ($33.18) ($18,514) S-150 Nature Center Services Visitor 32,500--- --- $0.00-- -$0.49 ($0.49) ($15,783) 'S-151. Nature Tours Participant 6.500- $0.00 $1.62 ($1;62) --($1.0,51-9) S-152 Late Library Materials Processing Item Overdue 38,836 $3.00 $2.45 $0.55 $21,263 S-153 Reservat'n of Man&Inter Library Loan Item 794 $1.78 $15.94 ($14.16) ($11,242) S-154 Replacement of Lost Library Items Item Lost 1,308 $12.42 $143.35 ($130.93) ($171,255) S-155 Library'Typewriter&Photocopier Use Use 591,222 $0.10 $0.17 ($0.07) ($42,970) S-156 Media Rental Item 69,533 $1.22 $3.79 ($2.57) ($178,962) S-157 Library Research Service Search N/A NA NA NA NA S-158 4th of July Celebration Participant 270,000 $0.44 $0.23 $0.21 $57,728 S-159 Showmobile Rental Rental 8 $225.00 $652.63 ($427.63) ($3,421) S-160 Banner Hanging Service Banner 12 $75.00 $111.42 ($36.42) ($437) S-161 Beach Services Vistor 6,100,000 $0.33 $0.86 ($0.53) ($3,237,140) S-162 Huntington Central Park Operations Visitor 570,000 $0.02 $2.77 ($2.74) ($1,563,283) S-163 Golf Course NA N/A NA NA NA NA UTILITY AND ENTERPRISE SERVICES S-164 Water Service Customer 48,500 $315.62 $403.28 ($87.66) ($4,251,667) S-165 West Orange County Water Board Svcs NA N/A NA NA NA NA S-166 Water Delinquent Turn-Off/On Turn-Off/On 5,700 $49.20 $34.57 $14.64 $83,423 S-167 Private Back-Flow Device Test Test 191 $0.00 $249.49 ($249.49) ($47,652) S-168 Hydrant Flow Test Witness Request 10 $0.00 $128.40 ($128.40) ($1,284) t ' Page 6 of 7 CITY OF HUNTINGTON BEACH SCHEDULE 10A SUMMARY OF REVENUES, COSTS AND SUBSIDIES BY SERVICE UNIT FISCAL YEAR 1993-1994 BUDGET 1993-94 1993-94 PROFIT ANNUAL MSI UNIT NO. CITY FEE COST (SUBSIDY) PROFIT # SERVICE CENTER TYPE UNITS PER UNIT PER UNIT PER UNIT (SUBSIDY) (1) (2) (3) (4) (5) (6)• (7) (8) S-169 Hydrant/Air Vacuum Damage Repair Request 40 $344.25 $952:53 ($608.28)� ($24,331) S-170 Private Water Pressure Testing Test 50 $0.00 $57.92 ($57.92) ($2,896) S-171 Testing Of Private Water Sample Test 2 $0.00 $172.50 ($172.50)- ($345) S-172 Temp.Meter Rental Proc/Replacmnt Meter 110 $322.27 $186.98 $135.29 $14,882 S-173 Water Connection Inspection Connection 600 $9.26 $137.21 ($127:96) ($76,775) S-174 Refuse Service Customer 43;600 $182.40 $231.62- ($49.22) ($2,145,992) S-175 Street Cleaning 1/8 Acre 118,664 $0.05 $2.72 ($2.67) ($317,047) S-176 Utility Customer Set-up Customer 387 $0.00 $7171 ($73.71) ($28,524) S-177 Utility Customer Update Customer 2,500 $0.00 $37.08 ($37:08) ($92,694) S-178 Temporary Water Turn-Off/On Request 175 $0.00 $60.57 ($60.57) ($10,599) S-179 Cust. Svc Response 8 Accnt Research Request 1,200 $0.00 $5.1.57^ ($51.57) ($61,884) S-180 H2O Quality Testing(Required) Contractor 75 $0.00 $121.09 ($121.09) ($91082) S-181 Same Day.Turn-On Service Request 275 $15.00 $28.85 ($13.85) ($3,808) S-182 Storm Drainage Maintenance Customer 48,400 $0.00 $42.74 ($42.74) ($2,068,696) S-183 Sewer Collection 1/8 Acre 118,664 $0.00 $31.70 ($31.70) ($3,761,657) S-184 Sewer Connection Inspection Permit 50 $0.00 $144.12 ($144.12) ($7,206) S-185 Sewer Blockage Repair Repair 250 $0.00 $119.75 ($119.75) ($29,938) S-186 Emerald Cove Sr. Housing Operation Unit 164 $4,865.85 $6,754.68 ($1,888.82)- ($309,767) MAINTENANCE SERVICES S-187 Utility Street Usage Miles R-O-W 380 $3,684.21 $5,998.00 ($2,313.79) ($879,239) S-188 Sign&Striping Service Job 50 $1,000.00 $795:30 $204.70 $10,235 S-189 Street Lighting 1/8 Acre 118,664 $0.00 $27.34 ($27.34) ($3,244,591) S-190 Median &Parkway Maintenance 1/8 Acre 118,664 $0.00 $8.14 ($8.14) ($965,761) S-191 Street Tree Maintenance 1/8 Acre 118,664 $0.00 $12.81 ($12.81) ($1,519,790) - S-192 Street Tree Removal/Replacement Incident 42, $71.43 $131.38 ($59.95) ($2,518) S-193 Sewer Line Locating Incident 55 $0.00 $163.09 ($163.09) ($8,970) S-194 Alley Maintenance Parcel 8,8D0 $0.00 $30.09- ($30.09)- ($264,825) S-195 Main Promenade Parking(Downtown) Space 830 $271.08 $806.99 ($535.91) ($444,802) S-196 Huntington Harbour Maintenance Res'I Parcel 3,450 $4.64 $20.02 ($15.39) ($53,079) S-197 Neighborhood Parks Maintenance 1/8 Acre 118,664 $0.00 $45.75 ($45.75) ($5,428,864) S-198 Blockwall Maintenance 1/8 Acre 118,664 $0.00 $10.51 ($10.51) ($1,246,879) S-199 State Highway Maintenance Mile(Lane) 120 $583.33 $1,143.98 ($560.65) ($67,278) Page 7 of 7 CITY OF HUNTINGTON BEACH SCHEDULE 10A SUMMARY OF REVENUES, COSTS AND SUBSIDIES BY SERVICE UNIT FISCAL YEAR 1993-1994 BUDGET 1993-94 1993-94 PROFIT ANNUAL MSI UNIT NO. CITY FEE COST (SUBSIDY) PROFIT # SERVICE CENTER TYPE UNITS PER UNIT PER UNIT PER UNIT (SUBSIDY) (1) (2) (3) (4) (5) (6) (7) (8) ADMINISTRATIVE AND FINANCE SERVICES S-200 New/Moved Bus. License Appl. Rvw Application 800 $22.50 $29.37 ($6.87) ($5,494) S-201 Business Tax Renewal Processing Renewal 16,000 $6.00 $8.48 ($2.48) ($391715) S-202 Returned Check(NSF)Processing Check 1,500 $15.00 $14.32 $0.68 $1,017 S-203 Records Research Service Hour N/A NA NA NA NA S-204 Document Printing&Copying Item N/A NA NA NA NA S-205 Agenda/Minuts Mailing Service Subscriber 43 $51.28 $168.47 ($117.19) ($5,039) S-206 City Code Mailing Service Subscriber 55 $45.45 $189.40 ($143.95) ($7,917) S-207 Document Certification Item 15 $3.00 $16.33 ($13.33) ($200) S-208 Address/Complex Map Book Book 25 $35.00 $55.60 ($20.60) ($515) S-209 Microfilming of Building Plans/Permits Item 10,000 $1.00 $3.30 ($2.30) ($22,998) S-210 Council Videotape Processing&Sale Videotape 24 $35.00 $42.13 ($7.13) ($171) S-211 Lease of City Property Site 37 $8,624.97 $7,474.27 $1,150.70 $42,576 S-212 City'Facility Rental Rental Hour 7,264 $14.07 $80.38 ($66.32) ($481,725) S-213 Services to Redevelopment Agency NA N/A NA NA NA NA r CA 96-04 City g of Huntington Beach COUNCIL-ADMINISTRATOR COMMMUNICATION HUNTINGTON BEACH c c TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS m C rn FROM: MICHAEL T. UBERUAGA, CityAdministrator e "< r �rn m '30 SUBJECT: STUDY SESSION - BUDGET SHORTFALL SOLUTIONS ' T DATE: June 6, 1996 As you will recall, the Budget Study Session that was held on April 29, 1996 included a variety of exercises and feedback to City staff to provide general parameters and guidelines for preparation of proposed solutions to the $4 million General Fund Budget shortfall for 1996/97. Based on that Study Session, I advised you that I would put together a package of departmental expenditure reductions totaling approximately $2 million, along with recommended new revenues totaling $2 million for your review. The June 10, 1996, Study Session has been scheduled to review the resulting list of potential expense reductions and potential new revenues that would bring the 1996/97 General Fund budget into balance. While these are not final recommendations, the proposals included in this Study Session .represent our recommended approach to balance the budget. We have provided greater detail on the potential new revenues that we anticipate recommending ($2 million in annual new revenue). In addition, the recommended department expense reductions total $2 million. A two page summary of both the previous $3.6 million and the $2 million expense reductions is attached. Following is a tentative agenda for your discussion of these issues: 1. Review revised expense reduction list. 2. Review potential new General Fund revenues of $2 million. 3. Review listing of surplus property that is potentially available for sale or lease. 4. Departmental presentations regarding the impact of Budget reductions: A. Fire Department B. Community Development Department C. Public Works Department 5. City Council Discussion. Attachments 0019209.01 06/06/96 12:38 PM City of Huntington BeachREcEIVED FROMT►�" " AND MADE A PART O4TARECORD COUNCIL MEETING OF OFFICE OF THE CITY CL—ERN Financial Profile CONNIE BROCKWAY,CITY C E K �sf cam./lam/` Background -Location- 28 miles southeast of Los Angeles Une popmwtPate(%) EffectiveBWngIrmrm-Mean lnwme -Population: 190,000 - Charter City (1909) 10 $60•000 0 ' -Third largest city in Orange County 8 ,t„ $50.000 a�� •90th largest city in United States 6 e �'°'000 5 $30,000 •27.2 sq. miles, 555 acres of parkland 4 3 '� ;mpact 9 miles of beach, 7 M annual beach visitors 2 S10•:,of Bankruptcy 0 $0 ,9so ,99, ,ss2 tsx, ,ssa ,9e9 i990 ,se, t9sz ,993 -Decrease in interest income due to lower cash balances ,s5�eaVal„ «, BiddingPtrrritvaluations -City hiring freeze extended 12 100 so •Expenses reduced A ".5so w 70 N -Capital projects delayed o ++ o 6 50 Modest Debt Levels_ o ,U.S r °40 -Total direct debt less than .4% of assessed valuation m t0 €` S930- S .Annual debt service 3.36% of General Fund budget 'o - S.5 -General Fund debt service offset by $3.2M revenue 91 9W 9M 9&W 19M 1%1 1%2 M 1M4 1M5 and transfers from other funds •"Net " General Fund debt 2.16% of General Fund Population Retail Sales Taxable Transactions Economics/Demographics 200 ,�.. -Mean Household Income of$54,254 in 1991 y 150 ' .5 # 026.4% of Households earn more than $75,000/year y 100 1 .3 -Proactive economic development program i` 0 1.2 —Smart Choice campaign 50 m 1.1 —Unisource relocation (160 jobs) 0s : 1 1970 1980 1990 1995 90 91 92 93 94 —Sharp Electronics (200-275 jobs) •4,000 unit residential development fully entitled C', f �vIL 7c y L //F 7 A'•i'1 ' I C� 77 � RECEIVED FROM __ 0'PW AND MADE A PART OF THE RECORD JVHE COUNCIL MEETING OF OFFICE OF THE CITY CLERK CONNIE BROCKWAY,CITY CLERK ublic Works Department Proposed Budget Service Reductions FY1996/97 t� Public Works Budget Reduction Strategy ♦ Maintain safety and public service programs 4 Sewers, streets, flood control, parks & play areas -� Development processing services ♦ Defer non-essential facility maintenance ♦ Recognize the difference between deferral & elimination of services ♦ Reduce non-emergency support to departments ♦ Maximize fiscal reduction ♦ Minimize operational disfunction 1 Public Works Budget $3. 6 Million City-wide Reduction Personal Services* $ 796.5043 Operating Expenses 9.800 Total $ 7009843 * Eliminates 12 full time positions Funded Staffing Levels (excludes Water Division) 21s 210 24 positions eliminated 205 211 since 92/93 200 195 199 190 185 180 187 175 92/93 95/96 96/97 2 Public Works Service Impacts ' + $3.6 Million City-wide Reduction ♦ Defer 4 Painting services for all facilities 4 General plumbing maintenance -+Block wall maintenance & accident repairs ♦ Eliminate 4 Special design requests & estimates 4 In-house custodial support ♦ Reduce -+ Construction support to City projects 4 Vehicle & equipment maintenance - -- Painting Maintenance ------------- ♦ Eliminate Public Works painting services, except graffiti removal ♦ Defer all painting of City facilities -*Beach front buildings, pier & railings 4 Sports courts, parks & playground equipment -*Offices and stations 3 - Facility Maintenance ♦ Defer plumbing improvements & services 4 Emergency repair costs may increase ♦ Defer block wall repairs & maintenance 4 Damaged areas will be boarded -+Risk Mgmt. will contract for proper repairs ♦ Reduce electrical services -+Fewer new installations & rewiring jobs 4 Department requests will be prioritized by need Public Works Department Internal Services ♦ Reduce warehouse hours -*Restricts availability of materials 4 Delays emergency & unplanned repairs ♦ Reduce mechanical maintenance & repairs -*Increases down time for equipment & vehicles 4 Limits preventive maintenance programs ♦ Eliminate in-house custodial services 4 Less sanitary conditions in field office/locker room/work place 4 . Y Public Works Engineering Services ♦ Eliminate engineering design from General Fund ♦ Contract construction management & survey services for City projects -*Increases cost of new facilities ♦ Assign staff to enterprise funds 4 Water Capital Improvement Projects ♦ Evaluate workload & level of service for subdivison section Public Works Budget `' $2.S Million City-wide Reduction Personal Services* $ 376,946 Operating Expenses 9.800 Total $ 3869746 * Eliminates 8 full time positions 5 Service Impacts $2.5 Million City-wide Reduction ♦ Defer all painting services ♦ Defer block wall maintenance & accident repairs ♦ Reduce services to departments 4 Survey & public works inspection 4 Construction support to City projects 4 Vehicle, equipment & facility maintenance Public Works Department Subdivision Services Potential 1996/97 Service Level Activitv Change There is a possibility that there will be a substantial increase in permit applications in the development services departments that are not anticipated in the budget proposal. If this occurs, departments will have to reduce the customer service level or increase staff resources to maintain the present turnaround time for permit processing. Staff will continue to monitor development activity levels and infonn the Council. 6 rt W�p p.. R ECENEO.• • AND MADE A THE RECOR AT H COUNCIL MELT . . h '�a 6 OFFICE OF: . ITY CLERK Budget Study Session CONNIEBROCK0A CITY CLERK Budget Study Session June 10, 1996 .. ........ Timetable Study Session-City Council June 10 Finalize Preliminary Budget June-July 1996/97 Budget Submitted 8/1/96 Study Session August 12, 1996 Public Hearings Sept. 3 & 16 1996/97 Budget Adopted Sept. 16 ............................................................................................................................................ June 10, 1996 Budget Y et Stud Session June 10 Study Session Objective City Council Endorsement of the Following Approach to Balance the 1996/97 General Fund Budget: ♦Expense Reductions $2,000,000 ♦New/Increased Revenues $2,000,000 Total $4,000,000 _...._.. ..... ..................... . .._.....__...... _...... �:: : •ii.�iiv.:T:J1'+,H .............. Prior Budget Study Sessions ♦Feb. 12 Expense Reduction Alternatives *March 11 Revenue Alternatives ♦March 25 Review Options *April 8 Police, Com. Svc. Impacts ♦April 29 Priorities/Preferences _... _..........................._................ .............................. ......� June 10, 1996 Budget Study Session April 29 Study Session ♦Goals & Objectives Reviewed ♦ City Service Priorities Reviewed ♦ Budget Balancing Preferences Exercise ♦ Expense Reductions ♦ New/Increased Revenues ♦Combination _.......__....._............................................................._.._............................................. _...>::»:<:S a e:: = _ Potential Expense Reductions 3.6m $2.0rn Library $153,373 $86,000 Community Development 223,400 94,000 Public Works 700,682 386,746 Fire Dept. 608,449 330,189 Police Dept. 765,500 . 438,000 - Non-Departmental 385,000 211,000 Admin. Svc. 238,000 130,000 Administration 693997 43,711 Community Svc. 405,000 221,953 City Attorney 100,274 55,000 Total 3�649 675 1 996 599. ............. .......................................................................................................................... ............;::>»::St :s::: June 10, 1996 � v Budget Study Session ummary - Re uction in General Fund Positions 3.6m 2.Om Permanent 36.5 16.5 Temporary 14.0 9.0 Subtotal 50.5 25.5 Less Transfers -2.0 -1 .0 Total Net Reduction 48.5 24.5 _................................:..........,................_...__..... ......................_............. .........................._...._.. ....:: .e:: <: Potential New Revenues ♦ Increase Parking Fees (Approved) $400,000 Increase Library Fee - New Dev. 100,000 ♦ New Parking Meters 44,000 ♦ Preferred Parking Plan - Beach Lots 100,000 ♦ Increase Charges to Cover Costs 50,000 ♦ Sewer Maintenance Fee $1 ,000,000 ♦ Increase Bus. Lic. Fees ($20) $320,000 Total $21 014,000 .:�: :: ................................................._..... ... s ` es:: June 10, 1996 Budget Study_ Session Looking Ahead: Budget Needs ♦ General Fund Reserve needs to be Increased ♦ Budget Shortfalls Projected ♦ Insurance Costs have Increased - Reserves need to be Increased ♦ Equipment Replacement Reserves have Declined Rapidly ♦ Maintenance needs have been Deferred ♦Streets/Alleys/Sewers/Storm Drains/Buildings/Block Walls/Sidewalks etc. ♦ Unfunded Liabilities are Significant <:::_:s Projected General Fund Shortfalls $in Millions $10 $9.1 $9 $7.7 $8 $7 $6.3 $6 $5 $4 $3 $2 $1 $0 96/97 97/98 98/99 99/00 00/01 .. .........................................................._........................... June 10, 1996 4 ' Budget Study Session Major Revenues - General Fund 1980 - 2001 s in>�o� - $35 Without State Takeaway $30 $29.4 ' $25 25.7, Property Tax ' , $20 8 $16.8 $15 Sales Tax , $10 ear Projections $5 ` , $0 80 81 82 83 84 85 86 87 88 89 90"91` 92'93 94 95 96 97 98 99 00 01 Est Per Capital Sales Tax Huntington Beach $� Westminster 94 Fountain Valle Y .,;i>•' : .6:#3 • rrr. .i Y ter. -------------- -------------- 149 Newport Beach ;,,, {• , . Costa Mesa $0 $50 $100 $150 $200 $260 ivuiurw.vrwvuw•yracc.;ca ................................................................................................................................................ June .10, 1996 Budget Study Session City Revenue Taken by the State $Millions $8 Total Loss =$24.4 Million $7.0 $7 $6 $5 3.9 $4 $3 $2 0.9 $1 $0 $0 90191 91192 92193 93/94 94/95 95/96 General Fund Reserve 5 in NUMons ♦ $3.1 Million Reduction $s $6 2 Last Year $g 6.9 ♦ One-Time Costs $7 $6.2 ♦ Bankruptcy Claims $6 ♦ Litigation Costs $5 $4 $3.2 ♦ Fiscal Policies Require a $3 Reserve of 3-5% $2 ♦ Projected Reserve = $1 !% 3.4% $0 87 93 86 85 Est 86 Es[ ........... ......................................................................................................................................._.:::: June 10, 1996 Budget Study Session Looking Back: Past Budget Reductions Multi-Year General Fund Downsizing - Overview ♦ Budget Reduced 3 Consecutive Years ♦ Balanced Primarily by Reducing Expenses ♦ Elimination of 104 Full Time Positions since 1989 ♦Quality/Quantity of Services has been reduced ♦Costs Have Been Transferred to Other Funds ♦Maintenance has been Deferred ♦Administrative costs Reduced Significantly ♦ Decrease in Internal Service Quality/Control ♦ No Salary Increases in 1993, 1994 and 1995 : OEM= :<.. ..,................. Full Time City Employees 1978 1 ,059 1996 1 ,068 Rank # 98 of 100 Largest Cities (Per Capita Number of Employees) .......................................................................................................... June 10, 1996 Budget Study Session Population has Increased 190,000 180,000 170,000 1811519 160,000 170,505 150,000 140,000 130,000 120,000 Jf 115,960 110,000 100,000 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 .............. Employees per 1 ,000 Population 7.0 6.6 6.5 ISTotal ®General Fund 6.1 6.0 5.7 5.5 5.0 8 4.5 4.0 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 _................................................................................................................._................................; ;::>:_:<::Sic#e::1:& June 10, 1996 Budget Study Session General Fund Budget per Capita $600 ®Budget per Capita $528 $511 $500 0Adjusted for Inflation $400 $300 $200 159 $100 $0 76 78 80 82 84 86 88 90 92 94 96 s::.::.::.::::::::......::.:::..::.::.:.:.::::.:::: Summary ♦City Council Endorsement of Balanced Approached (Expense Reductions and Increased Revenues) is Requested ♦ Preliminary Budget will be- Submitted Aug. 1 ♦ Public Hearings will be Scheduled for September ..... .....................%::>:v:•ii i::.'tA %:{{22<. .................................................................. June 10, 1996 RE.C E�V'w asy AND MADE A: _THE RECOR AT TH COUNCIL MEET OFFICE OFTMf PITY CLERK Budget Study Session CONNIEBROCKVVAl,CITY CLERK i Budget StudySession June 10, 1996 IL Timetable Study Session-City Council '''<' June 10 Finalize Preliminary Budget June-July 1996/97 Budget Submitted 8/1/96 Study Session August 12, 1996 Public Hearings Sept. 3 & 16 1996/97 Budget Adopted Sept. 16 %4:• KfiUiV/ %/IkV.Vi'!/RGW WGF'.NiMl:.U4 ...... .. .... .... ..................................................................................... -June 10, 1996 - Budget Study Session June 10 Study Session Objective City Council Endorsement of the Following Approach to Balance the 1996/97 General Fund Budget: ♦Expense Reductions $2,000,000 ♦New/Increased Revenues $2,000,000 Total $4,000,000 .............................................................................................................................................:::5 Prior BudgetStudy Sessions . ♦Feb. 12 Expense Reduction Alternatives ♦March 11 Revenue Alternatives *March 25 Review Options *April 8 Police, Com. Svc. Impacts *April 29 Priorities/Preferences ........................ ....................................................................................................;::»:>::>$ ae 4: June 10, 1996 r J ' Budget Study Session _811- ------------------------------------------ April 29 Study Session *,Goals & Objectives Reviewed . ♦ City Service. Priorities Reviewed e Budget Balancing Preferences Exercise ♦ Expense Reductions ♦ New/Increased Revenues ♦ Combination Potential Expense -Reductions 3.6m $2.Om Library $153,373 $86,000 Community Development 223,400 94,000 Public Works 700,682 386,746 Fire Dept. 608,449 330,189 Police Dept. - 765,500 438,000 - Non-Departmental 385,000 211,000 Admin. Svc. 238,000 130,000 Administration 69,997 43,711 Community Svc. 405,000 221,953 City Attorney 100,274 55,000 Total 3 649 675 11 996 5599,�.. ;:8:::e` June 10, 1996 V 1 Budget Study Session 01 Summary - Re uction. in mmumm General Fund Positions 3.6m $2.Om Permanent 36.5 16.5 Temporary 14.0 9.0 Subtotal 50.5 25.5 Less Transfers -2.0 -1 .0 Total Net Reduction 48.5 24.5 WORM�17KXIX 4•': Potential New Revenues ♦ Increase Parking Fees (Approved) $400,000 Increase Library Fee - New Dev. 100,000 ♦ New Parking Meters 44,000 ♦ Preferred Parking Plan - Beach Lots 100,000 ♦ Increase Charges to Cover Costs 50,000 ♦ Sewer Maintenance Fee $1 ,000,000 ♦ Increase Bus. Lic. Fees ($20) $320,000 Total $21014,000 ::•.++a:Sw ...............................;::> June 10, 1996 Budget Study Session ..::.: .... �/l�S4:Cvr4 Looking Ahead: Budget Needs ♦ General Fund Reserve needs to be Increased ♦ Budget Shortfalls Projected ♦ Insurance Costs have Increased - Reserves need to be Increased ♦ Equipment Replacement Reserves have Declined Rapidly ♦ Maintenance needs have been Deferred Streets/Alleys/Sewers/Storm Drains/Buildings/Block Walls/Sidewalks etc. ♦ Unfunded Liabilities are Significant Projected General Fund Shortfalls $in Millions $10 $9.1 $9 $7.7 $8 $6.3 $7 $6 $5 $4 $3 $2 S1 $0 96197 97/98 98/99 99/00 00/01 Ni:%!N/:OOLWi4GGVGV/AW 'KittLtt{tt fiiGCLL04%Ili%!ii'fl'wt{•::ryr. tLe:' 3 June 10, 1996 Budget Study Session Major Revenues - General Fund 1980 - 2001 $to NMons $35 Without State Takeaway $30 $29.4 ' $25 25.7, Property Tax ' $20 $16.6 $15 Sales Tax $10 ear .roJec ions $5 ` $0 80 81 82 83 84 85 86 67 88 89 90 91 92 93 94 95 96 97 98 99 00 01 Est vaw..::tta k:L3 N`'n<.�i•t:iJ:::::�t:::i: Per Capital Sales Tax . ........................ Huntington Beach <<.... <1 $7 94 Westminster ?.. Fountain Valley '•.•.'"` `:`":..;:';... ` •.. '" 1 4 x 3 Newport Beach :.�?.;�:Y': ::,�r;a;K'a:%!/..-;:�;.<:xr�cn�zxz::.xr�K 149 Costa Mesa :.'.�•#?:ri::•:t•:::>i;j.:.»:'::r:.;,.../��<:•.�::2..,%'33�,:; :•`.2ir,::;.v.,; ,..ta�>•:.. ...d::. $0 $60 $100 $150 $200 $250 June 10, 1996 Budget Study Session City Revenue Taken by the State $Millions $8 Total Loss = $24.4 Million $7.0 $7 $6 $5 3.9 $4 $3 $2 0.9 $1 $0 $0 90/91 91192 92193 93/94 94/95 95/96 ;:<::S! ... . ................ .............. .......... ......... . te 1:3 General Fund Reserve S in nwuons ♦ $3.1 Million Reduction $g $6 2 Last Year $8 6 9 ♦One-Time Costs $7 $6.2 ♦ Bankruptcy Claims $6 ♦ Litigation Costs $5 $4 fi 3.2 ♦ Fiscal Policies Require a $3 S Reserve of 3-5% $2 ♦ Projected Reserve = $1 3.4% $0 92 93 94 95 Est 96 Est .:JCL•i:+fin'J i'fi:+fiiii i:LL:bif3'x�<�{UYli06 . ............................................................................................................. .....................__ June 10, 1996 Budget Study Session ...ri>\i')$vy~%iivT1: \��•��'r'.vvy:yvi}\��J.yyviy: Looking Back: Past Budget Reductions Multi-Year General Fund Downsizing - Overview ♦ Budget Reduced 3 Consecutive Years ♦ Balanced Primarily by Reducing Expenses ♦ Elimination of 104 Full Time Positions since 1989 ♦ Quality/Quantity of Services has been reduced ♦Costs Have Been Transferred to Other Funds ♦ Maintenance has been Deferred ♦Administrative costs Reduced Significantly ♦ Decrease in Internal Service Quality/Control ♦No Salary Increases in 1993, 1994 and 1995 >:<::...........x...............>..............................:................................................................................................. Full Time City Employees 1978 1 ,059 1996 1 ,068 Rank # 98 of 100 Largest Cities (Per Capita Number of Employees) wu wnvAucciraca< .yXotuuua� .. ,�... June 10, 1996 Budget Study Session Population has Increased 190,000 180,000 170,000 181,519 160,000 170,505 150,000 140,000 130,000 120,000 115,960. 110,000 1WON 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 :<s's m qvi. Employees per 1 ,000 Population 7.0 6.6 6.5 E Total ®General Fund 6.1 6.0 5.7 5.5 5.0 8 4.5 4.0 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 .................................................................................. .. ...... Sl�rle::1:8 June 10, 1996 Budget Study Session General Fund Budget per Capita $600 ®Budget per Capita $528 $511 $500 ®Adjusted for Inflation $400 $300 $200 1159 $100 $0 76 78 80 82 84 86 88 90 92 94 96 Summary *City Council Endorsement of Balanced Approached (Expense Reductions and Increased Revenues) is Requested ♦ Preliminary Budget will be Submitted Aug. 1 ♦Public Hearings will be Scheduled for September 1.CW%,MN•%1l.....:......:VAC{4iL:G:i'!/J..:L..... x.,:Yl.{{{{{L:{{n ki+�:4Kd ........................................................................ s;::;::$�!W,'& 0 June 10, 1996 RECEIVED FROM AND MADE A PART OF T RECgAD A�THE�� COUNCIL MEETING OFF_-OFFICE OF THE CITY ,�� CONNIE BROCKWAY.CITCYLERK CLERK Huntington Beach epartment he Challenge Meeting the Challenge.. . Overview Since 1991, The Huntington Beach Fire Department Has Reduced Annual Program Costs By: 4 Eliminating Programs 4 Increasing General Fund Revenues With Program Reimbursements 4 Redeploying Personnel and Equipment 2 Meeting the Challenge.. . 1991/92 • Reduced Number of Reserve Firefighters Positions From 50 to 30 Positions 1 Annual Savings of$80,000 3 Meeting the Challenge.. . 1992/93 • Reserve Firefighter Program Eliminated -30 Positions • Reassignment of Deputy Fire Marshal and Clerk Typist Positions Annual Savings of$108,000 4 Meeting the Challenge.. . 1993/94 • Started City Ambulance Program ➢ Adds$180,000 in Net Revenues Every Year and Improves Services 4406paramedic Redeployment Saves $239,000 Annually • Central Net Revenue of$100,000 Annually FY 93/94 Savings/Revenue $519,000 5 Meeting the Challenge.. . 1994/95 • Eliminated Vacant Storekeeper Position • Increase in Cost Recovery Fees x Annual Savings of$116,000 6 Meeting the Challenge.. . 1995/96 • Implemented City-Wide - Paramedic Engine System to Provide Faster Paramedic spons • Reclassified Firefighters as Y Firefighter/Paramedics • Eliminated 3 Firefighter Positions Annual Savings of$101,028 7 Meeting the Challenge.. . To Date, the Annual Budget Savings & Revenue Total. . . ear ype Savings evenue 92 a uce eserve Prog T 80,000 0 92/93 Eliminate Reserve Prog 108,000 01111 93/94 PM Engine/Am Engine/Amb Prog , 9 /9 Store eeper Ot er 16,00 180,000 95/96 All Medic Engines 101,028 180,0 Total , 8 Meeting the Challenge.. . 1996/97 Budget Options • $3.6 Million City-Wide Reduction ➢Fire Department Reduction of$608,449 ➢Eliminates 20 Positions/3 Fire Engineers >Includes MetroCities Consolidation •$2.0 Million City-Wide Reduction >Fire Department Reduction of$330,189 >Maintains Fire Engineer Positions >Includes MetroCities Consolidation >Provides Funding for Station 6 Land Acquisition 9 $3.6 Million City-Wide Reduction Highlights - Fire Dept $608,449 Option Telecommunications Savings $ 48,132 MetroCities Communications/JPA 175,000 FireMed Offsets Paramedic Differential 1561924 Eliminates 3 Fire Engineer Positions 224,166 Eliminates 1 Office Assistant Position 38,800 Other (-34,573) Meeting the Challenge.. . §W$3.6 Million City-Wide Reduction Positions Occupied Eliminated MetroCities Communications 10 14 Fire Engineer - 3 Office Assistant 1 1 HazMat Control-Transfer -Deputy Fire Marshal - 1 -HazMat Inspector - 1 TOTAL POSITIONS 11 20 Meeting the Challenge.. . Fire Department Impacts: -$3.6 Million City-Wide Reduction • Net Fire Department Reduction of$608,449 • Eliminates 20 Positions • Eliminates Fire Engineer/ BC Aid Positions Reduces Command &Control Impacts Scene Safety, Operations and Communications D Limited Flexibility for Immediate Replacement Due to Illness, Injury and Special Assignments • Includes MetroCities Communications JPA 12 $2.0 Million City-Wide Reduction Highlights - Fire Dept $330,189 Option Telecommunications Savings $137,665 Metrocities Communications/JPA 175,000 FireMed Offsets Paramedic Differential 156,924 Maintains Fire Engineer Positions 0 Eliminates 1 Office Assistant Position 38,800. Funding for Station 6 Land Acquisition (132,149) Other (46,051) 4 Meeting the Challenge.. . $2.0 Million City-Wide Reduction Positions Occupied Eliminated MetroCities Communications 10 14 Fire Engineer - 0 Office Assistant 1 .1 HazMat Control-Transfer -Deputy Fire Marshal - 1 -Haz-Mat Inspector - 1 TOTAL POSITIONS 11 17 14 Meeting the Challenge.. . Fire Department Impacts: -$2.0 Million City-Wide Reduction • Net Fire Department Reduction of$330,189 • Eliminates 17 Positions •Maintains Fire Engineer Positions • Includes MetroCities Communications JPA. • Provides Funding for Fire Station Land Acquisition 1s Meeting the Challenge.. . Proposed Savings & Revenue $1,000,000 Includes Ambulance .......... Revenue $750,000 $500,000 $250,000 all $0 91/92 92/93 93/94 94/95 95/96 A B 16 Meeting the Challenge.. . Summary • Both Options Provide New Cost Reductions, MetroCities JPA, and New General Fund Revenue From Existing Sources • $3.6M Option Impacts Firefighting Command and Control Strategies - Cuts 3 Safety Positions • $2.OM Budget Option Maintains Existing Firefighter Staffing and Command Strategies 17 Huntington Beach Fire Department AND MA DATTHE ' COUNCIL RAEt=TIMG aF - p- OFFICE CF T 9 CIl'Y CLERK CONNIi:Bf#�CIZWAY,CITY CLERK Community Enrichment Library Fee ...dedicated to meet the growing demand for Library Services due to new development. Municipal Code Chapter 3.40 ♦ "All proceeds from the tax, penalty, and interest collected under this chapter shall be paid into a special capital outlays fund of the City entitled Library Service Fund for the acquiring, construction, equipping, maintaining and staffing of libraries, and other city council approved cultural endeavors, which fund is hereby created. 2 rr ' r justifications for Increase *Current residents not impacted --only new home buyers. ♦ One time fee - not charged annually. ♦ These new residents "buy into" existing system. ♦ Reduce impacts of Library budget reductions --especially books and maintenance. ♦ Last fee increase was on 5/1/91. ♦ Once City built out, CELF opportunity is gone. ♦ Fees deposited into cumulative Library Service Fund and carried forward for future needs. 3 J, r Library Budget ♦ Last five years Library reduced $259,526 ♦Primarily from books and staff ♦ May be reduced another $153,000 in FY96/97 ♦ Primarily from maintenance 4 -�-- Library Per Capita Costs -Comparison- Our City has the largest facility in the area. ♦How does Huntington Beach compare to other similar cities? s Books Per Capita City Comparison --------------------- Newport Beady 9s Cerritos $6. 1 Yorba Unda' $5.96 Thousand Qaks .47 Torrance $5.1 Pasadena Buena Park D.L. .94 Fullerton* •84 Anaheim' •n Huntington Beach* $ •57 Orange Courtly $2 6 Orange County orange• s2.1 Avg = $3.46 Z Santa Ana* s7 so.00 s1.00 szoo s3.00 s4.00 $s.00 . $6.00 s7.0o s6.00 s9.00 6 r Children's Books Per Capita Yorba Linda 115 Cerritos Thousand Oaks $0. Torrance $0.85 Fullerto $ .74 Pasadena $0•� Newport Beach $0.59 Orange County $0.46 Buena Park Dist 0.40 Anaheim Huntington Beach >::>::>:•::>:>:;> 18 Orange County Orange .18 Avg= $0.45 Santa Ana $0. 2 $0.00 $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 7 Total Per Capita Library Support Pasadena $5267 Newport Beach 7.96 Thousand Oaks $40•35 Cerritos $38.74 Torrance 47 Yorba Linda MMp29.92 Fullerton 20.89 Anaheim .78 Huntington Beach :;:;:;:•;: ;:::;;:....... $20.61 Buena Park Dist. $19.07 Orange 7.00 Orange County Orange County $14. 9 Avg = $22.56 Santa Ana $12-08 $0.00 $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 8 1V X Library Per Capita Costs Comparison-Summary-Compared to thirteen other local cities, Huntington Beach ranks: ♦ 10th in per capita for books, periodicals, etc.... ( $2.57 per capita) ♦Tied next to last for children s books, etc.. ( $0.18 per capita) ♦ 9th in total operating and personnel budget ( $20.61 per capita) 9 J. Comparison. with the CELF Increase ♦ Increasing the CELF to the recommended $.30 per sq. ft., would only increase the Library's ranking from ninth to seventh. 10 .,1;f ��—Per Capita Comparison A ter CELF Increase Pasadena $52.67 Newport Beach 7.96 Thousand Oaks $40.35 ------------------ Cerritos 38.74 Torrance $30.47 Yorba Linda $29.92 Huntington Beach > $21.93 Form 2rly$2 .61 Fullerton $20.89 Anaheim $20.78 Buena Park Dist. $19.07 orange County Orange 17.00 Avg = $22.56 Orange County 14.6 Santa Ana $12.08 $0.00 $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 it ' Increased Book (Materials) Costs ♦ Based on the publication Bowker Annual: Library Trade Almanac, books, magazines and other Library material increased 4 annually over the last five years. 12 1 Book Buying Power ♦ FY89/90 Book Budget was $275,602. ♦ Based on Bowker publication, to keep up with a 4% book annual inflation during FY89 96, 1 Library needs $362,673 just to maintaine same 89/90 level. ♦ FY96/97 book budget is $186,606 (incl. nonresid. fee) Therefore... ♦ $176,067 (50%) Less Book Buying Power!! City's Book Buying Trend Actual Budget Funds Needed $400,000 $350,000 $362,673 $300,000- $250,000 $176,067 less for Books $200,000 $150,000 1188,sos $100,000 $50,000 $0 FY69190 FY90191 FY91192 FY92193 FY93194 FY94195 FY95196 FY96197 CELF Staff Recommendations Current Recommended ♦ $.15 per square foot ♦ $.30 per square foot ♦ Commercial and ♦ Commercial and Residential Residential 15 '.Alternate Consideration ♦ Staff Recommendation ♦ Alternate ♦.$.30 Residential and ♦ $.55 Residential Commercial ♦ $.15 Commercial 16 1 \�Z Alternate Revenue ♦ Major Developments =.Est. 13/633/520 Sq. Ft. ♦ Residential 11,115,920 sq. ft. (77.35%) ♦ Commercial 2,517,600 sq. ft. (22.65%) 17 ..J 1 Alternate Revenue Total CELF Additional Revenue Revenue Current @ $.15 = $2,045,028 -$0- Staff Rec'm. @ $.30 = $4,090,056 $2,045,028 Alternate: $6,491,396 $4,446,368 ♦ Res. @ $.55 = $6,113,756 ♦C/I @ $.15 = $ 377,640 18 _ My $30? •Significant loss of book buying power. ♦ Estimated annual increase -of $200,000-$250,000 offsets the Library's budget reductions of $260,000. ♦ Increased costs to provide future residents adequate Library services. ♦ Underfunding of Library compared to other cities. ♦ 25 year old building. 19 CELF ONE TIME Costs One Time Additional Cost for a 2,200 Sq. Ft. Home: CELF .15* $.20 $.25 $.30 .35 .40 .45 .55 CELF Cost $330 $440 $550 $660 $770 $880 $990 $1210 '`current fee Additional Costs at$.15 $0 $110 $220 $330 $440 $550 $660 $880 20 r 1 ,Why Utilize CELF? ♦ Increased revenue dedicated for Library costs. ♦ Would not be diverted to other City operations. ♦ Enables Library to plan for future with dedicated revenue sources. ♦ Less dependent on General Fund. zi To Increase Fee: ♦ Must amend Ordinance ♦ Pass Resolution ♦ Nexus report verifying that fees are used for intended purpose and that those paying fee have access to program. zz Support ♦ CELF has been reviewed and endorsed unanimously by the Library Board of Trustees and Library Support Groups. i 23 ' --- Summary • Reduces new development impact. ♦ Revenue goes into Library Service Fund. ♦ Increase from$.15 to $.30. ♦ Added costs only $330 for 2,200 sq. ft home. i ♦ Average annual additional revenue offsets Library budget reductions ($260,000). ♦ Assist in paying for maintenance and books. ♦ Library less dependent on General Fund. 24 ATTACHMENT "A" Library Book Buying Power FY89/90 - FY96/97 FY89-97 Book Library Book Budget Reduction Fiscal Year Book Budget Reduction Cumulative Reduction FY89/90 $275,602 $0 FY90/91 $233,679 $41,923 $41,923 FY91/92 $224,942 $8,737 $50,660 FY92/93 $197,906 $27,036 $77,696 FY93/94 $147,906 $50,000 $127,696 FY94195 $147,906 $0 $127,696 FY96/96 $166,606* ($18,700) $108,996 FY96/97 $186,606* ($20,000) $88,996 *Includes revenue from nonresident library card fee Increased Book Costs vs. Reduced Book Budget The annual costs of library books has increased an average of 3.96% from 1990-1995, according to the publication Bowker Annual: Library Trade Almanac. When the cost increase is compared to the reduced book budget, the difference indicates the Library's loss in buying power for books: Fiscal Year 4% Cost Increase Book Budget Underfunded Underfunded % FY89/90 $275,602 $275,602 $0 FY90191 $286,626 $233,679 . $52,947 18% FY91/92 $298,091 $224,942 $73,149 25% FY92/93 $310,015 $197,906 $112,109 36% FY93/94 $322,415 $147,906 $174,509 54% FY94/95 $335,312 $147,906 $187,406 56% FY95/96 est. $348,724 $166,606 $182,118 52% FY96/97 est. $362,673 $186,606 $176,067 50% Total FY89-97 $2,539,469 $1,581,153 $958,306 Annual Ave. 41% -�-4% Cost Increase - -Book Budget $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $0 rn rn rn rn rn rn CD co rn rn o a M v Ln co U- LL LL u- LL LL L Major Development Projects and the Community Enrichment Library Fee Development Comm./Indus. Total SF Community enrichment Library Fee Units Ave. SF Total Res. SF Total Com/Ind SF Res/Com/Ind $.15 Res&C/I $.30 Res&C/1 $.15 Com/$.55 res. cn Holly Seacliff . 1,993 2,040 4,065,720 860,000 4,925,720 $738,858 $1,477,716 $2,365,146 Meadowlark 600 2,000 1,200,000 Completed 1,200,000 $180,000 $360,000 $660,000 P Ascon 600 2,100 1,260,000 0 1,260,000 $189,060 $378,000 $693,000 z Waterfront 639 1,800 1,150,200 11255,600 2,405,800 $360,870 $721,740 $820,950 or Downtown Core 800 1,600 1,280,000 250,000 1,530,000 $229,500 $459,000 $741,500 a Misc. Dev. 1,200 1,800 2,160,000 - 152,000 2,312,000 $346,800 $693,600 $1,210,800 F' Subtotal 5,832 1,890 11,115,920 2,517,600 -13,633,520 $2,045,028 $4,090,056 $6,491,396 H Q Bolsa Chica 2,500 2,000 5,000,000 25,000 5,025,000 $753,750 $1,507,500 $2,763,750 Major Dev.Total 8,332 1,945 16,115,920 2,542,600 18,658,520 $2,798,778 $5,597,556 $9,255,146 *Holly- Seacliff Development (Draft) - Tract Type No. Units Ave. Sq Ft. Total Sq. Ft. Ave. Sale Price Commercial Parkside dpix 150 1,650 247,500 $215,000 Bel Aire sfd 210 2,600 546000 $375,000 Hillcrest sfd 179 3,300 590:700 $475,000 Serwook sfd 244 2,200 536,800 $295,000 Bluffs sfd 125 3,600 450,000 $490,000 Breakers sfd 70 2,000 140,000 $295,000 Portofino th 156 1,370 213,720 $195,000 Beach Terr. th 81 1,370 110,970 $180,000 Greenbrier dpix 132 1,650 217,800 $230,000 Belmont sfd 90 2,700 243,000 $360,000 Cove th 150 1,050 157,500 $140,000 Montecito th 100 1,370 137,000 $200,000 Montecito sfd 142 1,750 248,500 $265,000 Holmby th 164 1,370 224,680 $180,000 Total na 1,993 2,000 4,064,170 $278,214 860,000 (est.) *The original Library Services Fund revenue projections were based on Holly Seacliff developing 3,500 homes averaging 2,200 sq. ft. However, based on ne information, the development will have fewer homes with less square footage. Therefore,.Library Service Fund revenue will be less than originally expected: .-Holly - Seacliff: Original Plan Draft Plan Total DIFFERENCE 7,700,000 4,064,170 Square Foot 3,635,830 (47%) less SF 3,560 1,993 Homes 1,507 (43%) less homes 2,200 2,000 Average Home S.F. 200 (10%) less ave. home SF 52.310.000 51.477.716 Revenue Cad $.30 Per SF $832.284 1ess Revenue Land Use Percentage: Residential vs CommercialAndustrial Land Use as Identified in the General Plan T Current(1992) Potential(Future Use) H Residential 413% 65.66% w Commercial 7.5% 7.25% x Industrial 8.3% 8.55% U Other 42.9% 18.54% E-1 Total 100% 100% E1 Residential/Commercial/Indust. ONLY 63%Residential 76%Residential 38%Comm/Indust. 24%Comm/Indust. Major Development Projects and the CELF Development Type w/o. Bolsa Chica Percent incl. Bolsa Chica Percent Residential 11,115,920 77.35% . 16,115,920 84.22% Comm/Indus. 2,517,600 22.65% 2,542,600 15.78% Holly Seacliff Percentage Comparison - Residential vs Commercial/Industrial Develo ment T e _Square Ft. Percent Residential 4,064,170 78.84% Commercial/Indust. 860,000 21.16% Page 2- Council/Agency Agenda -6/10/96 (2) 2. (City Council/Redevelopment Agency)-1996-97 City Budget Shortfall Solutions - Includes Discussion on Increase to Community Enrichment Library Fee -Public Hearing Scheduled For 6/17/96 `/ Communication from the City Administrator submitting, pursuant to the April 29, 1996 Study Session relative to the $4,000,000 General Fund Shortfall, a package of departmental expenditure reductions totaling approximately$2,000,000 together with recommended new revenues totaling $2,000,000 for Council review. 1. Review revised expense reduction list. 2. Review potential new General Fund revenues of$2 million. 3. Review listing of surplus property that is potentially available for sale or lease. 4. Departmental presentations regarding the impact of Budget reductions: A. Fire Department i B. Community Development Department C. Public Works Department 5. City Council Discussion. [Budget Presentation Made, including Report on Library and proposed Community Enrichment Library Fee.] [Straw votes to maintain funding for Senior Outreach, DARE and Neighborhood watch 5-2 (Dettloff, Leipzig -- NO -- due to opposition to process.] 3. Submitted by Mayor Pro Tempore Bauer Re: M.S.I. Fees Communication from Mayor Pro Tempore Bauer, dated 6/4/96, re: a request for a summary of all M.S.I. fees which have been only partially assessed or not assessed. [PUBLIC COMMENTS * Speaker in favor of Item No. 1 - acquisition of Encyclopedia Lots * Speakers in opposition of Item No. 1 - acquisition of Encyclopedia Lots * Students, Principal and other speakers in support of continuation of DARE Program.] COUNOIL AGENCY ADJOURNMENT/At 12:15 AM]. To 5 p.m., Monday, June 17, 1996, in Room B-8, Civic Center, 2000 Main Street, Huntington Beach, CA. CONNIE BROCKWAY, CITY CLERK City of Huntington Beach 2000 Main Street- Second Floor Huntington Beach, California 92648 536-5227 (2) �P LL Y ir LLJ Community Enrichment 0 � WU U U� 4 2 >U LibraryFee = "-a F- W 3 ILL.o�� g�zo0 ¢a W U-<Wli- ...dedicated to meet the growing demand UJ W-i"Z >QJo0 W.MZ U for Library Services due to IM Q new development. :•:%4:» J Municipal Code Chapter 3.40 ♦ "All proceeds from the tax, penalty, and interest collected under this chapter shall be paid into a special capital outlays fund of the City entitled Libra�Seryice Fund for the acquiring, construction, equipping, maintaining and staffing of libraries, and other city council approved cultural endeavors, which fund is hereby created." 2 J Y - justifications for Increase *Current residents not impacted —only new home buyers. ♦ One time fee - not charged annually. ♦ These new residents "buy into" existing system. ♦ Reduce impacts of Library budget reductions --especially books and maintenance. ♦ Last fee increase was on 5/1/91. ♦ Once City built out, CELF opportunity is gone. ♦ Fees deposited into cumulative Library Service Fund and carried forward for future needs. 3 J Library Budget ♦ Last five years Library reduced $259,526 ♦Primarily from books and staff ♦ May be reduced another $153,000 in FY96/97 ♦Primarily from maintenance 4 Library Per Capita Costs -Comparison- Our City has the largest facility in the area. ♦ How does Huntington Beach compare to other similar cities? s Books Per Capita City Comparison Newport 1.95 Cerritos $6. 1 Yorba Linda' $5.96 Thousand Oaks 47 Tonanca $5.1 Pasadena Buena Park Dist' 94 Fullerton' .84 AnaheW F,77Huntington Beach' •::.::. Orange County Grange Coun ...... $2 ty' Orange' $2.1 Avg = $3.46 Santa Ana' S7 $0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 $6.00 $9.00 6 A ,r 11 E Children's Books Per Capita Yorba Linda 1 15 Certi�s 1.07 Thousand Gale $0• Torrance $0•85 Fullerto 74 Pasadena $0•`� Newport Beach $0•59 Orange County Buena Park Dist. .40 Anaheim • 31 Huntington Beach .18 Orange County Orange .18 Avg = $0.45 Santa Ana $0. 2 $0.00 $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 7 JL Total Per Capita Library Support Pasadena $5267 Newport Beach 7.96 Thousand Oaks $40.35 Cerritos $38.74 Torrance 47 Yorba Linda Fullerton Z3.89 Anaheim .78 Huntington Beach •;;:;;:.;;:.:;:.;._::>::.:;>;;:.;;;;;:::.;:.;:.:::, $20.61 Buena Park Dist. Orange Orange County Orange 7.00 Orange County $14. Avg= $22.56 Santa Ana $1208 $0.00 $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 8 1 I Library Per Capita Costs Comparison -Summary- Compared to thirteen other local cities, Huntington Beach ranks: ♦ 10th in per capita for books, periodicals, etc.... ( $2.57 per capita) ♦Tied next to last for children s books, etc.. ( $0.18 per capita) ♦ 9th in total operating and personnel budget ( $20.61 per capita) 9 J, , Comparison with the CELF Increase ♦ Increasing the CELF to the recommended $.30 per sq. ft., would only increase the Library's ranking from ninth to seventh. i Per Capita Comparison A er CELF Increase Pasadena $52.67 Newport Beach 7.96 Thousand Oaks $40.35 Cerritos 38.74 Torrance F$2 Yortra Linda Huntington Beach >< $21.93 Form rly$2 61 Fullerton $20.89 Anaheim $20.78 Buena Pack Dist. $19.07 Orange County orange 17.00 Avg = $22.56 Orange County 14.6 Santa Ana $12.08 1 i $0.00 $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 11 Increased Book (Materials) Costs ♦ Based on the publication Bowker Annual: Library Trade Almanac, books, magazines and other Library material increased 4% annually over the last five years. 12 i n `.r Book Buying Power ♦ FY89/90 Book Budget was $275,602. ♦ Based_ on Bowker publication, to keep up with a 4% book annual inflation during FY89 96, Library needs $362,673 just to maintain the same 89/90 level. ♦ FY96/97 book budget is $186,606 (incl. nonresid. fee) Therefore... ♦ $176,067 (50%) Less Book Buying Power!! City's Book Buying Trend Actual Budget —Funds Needed $400,000 $350,000 $362,673 $300,000_ $250,000 $176,067 less for Books $200,000 $150,000 5186,606 $100,000 $50,000 $0 FY89190 FY90191 FY91192 FY92193 FY93194 FY94195 FY95196 FY96197 + CELF Staff Recommendations Current Recommended ♦ $.15 per square foot ♦ $.30 per square foot ♦ Commercial and ♦ Commercial and Residential Residential 15 Alternate Consideration ♦ Staff Recommendation ♦ Alternate ♦ $.30 Residential and ♦ $.55 Residential Commercial ♦ $.15 Commercial 16 Alternate Revenue ♦ Major Developments = Est. 13,633,520 Sq. Ft. ♦ Residential 11,115,920 sq. ft. (77.35%) ♦Commercial 2,517,600 sq. ft. (22.65%) 17 Alternate Revenue Total CELF Additional Revenue Revenue Current @ $.15 = $2,045,028 -$0- Staff Rec'm. @ $.30 = $4,090,056 $2,045,028 Alternate: $6,491,396 $4,446,368 ♦ Res. ® $.55 = $6,113,756 ♦C/I @ $.15 = $ 377,640 18 i s i My $30? •Significant loss of book buying power. ♦Estimated annual increase of $200,000-$250,000 offsets the Library's budget reductions of $260,000. ♦ Increased costs to provide future residents adequate Library services. ♦ Underfunding of Library compared to other cities. ♦ 25 year old building. 19 CELF ONE TIME Costs One Time Additional Cost for a 2,200 Sq. Ft. Home: CELF .15" .20 $.25 $.30 .35 .40 .45 .55 CELF Cost $330 $440 $550 $660 $770 $880 $990 $1210 •currentfee Additional Costs at$.15 $0 $110 $220 $330 $440 $550 $660 $880 20 1 I Z VVhy Utilize CELF? ♦ Increased revenue dedicated for Library costs. ♦ Would not be diverted to other City operations. ♦ Enables Library to plan for future with dedicated revenue sources. ♦ Less dependent on General Fund. n To Increase Fee: ♦ Must amend Ordinance ♦ Pass Resolution ♦ Nexus report verifying that fees are used for intended purpose and that those paying fee have access to program. 22 Support ♦ CELF has been reviewed and endorsed unanimously by the Library Board of Trustees and Library Support Groups. 23 + Summary • Reduces new development impact. ♦ Revenue goes into Library Service Fund. ♦ Increase from $.15 to $.30. ♦ Added costs only $330 for 2,200 sq. ft home. ♦ Average annual additional revenue offsets Library budget reductions ($260,000). ♦ Assist in paying for maintenance and books. ♦ Library less dependent on General Fund. 24 ATTACHMENT "A" Library Book Buying Power FY89/90 - FY96/97 FY89-97 Book Library Book Budget Reduction Fiscal Year Book Budget Reduction Cumulative Reduction FY89/90 $275,602 $0 FY90/91 $233,679 $41,923 $41,923 FY91/92 $224,942 $8,737 $50,660 FY92/93 $197,906 $27,036 $77,696 FY93/94 $147,906 $50,000 $127,696 FY94195 $147,906 $0 $127,696 FY95/96 $166,606* ($18,700) $108,996 FY96/97 $186,606* ($20,000) $88,996 'Includes revenue from nonresident library card fee Increased Book Costs vs. Reduced Book Budget The annual costs of library books has increased an average of 3.96% from 1990-1995, according to the publication Bowker Annual: Library Trade Almanac. When the cost increase is compared to the reduced book budget, the difference indicates the Library's loss in buying power for books: Fiscal Year 4% Cost Increase Book Budget Underfunded Underfunded % FY89/90 $275,602 $275,602 $0 FY90/91 $286,626 $233,679 $52,947 18% FY91/92 $298,091 $224,942 $73,149 25% FY92/93 $310,015 $197,906 $112,109 36% FY93/94 $322,415 $147,906 $174,509 54% FY94/95 $335,312 $147,906 $187,406 56% FY95/96 est. $348,724 $166,606 $182,118 52% FY96/97 est. $362,673 $186,606 $176,067 50% Total FY89-97 $2,539,459 $1,581,153 $958,306 Annual Ave. 41% +-4% Cost Increase z Book Budget $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $0 rn rn rn rn rn rn e rn rn O V- c� f in (0 LL LL ur LL U- ur Major Development Projects and the Community Enrichment Library Fee Development Comm./Indus. Total SF Community enrichment Library Fee Units Ave. SF Total Res. SF Total Com/Ind SF Res/Com/Ind $.15 Res&C/I $.30 Res&C/I $.15 Com/$.55 res. co Holly Seacliff 1,993 2,040 4,065,720 860,000 4,925,720 $738,858 $1,477,716 $2,365,146 Meadowlark 600 2,000 1,200,000 Completed 1,200,000 $180,000 $360,000 $660,000 F' Ascon 600 2,100 1,260,000 0. 1,260,000 $189,000 $378,000 $693,000 2 E Waterfront 639 1,800 1,150,200 1,255,600 2,405,800 $360,870 $721,740 $820,950 Downtown Core 800 1,600 1,280,000 250,000 1,530,000 $229,500 $459,000 $741,500 Misc. Dev. 1,200 1,800 2,160,000 152,000 2,312,000 $346,800 $693,600 $1,210,800 F' Subtotal 5,832 1,890 11,115,920 2,617,600 13,633,520 $2,045,028 $4,090,056 $6,491,396 H 4 Bolsa Chica 2,500 2,000 5,000,000 25,000 5,025,000 $753,750 $1,507,500 $2,763,750 Major Dev.Total 8,332 1,945 16,115,920 2,542,600 18,658,520 $2,798,778 $5,597,556 $9,255,146 *Holly - Seadiff Development (Draft) - Tract Type No. Units Ave. Sq Ft. Total Sq. Ft. Ave. Sale Price Commercial Parkside dplx 150 1,650 247,500 $215,000 Bel Aire sfd 210 2,600 546,000 $375,000 Hillcrest sfd 179 3,300 590,700 $475,000 Serwook sfd 244 2,200 536,800 $295,000 Bluffs sfd 125 3,600 450,000 $490,000 Breakers sfd 70 2,000 140,000 $295,000 Portofino th 156 1,370 213,720 $195,000 Beach Terr. th 81 1,370 110,970 .. $180,000 Greenbrier dplx 132 1,650 217,800 $230,000 Belmont sfd 90 2,700 243,000 $360,000 Cove th 150 1,050 157,500" $140,000 Montecito th 100 1,370 137,000 $200,000 Montecito sfd 142 1,750 248,500 $265,000 Holmby th 164 1,370 224,680 $180,000 Total na 1,993 2,000 4,064,170 $278,214 860,000 (est.) "The original Library Services Fund revenue projections were based on Holly Seacliff developing 3,500 homes averaging 2,200 sq. ft. However, based on ne information, the development will have fewer homes with less square footage. Therefore, Library Service Fund revenue will be less than originally expected: ..Holly - Seacliff: Original Plan Draft Plan Total DIFFERENCE 7,700,000 4,064,170 Square Foot 3,635,830 (47%) less SF 3,500 1,993 Homes 1,507 (43%) less homes 2,200 2,000 Average Home S.F. 200 (10%) less ave. home SF $2,310,000 $1,477,716 Revenue Q $.30 e� $832,284 1ess Revenue Land Use Percentage: Residential vs_Commercial/Industrial Land Use as Identified in the General Plan Type Current(1992) Potential(Future Use) E-+ Residential 41.3% 65.66% W Commercial 7.5% 7.25% x Industrial 8.3% 8.55% V Other 42.9% 18.54% E-1 Total 100% 100% H Q Residential/Commercial/Indust. ONLY 63%Residential 76%Residential 38%Comm/Indust. 24%Comm/Indust. Major Development Projects and the CELF Development Type w/o. Bolsa Chica Percent incl. Bolsa Chica Percent Residential 11,115,920 77.35% 16,115,920 84.22% Comm/Indus. 2,517,600 22.65% 2,542,600 15.78% Holly Seacliff Percentage Comparison - Residential vs Commercial/Industrial Develo pent T e Square Ft. Percent Residential 41064,170 78.84% Commercial/Indust. 860,000 21.16% ' ATTACHMENT "D" Development Projections Fy 96-97 - 2001/02 Including Holly-Seacl ff - Meadowlark - Misc. Minor Projects (excludes Bolsa Chica, Waterfront, Ascon, etc) . Fiscal Year FY96/97 FY97/98 FY98/99 FY99/00 FY00/01 FY01/02 Total "Units 455 500 581 610 487 448 3081 Square Feet 910,000 1,000,000 1,162,000 1,220,000 974,000 896,000 6,162,000 2,000 SF ave.). CELF $0.15 $136,500 $150,000 $174,300 $183,000 $146,100 $134,400 $924,300 $0.30 $273,000 $300,000 $348,600 $366,000 $292,200 $268,800 $1,848,600 q► .:06h rfunding ut►I"" the CELiF to reduce: $81,000 General Fund sutisid to the Art Center $0.05 $45,500 $50,0001 $58,1001 $61,0001 $48,7001 $44,8001 $308,100 $0.10 $91,000 $100,0001 $116,2001 $122,0001 $97,4001 $89,600 $616,200 CELF Increase Additional Options (Based on Major Development and the Community Enrichment Library Fee) Residential - Commercial/Industrial 11,115,920 Residential SF and 2,517,600 Commercial/Industrial SF . ... 't 5.Res:8i C/t:>° < »<:'<<<< :. # :. :. :CI! .5Q:Res 8< 15 C/{ Resident $1,667,388 $3,334,776 5,557,960 $6,113,756 Comm./Indus $377,640 $755,280 $377,640 $377,640 Total $2,045,028 $4,090,056 $5,935,600 $6,491,396 Current$.15 Rev. -$2,045,028 -$2.045,028 -$2,045,028 -$2.045,028 Additional Revenue $2.045.028 $3.890.572 $4.446.368 C/t;:.......;:: .4t :::Res:; :::>::: :1€ :CA. $45Res&> $ 15:C/{ Resident $3,890,572 $4,446,368 $5,002,164 $3,334,776 Comm./Indus $377,640 $377,640 $377,640 $503,520 Total $4,268,212 $4,824,008 $5,379,804 $3,838,296 Current$.15 Rev. -$2,045.028 -$2,045,028 -$2,045,028 -$2,045,028 Add. Rev. $2,223.184 12.778.980 $3.334.776 $1.793,20 35 i' e2t esBZ5 + tkRes S C1 / ° .11 Resident $3,890,572 $4,446,368 $3,890,572 $4,446,368 Comm./Indus $503,520 $503,520 $629,400 $629,400 Total $4,394,092 $4,949,888 $4,519,972 $5,075,768 Current$.15 Rev. -$2,045,028 -$2,045,028 -$2,045,028 -$2,045,028 Add!. Rev. $2.349.064 12.904.860 $2.474.944 $3.030.740 Total Estimated Increased CELF Revenue Options The CELF revenue is estimated to be $2,045,028 $1,667,388 ($.15 C/1 x$.30 Res) 0.55 $4,446,358 ' @ $.30 x$.30. The following are ascending $1,7s3,2s8 ($.2o C/1 x$.3o Res.) ($15 Cfl x$s5'Res) revenue amounts based on CELF increases: $1,919,148 ($.25 C/I x$.30 Res) W $2,045,028($.30 C/1 x$.30 Res) $2,223,1 84 ($.15 C/1 x$.35 Res.) EH A $2,349,064 ($.20 C/1 x$.35 Res.) W 0.50 $31$70,5.:72 $2,474,944 ($.25 C/1 x$.35 Res.) � •. ($15 Cll x$50�Res $2,778,980 ($.15 C/1 x$.40 Res.) V $2,904,856 ($.20 C/I x$.40 Res.) $3,030,740 ($.25 C/1 x$.40 Res.) P $3,334,776 ($.15 CA x$.45 Res.) 0.45 $3,334,776 $3,890,572 ($.15 CA x$.50 Res.) $4,446,368 ($.15 CA x$.55 Res.) /4 0.40 7 .. 80 2 80 $56 '<»><> >>'»>' .. Q> Q> .. <..., t 40 2U CH x A0 Res X ,F s ($15C/ x$. Res.) ($ $.::. )?_: _ 2fi . +� C N 0.35 $2,223,184 $2:3 9,06. ..:.:..:.. : 7 8::.:::.:..:. * :.:.... C/i x i35 Res. 25ftzR3„ ... .: ... ... ....................:............................................ N ($15 C/)x$35 Res) ($ :: ).> > _»`:`:>: .;: 2 4 8 0 50 :.....>:.:: :..... �0.30 1 667 388 $1 93 68 .;'> $:... ....... - $ ... .............:..:.....FF.. :..,... .:.:::::::::.:.: ($.15 C/I x$.30 Res) ($:2U C!1 x$3o Res) € €#[: $ ( 30 Res) ::; ......::...:.:::: . .. :.. ::.: : 5ta ff Recommendation 0.25 0 20 ............. . . % ::..................;;:;;::: :»::>:>:».....:: :.>::»::>::::::>:>::::::::::: $0.15 $0.20 $0.25 $0.30 Commercial / Industrial HB Library System 6-18-1996 4-01AM FROM Bin Wang@ county chapter building 1ndu5tru association of southern c,,)liforniC�.inc:. x 9 Executive Circle. Suite 100, Irvine. CA 92714 —_ (714) 553.9500 FAX (714) 553-9507 cl rn - n June 17, 1996 The Honorable Dave Sullivan, Mayor City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 RE: DEVELOPMENT FEFu INCREASE/COMMUNITY ENRICHMENT LIBRARY FEE Dear Mayor Sullivan and City Councilmembers: On behalf of the Building Industry Association/Orange County Chapter, we are writing regarding item D-1 on tonight's city council agenda, the proposed increase of the Community Enrichment Library Fee. We respectfully urge a 30-day continuance of the proposed action so that BIA/OC's Local Government Affairs Committee can evaluate the proposal and seek input from affected builders. BZA/OC obtained the staff report only a few days ago and therefore our members have not had an opportunity to review the fee increase and submit comments to the city. Thank you for your consideration of our request. Please feel free to contact me at (714) 553-9500 if you have any questions. Sincerely, 'Yj" Christine M. D emer Executive Director/Director of Government Affairs CMD:ks cc: Councilmember Ralph Bauer Councilmember Shirley Dettloff Councilmember David Garofalo Councilmember Peter Green Councilmember Tom Harman Councilmember Victor Leipzig J BIA/OC Board of Directors and past Presidents PRESIDENT )ST Vl';E rM?CSIDFNT 2ND)ACZ=^F T)ENI TREASUI:ER v H.iA`NRFNC=WEf3+ LCS TNQMAS - :i:i;fl ;LN i,ttC-•GRY CURRFNS J()HN LA;NC•HOMES SHFA HUMEE ,.:LAIIOIJ I:OMP- MIiSION VIF,10 C_.01VI ANY SFCRFTAQY ASc•OCIAT"e VIC: f-tSVL-NT MCMiSFIt,;Hil'C.IAIRMA.N MEMBtR-AT-I APOE .iFFFRFY 1.5LAVIN dAMES HOGAN LIt1C 51 IFF17 RICI LARD HL N';AKER C:AUI.ORNIA.PA^.IFIC,HOMES HRP LANDS;CN Fi;t_:i AMCRICAN TITLE 1NSUPANCr i:O, i-lUNSAKLP&ASSOC.'IATE$ -- MEMUER-AT-LARGE MLMBER-AT:ARnP ITAM[UTATE PA`i' �1�t:dD�`T EXE,CIT)`v:UI?ECTOR TIM PAONF JEFr O;c74 MONICA%!-ORIAN DIRCCT()k c> C)OVERNMFNT Af+AIRS A.0NE.CALLAHAN,K-UHOLM&WINTON TAYLOR W00r)gC)W HOME: THEtiCOMPANY C. sTJr M.D16&R 1 4� FH CITY OF HUNTINGTON BEACH INTER-DEPARTMENT COMMUNICATION HUNTINGTON BEACH Memorandum DATE: August 14, 1996 To: Ronald E. Lowenberg, Chief of Police FROM: Jim Moore, Police Budget & Research RE: Suggestions for increasing revenue Bob Franz asked Us to further evaluate these four suggestions by the Department for increasing revenue and if deemed appropriate, implement them at this time. Our analysis and recommendations are as follows: Charges for Reports Traffic reports range in price from $15 for a counter report to $35 for a minor traffic accident report to $65 for a major accident report. Crime reports in Records are only $1.50 per page, tip to a maximum of$5. Our original suggestion was to raise the charge for crime reports to a more appropriate level to meet our costs and to reduce the charge for minor traffic accident reports from $35 to a more affordable amount. Through our study, we determined that the charge for a minor traffic accident report was reasonable due to follow-up investigation costs that are often required. But the charge for a crime report should be brought up to a fixed amount comparable to the Traffic counter report of $15. If this is initiated, we could expect to generate $16,000 in additional annual revenue. Transferring DUI Fees from Fines to Vehicle Release Fees In the past, lab fees for DUI cases were collected from a court fine pool whether or not the money was collected from the individual involved. The fine per conviction or plea was $50 to be reimbursed to the agency doing the analysis. These fines for DUI cases represented an income of$20,531 in 1994 and $30,674 in 1995. On March 1, 1996, the law changed so-that the only fines reimbursed to the department were those that were collected directly from the individuals based on their ability to pay. So in January and February of 1996, we received $5,635 under the old law. For the four month period of March through June 1996, fines dropped to $1,316 (none in March) under the new system. With the new system, we can expect approximately $5,264/year which would mean a net loss of$25,000. During 1994, we analyzed 681 DUI cases and 572 in 1995. For the first six months of 1996, we analyzed 401 cases which if extrapolated, would mean a possible 802 or more for 1996, since the heavier months are in October, November and December. I The Department can charge the actual cost of this analysis and related expenses of approximately $70 per case. To insure the collection of most of these costs, we recommend that this lab fee be added to the vehicle release fee. If 50% of the DUI cases result in impounding a vehicle and of those, 90% actually pay to release their vehicle, the Department could potentially receive $38,000 in revenue at the $70 rate. Charge Convicted Individuals Our Costs for Booking Government Code Sections.29550 - 29551, called the "Pringle Bill", allows Judges to order convicted persons to pay back cities the costs associated with booking during their arrest as part of a condition of probation. These charges range from $176 if booked at Orange County Jail or the normal charge of$150 when booked into our own jail.. Unfortunately, continuing probation for this charge becomes a bigger burden on the "system" than the importance.of reimbursement to the cities. As a result, this condition of probation is usually dropped. The burden of collection than falls upon the cities. One study from Anaheim found that it would cost more to administer and collect this fee than its face value of$150! Huntington Beach would face the same dilemma. If little or no efforts to recover these charges are made, only a small percentage will be collected and probably decline further over time. Based upon the assumption that we do not actively pursue these recovery charges, a very rough estimate is that Huntington Beach could receive a maximum of$30,000 the first year fi-om individuals fearful that probation could be continued. Using a 900 Telephone Number for Reporting Alarms Riverside County developed a plan for reducing false alarms and to bring in revenue by requiring alarm monitoring companies to report an activated alarm using a 900 telephone number into the police agency. For each reported alarm, Riverside would receive $5 in telephone charges from the alarm monitoring company. We estimate that Huntington Beach could receive as much as $36,000 the first year if this program was implemented. However, Riverside County has placed this controversial plan on hold because of the overwhelming objection by the local chapter of the Alarm Association since a false alarm ordinance is already in place. Also, a court injunction has been filed by the association and a decision is pending. I suggest that we implement the first three revenue proposals but postpone any decision on using a 900 telephone number for reporting false alarms pending litigation brought against Riverside County. This will represent a total of$84,000 in revenue. cc: Michael Uberuaga, City Administrator Robert Franz, Deputy City Administrator 2 RCA ROUTING SHEET INITIATING DEPARTMENT: COMMUNITY SERVICES SUBJECT: MAIN PROMENADE, INC. FUNDING FY96/97 COUNCIL MEETING DATE: I November 4, 1996 RCA ATTACHMENTS STATUS Ordinance (w/exhibits & legislative draft if applicable) Not Applicable Resolution (w/exhibits & legislative draft if applicable) Not Applicable Tract Map, Location Map and/or other Exhibits Not Applicable Contract/Agreement (w/exhibits if applicable) (Signed in full by the City Attorney) Not Applicable Subleases, Third Party Agreements, etc. (Approved as to form by City Attorney) Not Applicable Certificates of Insurance (Approved by the City Attorne ) Not Applicable Financial Impact Statement (Unbudget, over $5,000) Not Applicable Bonds (If applicable) Not Applicable Staff Report (If applicable) Not Applicable Commission, Board or Committee Report (If applicable) Not Applicable Findings/Conditions for Approval and/or Denial Not Applicable EXPLANATION FOR MISSING ATTACHMENTS REVIEWED RETURNED FOR _ DED ; Administrative Staff Assistant City Administrator Initial City Administrator Initial City Clerk EXPLANATION FOR RETURN OF ITEM: s SpaceOnly) i Council/Agency Meeting Held: Deferred/Continued to: �,4 _ SibApproved ❑ Conditionally Approved ❑ Denied City Clerk's Sigdature Council Meeting Date: 11/4/96 Department ID Number: CS 96-045 CITY OF HUNTINGTON BEACH REQUEST FOR COUNCIL ACTION SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS SUBMITTED BY: MICHAEL T. UBERUAGA, City Administrato?�-, t — PREPARED BY: RON HAGAN, Director, Community Service#--� SUBJECT: MAIN PROMENADE, INC. FUNDING FY 96/97 Statement of issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment( Statement of Issue: The City of Huntington Beach and Robert J. Koury Properties formed the Main Promenade, Inc., a condominium association in 1991, to administer the operating budget approved by Council for the common areas of the parking/commercial structure. It is now necessary to authorize the payment for the city's share for the operation of the Main Promenade common areas into the Main Promenade, Inc. bank account. Funding Source: General Fund Parking Facility Program Budget #344 $65,643 from Account E-AA-CS-344-3-90-00 10 000 from Account E-AA-CS-344-5-93-00 $75,643 total city share Recommended Action: Authorize the execution of a check in the amount of $75,643 ($65,643 from Account E-AA-CS-344-3-90-00 and $10,000 from E-AA-CS-344-5-93-00) to Main Promenade, Inc. for the city's share of the operation of the Main Promenade, Inc. Alternative Action(s): Do not authorize expenditure of the $75,643 budgeted for the Main Promenade, Inc. condominium association and instead have the city maintain all Main Promenade common areas at a cost of $86,350. Analysis: On October 7, 1991, City Council approved the first operating budget for the Main Promenade Parking Structure that included funding for the Main Promenade, Inc., a condominium association, that is to oversee the common areas of the retail and parking structure. The association has been incorporated under the State of California laws as a nonprofit, mutual benefit corporation, comprised of the City of Huntington Beach and Robert J. Koury Properties. Robert Koury is the representative of Koury Properties; Michael Uberuaga is the city representative and has designated Ron Hagan, Community Services Director, as his agent. I, REQUEST FOR COUNCIL ACTION MEETING DATE: 11/4/96 DEPARTMENT ID NUMBER: CS 96-045 The association is responsible for the overall operation of the Main Promenade common areas. Contracts need to be let for various services such as landscape maintenance, building maintenance, elevator servicing, fire alarm monitoring, capital equipment replacement, clerical/bookeeping and security. In order to initiate the contracts for service, the city and Robert J. Koury Properties must deposit the appropriate funds in a joint account. It has been determined that the city has an 87.6 percent interest and Koury has a 12.4 percent interest in the association. The FY92/93 budget, first full year of budgeting for operations, was $93,200. The annual budget has been reduced over the years to its current level of $86,350. This money is included in the Parking Facility Program Budget #344. Therefore, staff is requesting an allocation of $75,643 for its 87.6 percent share of the association budget of $86,350. Koury will also deposit his proportionate share of $10,707 (12.4 percent of$86,350). Revenues generated for FY95/96 totalled $516,402 (compared to $368,480 for FY94/95 from day use parking, validations and pass sales from October, 1995 to September, 1996. Environmental Status: Not applicable. Attachment(s): City Clerk's Page Number None 0021638.01 -2- 10/16/96 4:06 PM i—"CPO nz Council/Agency Meeting Held: D Deferred/Continued to: XApproved ❑ Conditionally Approved ❑ Denied IV City Clerk's Signature Council Meeting Date: November 20, 1995 Department ID Number: AS 95-039 CITY OF HUNTINGTON BEACH REQUEST FOR COUNCIL ACTION SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS SUBMITTED BY: MICHAEL T. UBERUAGA, City Administrat PREPARED BY: ROBERT J. FRANZ, Deputy City Administ SUBJECT: BUDGET/FINANCIAL PLANNING PRIORITIES .01 /10 Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachments Statement of Issue: To address the financial needs of the City. Funding Source: Not applicable. Recommended Action: 1. Direct the City Administrator to continue with the actions necessary to address the priorities listed in the attached "Budget/Financial Planning" document. 2. Direct the City Administrator to provide a quarterly status report on priority budget issues. Alternative Action(s): 1. Revise priorities. 2. Request further study. Analysis: With slow growth in City revenues projected for the next several years, City staff, City Council, Finance Board and others have recognized the need for additional review of the way the City expends its limited funds. While both the total City budget and General Fund budget have been reduced for three years in a row, further reductions are necessary to adequately address pressing financial needs. j. REQUEST FOR COUNCIL ACTION MEETING DATE: November 20, 1995 DEPARTMENT ID NUMBER: AS 95-039 Attached is a description and timeline to address the priority issues related to Budget and Financial Planning of the City. The highest priorities are; 1) New funding or reallocation of $5 million per year to finance various needs. 2) Preparing long range budget projections, and 3) Implementing an Infrastructure Master Plan. PRIORITIES 1. Reinvent the Huntington Beach Budget - An estimated additional $5 million per year is needed to fund self insurance programs, unfunded liabilities, equipment replacement costs, deferred maintenance, projected revenue losses, reserves, future salary/benefit increases and other needs. The attached Budget/Financial Planning Priorities would result in the identification of expense reductions to potentially fund some of these needs by prioritizing City services, reviewing current salary/benefit costs, regionalization, privatization and other ways to reduce costs. Potential new revenues would also be reviewed. This review would be completed by April 1, 1996. 2. Long Range Financial Planning - The second priority is the development of long range financial projections which would consist of projections of revenues, expenses and Capital Projects for the next five years. This task would be completed by January 1, 1996, with major updates to the Capital Projects portion of the Long Range Plan to be made during 1996. 3. Infrastructure Funding - The third priority is the review of infrastructure funding. This project will involve Public Works staff, citizen advisory groups and the City Council working over the next year to analyze needs, prioritize projects and develop funding alternatives. Implementation of the Water Capital Improvement Plan portion of this priority will begin in 1996 and the other areas could begin in 1997. Other priorities are included in the attached plan with dates indicating the anticipated activities and accomplishments. Environmental Status: Does not apply. Attachment(s): NumberCity Clerk's Page Budget/Financial Planning Summary 0015245.01 -2- 11/09/95 9:35 AM Budget/Financial Planning Priorities Priority 1. Reinvent the Huntington Beach Budget An estimated additional $5 million per year is needed to fund, self- insurance programs, unfunded liabilities, equipment replacement costs, deferred maintenance, projected revenue losses, reserves, salary/benefit increases and other needs. Existing revenues are projected to grow at a 1-3% rate in the upcoming years, which will be insufficient to keep up with the effect of inflation and population increases, or provide any of the $5 million estimated need. Therefore, we need to implement significant expense reductions and/or revenue increases. Following is a group of projects/programs to reinvent the way the City uses its limited resources. Although some of the following projects can be completed in the near-term (6-12 months), others may take 2-3 years or longer to realize significant results. • Prioritization of City Services/Expenses - Identify $3-5 million of potential expense reductions in the City's General Fund by prioritizing City services, expenses, and positions. Complete by 4/1/96. Existing staff, with a redirection of priorities, can accomplish this task within this timeframe without the use of additional outside consulting assistance. • Review Salary/Benefit Costs - These costs are over 70% of the total General Fund expenses and need to be reviewed for potential cost savings, either through efficiencies or modification. • Review Potential New Revenues - After expense reduction/program prioritization has been completed, potential new revenues should be reviewed. • Regionalization Opportunities - Additional opportunities for cities in our region to share public safety department resources are being identified by City staff. Implementation efforts are ongoing. Achieving significant additional cost savings may take several years. Budget/Financial Planning Priorities Continued • Implement Privatization of Applicable City Services - The consultant study of additional opportunities for privatization is nearly complete. Implementation efforts should begin in 1996. Achieving significant additional cost savings may take several years. Priority 2, Long Range Financial Planning: • 5 Year Revenue Proiections - Work has begun to prepare projections of revenues for the next 5 years and should be completed by 1/1/96. • 5 Year Expense Proiections - Same as above. • 5 Year Capital Expense Projections - Same as above. As the Public Works Department further documents Infrastructure needs (see below), these projections will be updated. Priority 3. Infrastructure Funding: • Implement Water Capital Improvement Plan - Funding for this major need has been approved. Implementation will begin in 1996. • Review the City's Infrastructure Needs - The City Council has asked the Finance Board to review the financing of the City's infrastructure needs and make recommendations to the City City Council. Other citizen/community groups will also be involved in this effort. • Approve an Infrastructure Master Plan - After the review, an Infrastructure Master plan (including a Funding Plan) would be presented to the City Council for review and approval. • Implement an Infrastructure Repair/Improvement Plan - Implementation could begin in 1997. BGTPLAN.DOC -2- 11/09/95 9:08 AM Budget/Financial Planning Priorities Continued Other Priorities: • Activity Based Costing/Performance Based Budgeting - To implement a full scale system, consultant fees of as much as $400,000 has been estimated (one time costs), as well as increased permanent staffing of 3 to 5 permanent positions. About two years would be required to implement a new system. Departments would be required to devote hundreds or thousands of hours, depending on department size, to implement. Staff does not recommend this approach. Instead, staff recommends that a task force of department staff representatives review the best approaches currently in place in California cities and begin implementing changes in 1996. • Process Improvement Program - A full scale system is estimated to be comparable to Activity Based Costing in terms of cost, timing, and commitment of City resources. Staff does not recommend this approach. Instead, staff recommends that we continue the program begun in the Development Services Departments this year along with a continuation of outside management reviews of each Department. One department review is budgeted for 1995/96. • MSI Fees - The MSI costs will again be updated. Departments will annually review and propose updates to fees for ongoing activities such as classes, permits, etc. The MSI Study will also be used to identify potential new fees to recover costs as part of the development of an Infrastructure Master Plan. BGTPLAN.DOC -3- 11/09/95 9:08 AM Budget/Financial Planning 1995 - 1997 Title Q4 Q196 Q2 Q3 Q4 Q197 Q2 Q3 Q4 Reinvent the City Budget Prioritization Staff Review Public Review Implement Salary/Benefit Costs-Review Review New Revenues Regionalization-Implement Privatization-Implement Long Range Financial Plan 5 Year Revenue Projections 5 Year Expense Projections 5 Year Capital Projections Infrastructure Funding Implement Water CIP Review Needs Approve Infrastructure Plan Implement Infrastructure Plan Performance Based Budget Process Improvement Program MSI Fees Update Adopt Annual Changes ' 11/9/95 Budget Reduction Priorities--Option 5 LIBRARY DEPARTMENT 100%= $3,060,977 5%=$153,050 Personnel Ranking Program Budget Reduction Total Reduction I Perm.Pers. Temp.Pers. ------------- 1 Sister Cities $10,720 $10,720 $10,720 0 0 2 Recpt./Inform. $54,660 $11,280 $22,000 0 0 -- -- - - ------ -- -- -- --- - - - --- ---- --- ------------ -- -- -- - ----- --- ---- -------- 3 Facilities Malnt. [ $131,194 - -$43,000 - $65,000 1 -- --- -- --- -------------- --- -- -- - -- - ------ --------- -- -- -- -- -- - ------ - ------ 4 Technical Svcs. $335,593 $33,000 $98,000 I 1 ------------ ----------------- --- ------------------ ------------------------ -------------------- ------------ ------------- ------------------------- ------------ 5 Facilities Maint. $88,194 $26,300 $124,300 1 6 Circulation $194,183 $15,000 $139,300 2 7 Reference $420,000 $14,073 $153,373 5% 1 Total Pers. 1 4 2 Alternative Trans. Lib. Bond $398,999 � I - I I IMPACTS: s 1. Eliminate city support for program including cultural exchanges, meeting expenses, supplies, etc. X 2. Reallocate occupied Librarian position to Principal Library Clerk resulting in less professional service 3. Eliminate permanent Maintenance Facility Worker(he would bump within PW) and use temporary employees. 4. Eliminate Library Clerk position responsible for repairing books. Recruit volunteers. (Employee retiring approx. 2 yrs.) 5. Reduce temporary maintenance hours and supplies. Building and facilities routine maintenance will decrease. 6. Reduce two temporary pages resulting in longer turnaround for books to be shelved. Z 7. Eliminate permanent Library Clerk Senior and replace with temporary clerical. (Employee retiring approx. 2 yrs.) *Alternative- 1972 Librafy Bonds mature in 1997198 resulting in $399,000 reduction. Huntington Beach Public Library System r 'CO-M-MUI-Ni- -tY DEVELOPMENT ♦ Department Functions ■ Building Division Inspections 28,000 per year Plan Check 1 ,300 per year Permit Issuance 8,400 per year ■ Planning Division Regulatory Review � g y . Reviewed 500 development applications for consistency with zoning code . Public Policy Recommendations Advance Planning ■ Code Enforcement Section Processed 5,200 Citizen Complaints �— - . � ,.....P#ems•. .... rir r:-•,'iM�wi- rr' i.. . 7,,,,. _fir. n Q) Prioritizat_1.011 o .. . Uts. 95/96 Budget = $3,339,617 $223, 00teduction _ 7% Service Positions Savings Impact Consultant $ 44,000 None -.will do in any case & Salary Adjustments Code Enforcement 2 $116,400 Will reduce responsiveness (transfer 1 of 5,200 complaints/year to CDBG) (Less if CDBG supports one of these positions Asst. Planner 1 $ 63,000 Will reduce work on significant ( vance Ping) City projects (i.e. Hsg. Element, Bolsa Chica, NESI, Closed Sch Issues, Envir., LCP, DTPMP, e $223,400 r T Ti' _,fir _� �� �� ,�T 1 ~ . SUMM R Y. - ; +• t r ♦ Cuts/Downsizing in Department over past five years have left usrwith bare minimum staffing today ♦ Development review, processing applications plan checking are state mandated - further cuts would put us over state.,mandated time lines ♦ Building inspection, permit counter staff, planner; graphic, plan checker were reduced in previous years ♦ Code Enforcement Program will be reduced ♦ Attention to high priority planning projects will be reduced ♦ More Mistakes ♦ Customer service will be slower ♦ More work to do than staff - need assistance from' .city Council in prioritization of projects CITY ATTORNEY'S OFFICE PROPOSED 1996/1997 BUDGET REDUCTION Total 1995/1996 City Attorney Budget = $1 ,378,947 $100,274 Reduction - - 7.5% Reduction Goal Per City Administrator Reductions $ 54,274 Do Not fill vacant Administrative Assistant position and consolidate duties with Office Manager and Support Staff (Rebecca Lazar will be here the first(3)months of 96/97 fiscal year in which$13,500 will be needed. She intends to resign 1/3/97.) 28,000 Temporary Salaries (No paid law clerks/summer help) Special counsel & (1) student intern are maintained (A balance of $58,000 will be left in the 96/97 fiscal budget.) 10,000 Legal Services Account (A balance of$27,000 will be left in the 96/97 fiscal budget.) 8,000 Operating Expenses - Library $2,000/litigation services $5,000/meetings & conferences $1,000 (A balance of $128,881 will remain in operating expenses.) $100,274 Total 1996/97 Fiscal Year Budget Reduction Impact of 1996/97 Fiscal Year Budget Reduction on the City Attorney's Office 1. No service impacts on the public 2. All service impacts will be internal to city attorneys office and on to other staff departments. Do Not Fill Vacant Administrative Assistant and consolidate duties with Office Manager and Support Staff: • More administrative duties placed on Office Manager and support staff. • Office Manager to assume administrative functions. • Office Manager will be unable to research, organize and retrieve data for business reports and litigation. • Office Manager will provide reduced supervision of and assistance to support staff. • Increase in personal word processing responsibilities of attorney staff. Reduction in Temporary Salaries: 1. The permanent support staff will need to assume the temporary student interns duties such as: • Photocopying, indexing, tabbing and faxing documents • File pleadings at Municipal and Superior Courts • Serve subpenas and deliver documents • Insert supplements and maintain law library books • Fill-in for the front office receptionist's duties • Organize City Attorney's closed files in-house and in the city's storage facility • Maintain City Attorney's automobiles 2. Substantial additional costs will be incurred by using delivery and attorney service companies to file and serve court papers. Attorneys will lose valuable time and energy searching for missing or misplaced supplements and books. Reduction in Operating Expenses/Legal Services: City Attorney's Office will need to seek additional General Funding from City Council to pay for non-tort legal services (i.e., eminent domain, breach of contract, etc.) as needed. Reduction in Library Expense: •. Increased, delay of information and for travel to Orange County Law Library • Loss of employee time at city hall CA 96-01 r .4$BACH City of Huntington Beach COUNCIL-ADMINISTRATOR COMMUNICATION HUNTING TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS FROM: MICHAEL T. UBERUAGA, City Administrator SUBJECT: BUDGET STUDY SESSION DATE: FEBRUARY 9, 1996 l Attached is a copy of the RCA approved by the City Council November 20, 1995 establishing priorities for Budget/Financial Planning. As indicated in the agenda for the February 12, 1995 Budget Study Session, we will provide a status report on the actions taken to address these priorities. We have held three separate lengthy Department Head sessions (including one all day session) to focus on priorities in the General Fund budget and to try to develop a list of service reductions in each department that could be implemented to reduce General Fund costs. The February 12 Study Session will focus on Department Head presentations of the service reductions required in order to "reinvent" the budget to attain cost reductions of $3 to $5 million. While service reductions are not the only alternative to address budget issues, our efforts have begun with these discussions prior to an in-depth review of other alternatives. This approach is consistent with the timetable outlined in the attached RCA. MTU:RJF:skd e 0016994.01 02/09/96 8:25 AM MINUTES CITY COUNOL/REDEVELOPMENT AGENCY Central Library, Rooms C and D 7111 Talbert Avenue Huntington Beach,.California Monday, February 12, 1996 Mayor Sullivan called the adjourned regular meetings of the City Council and Redevelopment Agency to order at 5:00 p.m. in Room C and D of the Huntington Beach Central Library. i CITY COUNCIL/REDEVELOPMENT AGENCY ROLL CALL PRESENT: Harman, Leipzig, Bauer, Sullivan, Dettloff, Green, Garofalo ABSENT: None Study Session - Preliminary Discussion Held Regarding The 1996-97 Budget The subjects covered in the study session included: 1. Status Report: Budget/Financial Planning Priorities A. Reinvent the Budget B. Long Term Financial Planning C. Infrastructure Funding 2. Refining the Problem -Why Reinvent the Budget? A. Infrastructure/Maintenance Needs B. Redevelopment C. Self-Insurance D. Salary/Benefit Program E. Slow Growth of Revenues 3. Five Year Revenue and Expense Projections - First Draft 4. Alternative Solutions A. Service Reductions B. Revenue Increases C. Salary/Benefit Cost Reductions D. Better Efficiency (1) Privatization (2) Regionalization (3) Productivity_Improvements 5. Timetable/Process 6. City Council Discussion 7. March 11, 1996 Study Session - Discussion CITY OF HUNTINGTON BEACH INTERDEPARTMENTAL COMMUNICA TION TO: MAYOR SULLIVAN & COUNCILMEMBERS FROM: Michael T. Uberuaga, City Administrate SUBJECT: BUDGET STUDY SESSION - MARCH 25, 1996 DATE: March 21, 1996 The following tentative agenda has been developed for the discussion of Budget issues at your March 25, 1996 Study Session: - Review Cause of Budget problems "Looking Back: Past Budget Reductions —= Looking Ahead: 5 Year Projections - Review Alternative Solutions • Expense Reductions • Revenue Increases - Review Options - City Council Discussion One of the objectives of these study sessions (one in February and 2 in March) is to facilitate greater involvement by the City Council in the Budget Planning process. The 1996/97 budget will be forwarded to you by August 1 for adoption by September 30. The City Council discussion and direction to the staff in the current study sessions will be incorporated in the preparation of the 1996/97 budget and our multi year budget plan. Attached are summaries listing of Potential Revenue Increases and Potential Expense Reductions as discussed at the last 2 Budget Study Sessions. No final decisions are needed on any specific revenue or expense issues. However, policy direction is needed from the City Council on addressing the long term budget issues. 7, iti-1cm,iNnH BDGT396.DOC 03M333,_ 03/21/96 12:31 PM Summary - Potential New Genefa/fuad Revenue Sources Estimated New General Fund Cumulative Recommended for Further Study Annual Revenue Revenue Parking Fee Changes: Meters/Structure(APPROVED) $ 400,000 $ 400,000 J............................................................................................................................................................................................................................... .......................................... Revenue Audits/Revenue Collections 400,000 ............................................................................................................................................................................................................................... .......................................... Oil Pipeline Franchise Fee Increases 400,000 ............................................................................................................................................................................................................................... .......................................... Lease of City Property 400,000 ............................................................................................................................................................................................................................... .......................................... Contract Scientific Investigation Lab Services To Other Agencies 400,000 ............................................................................................................................................................................................................................... .......................................... Sale of City Property 400,000 ............................................................................................................................................................................................................................... .......................................... New Parking Meters-Brookhurst &Magnolia 45,000 445,000 ............................................................................................................................................................................................................................... .......................................... Parking Meters Beach Blvd. 20,000 465,000 ............................................................................................................................................................................................................................... .......................................... Increase Beach Parking Fee$1 300,000 765,000 ............................................................................................................................................................................................................................... .......................................... State Parks Water Use Surcharge 765,000 ............................................................................................................................................................................................................................... .......................................... Update Charges For Current Service 50,000 815,000 ............................................................................................................................................................................................................................... .......................................... Parking Meters - Central Park.... ry 200,000 1,015,000 ............................................................................................................................................................................................................................... .......................................... Business License-Rental Units: Single Family &Duplexes 200,000 1,215,000 ............................................................................................................................................................................................................................... .......................................... Business License- $10 Per Year increase 160,000 1,375,000 ............................................................................................................................................................................................................................... .......................................... Community Enrichment Library Fee Increase 1,375,000 .............................................................................................................................................................................:................................................. .......................................... Sewer Maintenance Fee 1,100,000 29475,000 ............................................................................................................................................................................................................................... .......................................... Refuse Fee: 50 Cents Per Month Increase 25%000 2,725,000 ............................................................................................................................................................................................................................... .......................................... Additional Potential New Revenues New Parking Meters-Inland side of P.C.H. 100,000 2,8259000 F .. .ee' ..:......a.......lse....911.......................................................................................................................................................... ............................................. .. .............3...,..025.., ...... ........ .. ee F Calls 200,000 000.. ............................................................................................................................................................................................................................... .......................................... Barrel Tax(Oil): 1 Cent Additional 30,000 3,055,000 ............................................................................................................................................................................................................................... .......................................... T.O.T. (Transient Occupancy Tax/Bed Tax): 1% Additional 100,000 3,155,000 ............................................................................................................................................................................................................................... .......................................... Annual Fire Prevention Inspection Fee 200,000 3,355,000 .............................................................................................................................................................................................................................. .......................................... State Mandated Fire Inspections 3,355,000 ............................................................................................................................................................................................................................... .......................................... Storm Drain Maintenance Fee 1,040,000 4,395,000 ............................................................................................................................................................................................................................... .......................................... Entertainment Fee 275,000 4,6709000 .................................................................................................................................................................................................. .............................�........... Loc al Option Cigarette Tax 4,670 000 G:\BUDGET\FIN-BRD\[GFREVNEW.XLS]New Revenue-CC Print Date 3/21/96 Summary 12:21 PM r' Summary - Potential General Fund Expenditure Reductions Annual Department/Program Description Savings LIBRARY Sister Cities Eliminate Budget Support for the Program $10,720 Reception/Information Replace Librarian with Clerk 11,280 Facilities Maintenance Replace 1 Permanent Position with Temporary 43,000 Technical Service Replace 1 Permanent Position with Volunteers 33,000 Facility Maintenance Temporary Position and supplies - Decrease Maintenance 26,300 Circulation Reduce 2 Temporary Pages - Slower shelving of Books 15,000 Reference Replace Library Clerk Senior w/Temporary 14,073 Library Subtotal 153,373 COMMUNITY DEVELOPMENT Planning Consultant costs will be reduced in 1996/97 44,000 Code Enforcement Eliminates 2 Permanent Positions - Reduce responsiveness 116,400 Planning Reduce 1 position in Advanced Planning 63,000 Community Development Subtotal 223,400 PUBLIC WORKS Maintenance Administration One Position-Maintenance Administration 15,721 Construction Two positions - Construction: Delays in Project Inspection 58,724 Painting Two positions -Eliminate most maintenance painting 196,448 Engineering One position-Eliminate General Fund Design Staff 23,826 Engineering Reduce N.P.D.E.S. program budget 28,659 Administration Contract out Special Events Support 37,828 Warehouse Storekeeper 39,476 Traffic Engineering Transfer partial position to other Funds 13,168 Park Maintenance. Reduce Maintenance & Ball Diamond Renovations 286,832 Public Works Subtotal 700,682 FIRE DEPARTMENT Telecommunication Telecommunications Audit 48,132 Communications Transfer Communications to North Net J.P.A. 175,000 Paramedic Paramedic Differential Reimbursement 156,924 Suppression Eliminate 3 B/C Aid Positions 224,166 Training Clerical Position Eliminated 38,800 Other Net Increase from other Changes (34,573) Fire Department Subtotal 608,449 Page 1 of 2 3/22/96 Annual DepartmentlProgram Description Savings POLICE DEPARTMENT Gang Prevention Program Eliminates Gang Counseling Service 40,000 Juvenile Diversion Program Eliminates Juvenile Diversion Counseling 73,000 Juvenile Diversion Program Eliminates One Temporary Position 6,500 Reporting Eliminates 1/2 Permanent Position- 21,000 Video Production Eliminate One Permanent Position 67,000 DARE Eliminate Two Permanent Positions 170,000 Neighborhood Watch Eliminate One Permanent Position 53,000 Aero Eliminate One Permanent Position 85,000 Accident Investigation Eliminate One Permanent Position 80,000 DARE Eliminate Two Permanent Positions - Removes Program 170,000 Police Department subtotal 765,500 NON DEPTARTMENTAL Operating Transfer General Fund water costs to Water Fund 385,000 Non-Departmental Subtotal 385,000 ADMINISTRATIVE SERVICES Accounting Eliminate 1.25 permanent positions-Reduce Actg. Services 101,000 Info. System. Mainframe Computer Costs 74,000 Real Estate Eliminate one Temporary Position 35,000 Personnel Reclass Mgt.. Position to Non-Mgt.. 28,000 Administrative Services Subtotal 238,000 ADMINISTRATION Administration Permanent Position-1 60,057 Administration P.I.O. non salary costs 26,286 Alternate Commute Transfer some costs to General Fund (16,346) Administration Subtotal 69,997 COMMUNITY SERVICES Cultural Arts Eliminate Division-2 Permanent Positions 155,000 Community Centers Eliminate 2 Permanent Positions-Oakview Center 130,000 Sr. Outreach 5 Sr. Outreach personnel 120,000 Community Services Subtotal 405,000 CITY ATTORNEY Attorney Eliminate 1 Permanent Position. Consolidate duties. 54,274 Attorney Temporary Salary cost reduction 28,000 Attorney Outside Contract Legal Services. 10,000 Attorney Reduce non-salary costs. 8,000 City Attorney Subtotal 100,274 TOTAL POTENTIAL GENERAL FUND EXPENDITURE REDUCTIONS $3,649,675 G ABU DG MR EDUCTN S.XLS]Sh eett Page 2 of 2 3/22/96 rI ._CEIVED FROM F; ;AND MADE A PART OF THE RECORD�T TIES�� COUNCIL MEETING OF OFFICE OF THE CITY CLERK CONNIE BROCKWAY,CITY CLERK Sewer Maintenance Program City of Huntington Beach Public Works Department 1 Sewer System Operation Must provide a safe and efficient system to transport 34 million gallons of raw sewage per day 1 ►1 City Sewer System ♦600 miles of Pipeline Move sewage from homes to OCSD treatment plant ♦28 Sewer Lift Stations Pump sewage from lower elevations to OCSD ♦10,000 Manholes Provide access for service and repairs 3 - Current Maintenance Program ♦Sewer Lines ,Clean with high pressure hoses Respond to emergencies *Sewer Lift Stations Limited service on pumps and engines Respond to emergencies 4 System Condition ♦Older lines are failing ♦Replacement needs are immediate ♦Conditions are evident in video inspection 5 Sewer Maintenance Fee ♦Creates dedicated revenue source ♦Funds on-going maintenance and repairs ♦Contributes to a planned replacement program ♦Contributes to system reliability 6 Stages of Maintenance ♦ Preventative Maintenance Regularly scheduled actions to identify and correct problems that could occur ♦ Timely Maintenance Action to correct a problem when discovered ♦ Deferred Maintenance Delaying any action until failure occurs Potential New General Fund Revenues "Recommended for Inclusion in 1996/97 Budget" Ref Estimated No Description Annual . evenue: 1. Parking Fee Changes (Approved) - On March 18, 1996 the City $ 400,000 Council approved changes to parking meter rates, parking structure rates and other changes to the management of the City's various parking operations. Increased revenue is anticipated to result from these changes, conservatively estimated to total $400,000 per year. 2. Community Enrichment Library Fee - See attached report. This 100,000 existing fee is 15 cents per square foot of new development. An increase to 20 or 30 cents would generate substantial additional revenues through buildout of the City at which time a fairly low level of annual revenue would be received. A public hearing.to consider this change has been scheduled for June 17, 1996. 3. Parking Meters - Beach Boulevard and Magnolia Street - See 44,000 attached report. New parking meters. could be installed cm Beach and Magnolia Streets. (The one time cost for installing the new meters is an estimated $36,000). The estimated annual net new revenue from these meters would be $45,000 per year. 1 4. Beach Parking Lots - Preferred Parking. Plan - See attached 100,000 Report. A change form current "Flat Fee" to a 2 or three different levels of parking fees depending on the Beach parking location is proposed to be implemented prior to the 1997 Summer season, generating an estimated $100,000 per year of new revenue. 5. Charges for Services - See attached Summary. City departments 50,000 annually review fees for all services, and recommend adjustments where appropriate. The MSI Study was used for a major two year review of all fees in 1991192. Staff has updated the MSI Study once and will be completing a second update this year. The annual review/update of user fees usually generates a $50,000 to $100,000 in new revenue. 6. Sewer Maintenance Fee - See attached Summary. The MSI Study (General Fund identified a total cost for the city sanitary sewer system as $3.8 = $1,000,000) million per year, of which $1.1 million is General Fund costs. The study identified a potential fee of $2.65 per month per unit to cover all costs which could be collected through the City's utility bill. G:\BOB\WORD\REVLIST.DOC 06/05/96 12:26 PM Potential New General Fund Revenues "Recommended for Inclusion in 1996/97 Budget" Ref Estimated Description Annual: No. Revenue 7. Business License - See attached report. The City averages 320,000 issuing approximately 16,000 business licenses. By increasing annual license fees by $20, the General Fund annual revenue would increase by an estimated $300,000. Prior and recent studies have identified Huntington Beach Business License Fees as lower than average G:\BOB\WORD\REVLIST.DOC 06/05/96 12:26 PM Other Recommended New Revenue Sources "Not for Inclusion in 1996197 Budget" Ref Estimated Description Annual No Revenue 8. Sale of City Property - See attached report. Some opportunities ? may exist for sale of properties previously acquired for right of way or redevelopment purposes. 9. Lease of City Property - See attached report. In addition to ? modifying lease rates as concession agreements and leases renew, City staff will continue to monitor potential new leases of City and/or Redevelopment owned property. 10. Contract Scientific Investigation Lab Services to Other ? Agencies - Orange County Sheriffs currently provide this lab service at no charge. Due to their high volume of work, analysis results are often delayed. The Sheriffs have recently been. considering charging a fee to the various agencies for this service. If this occurs, the opportunity would exist for our lab to offer the same services at a competitive fee and provide quicker analysis results. The Police Department is currently analyzing.this option. G:\BOB\WORD\REVLIST.DOC 06/05/96 12:26 PM Other Potential New Revenue Sources "Not for Inclusion in 1996/97 Budget" Ref Estimated : Description Annual No Revenue 11. Parking Meters, Parks & Library - New parking meters could be 200,000 installed in the parking lots of Central Park and the Library. (The one time cost for installing the new meters is an estimated $490,000.) The annual new revenue from these_ meters could be as high as $500,000. 12. Business License: Rental Units - Licenses are only required for 200,000 residential rental buildings with more than two units. An annual business license of $39 for single family homes used as rentals and $46 per year for duplexes used as rentals would generate an estimated $200,000 per year in new General Fund revenue. The City Council has rejected this modification twice. 13. New Parking Meters Inland Side of Pacific Coast Highway - This 100,000 program was rejected previously due to the downtown residential community's opposition to the metering and residential permit system that had been developed. This program remains as an option. 14. State Parks Water Use Surcharge - The City provides water 12,000 service to the State Park System at Bolsa Chica and Huntington State Beaches. A surcharge for water service could be charged a 10% surcharge would generate $6,000 per year. 15. Parking Meters - Brookhurst - New parking meters could be 15,000 installed on Brookhurst Street. The estimated annual net new revenue from these meters would be $15,000 per year. 16. Refuse Fee - A 50¢ per month increase in the residential refuse 250,000 fee would generate roughly $250,000 per year in new revenue to the General Fund to offset General Fund costs for billing, postage, collection, supervision, customer follow-up, contract negotiations, monitoring of the recycling program, etc. 17. Oil Production Tax - The City's oil production tax per barrel is 30,000 increased each year by the amount of the Consumer Price Index. Every 1 a per barrel addition tax should generate in excess of $30.000 of General Fund revenue. The City Council has rejected this increase twice. G:\BOB\WORD\REVLIST.DOC 06/05/96 12:26 PM Other Potential New Revenue Sources "Not for Inclusion in 1996/97 Budget" Ref Estimated Description:..: Annual No. Revenue... 18. Transient Occupancy Tax - The City's transient occupancy tax is 100,000 10% of the room rental rate. Every one percent increase would provide an approximate $100,000 revenue to the General Fund. If this tax is increased, it would be preferable to have the increased revenue earmarked for tourist business related needs rather than reducing.the General Fund shortfall. 19. Storm Drain Maintenance Fee - The MSI Study identified total 2,000,000 costs for the maintenance of the City's storm drainage system of (General Fund $2,036,000 per year. $1,040,000 of this cost is for General. Fund = $1,040,000) maintenance costs. A $3.49 per month charge would cover the maintenance and fixed asset replacement costs for the storm drain system. 20. Entertainment Fee - There are currently about 10 entertainment 275,000 establishments in Huntington Beach which charge admission. In addition, there are two theater complexes within the City. The number of patrons using. these establishments varies widely and would require extensive study to be precise. However, a prior study indicated that between 2,000 and 4,000 people per day could be a usable number. Other cities considering this type of fee talk in terms of 252 per patron. (25¢ x 3,000 x 365 = $273,750). G:\BOB\WORD\REVLIST.DOC 06/05/96 12:26 PM f � 1' CITY OF HUNTINGTON BEACH INTERDEPARTMENTAL COMMUNICATION TO: Robert Franz, Deputy city Administrator FROM: Les M. Jones II, Director of Public Works SUBJECT: Proposal for Sewer Service Fee DATE: June 5, 1996 Attached per your request, is information developed by Public Works staff, related to the implementation of a sewer service fee. These attachments outline the following: 1. Progressive levels of funding, rationale for that funding and the related fee per average household. 2. A more specific identification, typical cost examples, of the actual fee for each level of funding. 3. A comparison of sewer fees charged by other Orange County agencies. 4. A memorandum to the City Administrator answering the questions posed by City Councilmembers when the Sewer Service Fee was previously discussed. The overall issues of the City's sewer system will ultimately be reconciled as a part of the City's Integrated Infrastructure Management Program(I vIP). It is vital that, at minimum, the City take appropriate steps now to assure adequate funding for operations and critical emergency repairs. This will protect the sewer system against further disintegration as well as protect the General Fund against emergency repairs which it cannot presently afford. With the above in mind, the presentation of the Sewer Service Fee alternatives are presented in a format of: Present Maintenance Funding Minimum Basic Maintenance Funding Minimum Basic Maintenance/Immediate Repairs Funding Expanded Maintenance/Immediate Repairs Funding Expanded Maintenance/Expanded Repairs Funding If you have any questions regarding this matter, please contact me. Attach. 0019228.01 �' Proposed Sewer Service Program Level I Level 2 Level 3 Level 4 Level 5 $ 1,000,000 $ 1,250,000 $ 2,500,000 $ 4,000,000 $ 6,000,000 Operating Expenses Salaries $ 796,200 $ 796,200 $ 796,200 $ 796,200 $ 796,200 Routine Maintenance $ 212,300 $ 212,300 $ 212,300 $ 575,000 $ 600,000 Lift Station Electricity $ 130,500 $ 130,500 $ 130,500 $ 130,500 Lift Station Electrical Maintenance $ 100,000 $ 100,000 $ 100,000 $ 100,000 Manhole Restoration $ 350,000 $ 373,000 Lift Station Restoration $ 500,000 $ 500,000 Capital Replacement Shplining @$54 per lineal foot $ 750,000 $ 750,000 $ 1,750,000 Line Removal&Replacement @$100 per lineal foot $ 500,000 $ 750,000 $ 1,750,000 Annual Expense* $ 1,008,500 $ 1,239,000 $ 2,489,000 $ 3,951,700 $ 5,999,700 Level 1: Present Maintenance Funding; does not cover minimum costs of current program Level 2: Minimum Basic; includes full costs of current maintenance Level 3: Minimum Basic Maintenance& Immediate Repairs; current program plus $1.5 million for repair of identified problems in downtown area Level 4: Expanded Maintenance& Immediate Repairs; increased basic maintenance& $1.5 million capital repairs Level 5: Expanded Maintenance& Expanded Repairs; optimum basic maintenance& infrastructure replacement *Does not include Equipment Replacement or Infrastructure Depreciation 6/6/96 SEWFEE.XLS Sheet4 Proposed Sewer Service Fees Projected Annual Revenue $ 1,000,000 $ 1,250,000 $ 2,500,000 $ 4,000,000 $ 6,000,000 Method #1 Monthly Fee Monthly Fee Monthly Fee Monthly Fee Monthly Fee Fee Based on Number of Dwelling Units per Unit per Unit per Unit per Unit per Unit Total number of billable units 81,700 $ 1.02 $ 1.27 $ 2.55 $ 4.08 $ 6.12 Typical Costs Single Family Residential $ 1.02 $ 1.27 $ 2.55 $ 4.08 $ 6.12 25 Unit Apartment Building (2" meter) $ 25.50 $ 31.75 $ 63.75 $ 102.00 $ 153.00 50 Unit Commercial Complex (6" FM meter) $ 51.00 $ 63.75 $ 127.50 $ 204.00 $ 306.00 -------------------------------------- Projected Annual Revenue $ 1,000,000 $ 1,250,000 $ 2,500,000 $ 4,000,000 $ 6,000,000 Method #2 Greater of: Meter Flow Capacity or EDUs Monthly Fee Monthly Fee Monthly Fee Monthly Fee Monthly Fee per Unit per Unit per Unit per Unit per Unit Total number of billable units 78,496 $ 1.06 $ 1.33 $ 2.65 $ 4.25 $ 6.37 Typical Costs Single Family Residential $ 1.06 $ 1.33 $ 2.65 $ 4.25 $ 6.37 25 Unit Apartment Building (2" meter) $ 26.54 $ 33.18 $ 66.35 $ 106.16 $ 159.24 50 Unit Commercial Complex (6" FM meter) $ 71.13 $ 88.91 $ 177.82 $ 284.52 $ 426.77 6/6/96 SEWFEE.XLS Sheet3 Orange County Residential Sewer Charges Agency Service Area Monthly Rate Collection Method Anaheim Anaheim $0.89 per dwelling unit Water bill Brea Brea < 1,000 sq ft $0.76 Water bill 1,001-2,000 $1.52 > 2,000 $2.28 Costa Mesa Costa Mesa $1.92 SFR or Water bill $1.48 per dwelling unit Fullerton Fullerton 25% of total water charge Water bill Garden Grove Sanitary District Garden Grove .0003% of property tax Property tax Laguna Beach Laguna Beach $24.50 Property tax Newport Beach Newport Beach $ 3.60 Water bill Orange Orange $15.301 Water bill San Clemente San Clemente $15.57 Water bill Santa Ana Santa Ana $13.472 Water bill Seal Beach Seal Beach 22% of water charge Water bill El Toro Water District Lake Forest; Laguna Hills; $15.45 Water bill Mission Viejo Water bill Leisure World $13.45 Water bill Irvine Ranch Water District Irvine & unincorporated area $ 7.90 Water bill Los Alisos Water District Lake Forest $10.75 Water bill Los Alamitos Co. Water District Los Alamitos 1% property tax Property tax South Coast Water District Laguna Beach; Dana Point $24.00 Property tax 1 Trash and sewer 2 Sewer; street maintenance; street sweeping; tree trimming 6/96 CITY OF HUNTINGTON BEACH PUBLIC WORKS DEPARTMENT HUNTING7011 BEACH INTER-DEPARTMENT COMMUNICATION TO: Michael T. Uberuaga Wity r Administrator n FRO v` Les M. Jones II Director of Public Works DATE: June 5, 1996 SUBJECT: SEWER ASSESSMENT FEE PROPOSAL At the March 25, 1996 City Council Meeting, Public Works staff recommended that Council consider initiating a Sewer Assessment Fee to cover the costs of maintaining/replacing/repairing the City's sewer lines, sewer lift stations and manholes. Subsequent to staffs presentation, Councilmen Leipzig and Harman asked the following questions as answered below. QUESTION #1 What is the history of expenses for maintenance and repair over the last few years? ANSWER The following chart identifies the estimated maintenance, repair and replacement expenditures for the last three years. C T ANNUAL OS S . :.>:;.:::.::..DE—XVSORtPTIOIhf:::::::::::::::::::.:::::::.::::::::::::::::::::::::::::::::::..:::::::::::::::::::::::::::::::::::::::::::::::.:::::::::::::::::::..:.:::::::.:::::::::::::::::::::::. 1. Sewer Line Maintenance 636,165 673,116 669,996 1,979,277 (personnel & operating budgets) 2. Lift Station Maintenance (personnel & operating budgets) 325,306 334,434 316,575 976,315 3. Manhole Restoration 150,000 150,000 150,000 450,000 4. Misc. Expenditures • Lift Station Electrical Panel Replacements • Lift Station Gate Valve 5,119 5,119 Replacements • Telemetry Replacements 7,515 7,515 • Lift Station Pump 21,435 21,435 Replacements • Lift Station Access Door 54,960 46,520 101,480 Replacements • Installation of Exterior Electrical 2,187 2,187 Enclosures • Sewer Line Slip Line Repairs 131,810 29,100 160,910 • Lift Station Motors 1,113 1,674 2,787 TOTAL EXPENDITURES 1,172,663 1,322,171 1,212,191 73,7 77,025 QUESTION #2 What is the age of existing lift stations and sewer lines? ANSWER ::.::.:::.:::.::.::.::..........................................;:.;:.;;:.;:.;:.;:.......::.::.;::.;: to LOCATION YEAR BUILT AGE 1. Graham & Kennilworth 1965 31 2. Humboldt & Wayfarer 1967 29 3. "E" Station 1962 34 4. "A" Station 1962 34 5. Davenport & Baruna 1963 33 6. Edgewater & Davenport 1964 32 7. "B" Station 1962 34 8. "C' Station 1962 34 9. "D" Station 1962 34 2 10. Algonquin & Boardwalk 1963 33 (Remodeled) 1985 11. Lark & Warner 1961 35 12. Heil & Mycroft 1965 31 13. Slater & Springdale 1965 31 14. Gothard & Ellis (currently being remodeled) 1996 -0- 15. Oceanhill & Beach 1978 18 16. Adams & Ranger 1963 33 17. Brookhurst & Effingham 1965 31 18. Atlanta & Beach 1963 33 (Remodeled) 1991 19. Bushard & Pettswood 1969 27 20. Speer & Crabb 1968 28 21. McFadden & Dawson 1972 24 22. Saybrook & Heil 1965 31 23. New Britain & Adams 1972 24 24. Edwards & Balmoral 1967 29 25. Edinger & Santa Barbara 2973 23 26. Brighton & Shoreham 1972 24 27. Coral Cay 1971 25 28. Trinidad & Edinger 1976 20 . . Staff is in the process of determining the age of all sewer lines owned and maintained by the City. At present, there are approximately 576 miles of city sewer lines. To date, staff has identified approximately 20 miles of sewer lines older than 50 years. QUESTION #3 What is the current life expectancy of sewer facilities? 3 �1 ANSWER According to the State of California Controller's Office, the useful life span of wastewater facilities including sewer lines, lift stations, and manholes is 30 - 50 years. The following variables can cause premature aging of the facilities: 1. Earthquakes. 2. Poor soil conditions. 3. Deferred routine maintenance. 4. Improper or illegal connections to the system. 5. Damage by others during a construction project. 6. Illegal waste discharged into the line. 7. Ongoing infiltration of groundwater. Lines older than 50 years should be inspected at least once a year to avoid serious problems. Based on an inspection of the older lines in the downtown area (see Exhibit A) its quite apparent that lines older than 75 years should be slipped line or replaced. QUESTION #4 What is the current and recommended level of services? ANSWER Our current level of service is limited to minimal maintenance activities. Ongoing budget constraints preclude the initiation of a good preventive maintenance program (i.e. timely inspection of lines, cleaning lines on schedule, and repairing/replacing damaged lines and equipment on an as needed basis). Furthermore, the approved program budgets, for sewer line, lift station and manhole maintenance, do not include other essential costs (i.e. electrical energy and staff electrician repairs of lift stations) also covered by the general fund. The adoption of a sewer assessment fee should not only cover the cost of minimal maintenance activities and associated costs as identified above, but should also include sufficient revenues for: 1. Timely inspection of lines. 4 L% 2. Cleaning lines on schedule. 3. Replacing failed lines as already identified by staff. QUESTION #5 Is there a problem with sewer line infiltration and leaks? ANSWER ... .-_. .-.i.. .:.... ....... a .., v. x Some infiltration of groundwater occurs in all sewage collection systems. The amount of infiltration depends upon the age and condition of the system. In April of 1989 a study of lift station capacity was conducted by -OTT Engineering, Inc. in the Huntington Harbour. Through the use of flow monitoring equipment they determined that infiltration was increasing the flow levels significantly. By subtracting expected daily flows from the measured flow, it was determined that 418,422 gallons of groundwater is leaking into the sewer system each day. This groundwater is then treated unnecessarily by the Orange County Sanitation District. K4: .Based on a most recent inspections of the downtown sewer lines, it is quite apparent that the older lines are leaking sewage. As indicated on Exhibit A (see Exhibit A), the . known calculated loss is 71,374 gallons per day. QUESTION #6 Is there a rating system for sewers? ANSWER The physical condition of sewer lines is generally assessed through a televised video inspection. Line condition is determined/rated by the number.of-joints offsets, cracks, holes, deterioration and missing pipe. Staff is currently video inspecting each sewer line, rating the condition and cataloging the information. QUESTION"#7 Do we have a map of the City sewer system? 5 t 0` ANSWER The City has a sewer atlas map for each square mile of the city. Attached for your information are two atlas maps for the recent inspection of the downtown sewer lines. Atlas maps are also available for all other city lines and the 35 miles of County owned and maintained collector lines. These 38 additional maps have not been included in this packet but are available upon request. LMJ:bh Attachments: 1. Exhibit A 2. Sewer atlas maps for downtown Huntington Beach 6 Downtown Sewer Repair-Critical Priority List Between Date Age of 6/3/96 �f y } Gagons Gallons,� Excavatbrt � Sgp Wte Sewer Location Manholes '.Televised..` Lineal rot: f?Iping Number'of Creeks Numtter of Holes <Ib# pgt Day Lost to Date ,Repair Cost Repair Cost 900 Block Alley east of Main St. - _ 4 and_5 4/1_2/96_ _220 _81years 10 3 7,029 365,508 $22,060 $13,200 400 Block of 6th St.Alley _4 and 5 1/24/96_ 280 _81years 40 8 _ 5,592 732,552 $28,000 $16,800 300 to 400 Block of 6th St.Alley_ _5 and 6 124196 276_ 81years_ 20 7 __ 4,893 640,983 $27,600 $16,560 _ 900_Block Alley east of Main St.- 2 and 4 4/12/96 260 81years 22 2 4.686 243,672 $26,000 $15,600 _4_0.0 to 500 Block of 19th St.AIIey _ 3 and 4 11/21/95 _ 3_21 76_years 4 2 4,395 857,025 $32,100 $19,260 66 Block of IOth St.Alley ---1 and 2 3/14196 247 81years - 7 4 - 4,024 325,944 $24.700 $14.820 -- ------------------- ----- ---------- --- -- - -- - 600 Block of 13th St AIIey - 1 and 2 222/96 324 8lyears _ 11 9 3,798 387,396 $32,400 $19,440 500 Block of t ith St.Ailey 3 and 4 -229/96 --259 - 81years 23 5 3,480 330,600 $25,900 $15,540 _ 700 Block AIIey east of Main St. 10 and 11 4/12/96 238 811years 37 1 2,343 121,836 $23.800 $14,280 400 Block Alley east of Main St. - 17 and 18-_4/12/96 - 283 _ 81years 11 1 2,343 121,836 $28,300 $16,980 -- --- - --- - - 700 h St Block of 13t Alley _ 3 and 4 222/96 319 811years 37 5 2,110 215,220 $31,900 $19,140 _600 to_700_Block_of 13th St.Alley- 4 and 5 _222196_ 3_27_ 811years 22 5 2,110 215,220 $32,700 $19,620 _300 to 400 Block of 1Oth St.AIIey 7 and 8 3/14/96 302 81years 18 2 2,012 162,972 $30,200 $18,120 -500 to 600 Block of 8th St.AIIey _2 and 3 _320196 263 81years 14 1 1.939 145,425 $26,300 $15,780 400 Block of 9th St.Alley 4 and 5 3/15/96 299 8lyears 42 2 1,662 132.960 $29,900 $17.940 300 to 400 Block of 9th St.Alley 5 and 6 3/15/96 274 8lyears 22 2 1.662 132,960 $27,400 $16,440 50 0 to_600_Bloc_k of-_9th St.Alley 2 and 3 _3/15/96__263 _-6-11-years'-_ 19 2 1,662 132,960 $26,300 $15,780 -_400 to 500 Block of 11th St.Alley 4 and 5 __ 96 259 81years - 46 2 _ 1,392 132,240 $25,900 $15,540 400 Block of 11th St Alley _ 5-and 6 229/96 260 - 81years -- 42 -- 2 1,392 132,240 $26,000 $15,600 300 Block of 11th St.AIIey 6 and 7 -2/29/96 209 8lyea rs 33 2 1,392 132,240 $20,900 $12,540 400 to 500 Block of 13th St.Alley 3 and 4 222/96 311 81years 41 3 1,266 129,132 - $31,100 $18,660 400 to 500 Block of 1Oth St.Alley 6 and 7 3/14/96 301 81years 14 .1 1.006 81,486 $30,100 $18,060 300 Block of tOth_St.AIIey__ _8_and 9 __3/14/96 300 811years 11 1 1,006 81,486 $30.000 $18,000 _- -200 Block of 10th St.Alley- 9 and 10 3_/14/96 317 81years 9 1 1,006 81,486 $31,700 $19.020 500_Block_of 9th St.Alley 3 and 4 3/15/96 259 811years 29 1 831 66,480 $25,900 $15,540 300 to-400_Block AIIey west of Main St. 2 and 3 329196 305 81years 30 4 740 48,840 $30,500 $18,300 6_00 to 700 Block of 11th St.Alley_ 1 and 2 229196 330 8_1years 43 1 696 66,120 $33,000 $19,800 400 Block of Crest Alley at 11th 1 and 2 229/96_ 276 81years 33 1 696 66,120 $27,600 $16,560 400 to 500 Block of 7th St.Alley _ 7 and 8 3/25/96 293_ 81years 33 _ 1 647 45.290 $29,300 $17.580 100 Block of 7th St.Alley 12 and 13 _325/96 296 8lyears 25 1 647 45.290 $29,600 $17,760 600 Block of 7th St.Alley 5 and 6 325/96 304 81years 24 1 647 45,290 $30,400 $18,240 400 Block of 7th St.Alley 8 and 9 325/96 290 81years 15 1 647 45,290 $29.000 $17,400 ------------------------------------ ------------------ - _ 200 Block of 5th St.Alley_ 3 and 4 _ 326/96_ 258 811years 19 1 646 44,574 $25.800 $15,480 _ 700 to 800 Block of 13th St.AIIey 2 and 3 222/96_ 218 81years 10 _ 1 422 43,044 $21,800 $13.080 400 Block AIIey west of Main St. i and 2 329/96 116 81years 17 2 370 24,420 $11,600 $6,960 200 to 300 Block Alley west of Main St. _3 and 4 329196 _268_ 81years 28 1 185 12,210 $26,800 $16,080 200 Block of Alley west of Lake St. _1 and_2 4116/96 431 82years 86 0 Unknown $43,100 $25,860 1000 Block of Crest St.Alley_ 3 and 4 4/18/96 357__8_2years 52 1 Unknown $35,700 $21,420 _ 60_O Block of 11th St.AIIey_ 2 and 3 2/29/96 .341 81years 46 0 Unknown $34,100 $20,460 _ 800 Block of Crest St.Alley 4 and 5 4/18/96 420 82years 42 0 Unknown $42,000 $25,200 200 Block of 9th St.Alley 7 and 8 3/15/96 318 lyears 40 0 Unknown $31,800 $19,080 300 to 400 Block of 7th St.Alley 9 and 10 325/96 291 81 ears 38 0 Unknovm $29,100 $17,460 SWRPRI I.XLS Locations with an unknown value for loss are suspected of leakage, however it was not occuring during the flow analysis. 1" Downtown Sewer Repair-Critical Priority List .'.s :€ -: z. :':..✓'.�- t a..�hk <.,_�-..� -t _Y -: � ism x, -*a-_ - a z .. `ww�y �?' S - - .F .-.. -; - Between :z Date:y p :of GagonsGalkms Excavation „ SN Lme a^11e.,. -E. �-va-�`�. ,t. •3-�" �.j` y''�-.�•-. �., P l�;L-;. �.., _ ...... _Ty._ -s .. r•Locatkm : Manholes Televised Uneal•FeetP� Numberof.Craeks4NumberofHolesLostper.Day -Lostto:Date =Repair_Gost R -Cost 200 to 300 Block of 6th St.Alley 6 and 7 124/96 281 81years 37 1 Unknown $28,100 $16,860 200 to 300 Block of 5th St Alley 2 and 3 326/96 260 81years 36 0 Unknown $26,000 $15,600 600 Block Alley east of Main St. 13 and 14 4112/96 306 81years 36 0 Unknown $30,600 $18,360 200 to 300 Block of 7th St.Alley 10 and 11 3/25/96 291 81years 35 0 Unknown $29,100 $17,460 300 Block of 5th St.Alley 1 and 2 3/26/96 248 81years 35 0 Unknown $24,800 $14,880 700 Block Alley east of Main St. 11 and 12 4/12/96 233 81years 35 0 Unknown $23,300 $13,980 200 to 300 Block of 2nd St.Alley 2 and 3 4/16196 260 82years 35 0 Unknown $26,000 $15,600 200 Block of 6th St Alley 7 and 8 1/24/96 281 81years 34 1 Unknown $28,100 $16,860 500 to 600 Block of 7th St Alley 6 and 7 3125/96 293 81years 34 0 Unknown $29,300 $17,580 500 to 600 Block Alley east of Main St. 14 and 15 4/12/96 294 81years 33 1 Unknown $29,400 $17,640 1800 Block of Main St. 3 and 4 4/23/96 291 81years 32 3 Unknown $29,100 $17,460 200 Block of 8th St.Alley 7 and 8 320/96 319 81years 30 0 Unknown $31,900 $19,140 700 to 800 Block Ailey east of Main St. 6 and 9 ! 4/12/96 220 81years 30 0 Unknown $22,000 $13,200 500 Block of 13th St.Alley 2 and 3 222/96 i 317 81years 29 0 Unknown $31,700 $19,020 600 to 700 Block of.12th St.Alley 4 and 5 227196 277 81years 28 2 Unknown $27,700 $16,620 700 Block of 12th St.Alley 3 and 4 227196 266 81years 28 1 Unknown $26,600 $15,960 200 Block of 7th St Alley 11 and 12 325/96 281 81years 27 0 Unknown $28,100 $16,860 800 Block of 12th St Alley 1 and 2 227/96 141 81years 25 1 Unknown $14,100 $8,460 700 to 800 Block of 12th St.Alley 2 and 3 227/96 299 81years 25 1 Unknown $29,900 $17,940 1700 to 1800 Block of Main St 4 and 5 423/96 363 81years 25 1 Unknown $36,300 $21,780 700 Block Alley east of Main St. 9 and 10 4/12196 248 81years 25 0 Unknown $24,800 $14,880 500 Block of 8th St.Alley 3 and 4 320/96 260 81years 23 ; 0 Unknown $26,000 $15,600 300 Block of 12th St Alley 3 and 4 227/96 323 81years 22 0 Unknown $32,300 $19,380 100 Block of 14th St Alley 8 and 9 2114/96 184 76years 21 1 Unknown $18,400 $11,040 300 to 400 Block of 8th St Alley 5 and 6 320/96 276 81years 21 0 Unknown $27,600 $16,560 900 Block Alley east of Main St 1 and 2 4/12/96 244 81years 21 0 Unknown $24,400 $14,640 300 to 400 Block of 14th St.Alley 4 and 5 2/14/96 323 76years 19 1 Unknown $32,300 $19,380 300 Block of 9th St.Alley 6 and 7 3/15/96 265 81years 19 0 Unknown ; $26,500 $15,900 200 Block of 12th St Alley 4 and 5 227/96 322 81years 19 0 Unknown $32,200 $19,320 800 Block Alley east of Main St. 6 and 8 4/12/96 184 81years 18 0 Unknown $18,400 $11,040 400 Block Alley east of Main St 18 and 19 4/12/96 268 81years 18 0 Unknown $26,800 $16,080 1700 Block of Main St. 5 and 6 423196 389 81years 18 0 Unknown $38,900 $23,340 300 Block of 8th St.Alley 6 and 7 320/96 267 81years 17 1 Unknown $26,700 $16,020 600 Block of 12th St Alley 5 and 6 227/96 273 81years 17 0 Unknown $27,300 $16,380 500 Block of 10th St.Alley 5 and 6 3/14/96 299 81years 16 0 Unknown $29,900 $17,940 300 Block of 13th St.Alley 5 and 6 222/96 311 81years 15 0 Unknown $31,100 $18,660 800 Block Alley east of Main St. 7 and 8 4/12/96 188 81years 15 0 Unknown $18,800 $11,280 500 Block Alley east of Main St. 16 and 17 4/12/96 282 81years 15 0 Unknown $28,200 $16,920 400 to 500 Block of 14th St Alley 3 and 4 2/14/96 323 76years 15 0 Unknown $32,300 $19,380 200 Block of 14th St.Alley 6 and 7 2/14/96 317 76years 14 0 Unknown $31,700 $19,020 100 Block of 8th St.Alley 9 and 10 320/96 223 81years 13 0 Unknown $22,300 $13,380 800 Block Alley east of Main St. 5 and 6 4/12/96 215 81years 13 0 Unknown $21,500 $12,900 1200 Block of Acacia Ave.at 12th St. 1 1 and 2 227/96 326 81years 12 1 Unknown $32,600 $19,560 SWRPRII.XLS Locations with an unknown value for loss are suspected of leakage, however it was not occuring during the flow analysis. 2 Downtown Sewer Repair-Critical Priority List �,+..:, ., s_... � ��sa -tea „>_. >.;i, .� -ySx - _� .-,;3,�"-• -;6 ii,>t -_�' _'�.'_ �`°�- :,� ,�z._ ,� €-^� Fez . -� �'' '. �.��^�-2 -.t'_� _-•-. .. _. �. � ::� -.,. s- a '"�. .�.. € Sze- -- :�.�,�. ,>�--.-.. "�,- r h-.,s'� mow.-�'�'. `M�--�--k. � -�. .yt+ - "�=Z F � �., .z � � s�_:-,�z.Befinreen ;:. ,'Date.. �: -�� �, A e:of. ,�:-�. _ ;� : ,,•� � r:,. � �� GaUons Galoris �Exca Sli Une -._. -4s^.>-.�-...ems-,.,� �. -"i;-�: r^�..�. - `t --,t:c... , -:_-.._ s-i..--;...z�-: ..t:.:, � :,;z sv-.__ v"„�%� w .��ic. �� s s-. �sa_w� 2 �' -- � � - 5-:.Fy•;y ���Sewer,-Location � � ��:Manfioles�`=Tetev(sed �Lineat Feet.p Pi ��NumHer of:Cracks 3 fdumber`ofNotes- -'Last: r Da -��p-t:ost to:Date �:�>Re it:Cost ��t'.�,"�'-Re it Gos �� 400 Block of 8th St.Alley 4 and 5 3/20/96 257 18lyears 12 0 Unknown $25,700 $15,420 400 Block of 21st St Alley 4 and 5 11/6/95 152 76years 12 0 Unknown $15,200 $9,120 600 Block of 19th St.Alley 1 and 2 11/21/95 199 76years 11 0 Unknown $19,900 $11,940 300 Block of 11th St Alley 7 and 8 2/29/96 420 81years 10 0 Unknown $42,000 $25,200 200 Block Alley west of Main St. 4 and 5 3/29/96 267 81years 10 0 Unknown $26,700 $16,020 300 Block of 15th St.Alley 5 and 6 2f7/96 323 76years 10 0 Unknown $32,300 $19,380 200 Block of 15th St.Alley 6 and 7 2f1/96 323 76years 10 0 Unknown $32,300 $19,380 200 Block of 2nd St Alley 3 and 4 4/16/96 1 255 82years 10 0 Unknown i $25,500 $15,300 TOTALS 261 f0 sr 2 285 106t` 71 374 6,588 347 $21611 000 $1568 600 SWRPRII.XLS Locations with an unknown value for loss are suspected of leakage, however it was not occuring during the flow analysis. 3 J n4 CITY OF HUNTINGTON BEACH tau INTERDEPARTMENTAL COMMUNICATION TO: Robert Franz, Deputy city Administrator FROM: Les M. Jones II, Director of Public Works SUBJECT: Proposal for Sewer Service Fee DATE: June 5, 1996 Attached per your request, is information developed by Public Works staff, related-to the implementation of a sewer service fee. These attachments outline the following: 1. Progressive levels of funding, rationale for that funding and the related fee per average household. 2. A more specific identification, typical cost examples, of the actual fee for each level-of funding. 3. A comparison of sewer fees charged by other Orange County agencies. 4. A memorandum to the City Administrator answering the questions posed by City Councilmembers when the Sewer Service Fee was previously discussed. The overall issues of the City's sewer system will ultimately be reconciled as a part of the City.'s Integrated Infrastructure Management Program (IRYT). It is vital that, at minimum, the City take appropriate steps now to assure adequate funding for operations and critical emergency repairs. This will protect the sewer system against further disintegration as well as protect the General Fund against emergency repairs which it cannot presently afford. With'the above in mind, the presentation of the Sewer Service Fee alternatives are presented in a format of: Present Maintenance Funding Minimum Basic Maintenance Funding Minimum Basic Maintenance/Immediate Repairs Funding Expanded Maintenance/Immediate Repairs Funding Expanded Maintenance/Expanded Repairs Funding If you have any questions regarding this matter, please contact me. Attach. 0019228.01 Proposed Sewer Service Program Level I Level 2 Level 3 Level 4 Level 5 $ 1,000,000 $ 1,250,000 $ 2,500,000 $ 4,000,000 $ 6,000,000 Operating Expenses Salaries $ 796,200 $ 796,200 $ 796,200 $ 796,200 $ 796,200 Itoutinc Maintenance $ 212,300 $ 212,300 $ 212,300 $ 575,000 $ 600,000 Lift Station Electricity $ 130,500 $ 130,500 $ 130,500 $ I30,500 Lift Station Electrical Maintenance $ 100,000 $ 100,000 $ 100,000 $ 100,000 Manhole Restoration $ 350,000 $ 373,000 Lift Station Restoration $ 500,000 $ 500,000 Capital Replacement Sliplining @$54 per lineal foot $ 750,000 $ 750,000 $ 1,750,000 Line Removal & Replacement @$100 per lineal foot $ 500,000 $ 750,000 $ 1,750,000 Annual Expense* $ 1,008,500 $ 1,239,000 $ 2,489,000 $ 3,951,700 $ 5,999,700 Level 1: Present Maintenance Funding; does not cover minimum costs of current program Level 2: Minimum Basic; includes frill costs of current maintenance Level 3: Minimum Basic Maintenance & Immediate Repairs; current program plus $1.5 million for repair of identified problems in downtown area Level 4: Expanded Maintenance& Immediate Repairs; increased basic maintenance& $1.5 million capital repairs Level 5: Expanded Maintenance& Expanded Repairs; optimum basic maintenance& infrastructure replacement *Does not include Equipment Replacement or Infrastructure Depreciation 6/6/96 SEWFEE.XL$ Sheet4 fi Proposed Sewer Service Fees Proiected Annual Revenue $ 1,000,000 $ 1,250,000 $ 2,500,000 $ 4,000,000 $ 6,000,000 Method #1 Monthly Fee Monthly Fee Monthly Fee Monthly Fee Monthly Fee Fee Based on Number of Dwelling Units per Unit per Unit per Unit per Unit per Unit Total miniher of hillahle nnuLv 81,700 $ 1.02 $ 1.27 $ 2.55 $ 4.08 $ 6.12 Typical Costs Single Family Residential $ 1.02 $ 1.27 $ 2.55 $ 4.08 $ 6.12 25 Unit Apartment Building (2" meter) $ 25.50 $ 31.75 $ 63.75 $ 102.00 $ 153.00 50 Unit Commercial Complex (6" FM meter) $ 51.00 $ 63.75 $ 127.50 $ 204.00 $ 306.00 ,ram <1 Proiected Annual Revenue $ 1,000,000 $ 1,250,000 $ 2,500,000 $ 4,000,000 $ 6,000,000 Method #2 Greater of. Meter Flow Capacity or EDUs Monthly Fee Monthly Fee Monthly Fee Monthly Fee Monthly Fee per Unit per Unit per Unit per Unit per Unit Total numher of hillahle writs 78,496 $ 1.06 $' 1.33 $ 2.65 $ 4.25 $ 6.37 Typical Costs Single Family Residential $ 1.06 $ 1.33 $ 2.65 $ 4.25 $ 6.37 25 Unit Apartment Building (2" meter) $ 26.54 $ 33.18 $ 66.35 $ 106.16 $ 159.24 50 Unit Commercial Complex (6" FM meter) $ 71.13 $ 88.91 $ 177.82 $ 284.52 $ 426.77 6/6/96 SEWFEE.XLS Sheet3 Orange County Residential Sewer Charges A enc Service Area Monthly Rate Collection Method Anaheim Anaheim $0.89 per dwelling unit Water bill Brea Brea < 1,000 sq ft $0.76 Water bill 1,001-2,000 $1.52 > 2,000 $2.28 Costa Mesa. Costa Mesa $1.92 SFR or Water bill $1.48 per dwelling unit Fullerton Fullerton 25% of total water charge Water bill Garden Grove Sanitary District Garden Grove .0003% of property tax Property tax Laguna Beach Laguna Beach $24.50 Property tax Newport Beach Newport Beach $ 3.60 Water bill Orange Orange $15.301 Water bill San Clemente San Clemente $15.57 Water bill Santa Ana Santa Ana $13.472 Water bill Seal Beach Seal Beach 22% of water charge Water bill El Toro Water District Lake Forest; Laguna Hills; $15.45 Water bill Mission Viejo Water bill Leisure World $13.45 Water bill 'A Irvine Ranch Water District Irvine & unincorporated area $ 7.90 Water bill Los Alisos Water District Lake Forest $10.75 Water bill Los Alamitos Co. Water District Los Alamitos 1% property tax Property tax South Coast Water District Laguna Beach; Dana Point $24.00 Property tax Trash and sewer z Sewer; street maintenance; street sweeping; tree trimming B/98 .4 Op CITY OF HUNTINGTON BEACH PUBLIC WORKS DEPARTMENT HUNnNCTON BEACH INTER-DEPARTMENT COMMUNICATION TO: Michael T. Uberuaga nwity Administrator FRO Les M. Jones II Director of Public Works DATE: June 5, 1996 SUBJECT: SEWER ASSESSMENT FEE PROPOSAL At the March 25, 1996 City Council -Meeting, Public Works staff recommended that Council consider initiating a Sewer Assessment Fee to cover the costs of maintaining/replacing/repairing the City's sewer lines, sewer lift stations and manholes. Subsequent to staff s presentation, Councilmen Leipzig and Harman asked.the following_ questions as answered below. QUESTION #1 What is the history of expenses for maintenance and repair over the last few years? ANSWER The following chart identifies the estimated maintenance, repair and replacement expenditures for the last three years. C ANNUAL OSTS ET M .. ::. :: :>:..;92J93 > >:: :>;>'':.J3 9:4 €:>>::::::.:::. J /9 TO AtS:> t:::::::::.:::::.:::::::::..:::.:::._:.5....::::::::. .............T...:.::.::..... ::.::.::.::.:::::.::.::::....:.>DESC# P<T.iO.t�I;:>.....::......>;::.»:.;:;:.;:.;:.;:.;:;;:.;;;;;;:;::_;.;:<.;:<.::.;:.::.::................................................................................... ...... . 1. Sewer Line Maintenance 636,165 673,116 669,996 1,979,277 (personnel & operating budgets) 2. Lift Station Maintenance (personnel & operating budgets) 325,306 334,434 316,575 976,315 3. Manhole Restoration 150,000 150,000 150,000 450,000 4. Misc. Expenditures • Lift Station Electrical Panel Replacements • Lift Station Gate Valve 5,119 5,119 Replacements • Telemetry Replacements 7,515 7,515 • Lift Station Pump 21,435 21,435 Replacements • Lift Station Access Door 54,960 46,520 101,480 Replacements • Installation of Exterior Electrical 2,187 2,187 Enclosures • Sewer Line Slip Line Repairs 131,810 29,100 160,910 • Lift Station Motors 1,113 1,674 2,787 TOTAL EXPENDITURES 1,172,663 1,322,171 1. 1,212,191 3,707,025 QUESTION #2 What is the age of existing lift stations and sewer lines? ANSWER LOCATION YEAR BUILT AGE 1. Graham & Kennilworth 1965 31 2. Humboldt & Wayfarer 1967 29 3. "E" Station 1962 34 4. "A" Station 1962 34 5. Davenport & Baruna 1963 33 6. Edgewater & Davenport 1964 32 7. "B" Station 1962 34 8. "C" Station 1962 34 9. "D" Station 1962 34 2 10. Algonquin & Boardwalk 1963 33 (Remodeled) 1985 11. Lark & Warner 1961 35 12. Heil & Mycroft 1965 31 13. Slater & Springdale 1965 31 14. Gothard & Ellis (currently being remodeled) 1996 -0- 15. Oceanhill & Beach 1978 18 16. Adams & Ranger 1963 33 17. Brookhurst & Effingham 1965 31 18. Atlanta & Beach 1963 33 (Remodeled) 1991 19. Bushard & Pettswood 1969 27 20. Speer & Crabb 1968 28 21. McFadden & Dawson 1972 24 22. Saybrook & Heil 1965 _ 31 23. New Britain & Adams 1972 24 24. Edwards & Balmoral 1967 29 25. Edinger & Santa Barbara 2973 23 26. Brighton & Shoreham 1972 24 27. Coral Cay 1971 25 28. Trinidad & Edinger 1976 20 :>:::> :::::::::.........SE�IIIE ...LANE:S:._.::..:::::::..........:.:.....:::::>.:::_.:::::.:.:.::.:.:.::.:.:...:.:._... ...:............ : Staff is in the process of determining the age of all sewer lines owned and maintained by the City. At present, there are approximately 576 miles of city sewer lines. To date, staff has identified approximately 20 miles of sewer lines older than 50 years. QUESTION #3 What is the current life expectancy of sewer facilities? 3 ANSWER According to the State of California Controller's Office, the useful life span of wastewater facilities including sewer lines, lift stations, and manholes is 30 - 50 years. The following variables can cause premature aging of the facilities: 1. Earthquakes. 2. Poor soil conditions. 3. Deferred routine maintenance. 4. Improper or illegal connections to the system. 5. Damage by others during a construction project. 6. Illegal waste discharged into the line. 7. Ongoing-infiltration of groundwater. Lines older than 50 years should be inspected at least once a year to avoid serious problems. Based on an inspection of the older lines in the downtown area (see Exhibit A) its quite apparent that lines older than 75 years should be slipped line or replaced. QUESTION #4 What is the current and recommended level of services? ANSWER Our current level of service is limited to minimal maintenance activities. Ongoing budget constraints preclude the initiation of a good preventive maintenance program (i.e. timely inspection of lines, cleaning lines on schedule, and repairing/replacing. damaged lines and equipment on an as needed basis). Furthermore, the approved program budgets, for sewer line, lift station and manhole maintenance, do not include other essential costs (i.e. electrical energy and staff electrician repairs of lift stations) also covered. by the general fund. The adoption of a sewer assessment fee should not only cover the cost of minimal maintenance activities and associated costs as identified above, but should also include sufficient revenues for: 1. Timely inspection of lines. 4 2. Cleaning lines on schedule. 3. Replacing failed lines as already identified by staff. QUESTION #5 Is there a problem with sewer line infiltration and leaks? ANSWER YNEI1LT -. T K Some infiltration of.groundwater occurs in all sewage collection systems. The amount of infiltration depends upon the age and condition of the system. In April.of-1-989 a study of lift station capacity was conducted by OTT Engineering, Inc. in the Huntington Harbour. Through the use of flow monitoring equipment they determined that infiltration was.increasing the flow levels significantly. By subtracting expected daily flows from the measured flow, it was determined that 416,422 gallons of groundwater is leaking into the sewer system each day. This groundwater is then treated unnecessarily by the Orange County Sanitation District. Ng'tEAKS Based on a most recent inspections of the downtown sewer lines, it is quite apparent that the older lines are leaking sewage. As indicated. on Exhibit A (see Exhibit A), the . known calculated loss is 71,374 gallons per day. QUESTION #6 Is there a rating system for sewers? ANSWER The physical condition of sewer lines is generally assessed through a televised video .inspection. Line condition is determined/rated by the number of joints offsets, cracks, holes, deterioration and missing pipe. Staff is currently video inspecting each sewer line, rating the condition and cataloging the information, QUESTION #7 Do we have a map of the City sewer system? 5 ANSWER The City has a sewer atlas map for each square mile of the city. Attached for your information are two atlas maps for the recent inspection of the downtown sewer lines. Atlas maps are also available for all other city lines and the 35 miles of County owned and maintained collector lines. These 38 additional maps have not been included in this packet but are available upon request. LMJ:bh Attachments: 1. Exhibit A 2. Sewer atlas maps for downtown Huntington Beach 6 Downtown Sewer Repair-Critical Priority List 6/3/96 Between Date Age of Gallons (3ahons �Xcavahon SUPWti l' Sewer Location Manholes Televised Lineal Feet Piping Number of Ctacks Number of Notes Lott per Day. Lost to Data..` " ..Repair Cost Repair Coat 900 Block Alley east of Main St. 4 and 5 4/12/96 220 81years 10 3 7.029 365,508 $22.000 $13,200 400 Block of 6th St.Alley 4 and 5 124/96 280 8lyears 40 -8 5,592 732,552 $28,000 $16,800 300 to 400 Block of 61h St Alley 5 and 6 124/9G 276 81years 20 7 4,893 640,983 $27,600 $16,560 900 Block Alley east of Main St. 2 and 4 4/12/96 260 81years 22 2 4,686 243,672 $28,000 $15,600 400 to 500 Block of 19th St.Alley 3 and 4 11/21/95 321 76years 4 2 4,395 857.025 $32.100 $19,260 600 Block of 10th St.Alley 1 and 2 3114196 247 81years 7 4 4,024 325,944 $24,700 $14,820 600 Block of 13th St.Alley 1 and 2 2122196 324 81years 11 9 3,798 387,398 $32,400 $19,440 500 Block of 1 Ith St Alley 3 and 4 2129196 259 81years 23 5 3,480 330,600 $25.900 $15,540 ........... ---...-- ----- -- --- .._..__�_.-. ... .. ------- ---- -- -- ----------- 700 Block Alley east of Main St, 10 and 11 4/12196 238 81years 37 1 2,343 121,036 $23.800 $14,280 - --- --------- --- -- -------._ ._ - - - -----.. 400 Block Alley east of Main St.- 17 and 18 4112/9G 283- 81years 11 1 2,343 121,836 E28,300------ -$18,980 700 Block of 13th St.Alley 3 and 4 2122196 319 81years 37 5 2,110 215,220 $31,900 519,140 600 to 700 Block of 13th St.Alley 4 and 5 2/22/96 327 81years 22 5 2.110 215,220 $32,700 $19.620 300 to 400 Block of 10th St.Alley 7 and 8 3/14/96 302 81years 18 2 2,012 162,972 $30,200 $18,120 500 to 600 Block of 81h St.Alley 2 and 3 3120/96 263 81years 14 1 1,939 145.425 $26,300 $15,780 ----- -- .... - --.._.... --- - - -- -- - ------- - - ----------------- -- --- --- - -- - 400 Block of 9th St.Alley 4 and 5 3115196 299 81years 42 2 1,662 132,960 $29.900 $17,940 300 to 400 Block of 9th St.Alley 5 and 6 3/15/96 274 81years 22 2 1,662 132,960 E27,400 $16.440 500 to 600 Block of 9th St.AIIey 2 and 3 3115196 263 81years 19 2 1.662 132.960 $26.300 $15,780 400 to 500 Block of 1 Ith St.Alley 4 and 5 229/96 259 81years 46 2 1.392 132,240 $25,900 $15,540 400 Block of 1 Ith St.Alley 5 and6 229/96 260 8lyears 42 2 1,392 132.240 $26,000 $15,600 300 Block of I IIh St.Alley 6 and 7 229/96 209 8lyears 33 2 1,392 132,240 $20,900 $12,540 - -----..... 400 10 500 Block of 131h St.Alley 3 and 4 2122196 31 l 8lyears 41 3 1,266 129;132 531,100 -- $18,660 400 to 500 Block of IOth St Alley G and 7 3114196 301 _8lyears 14 1 1,006 81,488 $30,100 $18,060 300 Block of 101h St.Alley 8 and 9 3/14196 300 81years 11 1 1,006 81.486 $30.000 $18.000 200 Block of IOth St.Alley 9 and 10 3/14196 317 81years 9 1 1.006 81.486 $31.700 $19,020 500 Block of 9th St.Alley 3 and 4 3115196 259 81years 29 1 831 66.480 $25.900 $15.540 300 to 400 Block Alley west of Main St. 2 and 3 329196 305 8lyears 30 4 740 48,840 $30,50.0 $18,300 ---- -- -2'----... - ----- ------ -------._- --- - 4 --.._-.. -- 1------ --- ------6- -- -- --8 600 to 700 Block of 11ah St.Alley 1 and 2 2/29/96 330 8lyears 3 69 66,120 E33,000 $19,800 400 Block of Crest Alley at 1 Ith 1 and 2 229196 276 81years 33 1 696 66,120 $27,600 $16.560 400 10 500 Block of 71h St.Alley 7 and 8 325196 293 8lyears 33 1 647 45,290 $29.300 $17,580 -._._. - _ _ -- --------- - -- ---------- - ----- -- -- ----- - -- 100 Block of 71h St-Alley 12 and 13 3125196 296 81years 25 1 647 45,290 $29,600 $17.760 600 nlock of 71h SI Alley 5 and 6 3125/96 304 0Iyears 24 1 647 45,290 _ _$30,400 518,240 400 Block of 7Ih St Alley 8 and 9 3/25196 290 Otyears 15 _....-__ 1 - "647 ---. 45,290 $29,000.. $17,400 _ 200 Block of 51h St.Alley 3 and 4 3126/96 258 8lyears 19 1 646 44.574 $25.800 $15,480 -- _._ 700 to 800 Block of 131h St-Alley 2 and 3 2/22196 218 8lyears 10 1 422 43,044 $21,800 $13,080 400 Block Alley west of Main St. 1 and 2 3/29196 116 61years 17 2 370 24,420 $-11,600 $6,960 200 to 300 Block Alley west of Main St. 3 and 4 329196 268 81years 28 1 185 12,210 $26,800 $16.080 200 Block of Alley west of Lake St. 1 and 2 4/16196 431 62years 66 0 Unknown $43,100 $25,860 WOO Block of Crest St.Alley 3 and 4 4/18l9G 357 _ 82years 52 1 Unknown $35,700 $21,420 600 Block of 11th St.Alley 2 and 3 229/96 341 Olyears 46 0 Unknown 534,100 $20,4-0 800 Block of Crest St Alley 4 and 5 4118196 420 82years 42 0 Unknown $42,000 E25,200 - - -- _....-------------- ------- - ------ -- ------- ---- --- --------- 200 Block of 9th St.Alley 7 and 8 3I15/96 318 8/years 40 0 Unknown $31,800 $19,080 300 to 400 Block of 7th St.Alley 9 and 10 3/25/96 291 81 ears 38 0 Unknown $29,100 E17,460 SWRPRII.XLS Locations with an unknown value for loss are suspected of leakage, however it was not occuring during the flow analysis. V Downtown Sewer Repair-Critical Priority List 6I31'96 Between . Date Age of Gallons Gallons Excavation Slip Line Sewer Location Manholes Televised Lineal Feet Piping Number of Cracks Number of Holes Lost per Day Lost to Date. Repair Cost Repair Cost 200 to 300 Block of 6th St.Alley 6 and 7 1124196 281 81years 37 1 Unknown $28.100 $16,860 200 to 300 Block of 5th St.Ailey 2 and 3 326196 260 81years 36 0 Unknown $26,000 $15,600 600 Block Alley east of Main St. 13 and 14 4/12/96 306 81years 36 0 Unknown $30.600 $18,360 -- --- ------------ -- --- -- ----- - - - - --- - - --- - . ...-- - - --- - -- ----- ------- -- - -- -- ------- ---- ------ --- - ------ 200 to 300 Block of 7th St.Alley 10 and 11 3/25/96 291 81years 35 0 Unknown $29,100 $17,460 300 Block of 5th St.Alley 1 and 2 3/26/96 248 81years 35 0 Unknown $24,800 $14,880 ------- Main-St-- - ---- --------- - ----------- - ------ - ----- ----- ---- ----- - - --- - - -- --------- ---$1 700 Block Alley east of 11 and 12 4l12l96 233 8lyears 35 0 Unknown $23,300 $13,980 200 to 300 Block of 2nd St.Alley 2 and 3 4116/96 260 82years 35 0 Unknown $26,000 $15,600 200 Block of 6th St.Alley 7 and 8 124196 281 8lyears 34 1 Unknown $28.100 $16,860 500 to 600 Block of 7th St.Alley 6 and 7 325196 293 81years 34 0 Unknown $29,300 $17,580 500 to 600 Block Alley east of Main_ St. 14 and 15 4/12/96 294 8lyears 33 1 Unknown $29.400 $17.640_ 1800 Block of Main St. 3 and 4 423/96 291 81 ears 32 3 Unknown $29,100 $17,4_60_ - .. . -- -. ... - - -- -------------- -'- - - ---.__.. - - - --- -------- ----- -- -- -- - 200 Block of 8th St.Alley 7 and 8 320/96 319 81years 30 0 Unknown $31,900 $19.140 700 to 800 Block Alley east of Main St. 6 and 9 4/12/96 220 81years 30 0 Unknown $22,000 $13,200 500 Block of 13th St.Alley 2 and 3 222/96 317 81years 29 0 Unknown $31,700 $19.020 600 to 700 Block of 12th St.Alley 4 and 5 227/96 277 81years 28 2 Unknown $27.700 $16.620 700 Block of_12th St.Alley 3 and 4 227/96 266 8lyears 28 1 Unknown $26.600 $15,960 _..._ . -- ._._.. --- - .. - 200 Block of 7th St.Alley 11 and 12 3/25196 281 81years 27 0 Unknown $28,100 $16,860 800 Block of 121h St-Alley 1 and 2 2/27/96 141 81years 25 1 Unknown $14,100 $8.460 700 to 800 Block of 12th St-Alley 2 and 3 2127/96 299 81years 25 1 Unknown $29,900 $17,940 1700 to 1800 Block of Main St. 4 and 5 4/23/96 363 8lyears 25 1 Unknown $36.300 $21,780 700 Block Alley east of Main St. 9 and 10 4/12/96 248 8lyears 25 0 Unknown $24,800 $14,880 500 Block of 8th St.Alley 3 and-4 3/20196 260 81years 23 0_ Unknown $26,000 $15,600 300 Block of 12th St.Alley 3 and 4 227/96 323 81years 22 0 Unknown $32,300 $19,380 100 Block of 14th St.Alley 8 and 9 2/14/96 184 76years 21 1 Unknown $18,400 $11.040 300 to 400 91ock of 8th St.Alley 5 and 6 320/96 276 8lyears 21 0 Unknown $27,600 $16.560 900 Block Alley east of Main St. 1 and 2 4/12196 244 81years 21 0 Unknown $24,400 $14,640 300 to 400 Block of 14th St.Alley 4 and 5 2/14/96 323 76years 19 1 Unknown $32,300 $19,380 300 Block of 9th St.Alley 6 and 7 3115/96 265 81years 19 0 Unknown $26,500 $15,900 200 Block of 12th St.Alley 4 and 5 227/96 322 81years 19 0 Unknown $32.200 $19,320 800 Block Alley east of Main St. 6 and 8 4/12/96 184 81years 18 0 Unknown $18.400 $11,040 400 Block Alley east of Main St. 18 and 19 4/12196 268 81years 18 0 Unknown $26.800 $16,080 - - ------- ---------------- - - - - - -...-- - ------ -- - - - ----- -- -- - ---- ---- ---- 1700 Block of Main St. 5 and 6 423/96 389 8lyears 18 , 0 Unknown $38,900 $23,340 ------ -- ------.... --- - --... ._._..------------- - - ---.._..----- - - ------ ---- --- ------ ----- 300 Block of 8th St.Alley 6 and 7 320/96 267 81years 17 1 Unknown $26,700 $16,020 600 Block of 12th St.Alley 5 and 6 227/96 273 81years 17 0 Unknown $27,300 $16,380 500 Block of 10th St.Alley 5 and 6 3l14/96 299 8lyears 16 0 Unknown $29.900 $17,940 300 Block of 13th St.Alley 5 and 6 222/96 311 81years 15 0 Unknown $31,100 $18,660 800 Block Alley east of Main St. 7 and 8 4/12/96 188 81years 15 0 Unknown $18,800 $11,280 500 Block Alley east of Main St. 16 and 17 4/12/96 282 8lyears 15 0 Unknown $28,200 $16,920 400 to 500 Block of 14th St.Alley 3 and 4 2/14/96 323 76years 15 0 Unknown $32,300 $19.380 200 Block of 14th St.Alley 6 and 7 2/14196 317 76years 14 0 Unknown $31,700 $19,020 100 Block of 8th St.Alley 9 and 10 320/96 223 81years 13 0 Unknown $22,300 $13,380 800 Block Alley east of Main St. 5 and 6 4/12196 215 8lyears 13 0 Unknown $21,500 $12.900 1200 Block of Acacia Ave.at 12th St. 1 and 2 227/96 326 81 ears 12 1 Unknown $32,600 $19,560 SWRPRII.XLS Locations with an unknown value for loss are suspected of leakage, however it was not occuring during the flow analysis. 2 �. CITY OF HUNTINGTON BEACH INTERDEPARTMENTAL COMMUNICATION TO: Robert Franz, Deputy city Administrator FROM: Les M. Jones II, Director of Public Works SUBJECT: Proposal for Sewer Service Fee DATE: June 5, 1996 Attached per your request, is information developed by Public Works staff, related to the implementation of a sewer service fee. These attachments outline the following: 1. Progressive levels of funding, rationale for that funding and the related fee per average household. 2. A more specific identification, typical cost examples, of the actual fee for each level of funding. 3. A comparison of sewer fees charged by other Orange County agencies. 4. A memorandum to the City Administrator answering the questions posed by City. Councilmembers when the Sewer Service Fee was-previously discussed. The overall issues of the City's sewer system will ultimately be reconciled as.a part of the City's Integrated Infrastructure Management Program(I!10l . It is vital that, at minimum,.the City take appropriate steps now to assure adequate funding for operations and critical emergency repairs. This will protect the sewer system against further disintegration as well as protect the General Fund against emergency repairs which it cannot presently afford. With the above in mind, the presentation of the Sewer Service Fee alternatives are presented in a format of Present Maintenance Funding Minimum Basic Maintenance Funding Minimum Basic Maintenance/Immediate Repairs Funding Expanded Maintenance/Immediate Repairs Funding Expanded Maintenance/Expanded Repairs Funding If you have any questions regarding this matter, please contact me.. Attach. 0019228.01 `T J Proposed Sewer Service Program Level 1 Level 2 Level 3 Level 4 Level S $ 1,000,000 $ 1,250,000 $ 2,500,000 $ 4,000,000 $ 6,000,000 i Operating Expenses s Salaries $ 796,200 $ 796,200 $ 796,200 $ 796,200 $ 796,200 . Routine Maintenance $ 212,300 . $ 212,300 $ 212,300 $ 575,000 $ 600,000 i Lift Station Electricity $ 130,500 $ 130,500 $ 130,500 $ 130,500 Lift Station Electrical Maintenance $ 100,000 $ 100,000 $ 100,000 $ 100,000 Manhole Restoration $ 350,000 $ 373,000 1 Lift Station Restoration $ 500,000 $ 500,000 Capital Replacement Sliplining @$54 per lineal foot $ 750,000 $ 750,000 $ 1,750,000 Line Removal&Replacement @$100 per lineal foot $ 500,000, $ 750,000 $ 1,750,000 t Annual Expense* $ 1,008,500 $ 1,239,000 $ 2,489 000 $ 3,951,700 $ 5,999,700 !' Level 1: Present Maintenance Funding; does not cover minimum costs of current program Level 2: Minimum Basic; includes full costs of current maintenance Level 3: Minimum Basic Maintenance& Immediate Repairs; current program plus $1.5 million for repair of identified problems in downtown area Level 4: Expanded Maintenance& Immediate Repairs; increased basic maintenance& $1.5 million capital repairs E: t; Level 5: Expanded Maintenance& Expanded Repairs; optimum basic maintenance& infrastructure replacement *Does not include Equipment Replacement or Infrastructure Depreciation F 6 Proposed Sewer Service Fees Projected Annual Revenue $ 1,000,000 $ 1,250,000 $ 2,500,000 $ 4,000,000 $ 6,000,000 Method #1 Monthly Fee Monthly Fee Monthly Fee Monthly Fee Monthly Fee Fee Based on Number of Dwelling Units per Unit per Unit per Unit per Unit per Unit, Total number of billable units 81,700 $ 1.02 $ 1.27 $ 2.55 $ 4.08 $ 6.12 Typical Costs Single Family Residential $ 1.02 $ 1.27 $ 2.55 $ 4.08 $ 6.12 25 Unit Apartment Building (2" meter) $ 25.50 $ 31.75 $ 63.75 $ 102.00 $ 153.00 50 Unit Commercial Complex (6" FM meter) $ 51.00 $ 63.75 $ 127.50 $ 204.00 $ 306.00 I T ,v,},y... }.^\M: %fi}CiV}}....Yr•T. ,}v+.a\:+Yfi. ,;nvM .AMY:N?v:O v{nW!{-0^^..vi {rM:.^•}}N..}NY..}. ..::^^.{.%n}x}}:.}v;{.,v{x.:-:n:S•v{S.w:.%{n,}w: N..,n}r{+{w}�}:.�Yv.+•.;.vwvn}}w:fi:,;.}n:}'w... .YK9n} , .x�:M:r.• ...,•:r„•hvc: .•=^..r.r .. �:........... .:. .....: ..r. ..,:.:,.z?^'...r. ..x�}:.:: ...^at}:Mx: ..}:. .}..: :. r. .w: ..r.. .. ..{.. .r:..°'.'•rxK"�c ... .. ..............'.'.Ln .., f. .....,.....r.,:.. .....:....:.,•?:..t..,..."`i.:•}....,r..-::•::r2;oH'''"-.-':-}}:: :{•:::{-::}:�:.,,: }:.{.:•::::•::}:: .-:c•.:. -:-R.:}}:..-} .}.Y......M:...... e..••:Y::. 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A�Yv�i>.LAC•:�ikt��"fnivf�Vt<LM+.4.+.,�Y4Y}OGhv(LE$fYSCdLb00.���}�J:C:}'i.•:%iLt�,�dNOCM1•:-0. f:SYn rii�'ALh•.•]LiJ�4ACLi.006�CL�w'S�GiIOl�iW3�) I Projected Annual Revenue $ 1,000,000 $ 1,250,000 $ 2,500,000 $ 41000,000 $ 63000,000 Method #2 Greater of: Meter Flow Capacity or EDUs Monthly Fee Monthly Fee Monthly Fee Monthly Fee .Monthly Fee per Unit per Unit e� r Unit per Unit l2er Unit Total number of billable units .78,496 $ 1.06 $ 1.33 $ 2.65 $ 4.25 $ 6.37 Typical Costs Single Family Residential $ 1.06 $ 1.33 $ 2.65 $ 4.25 $ 6.37 25 Unit Apartment Building (2" meter) $ 26.54 $ 33.18 $ 66.35 $ 106.16 $ 159.24 50 Unit Commercial Complex (6" FM meter) $ 71.13 $ 88.91 $ 177.82 $ 284.52 $ 426.77 I 6/6/96 SEN Vr-EE.XLS ShecO r J ✓✓ Orange County Residential Sewer Charges Agency Service Area Monthly Rate Collection Method Anaheim Anaheim $0.89 per dwelling unit Water bill Brea Brea < 1,000 sq ft $0.76 Water bill 1,001-2,000 $1.52 > 2,000 $2.28 Costa Mesa Costa Mesa $1.92 SFR or Water bill $1.48 per dwelling unit Fullerton Fullerton 25% of total water charge Water bill Garden Grove Sanitary District Garden Grove .0003% of property tax Property tax i Laguna Beach Laguna Beach $24.50 Property tax Newport Beach Newport Beach $ 3.60 Water bill Orange Orange $15.301 Water bill San Clemente San Clemente $15.57 Water bill j i Santa Ana Santa Ana $13.472 Water bill Seal Beach Seal Beach 22% of water charge Water bill E El Toro Water District Lake Forest; Laguna Hills; $15.45 Water bill ` Mission Viejo Water bill t Leisure World $13.45 Water bill Irvine Ranch Water District Irvine & unincorporated.area $ 7.90 Water bill i Los Alisos Water District Lake Forest $10.75 Water bill k r Los Alamitos Co. Water District Los Alamitos 1% property tax Property tax South Coast Water District Laguna Beach; Dana Point $24.00 Property tax 1 Trash and sewer 2 Sewer; street maintenance; street sweeping; tree trimming 6196 �f CITY OF HUNTINGTON BEACH PUBLIC WORKS DEPARTMENT """"""'"BEACH INTER-DEPARTMENT COMMUNICATION TO: Michael T. Uberuaga ity Administrator FRO �" Les M. Jones II Director of Public Works DATE: June 5, 1996 SUBJECT: SEWER ASSESSMENT FEE PROPOSAL At the March 25, 1996 City Council Meeting, Public Works staff recommended- that Council consider initiating a Sewer Assessment Fee to cover the costs of maintaining/replacing/repairing the City's sewer lines, sewer lift stations and manholes. Subsequent to staffs presentation, Councilmen Leipzig and Harman asked the following questions as answered below. QUESTION #1 What is the history of expenses for maintenance and repair over the last few years? ANSWER The following chart identifies the estimated maintenance, repair 'and replacement- expenditures for the last three years. }...r:: ....::}:..:::::. ANNUAL COSTS ::::f?tiivvv {t ::{G:v+':-}+};v}: -i;•}}}:•}}::.;};C}}i:}}}}};4}:;i;•:is.•{�...::{:'�i{$iii:?riT�iii•:;::i:;:j};:yiy±;:}�iiiiti::iii:}: ............. }}%-:::h.}:;•yn}r•}:{v:xw:w::?::::n.•.:..:.......:.:.+.,�:::..::::..:::::::rw::...:........• .... f:. : .-.. .:.:.v._:::x:::::: ':i$Y:i}i::iiY}?i<:i:'}}%j^:•}.4:;;r}:4}:?;.}}}::S{;:-}}}i:;}:i•:i4::::}','r:::i;i:i:ti::}{:y:(:}}i'?ti��i:':::: K.. ... ...f.. ... ::...... r :.:'a.�: .....:....: .... ....::::.....................}:�:i;;:•-:�:•::•:i........................... ....t;c.. «`.#:::or.....�, .y.o.:,i-::•»}}};r�;:.;m::.{-:}}:-4^r.-.::•::.'•��5::'•i-:}:-`. 1. Sewer Line Maintenance 636,165 673,116 669,996 1,979,277- (personnel & operating budgets). 2. Lift Station Maintenance (personnel & operating budgets) 325,306 334,434 316,575 976,315 3. Manhole Restoration 150,000 150,000 150,000 450,000 4. Misc. Expenditures - 17 • Lift Station Electrical Panel Replacements • Lift Station Gate Valve 5,119 5,119 Replacements • Telemetry Replacements 7,515 7,515 • Lift Station Pump 21,435 21,435 Replacements • Lift Station Access Door 54,960 46,520 101,480 Replacements • Installation of Exterior Electrical 2,187 2,187 Enclosures • Sewer Line Slip Line Repairs 131,810 29,100 160,910 • Lift Station Motors 1,113 1,674 2,787 TOTAL EXPENDITURES 1,172,663 1,3221171 1,212,191 3,707,025 QUESTION #2 What is-the age of existing lift stations and sewer lines? ANSWER .................... ...{.......v. v:f•}:i}:•}:::•:::::^::f:v.�:•i:•::::•::{<:iii:i}}::{.}j:•{±n::.ii:}ii}}:{:.;}•}}}}:•i}::ii':•}:•}:•}$}::::.::iv;::::i:': LOCATION YEAR BUILT AGE 1. Graham & Kennilworth 1965 31 2. Humboldt & Wayfarer 1967 29 3. "E" Station 1962 34 4. "A" Station 1962 34 5. Davenport & Baruna 1963 33 6. Edgewater & Davenport 1964 32 7. "B" Station 1962 34 8. "C" Station 1962 34 9. "D" Station 1962 34 2 A'� 10. Algonquin & Boardwalk 1963 33 (Remodeled) 1985 . 11. Lark & Warner 1961 35 12. Heil & Mycroft 1965 31 13. Slater & Springdale 1965 31 14. Gothard & Ellis (currently being remodeled) 1996 -0- 15. Oceanhill & Beach 1978 18 16. Adams & Ranger 1963 33 17. Brookhurst & Effingham 1965 31 18. Atlanta & Beach 1963 33 (Remodeled) 1991 19. Bushard & Pettswood 1969 27 20. Speer & Crabb 1968 28 21 McFadden & Dawson 1972 24 22. Saybrook & Heil 1965- 31 23. New Britain & Adams 1972 24 24. Edwards & Balmoral 1967 29 25. Edinger & Santa Barbara 2973 23 26. .Brighton & Shoreham 1972 24 27. :Coral Cay 1971 25 28. Trinidad & Edinger 1976 20 Staff is in the process of determining the age of all sewer lines owned and maintained by the City. At present, there are approximately 576 miles of city sewer lines. To date, staff has identified approximately 20 miles of_sewer lines older tharr 50 years. QUESTION #3 What is the current life expectancy of sewer facilities? 3 d` ANSWER According to the State of California Controller's Office, the useful life span of wastewater facilities including sewer lines, lift stations, and manholes is 30 - 50 years. The following variables can cause premature aging of the facilities: 1. Earthquakes. 2. Poor soil conditions. 3. Deferred routine maintenance. 4. Improper or illegal connections-to the system. 5. Damage by others during a construction project. 6. Illegal waste discharged into the line. 7. Ongoing infiltration of groundwater. Lines older than 50 years should be inspected at least once a year to avoid serious problems. Based on an inspection of the older lines in the downtown area (see Exhibit A) its quite apparent that lines older than 75 years should-be slipped line or replaced. QUESTION #4 What is the current and recommended level of services? ANSWER Our current level of service is limited to minimal maintenance activities. Ongoing budget constraints preclude the initiation of a good.preventive maintenance program (i.e. timely inspection of lines, cleaning lines on schedule, and repairing/replacing damaged lines and equipment on an as needed basis). Furthermore, the approved program budgets, for sewer line, lift station and manhole maintenance, do not include other essential costs (i.e. electrical energy and staff electrician repairs of lift stations)-also covered by the general fund. The adoption of a sewer assessment fee should not only cover the cost of minimal maintenance activities and associated costs as identified above, but should also include sufficient revenues for: 1. Timely inspection of lines. 4 2. Cleaning lines on schedule. 3. Replacing failed lines as already identified by staff. QUESTION #5 Is there a problem with sewer line infiltration and leaks? ANSWER 56. Pf \.. Some infiltration of groundwater occurs in all sewage collection systems. The amount of infiltration depends upon the age and condition of the system. In April of 1989 a study of lift' station capacity was conducted- by OTT Engineering, Inc. in the Huntington Harbour. Through the use of flow monitoring equipment they determined that infiltration was increasing.the flow levels significantly. By subtracting expected•daily flows from the measured flow, it was determined that 418,422•gallons of groundwater is leaking into the sewer system each day. This g.roundwater is then treated unnecessarily by the Orange County Sanitation District. ti:M'F}:.tw v'a9»:NY:4N.:r.r:ay :YA...»r,•12:f: v\:::t_F�a�:l:+'1'::'::I.i� :'1KF5n.Mn 'Ii:i.. - aiY.Ai.4�'+.'c:�•,•�i- t:ir.» :!.1#.... ,a%[ a.�.M .k•.a•.: ..:i....:.....t:./;::i/:e:.i�ti Av:,. :rt._ laity: Y:Y A.:+ +iii:p,.:e_. w::.t:l..» 4•N.iia. �` !�J y��1 ..A .:tA•:!•:i�in�•�.v:{.r:':a/1Y.ii:r..:F:w.?l�i�{:r;:.,:' ..lc:.>r::;tr,'w�«.4:ro:.+:Rve_-J:._::..:x:.i..;_a :.direr:.:.:ni:rni'ta::/.: +j :}=:::�:t::i..w..::3.,.a:r.:::.awla:•.:...I.:.r::.;.}:�..:.::.... .._ .a.-..a.x:l;•y.:.,:r.�.: :i.. n._:r!'.e;..•Jvn•:s..,.•n•...,.v.v..!: Based on a most recent inspections of the downtown sewer lines, it is quite apparent that the older lines are leaking sewage. As indicated on Exhibit A (see Exhibit A), the . known calculated loss is 71,374 gallons per day. QUESTION #6 Is there a rating system for sewers? ANSWER The physical condition of sewer lines is generally assessed through a televised video inspection. Line condition is determined/rated by the number of joints offsets, cracks, holes, deterioration and missing pipe. Staff is currently video inspecting- each sewer line, rating the condition and cataloging-the information, QUESTION #7 Do we have a map of the City sewer system? 5 .L� ANSWER The City has a sewer atlas map for each square mile of the city. Attached for your information are two atlas maps for the recent inspection of the downtown sewer lines. Atlas maps are also available for all other city lines and the 35 miles of County owned and maintained collector lines. These 38 additional maps have not been included in this packet but are available upon request. LMJ:bh Attachments: 1. Exhibit A 2. Sewer atlas maps for downtown Huntington Beach 6 a� Downtown Scwcr Rcpair-Critical Priority List .,.,+:..:!�• it:'i�!1 is '.1 !7 �!'n.l,::�•.\!ii.'� '�:::.Y%. ,1 �, �8 i! •i :4!Srll... ''(rs}1 f%311J4 �,��-Ar',''�,'!1�_�tl'1 y Y::'f;:lt• �ry�1147. .� :r.� fit,^ �- .).. W. Between Date'' �,: }; rrt� .;^ 1.5 ;�4M9t a•�P 1 {4 y 4'.••. ! !', t �.�,5; Apo of ' ti ,�lr;i..,ri.`t,r'• c• 4 1. rr�r,^' r Oalldns . ::Gallons *N �t:7iCaVeilon, Sewer Location Manholes :Televised. L1r1oalPoot: ;;Piping:;.•'.'Numbdrof„ tot:ko �r�Numbor;oi.t_�oles p L p :.'Ropal►Cost:' p.., „,,.'.Lo>jt granny ,': oat to bale., ,;a Ro aIr Cost ..'� 900 Block Alley cast of Main St. 4 and 5 4112196 220 Olyonrs t0 3 7,029 305,500 $22,000 $13,200 400 Block of 6th SI.Alley 4 and 5 _ 1124196 200 Glyears 40 0 5,592 732,552 $28.000 $16.800 300 to 400 Block of 61h Sl.AAey 5 and 6 124/96 276 Otye_ars 20 7 4.893 640,963 $27.600 $16,560 - ---_ ..------ -- —— - ---....... _-..----- _...--- --- ---- 900 Block Alley cast of Main St. 2 and 4 4/12196 260 6lyears 22 2 4.606 243,672 $26,000 $15,600 400 to 500 Block of l9lh Sl.Alley 3 and 4 11/21/95 - 321 76years 4 2 4,395 857,025 $32,100 $19,260 600 Block of 101h 5l.Alley 1 and 2 J/14/96 247 6lyears 7 4 4.024 325,944 $24,700 _ $14.820 600 Block of 131h St.Alley 1 and 2 222196 324 01yoars 11 9 3,798 307,390 $32.400 $19,440 500 Block of I Ith St.Alloy 3 and 4 2/29/96 259 8lyoors 2J 5 3,460 330,600 $25,900 $15,540 700 Block Alley east of Main St. 10 and 11 4/12/96 238 8lyears 37 1 2,343 121,636 $23,800 $14,280 400 Block Alley east of Main St. 17 and 18 4/12196 263 61years it 1 2.343 121.8836 $28,300__ $16.980 700 Block of 131h St.Alley 3 and 4 222/96 J19 _61years 37 5 2.110 215,220 $31,900 $19.140 — 600 to 700 Block of 13th St.Alley 4 and 5 222/96 327 6lyears 22 5 2,I10 215,220 $32.700 $19,620 300 to 400 Block of 10th Sl.Alley 7 and 8 3,/14/96 302 81ye9rs 10 2 2,012 162,972 $30.200 $18,120 500 to 600 Block of 81h St.Alley 2 and 3 320/96 263 81years 14 1 1,939 145,425 $26,300 $15,780 400 Block of 91h St.Alley _ 4 and 5 _3/15/96 299 81years 42 2 1.662 132,960 _$2_9,90_0 $17,94_0_ 300 to 400 Block of 9lh St.Alley 5 and 6 3115196 274 _ 8lyears 22 2 1,662 132.960 $27,400 $16.440 - 500 to 600 Block of 9th St.Alley 2 and 3 3/15l96 263 8lyears 19 2 1,662 132,960 $26,300 $15.780 400 to 500 Block of 1 Ith St.Alley 4 and 5 229/96 259 81years 46 2 1,392 132.240 $25.900 $15.540 400 Block of 11th St.Alley 5 d 6 229l96 Fars 260 6lys 42 2 1,392 132.240 $26.000 $15,600 .. an _ ... ...- -._.... - .._._..- - ---- ------------...._--- --- --- - --- _--- 300 Block of I Ith St.Alley 6 and 7 229/96 209 6lyears 33 2 1.392 132.240 $20,900 $12,540 400 10 500 Block or 13th St.Alley 3 and 4 2/22196 311 6lyears 41 3 1.266 129.132 $31.100 $18,660 400 to 500 Block of 10th St. Alley G and 7 3M4/96 301 81years 14 1 1.006 81.466 $30,100 $18,060 300 Block of IOth St.Alley 8 and 9 3/14196 300 81years 11 1 1.006 01.486 $30.000 $18,000 200 Block of 1101h St.Alley 9 and 10 3/14196 317 81years 9 1 1.006 61,486 $31.700 $19,020 500 Block of 9th St.Alley_ 3 and 4 _ 3/1519G _ 259 _ 8lyears 29 1 831 66,480 $25,900 $15.540 300 to 400 Block Alley west of Main St. 2 and 3 329196 305 8lyears 30 4 740 48.840 $30,500 318.300 60010 700 Block of 111h Sl.Alley 1 and 2 229/96 330 8lyears 43 1 696 66,120 $33.000 $19,800 400 Block of Crest Alley at I Ith _ /and 2_ _229_196 276_ 8lyears 33 1 696 66,120 $27.600 $16.560 400 to 500 Block of 71h St.Alley 7 and 8 3125/96 293 8lyears 33 1 647 45,290 $29,300 $17,580 .- -....---....------—_ ----------........._..---•----- ------ ...-------- ----...------ - -- 29.6 --- 100 Block of 71h St.Alley_ ,12 and 13 -325/9G 29G Otyoars 25 1 647 45,Z90 $29,600 $17,760 600 Block of 7lh SL Nlcy_ - 5 and 6 J2519G 304 - O lyoars - --24_---—_- 1---- —_--647 -- 45_290 $30.400 $18,240 400 Block of 7th St Nlcy 6 and 9 325l96 290 Otyears 15 1 647 45,290 $29,000 $17,400 200 Block of 5th St.Alley 3 and 4 328I96 256 81years 19 1 -- 646 44,574 $25.800 $15,480 700 to 800 Block of 13th St.Alley 2 and 3 222196 216 81years 10 1 422 43,044 $21.800 $13,080 400 Block Alley west of Main St_ - 1 and 2 -329196 _ 116-- 61years -- 17 2 370 24,420 $11,600 $6.960 200 to 300 Block Alley west of Main St. 3 and 4 329196 268 61years 28 1 185 12.210 $26,800 $16.080 200 Block of Alley west of lake St. 1 and 2 4/16/96 431 82years 86 0 Unknown $43.100 $25,860 1000 Block of Crest St.Alle 3 and 4 4/18/96 357 w2years 52 1 Unknown $35,700 $21,420 600 Block of I Ith SL Alley 2 and 3 229196 .341 81years 46 0 Unknown $34,100 $20,460 800 Block of Crest St.Alley 4 and 5 4/18196 420 82years 42 0 Unknown $42,000 $25,200 --- ..._. . ..-----------•--- ------ ---- -..—-8--— 1,- 200 Block o191h Sl.Alley _ 7 and 8 3/15/96 318 1years 40 0 Unknown $31,800 $19,080 - -. -. _..._._.._...__..-_... --,2-9,-1— _....----- ----- - -- ----- 9 J00 ---- 30010 400 Block of 71h St.•Atle 9 end IO 325l9G 291 O1 ears 30 0 Unknown $29,100 $17,460 T SWRPRII.XLS Locations with an unknown value for loss are suspected of leakage, however it was not occuring during the flow analysis. 1' Downtown Sewer Repair-Critical Priority List -.T..t1 s#.. ?' :A Y,� i_r-i f.<:Y R i '•Y'11S'�- g� - i S y- Y::'+:.• - ..,r! .rya`_ -f?''.Is-..,.fit... .;,• .ry. .a.;•..� -v° r• iti --Y'it -,_� .i.}.,"•' =i-a',-� tL�'' u= :�-- ::�..;, 1�4:�fi.,. �'r.^4 `d .�*',.i'1�, •rr ,,.r, ff+e.�-.. .2, get. '�4:�1.�Y�- ..'a•,•i;,. .5�. -C -�i 'r,- xC a ir"` -fa. .r. ,•4e.� rt;`..'.'. .'M` t t71• =`g.. .r-.� � ..A a^� i,+;,;.+.8•�i.,c. '',� 1�E. ,,f:.t '6 5a4..x:A..:,._ .t._.. .,.,�,tt:s,^.,;, n.K.7't� 1- h. -�r .>......-r^'. .;.:;.=Y. -i- R. .•�,:M`•F.+-. ,,. -� r,'� .+•s.{� ::q.. ..'G4 �'k... .fF S;:a 4rr,:•.r.e•1... .�r•-t., 431,. ,µ _.s...,� nei�;r- t r j r, r-,`.;::xt. ,�•s s s- !.v_�_ a .: ..-. ,<E.a:e. a ....,. a ,-... 'K.. .., i eF 3 _3:ti�ti� • 't•.. f ,r+�' 1a: n s .� �� ,.x: .:ice.. -n..,,.�.n,u....y r-:•[_•< i< �. .. Fr.�'; :......�.?.... ,1.. .., .._�. ....�-- ,S,t._ ...- .,•,r. ... ..e-� -t_r_ .F� ...?:�rS+y:mil_Vie'_�;s=�.r,�.�.• t• -.x-,r-.;-.y.:t.;:�� i•�- y- t -a'r. 'f ,_- ...e-: -:-v... .-.. �- -t. .._ ry•h.. .. ,y,,., q o�C Rr,y,c'AA '� } t:a Y4r �f:. -at�.y'r,.1 ��r, �ial'ons n -i` Gallons + F.XcaVeHOn r=.c.tt� Slip LiD@• sr-. -• - SewerCocatbn`,; Manholes Televised' Uneal Feet a� PI in Number.of Crack3._�1-Number of_Holas t3 Lost r Da ;"Lost to Date Re Ir Cost Re ` it Cost:- Pa, 200 to 300 Block of 6th SL Alley 6 and_7 124l96 281 81years 37 1 Unknown $28.100 $16,860 200 to 300 Block of 5th St Alley 2 and 3 326/96 260 81years 36 0 Unknown $26,000 $15,600 600 Block Alley east of Main St 13 and 14 4112196 306 81years 36 0 Unknown $30,600 $18,360 200 to 300 Block of 7th St Alley 10 and 11 325196 291 81years 35 0 Unknown $29,100 $17,460 300 Block of.5th St Alley ' 1 and 2 326/96 248 81years 35 0 Unknown $24.800 $14,880 700 Block Alley east of Main St 11 and 12 4112/96 233 8lyears 35 0 Unknown $23,300 $13,980 200 to 300 Block of 2nd St.Alley _ 2 and 3 4116196 260 _82years 35 0 Unknown $26,000 $15,600 200 Block of 6th St Alley 7 and 8 1/24/96 281 81years 34 1 Unknown $28,100 $16,860 500 to 600 Block of 7th St.Alley 6 and 7 325/96 293 8lyears 34 0 Unknown $29.300 $17.580 500 to 600 Block Ailey east of Main St. 14 and 15 4112196 294 81years 33 1 Unknown $29,400 $17,640 1600 Block of Main St. 3 and 4 423/96 291 81years 32 3 Unknown $29,100 $17,460 200 Block of 8th St.Alley 7 and 8 320/96 319 81years 30 0 Unknown $31,900 $19.140 700 to 800 Block Ailey east of Main St 6 and 9 4/12196 220 81years 30 0 Unknown $22.000 $13,200 500 Block of 13th SL Alley 2 and 3 222/96 317 8/years 29 0 Unknown $31,700 $19,020 600 to 700 Block of 12th St.Alley 4 and 5 2127196 277 81years 28 2 Unknown $27.700 $16,620 700 Block of 12th St Alley _3 and 4 212719_6 266 81years 28 1 Unknown $26.600 $15,960 200 Block of 7th St.Alley 11 and 12 325196 281 81years 27 0 Unknown $28,100 $16,860 800 Block of 12th St Alley 1 and 2 227/96 141 81years 25 1 Unknown $14,100 $8,460 700 to 800 Block of 12th St Alley 2 and 3 227196 299 81years 25 1 Unknown $29,900 $17.940 1700 to 1860 Block of Main St 4 and 5 423196 363 81years 25 1 Unknown $36,300 $21,780 700 Block Alley east of Main St. 9 and 10 4/12196 248 81years 25 0 Unknown $24,800 $14,880 500 Block of 8th St Alley 3 and 4 320196 260 81years 23 0 Unknown $26,000 $15,600 300 Block of 12th St Alley 3 and 4 227/96 323 81years 22 0 Unknown $32,300 $19,380 100 Block of 14th St Alley 8 and 9 2/14/96 184 76years 21 _ 1 Unknown $18,400 $11,040 300 to 400 Block of 8th St Alley 5 and 6 320/96 276 -81years 21 0 Unknown $27,600 $16,560 900 Block Ailey east of Main SL 1 and 2 4112/96 244 81years 21 - 0 Unknown $24.400 $14,640 300 to 400 Block of 14th St Alley 4 and 5 2/14/96 323 76years 19 1 Unknown $32,300 $19,380 300 Block of 9th St Alley 6 and 7 3115/96 265 81years 19 6 Unknown $26,500 $15,900 200 Block of 12th St Alley 4 and 5 227196 322 81years 19 0 Unknown $32,200 $19.320 800 Block Alley east of Main St 6 and 8 4112196 184 8lyears 18 0 Unknown $18,400 $11.040 400 Block Alley east of Main St 18 and 19 4/12/96 268 81years 18 0 Unknown $26.800 $16,080 1700 Block of Main SL 5 and 6 423196 389 .81years 18 0 Unknown $38,900 $23,340 300 Block of 8th St Alley 6 and 7 320196 267 81years 17 1 Unknown $26,700 $16,020 600 Block of 12th SL Alley 5 and 6 2127196 273 81years 17 0 Unknown $27,300 $16.380 500 Block of 10th St Alley 5 and 6 3114196 299 81years 16 0 Unknown $29.900 $17,940 300 Block of 13th St Alley 5 and 6 2/22/96 311 81years 15 0 Unknown $31.100 $18,660 800 Block Alley east of Main St 7 and 8 4112196 188 81years 15 0 Unknown $18,800 $11,280 500 Block Alley east of Main St 16 and 17 4/12196 282 81years 15 0 Unknown $28,200 $16,920 400 to 500 Block of 14th St Alley 3 and 4 2/14/96 323 76years 15 0 Unknown $32,300 $19.380 200 Block of 14th St Alley 6 and 7 2M4196 317 76years 14 0 Unknown $31,700 $19,020 100 Block of 8th St Alley 9 and 10 320/96 223 81years 13 0 Unknown $22,300 $13,380 800 Block Alley east of Main SL 5 and 6 4/12/96 1 215 8lyears 13 0 Unknown $21,500 $12.900 1200 Block of Acacia Ave.at 12th St. 1 1 and 2 2/27/96 326 81 years 12 1 Unknown $32,600 $19,560 SWRPRII.XLS Locations with an unknown value for loss are suspected of leakage, however it was not occurina during the flow analysis. 2 Downtown Sewer Repair-Critical Priority List �h - - Bait" Loc ..1' xr -, ci'; ti- P-.•ci buy:- ..� i.,,• -;.y.,Er., ,,.;7. - _kl: c-t' .c. - F- .-tw --:4 i Be een<.M.� eof- -, .. tw . .: d ;,.,��,�-;• ,.�4 9.., 1 .__-,Y.I. .:7.7 (.•.,(",.f . :: �,C- ✓ !' :'-.t.NJ'u -L - "� 4• .`�t.;Sewer atlon Manholes s -Telelilsed ,� LlneatFeet r-PI In xl�°`Numtler'ot.Cr ks'su 3: u er of Notes -Lot er.De "Lost:4o Date:=. ' 'Re` Ir Cosf { =Re IrCost ., h a�.1..�F.:..!.y-:.-...-•....-......� ...-..-._.�F. -.i..-. ...- ...w._..-.. ...,,::...i,.,Ln.-r-...,.•..-:w.�sr.c..,...P„..9.rs.,F...�... —::�rL...•.a. .A.�:.�T.... ..._.,...........".Fs...^ .. ....>_.. �....,......_...��.. ..`L.�. -.�+.YY....:...1....-_I�.., ...-�... 400 Block of Bth St Alley 4 and 5 3/20/96 257 Btyeam 12 0 Unknown $25.700 $15,420� 400 Block of 21st SL Alley 4 and 5 1116195 152 76years 12 0 Unknown $15.200 $9.120 600 Block of 19th SL Alley 1 and 2 11/21/95 199 76years 11 0 Unknown $19.900 $11,940 300 Block of 1 tth SL Alley 7 and 8 2129196 420 81years 10 0 Unknown $42,000 $25.200 200 Block Alley west of Main St. 4 and 5 3129/96 267 81years 10 0 Unknown $26,700 $16,020 300 Block of 15th SL Alley 5 and 6 217/96 1 323 76years 10 0 Unknown 1 $32,300 $19.380 200 Block of 15th St.Alley 6 and 7 2/7/96 323 76years 10 0 Unknown $32,300 $19,380 200 Block of 2nd St.Alley3 and 4 4/16/96 255 82years 10 0 Unknown , $25.500 1 $15.300 TOTALS . 26,110 2.206 .108 . ` 71,374 6.588,347 , ".:52.611.000 $1,566,600 '• '. SWRPRII.XLS Locations with an unknown value for loss are suspected of leakage, however it was not occuring during the flow analysis. 3 RECEIVED FROM ��� AND MADE A PART OF THE RECQRD AT THE COUNCILMEETINGOF 1',(0 -56 OFFICE OF THE CITY CLERK CONNIE BROCKWAY,CITY CLERK City of Huntington Beach Sewer Service Fee Proposed Sewer Service Fee *Projected $1.25 million annual revenue *Funds only minimum level of maintenance *Does not fund preventative maintenance *Does not fund capital repairs l Current Sewer Maintenance Costs Salaries $ 797,1000 Routine Maintenance 213,000 Electricity 130,000 Electrical Maintenance 100.000 Total $ 152409000 Monthly Sewer Fee Rey enue S1 million S1.25 million Typical Residence $ 1 .06 $ 1 .33 25 Unit Apt Bldg $26.54 $ 33.25 (2" water meter) Commercial Bldg $71.13 $ 89. 11 (6" water meter) Residential Sewer Rates City Per Month Anaheim $ 0.89 Costa Mesa 1.92 Newport Beach 3.60 Fullerton 25% of water bill Seal Beach 22% of water bill (Cities using OCSD treatment facilities) v S Sewer Service Fee Fee based on flow capacity of «rater meter (size) & number of dwellilg uivts served Water meter sizes in the city 3/4" 83% 1" 11% 1 1/2" 2% 21 3% 3" & larger 1% d4L . oy Proposed Sewer Service Fees Proiected Annual Revenue $ 1,000,000 $ 1,250,000 $ 2,500,000 $ 4,000,000 $ 6,000,000 Recommended Calculation Method Greater of: Meter flow Capacity or EDUs Monthly Fee Monthly Fee Monthly Fee Monthly Fee Monthly Fee I er Unit per Unit per Unit ve{ r Unit per Unit 7ulal milnher of hillahle ul ils 78,496 $ 1.06 $ 1.33 $ 2.65 $ 4.25 $ 6.37 Typical Costs Single Family Residential $ 1.06 $ 1.33 $ 2.65 $ 4.25 $ 6.37 25 Unit Apartment Building (2" meter) $ 26.50 $ 33.18 $ 66.35 $ 106.16 $ 159.24 50 Unit Commercial Complcx (6" I-M met6r) $ 71.02 $ 88.91 $ 177.82 $ 284.52 $ 426.77 SrwFEr:.xr-.S shecil Budget Study Session RECEIVED FROM AND MADE A PART OF T E RECORD AT THE COUNCIL MEETING OF a OFFICE OF THE CITY CLERK CONNIE BROCKWAY,CITY CLERK Budget S Session March 25, 1996 Slide 1 Agenda • Cause of Budget Problems • Looking Back: Past Budget Reductions • Looking Ahead: 5 Year Projections • Review Alternative Solutions ♦ Reduce Services ♦ Increase Revenues ♦ Reduce Salary/Benefit Costs (Requires Meet & Confer) • Review Options • City Council Discussion Slide Z March 25, 1996 Budget Study Session , BudgeURnancial Planning • The Problem: ♦ The State has Taken City Property Tax Revenue to Balance the State Budget ■ Downsizing has covered revenue losses due to the recession ■ Revenue Loss to the State has not been fully absorbed ■ The City needs$3-5 Million per year ■ City Reserves are being depleted rapidly • The Solution: ♦ The City needs to REINVENT its Budget to absorb the Impact of the State Take-Aways Slide 3 City Revenue Taken by the State $Millions $8 Total Loss = $24.4 Million $7,0 $7 $6 $5 I $3.9 $4 $3 $2 $0.9 $1 $0.3 $0 90/91 91/92 92/93 93/94 94195 95/96 Slide 4 March 25, 1996 Budget Study Session Major Revenues - General Fund 1980 - 2001 S in N).illions $35 Without State Takeaway $33:t $30 $29.4 $251 $25 Property Tax 8 $20 4 $16.& $15 $10 Sales Tax $5 $0 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96.97 98 99 00 01 Est Slide 5 Looking Back What Budget Changes has the City made due to the Revenue Losses? Slide 6 March 25, 1996 Budget Study Session ; Looking Back: Past Budget Reductions Multi-Year General Fund Downsizing - Overview ♦ Budget Reduced 3 Consecutive Years ♦ Balanced Primarily by Reducing Expenses ♦ Elimination of 104 Full Time Positions since 1989 ♦ Quality/Quantity of Services has been reduced ♦ Costs Have Been Transferred to Other Funds ♦ Maintenance has been Deferred ♦ Administrative costs Reduced Significantly ♦ Decrease in Internal Service Quality/Control ♦ No Salary Increases in 1993, 1994 and 1995 Slide 7 City Budget - 4 Year History $in Millions $200 $204.4 $195.4 $192.0 $190.4 $150 $97.8 $96.6 $96.1 $95.61 $100 $50 $0 1992/93 1993/94 1994/95 1995/96 ®Total❑General Fund Slide 8 March 25, 1996 Budget Study Session Budgeted General Fund Positions 1020 ,007 1000 980 98 960 940 920 900 903 880 89 90 91 92 93 94 95 96 Slide 9 Full Time City Employees 1978 11059 11 A3 8 AG1p J 1996 11068 Rank # 98 of 100 Largest Cities (Per Capita Number of Employees) Slide 10 March 25, 1996 Budget Study Session Looking Back: Past Budget Reductions For Example: Police Department ♦ 32 Positions Eliminated or Frozen (incl. Temps and new Positions added in 1994) ♦ Reduction of Staffing at 2 Substations ♦ 60% Reduction: Specialized Training ♦ Counter Closed in Early A.M. Hours ♦ Records Division Impacted Greatest ■ Public Counter Closed 1 day ■ 1-2 Week Delay in Data Entry ■ More Overtime due to LostbFrozen Positions Slide 11 Looking Back: Past Budget Reductions For Example: Community Development ♦ 8 Positions Eliminated including 2 Inspectors and 3 Planning Positions ♦ Less Advanced Planning ♦ Increased Processing Time for Planning and Inspections ♦ Essentially No Regional Involvement ♦ Community Newsletter Eliminated ♦ Minimal Graphics/No Video Analysis ♦ Demographic Analysis Eliminated Slide 12 March 25, 1996 Budget Study Session Looking Back: Past Budget Reductions For Example: Community Services ♦ Eliminated Marine Safety Lieutenant ♦ Eliminated Beach Maint. Position ♦ 2 Sr. Outreach Positions Frozen ♦ Reduced Beach Maintenance , ♦ Reduced Temp. Staffing Levels ♦ Reduced Community Center Programs Slide 13 Staffing Reductions All Funds 1992-1996 (Full Time, Permanent) General Fund -79.00 Water Fund +5.75 Redevelopment -5.00 Self-Insurance +2.50 Police C-Cap +4.00 Narcotic Forfeiture -2.00 Capital Projects Funds +12.80 Art Center Fund +5.00 Other +4.30 TOTAL -50.65 Slide 14 March 25, 1996 Budget Study Session Looking Ahead : 5 Year Projections • Budget Shortfalls Projected • Reserves Projected to be Inadequate •Slow Growth of Revenues Projected • Potential Revenue Losses • State Legislation ♦ Redevelopment Payments to General Fund • Proposition 62 • Assessment Appeals • Huntington Beach Mall Transition Slide 15 Projected General Fund Shortfalls $in Millions $10 $9.1 $9 7.7 $8 $ $7 $6 $5 $4 $3 $2 $1 $0 96/97 97/98 98/99 99/00 00/01 Slide 16 March 25, 1996 Budget Study Session General Fund Reserve Millions • $3.1 Million Reduction S in Last Year ♦ One-Time Costs $9 $8'2 $8 6.9 ♦ Bankruptcy Claims $7 $s 2 ♦ Litigation Costs $s • Fiscal Policies Require $5 a Reserve of 3-5% $4 $3.2 $3.0 • Projected Reserve = $3 3.1% $2 $1 $0 92 93 94 95 Est 99 Est Slide 17 Redevelopment Projections Cash Reserves S in Millions $9 $s. $8 $7 $6.1 $6 $5 $4 $3 $2 ,,.. $1 $0.3 $0 95 96 97 98 99 Slide 18 March 25, 1996 Budget Study Session Looking Ahead: General Fund Needs • Insurance Costs have Increased - Reserves are Depleted • Equipment Replacement Reserves are Declining rapidly • Maintenance needs have been Deferred ♦ Streets/Alleys/Sewers/Storm Drains/Buildings/Block Walls/Sidewalks etc. Slide 19 Self Insurance Funds Cash Reserves S in Millions $9 $7.20 $7 $......:. $5 $3 $1.76 $1 ($1) ( 0.78) ($3) 92 93 94 95 96 est. Slide 20 March 25, 1996 Budget Study Session Equipment Replacement Funds Cash Reserves S in Millions $7 $6 4 $6 $6 $5.4 .. ..:: $4 $3 $2 1 92 93 94 95 96 est. Slide 21 Unfunded Liabilities (estimated) Tort Claims "' $5.8 Workers Comp $5.3 Vac 8:S/L $4.8 >: $1 .6Retirement 7 Def. Maint. $0 $5 $10 $15 $20 S in;NIillions Slide 22 March 25, 1996 Budget Study Session Looking Ahead: General Fund Needs • No Revenue for Increased Service: ♦ Calls for Police/Paramedic/Marine Safety Services have Increased ♦ More Hazardous Spills are Occurring ♦ More people are using our Libraries ♦ More people are using our Parks/Beaches ♦ More people are using our Streets ♦ More people are using our Recreation programs ♦ More people are using our Senior Programs Slide 23 Looking Ahead: General Fund Needs • No Revenue for Increased Service: ♦ More Acres of Parks to Maintain ♦ More Medians to Maintain ♦ More Home Improvement Projects to Inspect ♦ More Business Licenses to Process ♦ More Delinquencies to Collect ♦ More Reports are Requested ♦ Faster Analysis is Expected ♦ A More Responsive Government is Expected Slide 24 March 25, 1996 Budget Study Session Alternative Solutions •Service Reductions • Revenue Increases •Salary/Benefit Cost Reductions (Requires Meet & Confer) • Better Efficiency ♦ Privatization `'' ♦ Regionalization ( Metro Cities Fire Authority) ♦ Productivity Improvements < >;a ` > »°= ' Slide 25 Potential Service Reductions •$8 - 9 Million in General Fund Reductions were Identified by Departments • 3 Staff Workshops - Prioritization ♦ $2.8 Million Reduction: 40+ Positions ♦ $3.6 Million Reduction: 60+ Positions • City Council Study Session - 2/12/96 ♦ Impact of $3.6 Million Reduction Described Slide 26 March 25, 1996 Budget Study Session Potential Service Reductions • Library $153,373 5.0% • Community Development 223,400 6.7% • Public Works 700,682 4.6% • Fire Dept. 608,449 3.8% • Police Dept. 765,500 2.4% • Non-Departmental 385,000 3.4% • Admin. Svc. 238,000 5.7% • Administration 69,997 7.4% • Community Svc. 405,000 5.9% • City Attorney 100,274 7.3% Total $3,649,675 3.8% Slide 27 Examples: Potential Service Reductions • Public Works ♦ Eliminate 10 Full Time Positions ♦ Eliminate Most Painting Maintenance ♦ Reduce Park Maintenance ♦ Eliminate Annual Ball Diamond Renovation ♦ Contract Out Special Event Support ♦ Delays in Project Inspections ♦ Eliminate Bus Shelter Inspection ♦ Eliminate Design Services in General Fund Slide 28 March 25, 1996 Budget Study Session Examples: Potential Service Reductions • Fire Department i Eliminate 20 Full-Time Positions ♦ Transfer Communications to New JPA ■ Metro Cities Fire Authority- 7 Cities ♦ Fire Suppression/Medical Staffing Reduced ♦ HazMat Control Transferred to New JPA ♦ Clerical Position Eliminated ♦ Eliminate 3 B/C Aid Positions Slide 29 Examples: Potential Service Reductions • Community Services ♦ Eliminate 9 Positions ♦ Eliminate Cultural Services Division ♦ Close Oakview Community Center ♦ Reduce Sr. Outreach Program Slide 30 March 25, 1996 Budget Study Session Examples: Potential Service Reductions • Police Department ♦ Eliminate 10 Positions ♦ Eliminate Gang Counseling Service ♦ Eliminate Juvenile Diversion Counseling ♦ Eliminate Video Production Position ♦ Eliminate DARE Program ♦ Eliminate 1 Aero Bureau Position ♦ Eliminate 1 Neighborhood Watch Position ♦ Eliminate 1 Accident Investigation Position Slide 31 Revenue Alternatives • Methods to Increase Revenues ♦ Increase Existing Fees/Taxes/Charges ♦ New Fees/Taxes/Charges ♦ Other • 36 Alternatives Identified by Staff ♦ 25 Selected by City Council for Further Study ♦ Further Review Will be Scheduled With City Council as Analysis/Studies are Completed Slide 32 March 25, 1996 Budget Study Session Potential New Revenues • Increase Parking Fees/Meters $400 • Increase/Expand Bus. Lic. Fees $360 • Sewer Maintenance Fee $1,100 • Increase Refuse Cost Recovery $250 • Increase Library Fee - New Dev. ? • Increase Charges to Cover Costs ? • Revenue Audits/Leases ? • Contract Services to Other Cities ? $in Thousands Slide 33 Options: $5 Million Solutions Option 1 Option 2 Reduce Services $3,600 $2,000 Increase Revenues 400 2,500 Reduce Salary/Benefits* 1,000 500 ("Requires Meet and Confer) Total $5,000 $5,000 $ in Thousands Slide 34 March 25, 1996 Budget Study Session Recommendations • Staff Recommends a Balanced Approach of Expense Reductions and Revenue Increases 0 $1.5 to $2.5 of both Revenue Increases and Expense Reductions are Needed • Sewer Maintenance Fee Should be Implemented to Cover General Fund Costs • Refuse Fee Should Cover More of General Fund Refuse Costs Slide 35 Timetable Study Session - City Council March 25 Finalize Staff Priorities April Public/Community Review April-June Study Session-City Council June 1996197 Budget Submitted 8/1/96 Public Hearings Aug-Sept 1996/97 Budget Adopted 9/16/96 Slide 36 March 25, 1996 sT �aabac fox D�pers8 I'Mu cc W Q� Y 3 0l C� V 6 >U � = F-V UQ 00~U U. Cr 0�f►=WOE Q CL U)Q L1 U_QlU ll..� CA1LEt�. 11�r.:1..�CUG 8" Clay Pipe in good Condition ,.f:. a S A, We ,,yj 7,:a bP' qq tt 1', 1 8" Clay Pipe With Calcium Deposits ! l � l -�s�.�,', .. �,r" zit • ?'✓. ss w-e.d�, ,emu )�" +�� �' �'� _•"may-', rzZ�`P��fi��� 1� , ��'7�^ , ,R. �H'� - i•�a�cf. 'I I �Ed��3C i'Y0l7�GS �6y�JCJf�IY&�18� v. e sx OF tq 8" Clay Pipe with Open Break e� J �a ' t " k � 3 7 � r & ' Sy NO W '`-�i}.�r�-v��} •�_ ��,�` ru� "� � �,��ti�YFE",r��s-do-��� �� S� ��;-, 8" Clay Pipe with Section Missing City g of Huntington Beach INTER-DEPARTMENT COMMMUNICATION HUNTINGTON BEACH TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS FROM: ROBERT J. FRANZ, Deputy City Administrator SUBJECT: INFORMATION ITEM: FOLLOW-UP TO CITY COUNCIL BUDGET SUGGESTIONS DATE: August 5, 1996 Attached is a summary of the status of the follow-up to the suggestions made by individual City Council members at the April 29, 1996 Budget Study Session. ROBERT J.(F RANZ Deputy City Adminis ator RJF:skd Attachment 0020435.01 08/05/96 4:39 PM CITY COUNCIL STUDY SESSION - APRIL 29, 1996 SUGGESTIONS TO REVIEW SPECIFIC PROGRAMS AND SERVICES Suggestion Ac#ion Taken ImplernentatEon Plan Business Lleense 1. Strict Business License enforcement. City Treasurer and Community Will be implemented with 1996/97 Perhaps hire additional staff if Development Director have budget. needed. developed an initial implementation plan. One full time position will be used. 23. Require business licenses for all City Treasurer has been requested Will be developed by 2/1/97. businesses operating in City. to develop an implementation plan. 57. Business Licenses for 1 and 2 units. None. The City Council has twice None. Not recommended based on rejected the proposal after prior rejections considering public comments. Fees 29. Implement additional MSI Over $900,000 in new annual A once every 2 year update will be recommendations. revenue has been proposed and completed by 1/1/97. New/increased implemented in the last 2 years. fees will then be presented to the City Council. In the interim, Departments will review selected fees. 41. Increase aggressiveness of Code and Community Development will Report to City Council by Law Enforcement fines (issuance?). analyze the pros and cons of an January 1, 1997. aggressive Code Enforcement Program. 42. Review all contracts and leases for Staff will review these documents. As contracts/leases expire, new and increases in fees. increased revenue is required. 0019362.02 -1 of 12 Pages- 08/07/96 10:40 AM CITY COUNCIL STUDY SESSION - APRIL 29, 1996 SUGGESTIONS TO REVIEW SPECIFIC PROGRAMS AND SERVICES ...............-.-....... .. ...........................-.....I , .............. ........ ... ................ ............................. .......... . .............. ... ......... ..... . ........................... .................. .... ......... .................. ion. ................................... ............ ............. .. .. .... ..p......t......i..o.......n............T.....a........e...n...... .......... ........... ..................... ............- Implementation....... .Pt an ...:.. . .... ... ............................ ......... -...... ............. ..... ................. .......-...... ........ ........ ...... .........---.... ... ................. 49. Raise existing fees to cover overhead. See MSI discussion above. Present to the City Council after 1/1/97. 50. Institute $3.6 million in MSI fees. See MSI discussion above. Present to the City Council after 1/1/97. 51. Raise beach parking fees. Community Services will develop a Present a Preferred Parking Plan to plan for increasing revenue. the City Council in March, 1997. 52. Increase fees for towed vehicles. Police Department is reviewing. Report will be submitted in August. 53. Charge homeowners for removal Public Works is reviewing. Report will be submitted to City and/or planting of trees. Council in August. 54. Oil pipeline franchise fees. A new pipeline franchise fee is The City Attorney's Office is being reviewed by the Fire researching the City's ability to Department for pipelines not enact additional pipeline franchise included in existing pipeline fees. If the City Attorney's findings franchises due to expire in ten (10) allow additional franchise fees, staff years. will present the appropriate ordinances for City Council consideration by January 1, 1997. 56. State parks water use surcharge. Initial review complete. Will be a part of the next review of water rates in 1997. 58. Community Enrichment fee. Public Hearing is scheduled for Will be collected if approved. - August 19, 1996. 0019362.02 -2 of 12 Pages- 08/07/96 10:40 AM CITY COUNCIL STUDY SESSION - APRIL 29, 1996 SUGGESTIONS TO REVIEW SPECIFIC PROGRAMS AND SERVICES Suggestion Action Taken Implementation Plan 59. Sewer maintenance fee. Presentation made to City Council Partial fee currently included as a on 6/10/96. recommended new revenue for 1996/97. 60. False 911 calls. April 10, 1996 report recommended Not recommended as a new fee in not implementing a fee. 1996/97. 62. Annual Fire Prevention inspection fee. Fire Department will submit a report Not recommended as a new fee in by November 4, 1996. 1996/97. 63. State mandated fire inspection. Fire Department will submit a report Not recommended as a new fee in by November 4, 1996. 1996/97. 64. Storm drain maintenance fee. Potential long-term funding Not recommended as a new fee in opportunity if I.I.M.P. (Integrated 1996/97. Infrastructure Management Program) is adopted and funded. However, fees could be adopted prior to this for maintenance purposes. 68. Fire Code enforcement fees. Fire Department will submit a report Not recommended as a new fee in by November 4, 1996. 1996/97. 0019362.02 -3 of 12 Pages- 08/07/96 10:40 AM CITY COUNCIL STUDY SESSION - APRIL 29, 1996 SUGGESTIONS TO REVIEW SPECIFIC PROGRAMS AND SERVICES .............Sggestion Acfcon Taken lmplementation Plan 69. Trenching fee (street cuts). Action Taken: Issue has been Do not implement until state presented to City Council and Public legislation and legal challenges are Works Commission. State completed. legislation is being monitored. Support has been given to League of California Cities' effort to move ahead. IntergovernmentaY 39. Acquire West Orange County Water Action Plan: Public Works is Will be reviewed with the City District. negotiating with member agencies to Council in 1996/97. determine if this is a cost effective measure. 40. Withdraw from PCTA. City Council Cable Committee will Will be submitted to the City Council review the effectiveness of the by November 1, 1996 PCTA and develop a position for the entire City Council to consider. Issue is currently being reviewed by City Administrator and City Attorney's Office. 46. Give state beach back to State. Cost savings would be offset by loss Not recommended. $5 million Pier of anticipated new revenue from Pier Plaza Project has been established Plaza Parking. as a high priority. Organizatisomonal Structure Reduce 0019362.02 -4 of 12 Pages- 08/07/96 10:40 AM CITY COUNCIL STUDY SESSION - APRIL 29, 1996 SUGGESTIONS TO REVIEW SPECIFIC PROGRAMS AND SERVICES Suggestion Actron Taken Implementation Plan 4. Reduce Police Aero Bureau by 50%. Not feasible to reduce 50% in One position proposed for conjunction with phase out of ABLE elimination in 1996/97 Budget. Program 8. Eliminate/reduce Police participation February 15, 1996 report provided Department does not recommend in regional Narcotics Task Force. to City Council. reduction. 12. Reduce tree trimming. In prior years, Public Works has Implementation Plan: Given the reviewed lowered service levels. safety issues involved in further reduction of service, staff does not recommend this action. 47. Reduce HBTV3 services. One position to be eliminated. Upon adoption of the 1996/97 Budget, staff will review with City Council Cable Committee changes in programming which will reduce level of service. Organizational Structure:Re gear 2. Consolidate Police/Fire Vehicle Public Works Director, Police Chief Operational modifications will be Maintenance under Public Works. and Fire Chief have been reviewing made as outlined in report. since early 1996. Report submitted July 8, 1996. 17. Reorganize Library into Community Administration has reviewed . Not recommended. Services. Reduce 1 department previously. head. 0019362.02 -5 of 12 Pages- 08/07/96 10:40 AM CITY COUNCIL STUDY SESSION - APRIL 29, 1996 SUGGESTIONS TO REVIEW SPECIFIC PROGRAMS AND SERVICES Suggestion Action Taken Implementafion P..........l........a.................n 27. Utilize R.S.V.P. in Code Enforcement. Community Development is Recommendation will be included in reviewing. January 1, 1997 report to City Council on Code Enforcement. 31. Reduce.outside legal work. City Attorney is reviewing. Recommended Budget reduces General Fund outside legal services appropriations. 44. Institute program in Fire Department The Fire Department has Until Pasadena's proposal is (produced?) by Pasadena Fire Chief researched Pasadena's eight (8) located, no further action will be (8 hour work shifts). hour work shift proposal. taken. Unfortunately, no such report has been located. 48. Increase aggressiveness in grant Administration will coordinate an Ongoing. writing. update of the Grant Report for distribution to City Council. 67. Revenue audits and collections. Areas to further expand efforts will Will coordinate with City Council to be explored. Audit Committee and develop a schedule. 0019362.02 -6 of 12 Pages- 08/07/96 10:40 AM CITY COUNCIL STUDY SESSION - APRIL 29, 1996 SUGGESTIONS TO REVIEW SPECIFIC PROGRAMS AND SERVICES Suggestion Action Taken ' Implementation Plan Parking<Meters 19. (Create?) a Parking Meter Master Community Services has developed New meters on Beach and Magnolia Plan. a plan. Will review with City Council will be proposed as part of 1996/97 in 1996/97. budget. 55. New parking meters: Brookhurst, Part of proposed budget for Following 10/1/96. Magnolia, Beach Blvd. 1996/97. (Except Brookhurst). Personnel 7. Eliminate position of Adjutant in Police The position includes Not recommended Department and replace with unsworn responsibilities best suited for sworn Management Assistant position. personnel. 24. Negotiate a 0% payroll increase to Will be discussed as part of meet As indicated bring all labor contracts through 1997 1 and confer process. . . Privatize 3. Eliminate City Attorney staff and As vacancies occur, contracting vs. utilize contract counsel. in-house will be reviewed. 10. Privatize road paving. Part of Privatization Study. City Council Committee is overseeing implementation. 11. Privatize street sweeping. Part of Privatization Study. City Council Committee is overseeing implementation. 14. Privatize the Art Center. Was reviewed by City Council Not planned. Committee but not recommended. 0019362.02 -7 of 12 Pages- 08/07/96 10:40 AM CITY COUNCIL STUDY SESSION - APRIL 29, 1996 SUGGESTIONS TO REVIEW SPECIFIC PROGRAMS AND SERVICES Suggestion Action Taken Implementation Plan 16. Privatize Public Works street Action Taken: All Public Works Implementation Plan: City Council maintenance, water distribution, etc. services were reviewed as part of Committee is overseeing the David M. Griffith Study recently implementation of candidate adopted by the City Council. programs identified in the study. 26. Privatize Code Enforcement. Community Development will review. Recommendation will be included in the January 1, 1997 report to the City Council on Code Enforcement. 34. Street sweeping privatization. Part of Privatization Study City Council Committee is overseeing implementation. 35. Privatize landscaping. Part of Privatization Study. City Council Committee is overseeing implementation. 36. Privatize tree trimming. Action Taken: This program was Implementation Plan: Do not extensively reviewed in the David M. privatize further in this program. Griffith Study and found to be 24% less expensive than private services. 0019362.02 -8 of 12 Pages- 08/07/96 10:40 AM CITY COUNCIL STUDY SESSION - APRIL 29, 1996 SUGGESTIONS TO REVIEW SPECIFIC PROGRAMS AND SERVICES Suggestion Action Taken Implementation Plan 37. Review all Public Works activities for All areas (28) of Public Works were City Council Committee is privatization. extensively reviewed in the David M. overseeing Griffith Study. Five (5) areas were implementation/assessment of identified as candidates for privatization opportunities. privatization. 38. Privatize City Attorney's Office and/or City Attorney will review. See prior comments. go to billable hours. 45. Privatize all of Administrative All areas were reviewed as part of Status reports will be submitted. Services. DMG Study in 1995. Regionalize 9. Regionalize Fire (services). Will further review as part of The Metro Cities Communications ongoing efforts. JPA was implemented on July 1, 1996. Expansion of the existing Central Net Operations Authority Training JPA is being reviewed, including the addition of Hazardous Materials Inspection regulations 22. Regionalize more Public Safety Will be reviewed as part of overall To be developed. services. Police/Fire Study. 25. Fire/Police regionalization. See above. See above. 0019362.02 -9 of 12 Pages- 08/07/96 10:40 AM CITY COUNCIL STUDY SESSION - APRIL 29, 1996 SUGGESTIONS TO REVIEW SPECIFIC PROGRAMS AND SERVICES Su estron Acton Taken Irn lementatron Plan 99 P.. 32. Look carefully at Aero positions -- See prior comments. Reducing the One position proposed for reduction or regionalization with other number of personnel beyond the elimination in 1996/97 budget. cities paying their bills. one reduction proposed in the 1996/97 budget would seriously disrupt flight service. 70. Regionalize Public Works street Public Works is assessing all Continue discussion of regionalized maintenance, water distribution, etc. potential opportunities to provide services at appropriate regional services to neighboring cities where gatherings with other cities. possible. Additional regionalization opportunities will be sought and evaluated. Social Services 20. Review and evaluate all CDBG Implemented some changes this Further review planned for next requests. Rank in order of citizens year. funding cycle. served divided by allocation. Eliminate regional and emphasize local. 21. Review all social services programs Will initiate a review. County has revised services and and transfer, where appropriate, to transferred demand to cities. City County. has limited ability to transfer programs to County. 33. Use CDBG funds to support general Partially implemented. See #20 above. fund services. Taxes 0019362.02 -10 of 12 Pages- 08/07/96 10:40 Ann CITY COUNCIL STUDY SESSION - APRIL 29, 1996 SUGGESTIONS TO REVIEW SPECIFIC PROGRAMS AND SERVICES Suggestion Action Taken Implementation Plan 18. Emphasize new"tax" and "user fee" Need clarification. Seven Budget 1996/97 Budget recommends $2 sources. Study Sessions have been held to million in new revenues. review options. 28. Tax on rental properties. See prior comments. See prior comments. 30. Sewer fee. Public Works has evaluated several Partial fee is part of 1996/97 levels of fees. proposed budget. 61. Transient Occupancy Tax increase. Reviewed as part of current year Not proposed for 1996/97. budget. 65. Entertainment Tax Analysis completed. Report submitted in June. Further consideration not recommended. 66. Cigarette tax. Low priority. Not proposed for 1996/97. Miscellaneous 5. Reduce use of city vehicles. Need clarification from City Council. 6. Reduce use of car phones. An inventory of existing Cellular A review of cellular phone usage, Phones will be completed by need and alternatives will be August 15, 1996. submitted by October 4, 1996. 0019362.02 -11 of 12 Pages- 08/07/96 10:40 Ann CITY COUNCIL STUDY SESSION - APRIL 29, 1996 SUGGESTIONS TO REVIEW SPECIFIC PROGRAMS AND SERVICES Suggestion Action Taken Implementation Plan 13. Sell our flood control facilities to the Initial discussion with OCFD Not recommended. Orange County Flood Control District. revealed that there is no interest in Realize initial (small) sale amount and assuming responsibilities/liability long term operational (and liability) without the City providing reductions. corresponding revenues to build, maintain and replace this infrastructure, probably in the form of a property tax transfer from the City to the Flood Control District. 15. Sell city (real?) property. Report reviewed 6/10/96 During 1996/97 43. Purchase street lighting. Study concluded this would not be Not recommended. cost effective. 0019362.02 -12 of 12 Pages- 08/07/96 10:40 Ann G Sewer Maintenance Fee Program City of Huntington Beach The Huntington Beach Sewer System ■ Provides transportation to a treatment plant using — 560 miles of pipeline —28 lift stations — 10,000 manholes ■ is separate from the Storm Drain System ■ Most of the water used in Huntington Beach becomes sewer water z 6/23/97 Sewer Maintenance Fee Proposal 1 How the Sewer System Works ■ Sewer waste flows by gravity through the pipelines ■ Lift Stations are used to pump waste when gravity flow is no longer possible ■ Manholes provide access to clean and repair the pipelines 3 Requirements of the System ■ The sewer system must be operational at all times ■ Maintenance and repairs must be performed at regular intervals ■ Budgetary constraints have rendered current maintenance levels inadequate 4 6/23/97 Sewer Maintenance Fee Proposal 2 Deferred Maintenance (current level of service) ■ Reduces system dependability ■ Accelerates deterioration of the system ■ Increases cost of operation 5 Health and Safety Concerns ■ Many illnesses and diseases actively reside in the sewer system ■ Deteriorated sewer systems pose a potential public health threat through leakage ■ Deteriorated sewer systems also pose a health threat to maintenance personnel 6 6/23/97 Sewer Maintenance Fee Proposal 3 Major System Problems ■ Current videos reveal pipeline failures throughout the City, and, extensive salt water intrusion ■ Lift stations are at or beyond recommended capacity and design life ■ Many manholes must be rebuilt to ensure safe entry Monthly Sewer Fee Options Amount Results $3.39 Funds 33% of needs $5.39 Funds 66% of needs $7.36 Funds full needs Any amount less than $7.36 /mo. defers a portion of the needed maintenance, repair and replacements. 8 6/23/97 Sewer Maintenance Fee Proposal 4 Proposed SewerFee ■ $3.39 per month will generate a projected $3.3 million in annual revenue ■ Will fund all direct and indirect expenses ■ Includes selected major repairs to damaged/ failing facilities 9 Estimated Monthly Sewer Fee (at proposed level) Typical Residence $3.39 (W" meter) 25 Unit Apt Bldg. $84.79 (2" water meter) Commercial Bldg. $227.23 (6" water meter) 10 6/23/97 Sewer Maintenance Fee Proposal 5 Comparative Residential Sewer Fees city Per Month Anaheim $ 0.89 Costa Mesa 1 .92 Newport Beach . 3.60 Fullerton (25% of water bill) 6.75 (est) Seal Beach (22% of water bin) 5.94 (est) (Cities using OCSD treatment facilities) Conclusions ■ Our Sewer System is failing ■ Funding sources for long term replacement are being reviewed as part of the IIMP ■ Alternative funding sources are not available at this time or in the immediate future ■ Immediate funding is necessary to initiate needed repairs and maintenance ►2 6/23/97 Sewer Maintenance Fee Proposal 6 T Wastewater PipelineProblems less than 25 years old 4Jim.q,�� /5� �J• yt �sC 1 3 , � �� Sf O a�P• •Y r Fi,;. 6/18/97 Wastewater Problems 25 to 50 years old .r •_i� .a 6/18/97 WastewaterPipe' line P ro ems than 50years old greater Oor 1 _' fir. �}`��•t-'_ •�'lJ4 ({/ !�' r� s 6/18/97 i_ i C l iI Council/Agency Meeting Held:_ Deferred/Continued to: (�„,� . Bae eN_, t Approved ❑ Conditionally Approved ❑ Denied aCity Clerk's Signat Council Meeting Date: September 3, 1996 Department ID Number: AS 96-053 CITY OF HUNTINGTON BEACH REQUEST FOR COUNCIL ACTION SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS SUBMITTED BY: MICHAEL T. UBERUAGA, City Administra or-- PREPARED BY: ROBERT J. FRANZ; Deputy City Administr or SUBJECT: Public Hearing: 1996/97 Budget and Proposed New ee Increase Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(s) Statement of Objective: Conduct the Public Hearings required for the City's Annual Budget and for consideration of new and/or increased fees. Funding Source: As indicated in the Proposed Budget as amended. Recommended Action: 1. Conduct a joint and consolidated hearing on the following: a) 1996/97 proposed budget. b) Increase to the city's business license fees. c) Increases to building/planning fees. d) New and increased Police Department related fees. 2. Continue the public hearing open to September 16, 1996. 3. Instruct staff to revise the proposed budget as indicated in Attachment 1, and summarized as follows: a) Delete the Sewer Maintenance fee proposal. b) Delete the proposed $20 Business License Fee increase and include the alternative Business License application and renewal. processing fee increases. c) Include the Building/Planning and Police Department recommended fee increases. d) Reduce General Fund expenses related to Internal Service Funds and Redevelopment by $841,907. n QkC REQUEST FOR COUNCIL ACTION MEETING DATE: September 3, 1996 DEPARTMENT ID NUMBER: AS 96-053 4. Approve the policies and allocation of new revenue from the Library Development fee as recommended in Attachment 5 ($100,000 General Fund reduction). Alternative Action(s): Instruct Staff regarding changes to be incorporated in the 1996/97 Budget. Analysis: Eight study sessions have been conducted on budget related issues since February of 1996. The proposed budget was delivered to City Council in early August and addressed the need for increased General Fund expenses of $4.1 million by recommending General Fund Expense reductions of $2.1 million and new and/or increased fees of $2.1 million. The City Council reviewed the proposed budget at a study session on August 12, 1996 and took straw votes on some of the new and/or increased revenues. As a result of the City Council review, the staff has developed a revised proposal for balancing the budget for 1996/97, as summarized below and in Attachment 1. Revised Budget Proposal Under the revised budget proposal the estimated new and/or increase revenues would total $1,270,000 compared to the original proposal of an increase in revenues of $2,124,000. The $854,000 reduction in estimated new revenues would be balanced with proposed expense reductions totaling $841,907 which, combined with the previous projected surplus will result in a balanced budget for 1996/97, including a projected surplus of $6,590. Following is a summary of the estimated total General Fund revenues and expenses under the revised budget proposal: Summary Revised Recommended General fundBudge# 1996/97 Estimated Beginning Fund Balance $ 3,136,866 Estimated Ongoing Revenues* $ 97,331,505 Recommended Expenses $ 97,324,915 Budget Surplus $ 6,590 Plus: Estimated One-Time Revenue 350,000 Estimated Ending Fund Balance $3,493,456 *Includes Recommended New Revenues of$1,270,000 0020738.01 -2- 08/29/96 11:06 AM REQUEST FOR COUNCIL ACTION MEETING DATE: September 3, 1996 DEPARTMENT ID NUMBER: AS 96-053 Public Hearing - 1996/97 Budget The City Charter requires a public hearing to be held on the overall city budget prior to adoption. Notices have been published per charter requirements and the hearing has been scheduled for the City Council meeting of September 3, 1996. Although not required by the charter city staff recommends continuing the hearing open to September 16, when the adoption of the budget is scheduled. Public Hearing - Business License Fees Attachment 2 is a report on alternative business license fee increases. Public hearing notices have been published for a hearing on September 3, 1996 for both of the alternatives listed in the report. Alternative 1: $20 per Year Increase -- The first alternative is a $20 per year increase in the city's basic business license fee. Under state law this increase is considered a tax since it is a revenue producing fee that is not related to covering the cost of business license activities. A tax increase of $20 would require a five vote approval by the City Council, and would be subject to further review if Proposition 218 passes in November of 1996. (Proposition 218 is referred to as the "Fox Initiative". Its official ballot title is: "Voter Approval for Local Government Taxes. Limitation on Fees, Assessments, and Charges. Initiative Constitutional Amendment.") If Proposition 218 passes, the $20 Business License increase would be required to be approved by city voters (majority voter approval) in November of 1998. Staff does not recommend this alternative. While this was one of the original new/increased revenues proposed by staff in May and June of this year, these proposals were developed prior to Proposition 218 qualifying for the November 1996 General Election ballot. An analysis of the initiative was published in Western Cities Magazine in August. Other summaries and analysis were also provided to the City in August. Upon review of these various reports regarding Proposition 218, we do not believe it would be prudent to assume that the $320,000 from this increase would be available to balance the 1996/97 General Fund budget. If Proposition 218 passes and the $320,000 is not available to spend, the City would have to amend the approved budget mid-year to reduce expenses or increase other revenues. If Proposition 218 does not pass, then the City Council could reconsider the need for an increase in the basic annual Business License fee in late 1996 or early 1997. Alternative 2: Renewal and Application Processing Fee -- A public hearing notice has also been published for a $6 per year increase to the City's business license Renewal Fee. Currently the city collects a $6 per year Renewal Fee, while the MSI study of 1991 documented a cost of $12 per license to process each annual renewal. Therefore, without being considered tax revenue, the city could increase its renewal fee from $6 to $12 ($6 increase). This increase would generate $96,000 per year based on the current average of 0020738.01 -3- 08/29/96 11:06 AM REQUEST FOR COUNCIL ACTION MEETING DATE: September 3, 1996 DEPARTMENT ID NUMBER: AS 96-053 16,000 business licenses. In addition, the City currently charges $10 for new business license applications for the set up cost for processing new business licenses. The MSI study documented a city cost of over $29 dollars per license to process new business license applications. Based on a survey of other cities, the staff has -recommended a $25 new application processing fee. If approved, this would result in an estimated $40,000 per year increased fee revenue to the City. Staff recommends these two fee increases and the increased enforcement/audit programs described in Attachment 2. Public Hearing - Building/Planning Fees Attachment 3 is a report from the Community Development Director summarizing the building and planning fees that are recommended to be increased. Although we have not completed the update of the MSI study (scheduled for review by the City Council in early 1997), the department has reviewed all existing fees and those recommended for increase are fees where the current fee is significantly less than 100% of the MSI documented cost from the last update in 1994. The increased fees would affect the cost of building permits, inspections, planning processing and a few other areas as summarized in the staff report. The estimated new revenue from these fees is $196,000 per year. Public Hearing notices have been published for consideration of these fee increases on September 3, 1996. Public Hearing - Police Department Related Fees Attachment 4 is a report from the Police Department on 3 potential new or increased fees that would generate an estimated $84,000 per year. The changes are 1) an increase in the maximum cost for copies of a crime report from $5 to $15, 2) changing the collection method for Fees related to DUI cases, and 3) recovery of Jail booking costs from convicted arrestees. Public Hearing notices have been published for a hearing on these potential new fees for the September 3, 1996 City Council meeting. Library Development Fee/Allocation of New Revenue Attachment 5 is a report on the alternatives regarding the allocation of revenue estimated to be generated form the recently approved Library Development impact fee. For 1996/97 an estimated $245,888 of new revenue will be collected. As indicated in the report, staff recommends a $100,000 reduction in General Fund costs as result of approval of the new fee. The balance of the new revenue would be used to reduce Library Expansion Fund costs and increase the purchases of Library books, materials and supplies. Follow up Report - Internal Service Funds Attachments 6 & 7 are the follow up reports requested by the City Council to further describe the history and need for additional funding from the General Fund to restore 0020738.01 -4- 08/29/96 11:06 AM REQUEST FOR COUNCIL ACTION MEETING DATE: September 3, 1996 DEPARTMENT ID NUMBER: AS 96-053 reserves in our internal service funds. As indicated in the reports, due to the recession and revenue reductions from state government actions, General Fund allocations to these internal service funds were reduced to what was considered the minimum allocations. The Orange.County bankruptcy losses further depleted reserves in these funds, which are now at inadequate levels. The City's outside auditors have commented on the inadequacy of the self insurance reserves for the last 2 years. In addition, there have been previous City Council reviews of the unfunded liability in the Supplemental Retirement Benefit Fund. Staff developed a plan early in fiscal year 1995/96 to address the inadequacies of the reserves. The first phase of this plan was presented to the City Council in March of 1996. The City Council approved reducing 1995/96 Self Insurance costs by $1,500,000 as part of the mid year action. This reduction to current year expenses was needed to avoid a large cash deficit at the end of the current fiscal year. Included in the mid year report was the identification of the need to increase funding from the General Fund to the internal service funds beginning 1996/97. The revised budget proposal reduces the amount of increased funding for these internal service funds. The need to establish actuarially sound reserves still exists and will take longer to accomplish under the revised budget proposal than had been originally recommended for 1996/97. Water Surcharge - State The Public Works Department has been asked to review the possibility of adding a surcharge for water used at State Beaches (similar to the current surcharge for customers who are not Huntington Beach residents). As indicated in Attachment 9, prior to implementing a surcharge the City must document the increased costs that justify the surcharge. Work has begun on this analysis and will be completed by the end of September. This subject will be scheduled for discussion at a future City Council meeting'. Revised Revenue Estimates - General Fund One of the advantages of the October 1 - September 30 fiscal year is that we have more accurate property tax data from Orange County (data is mailed in mid-August) upon which to estimate revenue. Attachment 8 is an analysis of property tax revenue estimates along with an update of all General Fund revenue estimates for 1996/97. The updated estimates are $79,000 less than previously projected. Property tax revenue estimates have been reduced by $678,000 while other revenues are projected to be higher than originally estimated. The net reduction in estimated revenue has been taken into account in the proposed revisions on Attachment 1, resulting in a balanced General Fund Budget recommendation. 0020738.01 -5- 08/29/96 11:06 AM REQUEST FOR COUNCIL ACTION MEETING DATE: September 3, 1996 DEPARTMENT ID NUMBER: AS 96-053 Environmental Status: Not applicable. Attachment(s): NumberCity Clerk's Page 1. Revised Budget Proposal 2. Business License Fee Alternatives 3. Building/Planning Related Fee Increases 4. Police Department Related New/Increase Fees 5. Allocation of Library Development Impact Fee Revenue 6. Analysis of Equipment Replacement Funds 7. Analysis of Self Insurance Funds 8. Revised Revenue Estimates - General Fund 9. State Parks Water Use Surcharge 0020738.01 -6- 08/29/96 11:06 AM Attachment 1 Revisions to Proposed General Fund Budget 1996/97 Fiscal Year- Recommended New Revenues New/increased Revenue Proposed Revised Difference Budget Parking Fee Changes(Approved) $ 400,000 $ 400,000 $ 0 Library and Cultural Development Fee 100,000 100,000 0 New Parking Meters-Beach/Magnolia Blvd. 44,000 44,000 0 Beach-Preferred Parking Plan 100,000 100,000 0 User Fee Increases 50,000 50,000 0 User Charges-Land Acquisition 35,000 35,000 0 Business Licenses-Enforcement 75,000 75,000 0 New Sewer Maintenance Fee 1,000,000 0 (1,000,000) Business License Increase($20 per year) 320,000 0 (320,000) Business License Processing/Application 0 136,000 136,000 Fees Business License-Audit 0 50,000 50,000 Business License- 1 &2 unit Rentals* 0 0 0 Building/Planning Fees 0 196,000 196,000 Police Department related Fees 0 84,000 84,000 Total $2,124,000 $1,270,000 ($854,000) Public Hearing scheduled for Oct. 7, 1996 General Fund Budget Need Proposed Revised Difference Budget Redevelopment-Reduce payment to the General Fund $200,000 $ 100,000 $ (100,000) Liability/Self Insurance-Increase General Fund Payment 1,200,000 800,000 (400,000) Workers Compensation-Increase General Fund Payment 470,000 470,000 0 Supplemental Retirement - Increase General Fund 450,000 350,000 (100,000) Payment Equipment Replacement-Increase General Fund Payment 741,907 500,000 (241,907) Merit Step Increases 425,000 425,000 0 Attrition-Police Department 240,000 240,000 0 Holiday Overtime Costs 125,000 125,000 0 Other 264,328 264,328 0 Total $4,116,235 $3,274,328 ($841,907) BGTREV97.DOC 08/27/96 4:47 PM - - 0 Y Budget Public Hearing & Adoption pZm COO z M o M IC �?5moR' Budget Public m V Z-nmD; n -o O wm��� �-n Hearing & Adoption mI>M(Revised Budget Proposal) :1OM T m� September 16, 1996 Slide 1 Budget Adoption • Public Hearing was conducted September 3rd. ♦ Continued open to September 16. ♦ Included proposed fee increases. • Recommended actions (after public hearing is closed) ♦ Approve fee increases ■ $6 Business License renewal ■ $15 Business License Application fee ■ Building/Planning fees ■ Police Department fees ♦ Approve City Budget Slide 2 September 16, 1996 Budget Public Hearing & Adoption 1996/97 Recommended Budget (Revised Budget Proposal) 9 Total Recommended Budget ♦ $198,993,325 ♦4.3% Increase ♦ Increases funded primarily by Developers and Water Fund 9 Recommended General Fund Budget * $971272,915 * 1 .2% Increase Slide 3 1996/97 Projected Resources All Funds = $198,993,325 (Revised Budget Proposal) S in Millions General Fund Reserves 12.6 .6 Other Funds 4.0 Transportation - 7.9 Redevelopment 7.1 Internal Svc. 14.7 Other Enterprise Capital Projects 12.4 4.8 Refuse 8.7 Water 22.8 Debt Service 6.0 Slide 4 September 16, 1996 Budget Public Hearing & Adoption 1996/97 General Fund Budget By Department - Total =$97,272,915 (Revised Budget Proposal) Police $32,757,311 Fire $16, 57,911 Public Works $16,26 ,812 Non-Departmental 572,035,074 Community Svcs. $6, 1,536 Administrative Svcs. $4,263 2 Community Dev. $3,284,75 Library Services $2,885,819 City Attorney ,. $1,274,664 Administration $909,604 City Treasurer $787,696 �y irk $524,648 City Councu $240,712 $0 $10,000,000 $20,060,000 $30,060,000 $40,060,000 Slide 5 General Fund - Recommended Expense Reductions (Same as Original Proposal) e Library $86,000 e Community Development 94,000 _ e Public Works 388,496 e Fire Department 330,189 e Police Department 337,000 e Non-Departmental 398,250 e Administrative Services 95,013 e Administration 80,154 e Community Services 221,953 e City Attorney 93,274 Total $2,124,329 srae e September 16, 1996 Budget Public Hearing & Adoption General Fund Cost Increases (Revised Budget Proposal) Rede VelOpMen t(Reduced Revenue) $100,000 Liability Self Insurance 800,000 Workers Compensation 470,000 Supplemental Retirement 350,000 Equipment Replacement Needs 500,000 Merit Step Increases 425,000 Attrition/Holiday OT - Police Dept. 365,000 Other (uncontrollable increases) 264,328 Total $3,274,328 Slide 7 Recommended New Revenues (Revised Budget Proposal *) Increase Parking Fees (Approved) $400,000 Increase Library Fee - New Dev. 100,000 New Parking Meters 44,000 Preferred Parking Plan - Beach 100,000 Increase Charges to Cover Costs 85,000 Enforcement- Business Licenses 75,000 Business License-Processing&Application 136,000 Business License-Audit 50;000 Building Planning Fees 196,000 Police Department Fees 84.000 Total ,$1,270,000 * Deletes previously recommended Sewer Fee ($1 m)and Annual Business License Increase($320k) Slide a September 16, 1996 Budget Public Hearing & Adoption Business. License Survey Santa Ana $230 San Clemente $97 La Palma 200 Huntington Beach 97 Los Alamitos 194 Fullerton 94 Anaheim 168 Costa Mesa 88 Buena Park 167 La Habra 73 Placentia 157 San Juan Capistrano 72 Stanton 153 Yorba Linda 65 Seal Beach 146 Fountain Valley 59 Brea 124 Newport Beach 58 Laguna Beach 117 Villa Park 56 Cypress 115 Irvine 46 Garden Grove 113 Tustin 41 Orange 104 Westminster 31 Slide 9 Reduction in Full-Time Positions (Same as Original Proposal) General Fund All Funds • Library -1.00 -1.00 • Community Development -2.00 -2.00 • Public Works -9.50 -15.25 • Fire Department * -1.00 -16.25 • Police Department -3.00 -4.00 • Admininistrative Services -.50 -1.50 • Administration -1.75 -3.00 • Community Services -3.00 -5.75 • City Attorney -1.00 -1.00 • Economic Dev./CDBG 0.00 +5.05 Total -22.75 -44.70 *17 JPA Transfers Out Slide 10 September. 16, 1996 Budget Public Hearing & Adoption General Fund Reserve (Revised Budget Proposal) $in Millions • Fiscal Policies Require a $s 8.2 Reserve of 3-5% $s • Projected Reserve: 3.5% $7 $6.2 • Needed for: $6 $5 ♦ Emergencies $4 • Economic $3'� $3 Uncertainties $2 • One-Time Expenses $1 • Infrastructure Repairs $o 93 94 95 96 97 Est Est Slide I I Looking Ahead: Revenues • Slow Growth of Revenues Projected • Potential Revenue Losses ♦ State Legislation • Redevelopment Payments to General Fund ♦ Statewide Ballot Initiatives ♦ Assessment Appeals • Huntington Beach Mall Transition Slide u September 16, 1996 Budget Public Hearing & Adoption Looking Ahead: Budget Needs • General Fund Reserve needs to be Increased • Budget Shortfalls Projected for Future Years • Insurance Reserves need to be Increased • Equipment Replacement Reserves need to be Increased • Maintenance needs have been Deferred • Unfunded Liabilities are Significant • Salary./Benefit Cost Increases Slide 13 Summary • Fee increases are ready for adoption. ♦ Alternative Fees included. ♦ Business License Tax Increase Eliminated ($20/yr) ♦ Sewer Fee Eliminated • The Budget is ready for adoption. ♦ Revised Budget Proposal implemented. ♦ Public Hearings-complete. ♦ Other final adjustments completed. Slide 14 September 16, 1996 09/16/96 - City Council/Redevelopment Agency Minutes - Page 5 Patricia Powers, representing the Huntington Beach Playhouse, stated her disappointment that the Huntington Beach Playhouse was not included in the proposed Cultural Services Ad Hoc Committee, the formation of which is scheduled on the consent calendar section of the agenda later in the meeting. She requested that a member of her organization be invited to participate. Discussion was held by Council. Madeline Andor stated that the people who are not in favor of police pay raises are not against the Police Department. Ms. Andor spoke in opposition to the proposed tax on rental units. Salt' Graham requested an opinion from the City Attorney relative to a Huntington Beach Police Officers' Association article appearing in Councilman Garofalo's newspaper as it relates to Councilman Garofalo attending closed sessions on H.B.P.O.A. issues. The City Attorney stated that the H.B.P.O.A. could advertise in Councilman Garofalo's newspaper and that if asked by the City Council, she will prepare an opinion as to whether a conflict of interest is involved because money is received from the H.B.P.O.A. Councilman Harman presented reasons why he believed an opinion on this issue is necessary to protect the city. Councilman Garofalo stated that he believes the City Attorney should also respond to the following issue: If Councilman Harman legally represents a member of a city board or commission, will he be allowed to vote on funding for such board or commission? (City Council) City Administrator's Report (City Council) Report Regarding_Parkway Ground Cover Replacement -To Be Made By The Public Works Department The City Administrator stated that he would have the Public Works Director prepare a report for the City Council regarding any policy considerations relative to ground cover replacement on city parkways. (City Council) Public Hearing - Proposed City Budget For Fiscal Year 1996/97 - Revisions To The City's Fees - Revision To Business License Tax - Resolution No. 96-87 and Resolution No. 96-88 - Adopted (320.20) The Mayor announced that this was the meeting set for the continuance from September 3, 1996 of three public hearings to be held concurrently: Public Hearing No 1 - Fiscal Year 1996/97 City Budget The proposed Budget for Fiscal Year 1996/97 totals $199,394,017, including General Fund Expenditures proposed at $98,066,822. The complete, proposed Budget can be reviewed by the public from 8:00 a.m. to 5:00 p.m., Monday through Friday in the City Clerk's Office at City Hall, 2000 Main Street, Huntington Beach. Copies of the proposed budget are also available for public review at the city's Central Library located at 7111 Talbert Avenue and all branch libraries. Page 6 - Council/Agency Minutes.- 09/16/96 Public Hearing No. 2 - Revisions to Various City Fees The fees under consideration'are for cost recovery purposes and include the following: Police Department 1. Increase Traffic Accident Report Fees 2. Transfer DUI fees from fines to vehicle releases fees 3. Establish a booking fee for arrestees The additional annual revenue generated from increased fees is estimated to be $84,000. Community Development Department 1. Building Inspections 2. Permit Issuance 3. Plan Review 4. Miscellaneous Inspection Services The additional annual revenue generated from increased fees is estimated to be $196,000. City Treasurer 1. Annual Business License Renewal: Current fee - $6 Proposed fee - $12 2. Initial Business License Application: Current fee - $10 Proposed fee - $25 The additional annual revenue generated from increased fees is estimated to be $96,000. The city's cost accounting consultant has documented that the city costs for processing annual business license renewals is $12 per year. The increase would generate an estimated $96,000 annually to cover city costs. City costs for processing new business license applications for the initial issuance of a Business License is $25 (one time charge.) The increase would generate an estimated $40,000 annually to cover city costs. Public Hearing No. 3 - Revision to the City's Business License Ordinance A revision to the Business License Tax is being recommended as a revenue raising measure. It is proposed that the annual basic charge for a Business License be increased by $20 per year. It is estimated that an additional $320,000 will be generated annually from this increase. The City Council considered a communication dated September 14, 1996 listing approximately 162 signatures of Administrative Services Department employees and employees from other city departments respectfully requesting reconsideration of the elimination of Accounting Officer position from the City Budget The City Administrator presented an extensive slide report. He reported that Topper Horack's concern expressed at the last meeting had been addressed. The City Administrator reviewed the layoff procedure. He reported on the petitions signed by employees regarding the positions of Construction Engineer and the Accounting position. Councilman Leipzig questioned the status of the Administrative Item on this agenda regarding business license fees for rental property. Councilman Leipzig was informed that revenue from this source had not been included in the budget before Council. 09/16/96 - City Council/Redevelopment Agency Minutes - Page 7 Mayor Pro Tempore Bauer recommended that the proposed tax on rental units be tabled until after the November election and the passage of State Proposition 218 is determined. The City Clerk announced the.following communications which she had also announced during the earlier portion of the meeting: Memorandum dated September 13, 1996 from Jay Kreitz, Community Services Commission Chairman, and Shirley Carey, Community Services Commission Vice Chairman, regarding Community Services Commission Recommendations for Changes in the Fiscal Year 96/97 Capital Improvement Projects Budget for Park Acquisition and Development Fund Slide Report from Administration on Adoption of Budget Communication dated September 13, 1996 from Richard Oakley, Seidler-Fitzgerald representative, Public Finance, regarding the city budget as it relates to the financing of the acquisition of a private water system to reduce water service fees Slide Report from the Community Development Department Slide presentation, dated September 16, 1996, regarding the Annual Review Downtown Parking Master Plan Communication from the Community Services Department regarding applications received for Ad Hoc Committee for Art Funding Communication from Todd Priest, Apartment Association of Orange County Assistant Director of Public Affairs, dated September 16, 1996, regarding opposition to proposed revisions to Business Fee Structure Marvin Brown requested information on the business license fee increase. The City Administrator reported. Mr. Brown requested that Council have concern for the impact of this proposed fee on the citizens. He stated the business product with which he is involved can be made in China for 20% less. Mr. Brown questioned if Council had considered a decrease in administrative salaries and pensions which could result in more employee resources. He requested that there be no consideration of this license tax. Richard Edmondston spoke in opposition to an increase in the renewal fee for business licenses. He stated that he believes such fee proposals will cause passage of State Proposition 218. Tom Donnelly, Police Officer, spoke in opposition to the reductions in the number of police officers, stating that 14 sworn positions had been eliminated in the last five years. He stated his concern with the policies being set and the police officers' concerns that crime will not be able to be fought as in the past. Page.8 - Council/Agency Minutes -.09/16/96 �:d Deue1, Police Officer, offered condolences to the Franks' family who were victims of a terrible tragedy last week. He spoke regarding the City Administrator's report on the past salary increases. Officer Deuel presented an example of the follow-up procedure for a burglary, stating that the procedure is very unworkable. Pamela Buros requested that expenditures be further reduced rather than fees being increased. She referred to the report from the Finance Board stating that personnel costs are 70% of the budget. She requested that consideration be given to reducing pay and benefits of employees, particularly for employees earning over $100,000 annually. Ms. Buros questioned the monthly water billing which she believes costs more than the previous semimonthly billing. She stated that the Art Center should be operated entirely with volunteer support. 1,L Ky reitz, Chairman of the Community Services Commission, requested that Council consider a reapportionment of funding, stating that the play equipment in the parks must be replaced due to a number of reasons. He requested amortization of the Library Parking Lot Debt so that play equipment can be replaced. Councilman Garofalo stated that he believes it is time to have a study session with the Community Services Commission. Administrative Services Director Franz, at the request of Councilman Garofalo, reported on Mr. Kreitz's comments. The.Community Services Director reported on the matter. Councilman Garofalo stated his concern for the safety of the play equipment and public liability in this regard. Tom Logan, Political Corruption Unit of the CBI (Citizens Bureau of Investigation), spoke in opposition to employees' salaries, unfunded pensions, and police lawsuits over pay disputes. He spoke in opposition to the Huntington Beach Water Master Plan. Councilman Harman spoke regarding his opinion that there had been public input on the Water Master Plan issue and presented examples. Top er Horack presented slides on the MSI (Management Services Institute) Report. He stated that he believed the figures for labor costs to process business license permits were too high. He requested information as to the source of the $75,000 salary for the code enforcement officer. Community Services Director Hagan presented a slide report titled Park Acquisition and Development Fund Capital Improvement Projects, FY 96197. He advised Council as to how this report relates to new safety standards for play equipment. He reported on his recommendation that Council adopt the modified recommendation presented. Councilman Garofalo requested a monthly one-page summary of the city's financial status. The City Administrator stated that he will prepare the report. The Public Works Director reported on street sweeping issues in the city, stating that he would report on the procedures now used. He presented recommendations on the budget. 09/16/96 - City Council/Redevelopment Agency Minutes - Page 9 Councilman Garofalo requested information regarding the number of full and part-time employees. The City Administrator stated that he would prepare an FTE (full-time equivalency) report regarding employees. Councilman Leipzig asked Councilman Garofalo if he had recommendations for increases or decreases to.this budget. Councilman Garofalo presented.examples of budget information he needed. Councilman Harman presented concerns regarding the proposed budget and questioned whether alternative procedures could be followed in the future. Councilman Harman referred to the City Administrator's slide presentation. The Police Chief, at Councilman Harman's request, reported that two sworn officers would be eliminated. Councilwoman Dettloff spoke regarding the city's need for revenue sources to cover.city services. Mayor Sullivan stated he wished to congratulate the City Administrator for his efforts on this budget. Councilman Leipzig made a presentation depicting the allocations made to all ten departments in relation to the Police, Fire, and Public Works Departments' budgets. Mayor Pro Tempore Bauer spoke regarding the considerable demand by the public for services and stated that the city's ability to provide services had been reduced. He spoke regarding the struggle and efforts made in budget deliberations for the past six months. Mayor Pro Tempore Bauer stated that he hoped the Council would unanimously adopt the budget and present inadequacies to the City Administrator and work together to solve them. A motion was made by Bauer, second Garofalo, to approve Alternative No. 1 on Page No. Four of the Request for Council Action dated September 16, 1996 as follows: Alternative Methods To Restore $6.000 Newland House Expense 1. Add $6,000 to the General Fund Budget and reduce the estimated budget surplus from $6,590 to $590, and 2. Add $6,000 to the General Fund Budget and instruct the Community Services staff to implement charges/fees and cost recovery measures as part of the Newland House operation to increase annual revenues by $6,000 or more, and. 3. Instruct the City Administrator to reduce General Fund expenses by $6,000 in other areas (following adoption of the budget) to allow restoration of the $6,000 to the Newland House operation. (No overall General Fund budget increase). Following considerable discussion, the motion carried by unanimous roll call vote. Page.10 - Council/Agency Minutes - 09/16/96 A motion was made by Bauer, second Leipzig, to adopt the following resolutions: Resolution No. 96-87 approving new/increased Business License renewal and processing fees, Building/Planning fees, and Police Department fees - "A Resolution Of The City Council Of The City Of Huntington Beach Amending The Community Development Department, Police Department, And City Treasurer's Department Fee Schedules As Set Forth /n Resolution No. 5159." Resolution No. 96-88 approving the City Budget for Fiscal Year 1996/97 including the "Addendum" to the proposed Budget - "A Resolution Of The City Council Of The City Of Huntington Beach Adopting A Budget For The City For Fiscal Year 1996197." The motion carried by unanimous roll call vote. Recess - Reconvene The Mayor called a recess of the City Council and the Redevelopment Agency at 10:10 p.m. The Mayor reconvened the meeting at 10:20 p.m. (City Council)Public Hearing - Continued Open From September 3. 1996 - Appeal Of Special Sign Permit No. 95-13 - "Mobil" Monument Sign - Robert H. Lee & Assoc. - Northeast Corner Adams Avenue And Magnolia Street -Appeal Granted (420.35) The Mayor announced that this was the meeting.set for the continuance of a public hearing to consider the following appeal: Applicant: Robert H. Lee and Associates �eques : Appeal of the Planning Commission's conditional approval for a five (5) foot seven (7) inch high, 42 square feet monument sign ("Mobil") which exceeds sign code requirements. The applicant/appellant requests to install the additional freestanding sign in a separate landscape planter along Adams Avenue. Location: 9001 Adams Avenue (northeast corner of Adams Avenue and Magnolia Street) The Community Development Director presented a slide report. The City Clerk announced that the following communications had been received and had been provided to the City Council: Communication dated September 9, 1996 from Planning Commissioners Ed Kerins and Bob Biddle regarding their reasons for voting against the Zoning Administrator's approval Communication dated September 11, 1996 from Linda Perkins in support of the appeal Petition listing approximately 46 signatures in support of the applicant relative to the appeal of Special Sign Permit No. 95-13, Mobil Monument Sign Slide Report from the Community Development Department 2 o • CITY OF HUNTINGTON BEACH Department of Public Works WASTEWATER SYSTEM REPORT June 23, 1997 The Huntington Beach Wastewater S stem Y All of our homes and businesses use water. Some of this water is used for irrigation and drinking, but most of it is used for purposes (such as showering or washing clothes) that generate wastewater. Almost 92% of the water used in Huntington Beach will become wastewater. But our wastewater, estimated at 32 million gallons each day, cannot be safely discharged into the environment until hazardous materials such as.bacteria, parasites, and chemicals have been neutralized or removed. This requires a wastewater transportation system to move the fluid and suspended solids to a county treatment facility prior to discharge into the ocean. Wastewater is transported to the treatment plant through an underground system composed of pipelines, lift stations, and manholes. But, because it is all underground, and out of sight, we often forget about this system until we have a problem. This system, once narrowly known as the "sewer" system, should not be confused with the storm water or drainage system. Storm water runoff is normally collected and discharged directly into the ocean through a separate system not connected to the wastewater system. How the Wastewater System Works Wastewater flows by gravity, down the drain, into lateral lines that run into mainlines in the street. Here the involvement of the City begins. Mainlines flow to trunk lines which lead to the treatment plant. However, because of unique geographic considerations, it is necessary for Huntington Beach wastewater to be pumped through the mainlines to the plant. For this reason the City operates and maintains 28 wastewater lift stations. These lift stations, which are strategically located throughout the City, contain large motors which pump the wastewater up in elevation to other mainlines where it will again flow freely .by gravity. This process is repeated until the wastewater reaches the treatment facility where it is treated and discharged into the ocean. 1 - Although pipelines and lift stations are the most obvious components of an urban wastewater system, the necessity of manholes cannot be overlooked. These underground structures, the covers of which are most commonly seen in the middle of streets and alleys, provide the only means of access for cleaning and repairing the mainlines. Maintenance of the_System =y To insure the public's health and safety, the City's wastewater system must be operational at all times. A pipeline blockage, lift station pump failure, or an inaccessible manhole could preclude successful operation. Consequently, the system must be continually inspected and properly maintained. The tasks involved in maintaining the system go on around the clock, including weekends and holidays. Pipelines must be inspected, cleaned out at regular intervals, and repaired or replaced when damaged or worn out. Lift stations and electric control panels require continuous monitoring and periodic refurbishing. And manholes must also be routinely inspected and renovated as needed. Mainlines should be cleaned every 12 months and repaired as needed. They should be lined or replaced after 50 years to prevent failure. Lift station pumps should be rebuilt every year and electric control panels replaced after 10 years. The structures themselves should be replaced every 25 years. And all manholes should ,also be cleaned every 12 months and repaired as needed. They should be coated to extend service life every 5 to 10 years, and replaced after 50 years to prevent injury. In addition, due to the seismic potential in Southern California, the life cycle of wastewater lines can be shortened with a seismic event. However, because of budgetary constraints, these standards cannot be followed, and our current level of maintenance is inadequate. 'Mainlines and manholes are cleaned every 18 months, not every 12, and no other repairs or replacements are currently being performed. Lift stations pumps and control systems are being rebuilt and serviced on schedule, but no replacement of panels, pipes or underground structures are being made. Health-and:Safety Concerns Health and safety concerns abound in the wastewater industry. Nearly every disease, parasite, infection, virus and illness known to man can end up in our wastewater system. Typhoid fever, cholera, and hepatitis are only a few of the ailments that can be contracted through exposure to wastewater. In addition, we also run the risk of exposure to hazardous and explosive gasses. 2 The following headlines have appeared in the Los Angeles Times in recent years. They are not imaginary, but represent real risks associated with the wastewater system: "Sewer Explosion Kills 162, Injures Over 800" (1992), "Sinkhole Created By Sewer Break Kills Two" (1993), "Seal Beach Cordoned Off Due To Explosive Sewer Vapors" (1994), "Collapse Kills One" (1995), and "Man Buried Alive" (1996). Huntington Beach has been fortunate to date. Although hydrogen sulfide gas (a naturally occurring byproduct in wastewater systems) has caused considerable damage and deterioration in our system, we have not experienced a major explosion and have suffered only one wastewater related death. (In 1967, Bud Cones, a wastewater maintenance worker, was overcome by hydrogen sulfide while working in a lift station and died during transportation to a nearby.hospital). Major System Problems The major problems facing the Huntington Beach wastewater system are age based deterioration and natural damage. Many older areas of the city, especially the "old town" areas (those incorporated before 1956), are serviced by clay pipes which have completely eroded. Likewise, many newer areas, such has those constructed in the "building boom" of the 1960's and 1970's on peat impacted soil, have damage (cracks and breaks) caused,by both natural settlement and the impacts of a recent series of earthquakes. And Huntington Harbour lines suffer premature deterioration from salt water intrusion. Although these system wide problems of damage and deterioration have long been .suspected (on the basis of flow tests), it is only in the recent past that we have began gathering reliable ,data through new inspection techniques involving the use of closed circuit television. Thanks to the development of the video camera (and the technology for placing it on a cable that can be run through a mainline), we are developing photographic documentation of the actual condition of our wastewater system. That condition is not good. In many areas portions of pipelines are missing, broken, or cracked and calcified. As a result, thousands of gallons of wastewater leak directly into the ground each day and some of the older lines can no longer be cleaned for fear that more damage will occur. In addition, many lift stations have not been enlarged to properly handle the demands of additional development and are wearing out due to overuse. And many manholes, impacted by Huntington Beach's "hot" soil (acidic, sulfuric and alkalinic), have suffered accelerated structural deterioration. Historically, City financial constraints have often forced us to adopt a policy of deferred maintenance. This has resulted in a reactive "bandage and aspirin" approach to wastewater system needs when proactive "reconstructive surgery" was required. 3 Alternative Solutions Any consideration of a solution to the wastewater issue will involve money. The estimated annual cost to repair and maintain the system is $7,217,080 (see attachment), and long term replacement costs (50 year) exceed $360,854,000. This raises the issue of financial alternatives. One traditional method for financing public facilities is the municipal bond. The people of Huntington Beach have approved both water and park bonds in the past. However, in recent years, another consideration has emerged which is more consistent with the City's conservative financial policy. This is the use of an enterprise fund. Under this system the adoption of a long term property tax assessment (the basis of bonding) can be avoided in favor of a smaller "fee for service" charge imposed on service users. An enterprise fund creates a "utility," funded by a service rate. An example of this system would be the City's waste management enterprise fund which finances refuse collection and disposal from a flat rate. The development of a City of Huntington Beach "wastewater enterprise" is one possible solution to the major problems confronting our wastewater system. The current policy of funding only basic maintenance is inadequate to preserve the system. It is ineffective because current policy contains no reliable method of providing funds for the upgrade or reconstruction of the system. Enterprise Fund Alternatives _ The use of an enterprise fund, a self contained financial entity, to maintain the wastewater system raises other issues. One-of these is the amount of the service fee. Here alternatives are also available. Because system repair costs require $7,217,080 annually, and the objective of the "enterprise" is to generate $360,000,000 over fifty years, fulfillment of the goal (a 100% solution) would require a monthly service fee of $7.36 per unit per month ($7,217,080 / 81,700 units / 12 months). This would be the "optimal" rate (see the attached exhibit "Proposed Wastewater Assessment Levels"). But alternative rates could be set at lower levels. For example, a one-third rate (33% solution) could be achieved by a rate of $3.39 per unit per month or two-thirds (66%) for $5.39. (See the attachment for details). However, any amount less than the full amount needed to redress the problems does not fully fund the system needs and therefore defers estimated resolution of this matter. 4 For this reason the full $7.36 per unit of service per month appears proper. This is a matter that requires resolution, not more reconsideration. Our wastewater system is in distress. It must be repaired to protect the health and safety of the community and to prevent massive damage to other systems such as streets and ground water. Financial constraints (declining property and sales taxes, State "take-aways" for schools, etc.) prevent necessary action. Bonds and enterprise funds are alternatives, but an enterprise fund may be more appropriate in this case because the City has successfully employed them in the recent past for our water and refuse programs. Attachment: Proposed Wastewater Assessment Levels 5 Proposed Wastewa. Assessment Levels _wel#1: 3.39/Month* Level#2: 5:39/Month' :Level 7.36/M. J Cost Description - 67% Problem Deferral 34% Problem Deferral 0% Problem Deferral DIRECT EXPENSES 1. Salaries Including Benefits Program#530 Sewer Line Maintenance 492,920 570,193(" 570,193") Program#531 Lift Station Maintenance 325,107 325,107 325,107 Subtotal 818,027 895,300 895,300 2. Operating Expenses Program#530 Sewer Line Maintenance Su lies, Special 8,200 8,200 8,200 Film 550 550 550 Supplies, Info. Systems 1.100 1,100 1,100 Clothing 1,300 1,365(2) 1,365(2) Safety Supplies 3,600 3,78012) 3,780(21 Auto Allowance 4,200 4,200 4,200 Rentals, Equipment 500 500 500 Contractual Service 12,200 12,200 12,200 Maint., Dept Equipment 24,500 24,500 24,500 Equipment Usage 92,915 92,915 92,915 Program#531 Lift Station Maintenance Telephone . 1,000 1,000 1,000 Postage/Deliveries 250 250 250 Supplies, Special 4,750 4,750 4,750 Clothing 1,250 1,250 1,250 Safety Supplies 1,200 1,200 1,200 Materials, Misc. 5,150 5,150 5,150 Rentals, Equipment 500 500 500 Contractual Services 5,150 5,150 5,150 Maint., Dept Equipment 116,150 116,150 116,150 _ Training and Schools 540 540 540 Subtotal 285,005 285,250 285,250 INDIRECT EXPENSES 1. Electricity for Lift Stations 130,50013) 130,500(3' 130,500(31 2. Electrical Maintenance for Lift Stations(4) Salaries(including Benefits 75,347 75,347 75,347 Service and Supplies 12,149 12,149 12,149 Building Occupancy 1,338 1,338 1,338 General Overhead 6,663 6,663 6,663 Department Overhead 8,084 8,084 8,084 Fixed Asset Replacement 4.838 4,838 4,838 3. Billing and Collectlons�5) 12,2551 12,255 12,255 4. Vehicle Re lacemenf6) 88,6431 88,643 88,643 Subtotal 339,8171 339,817 339,817 Page 1 Proposed Wastewa, Assessment Levels _-vel#1: $3.39/Month* Level#2: $5.39/Month* Level#3: $7.36/M, Cost Description 67%Problem Deferral ' 34% Problem Deferral 0%Problem Deferral INFRASTRUCTURE REPLACEMENT171 1. Sewer Sli linin 8"Clay Pie @$60 per lineal foot. 537,900 1,075,800 1,629,960 (L.F./Yr.-50yrs.) (8,965 L.F.M) (17,930 L.F./Yr.) (27,166 L.F.M) 10"Clay Pie @$65 per lineal foot 25,870 51,675 78,260 (L.F./Yr.-50yrs.) (398 L.F.M.) (795 L.F.M.) (1,204 L.F.M.) 12"Clay Pie @$74 per lineal foot 22,052 44,104 66,822 (L.F./Yr.-50yrs.) (298 L.F.M.) (596 L.F./Yr.) (903 L.F.M) 15"Clay Pie @$84 per lineal foot 22,176 44,268 67,032 (L.F./Yr.-50yrs.) (264 L.F./Yr.) (527 L.F./Yr.) (798 L.F.M.) 2. Sewer Line Removal and Replacement 8"Clay Pie @$100 per lineal foot 896,500 1,793,000 2,716,600 (L.F./Yr.-50yrs.) (8,965 L.F.M) (17,930 L.F.M) (27,166 L.F./Yr.) 10"Clay Pie @$109 per lineal foot 43,382 86,655 131,236 (L.F./Yr.-50yrs.) (398 L.F.M.) (795 L.F./Yr.) (1,204 L.F./Yr.) 12"Clay Pie @$120 per lineal foot 35,760 71,520 108,360 (L.F./Yr.-50yrs.) (298 L.F./Yr.) (596 L.F./Yr.) (903 L.F./Yr.) 15"Clay Pie @$133 per lineal foot 35,112 70,091 106,134 (L.EM-50yrs.) (264 L.F.M) (527 L.F.M) (798 L.F./Yr.) 24"Clay Pie @$178 per lineal foot 1;241 2,482 3,760 27 Clay Pie @$196 per lineal foot 3,415 6,831 10,349 24"Clay Pie @$206 per lineal foot 1,436 2,872 4,351 4"Ductile Iron Force Main Pie @$100 per lineal foot 21,300 42,600 64,500 (L.F./Yr.-50yrs.) (213 L.F./Yr.) (426 L.F.M.) (645 L.F./Yr.) 3. Manhole Restoration 86,680 173,360 260,000 (#of Manholes/Yr.) (40 per Year (80 per Year (120 per Year) 4. Lift Station Restoration Structure Replacement Program based on a 25 yr. lifes an 88,946 177,892 269,533 Electrical/Electronic Equipment Replacement 10 yr. lifes an 29,298 58,596 88,781 Pumps/Piping Replacement Program based on a 20 yr. lifes an 17,224 34,448 52,193 Resealing of Station Dry Well recommended after 10 yrs. of service 12,818 25,636 38,842 Subtotal 1,881,110 3,761,830 5,696,713 GRAND.:TOTAL =$3 323 959 $5,282,197. i' $7 217 080; 1. Reflects an addition of two more employees for increased frequency of sewer line inspections. 2. 5%increase in expense for additional personnel 3. Actual Edison cost for 1995-96. 4. Cost per the 1993 Management Services Institute Study(MSI Report). Data currently under review by staff 5. Cost of Billing and Collections is estimated at 0.15 per account based on MSI Report&Wastewater System Master Plan 6. Cost of Vehicle Replacement was provided by Vehicle Maintenance. 7. Unit Costs provided by Kennedy/Jenks Consultants and local contractors. * Based on 81,700 billable units Page 2 t Budget Study Session Budget Study Session June 23, 1997 Slide 1 Agenda • Impact of State Take-Away on Cities • Review Long Term and Short Term Financial Objectives ♦What are They and What is the City Doing? • Preliminary Budget Review: 1997/98 ♦ Revenue and Expense Estimates ♦ Unfunded Needs ♦ Recommendations • Timetable ITISlide 2 June 23, 1997 4 w Budget Study Session State Take-Aways (How Much Have Cities Lost?) Property Tax $571 Cigarette Tax $54 50% of Traffic Fines 75 Booking Fees & Tax Admin. 100 Total $800 Prop. 172 Gain -95 Net Annual Loss $705 Redevelopment Taxes (one-time) 330 $ in Millions Slide 3 State General Fund Budget has Increased 32.6% Since 1993/94 Expenses • 1993/94 $39.0 • 1994/95 $42.0 • 1995/96 $45.4 • 1996/97 $49.2 • 1997/98 Proposed $51 .7 $ in Billions Slide 4 June 23, 1997 1 Budget Study Session Huntington Beach Revenue Taken by the State $Millions $8 $7.0 6.6 $6.7 $7 Total Loss $s $31.1 Million Y $5 $3.9 $4 € bd # x $3 4 90191 91192 92193 93194 94195 95196 96/97 Slide 5 City of Huntington Beach Major Revenues Compared to Major Expenses $ in Millions $55 $50 Police Fire & Marine Safetv Ex enses 49.7 $5D.6 $46 $40 $42.8 $43.4 $35 $30 33.0 - Major Rev. $25 +—Major Exp. 87 88 89 90 91 92 93 94 95 96 97 Slide 6 June 23, 1997 Budget Study Session Property Tax - Distribution of Basic 1 % Property Tax Levy High Schools Elementary 22.0% Schools Community � � Colleges 22.3% kr, �r Other 3.8% State (For Schools) City is 6% County 16.5% 10.6% Slide 7 Sales Tax - Allocation of Huntington Beach Sales Tax Revenue HealthMelfare State Gov't 6% (County) 66% Transportation Measure M 6% (County-OCTA) F Sales Tax %° Public Safety " State 5.00 6% `. City 1.00 (County-95% Public Safety 0.50 City 5%) Measure M 0.50 Transportation 0.25 City 13% Health/Welfare 0.50 Total 7.75 Slide 8 June 23, 1997 I ' Budget Study Session City Goals and Economic Objectives Element of General Plan Long Term Financial Objectives City Fiscal Other Financial Policies Objectives Slide 9 ___AU I Long Term Financial Objectives City Goals and Objectives • Establish policies and strategies to ensure a viable business environment throughout the community (Goal 5 with 6 Objectives and 11 Tasks) • Pursue entrepreneurial approaches for seeking new businesses to expand the City's revenue base'(Goal 10, Objective 1 with 4 Tasks) • Develop a long-term financial strategy that identifies the financial resources to support the infrastructure in the most effective and IL--jeffocient manne[ (ciiqll 1) Slide 10 June 23, 1997 Budget Study Session Long Term Financial Objectives Economic Element of General Plan • Provide economic opportunities for present and future residents and businesses through employment and local fiscal stability • Aggressively retain and enhance the existing commercial, industrial, and visitor serving uses while attracting new uses • Enhance economic development potential through strategic land use planning and sound urban design ractices Slide I l Long Term Financial Objectives Fiscal Policies • Ongoing Expenses should be supported by Ongoing Revenue • Maintain 3% to 5% General Fund Reserve • No New Capital Improvements should be approved unless associated operating costs are funded by recurring revenues • Enterprise Funds should reflect all costs • Transfer General Fund reserve in excess of 5% to the Capital Improvement Fund Slide 12 June 23, 1997 Budget Study Session Long Term Financial Objectives Other Financial Objectives • Seek More Federal and State Funding • Fund Municipal Service Levels Supported by the Community * Invest in Capital Improvements to Enhance the Quality of Life • Ensure Self Supporting Enterprise Operations • Eliminate Unfunded Liabilities Slide 13 Long Term Financial Objectives What is the City Doing? • Economic Development ♦Approved Projects: Home Depot, Third Block West, Pier Plaza, Sharp Electronics, others ♦ Future: 31 Acres, Closed School Sites, McDonnell Douglas, Waterfront, Huntington Mall, Hoover- Gothard, Beach Blvd., others • Infrastructure Planning: Master Plan Developed Slide 14 June 23, 1997 Budget Study Session Long Term Financial Objectives What is the City Doing? (cont.) • Local Fiscal Stability (City Response to Recession, State Take-Aways, and O.C. Bankruptcy) ♦ Downsized by 82 Permanent Positions (all Funds) ■116 General Fund Positions Reduced Through Transfers and Elimination ♦ Reduced Reserves (Insurance, Equipment Repl.) ♦ Reduced General Fund Subsidies to: ■Refuse Fund ■CDBG Programs ■Enterprise/Special Funds Slide 15 Self Insurance Funds Cash Reserve Projections S in Millions $8 l Pro'ection $7 $6.0 $5.9 $6 Im- $5 $4.1 $4 ' 2.7 $3 $1.8 $2 . $0.8 $1 $0.0 $0.0 ' 92 93 94 95 96 97 98 99 '00 '01 Pt Slide 16 June 23, 1997 Budget Study Session Equipment Replacement Funds Cash Reserve Projections $in Millions $7 i - $6.2 ( *- _ Projections—� $6 $5.1 $5 a -- $3.8 $4 $3.0 $2.9 $3 I $2.2 I - $2 $1.1Zw $1 I $0 92 93 94 95 96 97 98 99 '00 '01 '02 Slide 17 Long Term Financial Objectives What is the City Doing? (cont.) • Local Fiscal Stability ♦ Service Level Reductions not Readily Apparent ♦ Gradual, Incremental Reductions Implemented ■Downsizing with Few Layoffs ■More Calls for Service No Increase in #of Police ■Marine Safety Staffing Reorganizations . ■ Painting Deferred ■Building and Street Maintenance Deferred ■Park Maintenance Reduced Slide 18 June 23, 1997 Budget Study Session Long Term Financial Objectives What is the City Doing? (cont.) • Implemented Enterprise Operations ♦Ambulance Program ♦ FireMed ♦ Cultural Arts Fund ♦ Library Expansion Fund ♦ Special Events Funding ♦ Hazardous Materials Disclosure'(1997/98) • Contracting ♦ Fire Dispatch Slide 19 Financial Objectives that are NOT Being Met • Adequate Funding for: ♦ Replacement of Vehicles, Computer Systems and other Equipment (1997/98 Requests: $4.6 Million) ♦ Increase in Service Demands ♦ Maintenance ♦ Sewer Repair/Replacement ♦Training • Identification of Financial Resources to Support.the Infrastructure Slide 20 June 23, 1997 Budget Study Session Balance Budget CMailainSeDrviceevel Short Term Financial Objectives Establish Increase Adequate Revenue Base Reserves Slide 21 Short Term Financial Objectives • Balance Ongoing Revenues and Expenses - Two Year Budget • Maintain Status Quo - No Further Reduction to Service Levels • Increase Funding of Unfunded Liabilities • Begin Addressing Most Serious Infrastructure Needs • Review Potential New/Increased User Fees IL • Follow established Fiscal Policies Slide 22 June 23, 1997 Budget Study Session Preliminary Budget Review: 1997/98 Slide 23 Estimated Revenues 1996/97 Estimated Revenue $98,323 1997/98 Increases ♦ One Time (estimated: Dev. Fees) 1 ,000 ♦ New revenues (Grants, Plaza parking, etc.) 596 ♦ Improved Economy 1 ,301 1997/98 Estimated Total $1011220 $ in Thousands iI Slide 24 June 23, 1997 Budget Study Session Estimated Expenses 1996/97 Approved Budget $97,154 1997/98 Increases: ♦ 800 MHz Debt Service Cost $485 ♦ Liability Insurance Costs 310 ♦ Equipment Replacement Costs 259 ♦ Retirement/Worker's Comp Costs 1,405 ♦ One-Time Costs 1,317 ♦ Revenue Supported Cost Increases 486 ♦ Other 263 Total Increases $4,525 1997/98 Estimated Budget $101 ,680 Slide 25 Major Cost Increases PERS Rate Increase $505,000 Worker's Compensation 500,000 Supplemental Retirement 400,000 Total $1,405,000 One-Time Costs Pier Plaza Debt Service $357,000 Community Development (Paid by Fees) 274,000 Public Works (Paid by Fees) 686,000 Total 4 1 1 $1 ,317,000 171111 Slide 26 June 23, 1997 Budget Study Session Expenses: Department Requests - 1997/98 Original Department Requests $103,194 Revised Requests 101,680 Reductions to Department Requests $1 ,514 $ in Thousands Slide 27 Impact of Reductions to 1997/98 Department Requests • Capital Outlay Requests Reduced to Minimum (Original Requests: $1.5 Million) • Maintenance Needs Deferred • Infrastructure Needs Deferred • Staffing Needs Deferred • No New Services ITITISlide 28 June 23, 1997 Budget Study Session Unfunded Needs - a Sample $in Thousands *Sewer Repl. $140,000 *Maintenance Needs *Equipment Replacement *Civic Center Roof $250 *Police Dispatch Sys. 2,000 *Civic Center Air Cond 500 *Helicopter: 97/98 1,000 *Civic Ctr Paint 250 ♦Police Cars: 97/98 1,300 *Library Roof 180 ♦20 Year Estimate 20,000 *Library Air Cond 250 *Beach Svc Road 35 *Capital Projects*Oil Production Fac. 475 *Pier Deck Sealing so*Sidewalk/Curbs 20,000 *South Beach 5,000 *Residential Streets 26,000 *Sports Fields 1,200 *Gun Range 8,000 •Insurance Reserve 9,000 *Salary Increases *Computer Needs 2,500 Slide 29 Estimated Shortfall - 1997/98 Reduced Expenditure Requests $101,680 P=, Estimated Revenue 101,220 Shortfall ($460) $ in Thousands Slide 30 June 23, 1997 Budget Study Session User Fee Review - Timetable • Complete Update July 18 • Identify Recommended Changes August 1 • Public Hearing September 2 • Adopt September 15 Estimated Additional Annual Revenue of$250,000 is expected from recommended fee increases resulting from the update of the MSI Fee Study (not included in Revenue Estimates) Slide 31 Sample User Fees for Review City Fee • Tentative Parcel Map Review $635 • Use Permit Review $37.0 • Conditional Use Permit $1 ,700 • Zoning Letter $135 Updated MSI Fee Study (draft) indicates above Fees do not cover Full City Costs - Increases will be recommended Slide 32 June 23, 1997 Budget Study Session Recommendation - Implement a Sewer Maintenance Fee • An Estimated $1.1 Million to $1 .4 Million of General Fund Costs for Sewer Maintenance Would be Paid from Fee Revenue • An Estimated $1.88 Million per year would be available for Sewer Repair and Replacement • This Approach Eliminates Estimated General Fund Shortfall and Addresses the Most Critical and Immediate Infrastructure Needs Slide 33 Recommended Solution 1997/98 Shortfall Reduced Expenditure Requests $101,680 Estimated Revenue 101 ,220 Estimated Shortfall- ($460) Sewer Fee (Maintenance Portion) $1. 100 Allocate to Unfunded Needs $640 Sewer Fee - Repair/Replacement $1,881 $ in Thousands Slide 34 June 23, 1997 Budget Study Session Alternatives • No Sewer Fee ♦ Sewer Repair/Replacement will be addressed as failures occur (From General Fund Reserve) • Eliminate Shortfall through further Expense reductions • Increase MSI User Fees other than Sewer • Use General Fund Reserve for ongoing Costs Slide 35 .Summary • New Sewer Fee Recommended • Preliminary Budget will be delivered August 1 • Public Hearing September 2 • Council Direction on Sewer Fee Needed ♦Will be Scheduled for July 7 City Council Meeting Slide 36 June 23, 1997 Council/Agency Meeting Held: 9{f 6 6 Deferred/Continued to: M Approved ❑ Conditionally Approved ❑ Denied C�erk's Sign9ture Council Meeting Date: September 16, 1996 Department ID Number: AS 96-049 CITY OF HUNTINGTON BEACH REQUEST FOR COUNCIL ACTION SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS SUBMITTED.BY: MICHAEL T. UBERUAGA, City Administratwt PREPARED BY: ROBERT J. FRANZ, Deputy City Administr SUBJEC T: ADOPTION OF 1996/97 BUDGET- ' �(v-87 Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,EnvironmentaF atus,Attachments► ' y Statement of Issue: The Charter requires adoption of a,budget by September 30. Funding Source: As indicated in the Preliminary Budget, with revisions described in this RCA and attachments. Recommended Action: 1. Complete the public hearing. on the 1996/97 budget and proposed new/increased fees (continued open from September 3, 1996), and 2. Adopt Resolution approving new/increased Business License renewal- and processing fees, Building/Planning.fees and-Police Department fees. 3. Adopt Resolution 9 ja$t approving the- City budget for 1996/97' including the "Addendum" to the proposed-budget. BUDGET OVERVIEW Analysis: As required by the City Charter, a-public hearing was conducted-on September 3, 1996 to receive public input on the proposed budget and fee increases.. The proposed budget has been available for review since the first week of August. A City Council Study Session on budget issues was held on August 12, 1996. The budget message outlines the basic changes recommended in the Fiscal Year 1996/97 budget, and has been revised as described below and in Attachment 1. 7:) `r REQUEST FOR COUNCIL ACTION MEETING DATE: September 16, 1996 DEPARTMENT ID NUMBER: AS 96-049 The recommended General Fund budget of $97,272,915 is 1.2% more than last year's approved General Fund Budget. The recommended budget eliminates 44.70 full time permanent positions. The recommended budget also incorporates the changes to the General Fund identified in the "Addendum", summarized as follows: Addendum to the Budget - General Fund General Fund - Recommended Expense Changes Reduce Transfers Out (Revised Recommendations) ($ 741,907) Reduce Expenses Funded by CELF (100,000 Add Royalty Expenses (Offset by Revenue Increase) 48,000 Net General Fund Expense Reduction ($ 793,907) General Fund - Recommended Revenue Changes Reduce Revenue Estimate (Revised Recommendations) ($ 754,000) Ongoing Revenues - Net Change (79,000) Eliminate Transfer in from Library Fee (100,000) Increased Royalties 48,000 Net General Fund Revenue Reductions ($ 885,000) 0020938.01 -2- 09/11/96 8:42 AM REQUEST FOR COUNCIL ACTION MEETING DATE: September 16, 1996 DEPARTMENT ID NUMBER: AS 96-049 Summary Revised Recommended General Fund Budget 1996/97 Preliminary Revised Budget Budget Difference Total Revenue $ 98,514,505 $97,629,505. ($ 885-,000) Less One Time Revenue -400,000 - 350,000 Total Ongoing Revenue $ 981114,505 $ 97,279,505- ($ 835,000)� Recommended Expenses $ 98,066,822 $ 97,272,915 ($ 793,907)_ Budget Surplus $ 47,683, $ 6,590 ($ 41,093), In addition to the General- Fund changes, numerous.changes to non General Fund budgets are detailed- in the addendum. These changes are primarily the carry over of budgeted current year 1995/96 projects that were not completed during 1995/96. Continued Public Hearing -Business License Fees Attachment 2 is a report on alternative business license fee increases. A public hearing- was held on September 3, 1996 for both of the alternatives listed in the report. The staff recommendation to delete alternative 1 from the proposed budget was approved by the City Council on September 3, 1996. Alternative 2: Renewal and Application Processing Fee -- Currently the city collects a-$6 per year Renewal Fee, while the MSI study of 1991 documented a cost of $12 per license to process each annual renewal. This budget, recommends the increase of the renewal- fee from $6 to $12-($6 increase); This increase would generate $96.,000 per year based- on the current average of 16,000 business licenses. In addition, the City currently charges.$.10 for new business license applications for the set up cost for processing--new business.licenses. The MSI study documented- a- city cost of over $29 dollars per license to. process new business license applications. Based .on a survey of other cities, the staff has recommended a $25 new application processing fee. If approved, this would result in an estimated $40,000 per year increased fee revenue to the City. Staff-recommends these two fee increases.and the increased enforcement/audit programs described in Attachment 2. 'Continued Public Hearing_- Building/Planning Fees Attachment 3 is a report from the Community Development Director summarizing the building and planning fees that are recommended to be increased. Although we have not completed the update of the MSI study (scheduled for review by the City Council in early 0020938.01 -3- 09/09/96 2:09 PM REQUEST FOR COUNCIL ACTION MEETING DATE: September 16, 1996 DEPARTMENT ID NUMBER: AS 96-049 1997), the department has reviewed all existing fees and those recommended for increase are fees where the current fee is significantly less than 100% of the MSI documented cost from the last update in 1994. The increased fees would affect the cost of building permits, inspections, planning processing and a few other areas as summarized in the staff report. The estimated new revenue from these fees_is $196,000 per year. Continued Public Hearing - Police Department Related Fees Attachment 4 is a report from the Police Department on 3 recommended new or increased fees that would generate an estimated $84,000 per year. The changes.are 1) an increase in the maximum cost for copies. of a crime report from $5 to $15, 2•) changing. the collection method for Fees related to DUI cases, and 3) recovery of Jail booking costs from convicted arrestees. Library Development Fee/Allocation of New Revenue For 1996/97 an estimated. $245-,888 of new revenue will be collected from the recently approved Library Development Impact Fee. The recommended Budget includes a $100,000 reduction in General Fund- costs as result of approval of the new fee. The balance of the new revenue would be used to� reduce Library Expansion Fund- costs and increase the purchases of Library books, materials and supplies. Newland House - Follow Up The City Council requested a review of alternatives regarding..r_estoration- of $6,000 for temporary salary costs to continue City staff assistance for the operation of the Newland House Museum. Following is a= list of alternatives to consider which would! restore this expense to the General Fund Budget. Alternative Methods to Restore $6,000 Newland House Expense 1. Add $6,000 to the General Fund Budget and reduce the estimated Budget surplus from $6,590 to $590: 2. Add $6,000 to the General Fund Budget and instruct the Community Services- staff to implement charges/fees and cost recovery measures. as. part of the Newland House operation to increase annual revenues-by. $6,000 or more. 3. Instruct the City Administrator to reduce General Fund expenses by $6,000 in other areas (following adoption of the budget), to allow restoration of the $6,000 to the Newland House operation. (No overall General Fund Budget increase.) 0020938.01 -4- 09/09/96 2:09 PM REQUEST FOR COUNCIL ACTION MEETING DATE: September 16, 1996 DEPARTMENT ID NUMBER: AS 96-049 The staff had not recommended restoring the $6,000 because the recommended approach of expanded use of volunteers for the Newland House operation is consistent with efforts in Community Services and other departments to request greater participation by volunteers for non self supporting City activities. Alternatives: As determined by City Council. Environmental Status: Does not apply. Attachment(s): City Clerk's Page Number 1. Revised Budget Proposal - General Fund 2. Business License Fee Alternatives 3. Building/Planning Related Fee Increases 4 Police Department Related New/Increase Fees 5 Resolution Approving Fee Increases 6. Resolution Approving 1996/97 Budget 0020938.01 -5- 09/11/96 8:42 AM � 1 RESOLUTION NO. 9 6-8 7 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH AMENDING THE COMMUNITY DEVELOPMENT DEPARTMENT, POLICE DEPARTMENT, AND CITY TREASURER'S DEPARTMENT FEE SCHEDULES AS SET FORTH IN RESOLUTION NO. 5159 THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH HEREBY RESOLVES THAT: SECTION 1. Findings and Intent. The City Council finds as follows: A. On October 4, 1982, the City Council adopted Resolution No. 5159 establishing a fee schedule for the City. B. In December 1994, the City Council of the City of Huntington Beach received the "Cost Control Study Update for the City of Huntington Beach, California- 1993-94" prepared by Management Services Institute, Inc. (the"MSI Study"). The MSI Study calculated the reasonable cost for providing City services, including, but not limited to, business license application and renewal permit fees, and planning, environmental and land use permit application fees. C. The MSI Study indicated that the cost to process new business license applications is $29.00. City Staff has recommended increasing the fee from $10.00 to $25.00, which will still amount to a $4.00 per application subsidy from the general fund. The MSI Study also indicated that the cost to process business license renewals is $12.00. City Staff has recommended increasing the fee from $6.00 to $12.00, which will eliminate the subsidy from the general fund. 1 SF/s:PCD:Resolution:Amendfee 9/9/96-#2 RLS 96-638 D. The MSI Study indicated that the current fees charged for tentative subdivision maps, conditional use reviews and other planning applications recovers only 68% to 74% of the cost to provide the service. City Staff has recommended increasing the fees so that 90% of the cost to provide the service is recovered. Similarly, the Planning Review Fee is intended to recover the cost of an associate planner in reviewing building plans. Staff has recommended increasing this fee from 8%to 10% of the building inspection fee. This increase will recover only 40% of the cost the associate planner assigned to planning review. E. The MSI Study indicated that the current minimum $20.00 fee charged for building inspections is below the actual $32.50 cost. City Staff has recommended increasing these fees to achieve full cost recovery. F. The Police Department has estimated the cost of booking arrestees, performing laboratory work for driving under the influence tests and preparing crime reports. These estimates are contained in the three separate memorandum: Memorandum from Sgt. Thomas Donnelly, to Scott Field regarding booking fees, dated September 5, 1996; Memorandum from Eston Schwecke, Chief Criminalist, to Jim Moore, Police Budget and Research, regarding DUI tests, dated September 4, 1996, and Memorandum from Jim Moore, Police Budget and Research, to Ronald E. Lowenberg, Chief of Police, regarding suggestions for increasing revenue. City Staff has recommended establishing these fees at the actual cost of providing the service. G. The City Council has considered the above referenced reports, as well as additional City Staff reports, and public testimony and information received at a noticed public hearing to consider the establishment of new fees and the increase of existing fees charged to the public for various City services. 2 S F/s:PCD:Resolution:Amendfee 9/10/96-42 RM 96-638 96-87 Y SECTION 2. Amendment of Fee Schedule. Resolution No. 5159 is hereby amended to incorporate the changes set forth in Exhibit A attached hereto and by this reference made a part hereof. The fee additions and amendments set out in this Resolution No. 9 6-8 7 shall be effective as indicated in Exhibit A, attached hereto, and continue during the fiscal year 1996/97 and thereafter. Except as amended herein, the fees contained in Resolution No. 5159, as amended, shall remain in full force and effect. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 16th day of September 1996. Mayor ATTEST: APPROVED AS TO FORM: City Clerk REVIEWED AND APPROVED: D ROVED: City A nistrator pu City drm 'strator Administrative Services 3 S F/s:PC D:Resolution:Amendfee 9/9/96-#2 RLS 96-638 Res. No. 96-87 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, CONNIE BROCKWAY, the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at a regular meeting thereof held on the 16th of September, 1996 by the following vote: AYES: Councilmembers: Harman, Leipzig, Bauer, Sullivan, Dettloff, Garofalo,Green NOES: Councilmembers: None ABSENT: Councilmembers: None City Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach, California G/resoluWresbkpg EXHIBIT A. 9/16/96 SECTION 2. of Resolution 5159, Resolutions 5188, 5192, 5289, 5339, 5493, and all Supplemental Fee Resolutions are amended by modifying, adding, or deleting as follows: SECTION 2. Fees to recover the costs of providing services and copies of public records which fees do not exceed the cost of providing the service or making the copy: CITY TREASURERS OFFICE Effective September 17, 1996 Business License Renewal Fee and Business License Application Processing Charge. FEE TITLE: Renewal Fees -Business License FEE CHARGED: A non-refundable Business License Renewal Fee of $12.00 per year shall accompany the annual renewal of each Business License. Such a fee shall be in addition to the annual fee for all licenses pursuant to Chapter 5.08 of the Huntington Beach Municipal Code, and shall be due and payable prior to the issuance of the renewal license. FEE TITLE: Application Processing Fee - Business License FEE CHARGED: An application processing fee of$25.00 is required for the processing of any initial business license application. However, if after receipt of applicant's written notification of cancellation, no required inspection or investigation has taken place pursuant to any applicable provision of the Business License Code, and no business activity has been transacted or carried on, then in that event a refund request for all inspection or investigation fees paid exceeding ten dollars ($10.00) may be made. In no event, however, shall the application processing fee be made refundable. POLICE DEPARTMENT Effective September 17, 1996 FEE TITLE: Copy of Crime Report FEE CHARGED: $15 FEE TITLE: Arrest Booking Fee (Convicted individuals) FEE CHARGED: $150 Fees97.doc 9/9/96 96-87 EXHIBIT A. 9/16/96 SECTION 6. of Resolution 5159, Resolutions 5188, 5192, 5289, 5339, 5493, and all Supplemental Fee Resolutions are amended by modifying, adding, or deleting as follows: SECTION 6. Fees to be charged for building and construction services furnished by the city under Huntington Beach Municipal Code Chapters 17.02, 17.28, and 17.48 COMMUNITY DEVELOPMENT DEPARTMENT Effective November 15, 1996 FEE TITLE: Building Inspections: (Categories) Building, Plumbing, Electrical, Mechanical FEE CHARGED: $32.50 minimim charge FEE TITLE: Permit Issuance (All construction) FEE CHARGED: $25 SECTION 7. of Resolution 5159, Resolutions 5188, 5192, 5289, 5339, 5493, and all Supplemental Fee Resolutions are amended by modifying, adding, or deleting as follows: SECTION 7. Fees for processing various planning and zoning matters: COMMUNITY DEVELOPMENT DEPARTMENT Effective November 15, 1996 FEE TITLE: Tentative Tract Map Review FEE CHARGED: $1,800 plus $13/lot FEE TITLE: Conditional Use Review- Planning Commission FEE CHARGED: $2,850 FEE TITLE: Conditional Use Review - Planning Commission (other) FEE CHARGED: $2,025 Fees97.doc 9/9/96 96-87 EXHIBIT A. 9/16/96 COMMUNITY DEVELOPMENT DEPARTMENT (Continued) Effective November 15, 1996 FEE TITLE: Environmental Assessment Study FEE CHARGED: $1,045 FEE TITLE: Plan Review(Planning Division) FEE CHARGED: 10% of Building Inspection Fee SECTION 13. of Resolution 5159, Resolutions 5188, 5192, 5289, 5339, 5493, and all Supplemental Fee Resolutions are amended by modifying, adding, or deleting as follows: SECTION 13. Maximum rates for towing services and garage impounds pursuant to police direction: POLICE DEPARTMENT Effective September 17, 1996 FEE TITLE: DUI Lab Fees/Vehicle Release Fee FEE CHARGED: DUI lab fees -$70 (charged on the basis of actual cost). DUI Fees are to be collected along with vehicle release fee at the time of vehicle release. Fees97.doc 9/9/96 96-87 r r RESOLUTION NO. 9 6—8 8 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH ADOPTING A BUDGET FOR THE CITY FOR FISCAL YEAR 1996/97 WHEREAS Article VI of the Huntington Beach City Charter requires the City Administrator to present and the City Council to adopt an annual City Budget; and The City Council has received and considered the Preliminary Budget for Fiscal Year 1997-98, other staff reports, and public testimony and information received in a noticed public hearing on the City Budget; NOW, THEREFORE, the City Council of the City of Huntington Beach does resolve as follows: Section 1. That the budget for the City of Huntington Beach for Fiscal Year 1996/97, as set forth in Exhibit A attached hereto and incorporated herein by this reference, is hereby adopted. Section 2. That the estimated revenue and transfers for Fiscal Year 1996/97, which when combined with reserves is sufficient to fund the above appropriations, is set forth in Exhibit Al, which is attached hereto and incorporated herein by this reference, Section 3. That the Preliminary Budget for Fiscal Year 1996/97, Exhibit B, providing detail for appropriations and estimated revenue, is hereby approved as amended in Exhibit C. Both Exhibits B and C are attached hereto and incorporated herein by this reference. Section 4. That the City Administrator may transfer funds from one object or purpose to another within the same fund, department, office or agency, provided that there is no increase in approved total appropriations contained in the budget. Section 5. That the Tables of Organization, attached hereto as Exhibit D and incorporated herein by this reference, is hereby adopted. The City Administrator, subject to compliance with the City Charter Section 403, may revised the Tables of Organization as long as the.authorized number of personnel and the appropriation within the same department, office or agency are not exceeded. 1 SF/s:PCD:Resolution:Bud96/97 9/10.,96-#S RIS 96-630 Section 6. That the City Council, by affirmative action of a majority of the Council, may authorize all appropriations transfers not described in Sections 4 and 5 herein by minute action. Section 7. Acquisition of new capital items shall be limited to the specific items included in the approved budget. Acquisition of capital items to replace existing capital equipment shall not exceed the total appropriation for the Equipment Replacement Fund. Changes to the procurement of specific items may be authorized by the City Administrator as long as the total appropriation for any department, office or agency are not exceeded. Section 8. That it is necessary to continue the levy of a 5% utility tax on cable TV services in order to avoid additional budget reductions in the Police and Fire Departments, and further reductions in other city department budgets. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting held thereof on the 16th day of September, 1996. Gtr� Mayor ATTEST: APPROVED AS TO FORM: L- 0')Z� City Clerk City Attorne REVIEWED AND APPROVED: P VED: City A nistrator eputy Cit inistrato Administrati a Service 2 S F/s:I'M Resolution:Bu d96/97 9110196-#5 RLS 96-630 96-88 , ADDENDUM TO PRELIMINARY BUDGET FY 1996/97 This document contains revisions to the Preliminary Budget for FY 1996/97. The pages include revisions which were adopted along with the printed Preliminary Budget on September 16, 1996. 3 SF/s:PCD:Resolution:Bud96/97- 9/10/96-45 RLS 96-630 96-88 r Res. No. 96-88 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, CONNIE BROCKWAY, the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at a regular meeting thereof held on the 16th of September, 1996 by the following vote: AYES: Councilmembers: Harman, Leipzig, Bauer, Sullivan, Dettloff, Garofalo,Green NOES: Councilmembers: None ABSENT: Councilmembers: None City Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach, California G/resoluti/resbkpg y City of Huntington Beach Annual Budget FY 1996/97 x i i ppropr�ations an mount o evise DepartmentlFund Transfers Out Revision Budget nera un Administration $909,604 $909,604 Administrative Services 4,263,382 4,263,382 City Attorney 1,274,654 1,274,654 City Council 240,712 240,712 Community Development 3,284,756 3,284,756 City Clerk 524,648 524,648 Community Services 6,757,833 (76,297) 6,681,536 Fire 16,309,911 48,000 16,357,911 Library Services 2,909,522 (23,703) 2,885,819 Non-Departmental 12,776,981 (400,000) 12,376,981 Police 32,757,311 32,757,311 Public Works 15,269,812 15,269,812 City Treasurer 787,696 787,696 Workers Comp/Equip Use (341,907) (341,907) Sub-Total General Fund $98,066,822 ($793,907) $97,272,915 er un,s Capital Projects Fund $1,321,000 54,690 $1,375,690 Pier Reconstruction 90,000 93,915 183,915 Pier Plaza Fund 71,583 71,583 FEMA Grant 1,338,699 1,338,699 Park Acquisition&Dev. 1,012,000 (85,000) 927,000 Sewer Fund 741,041 19,575 760,616 Drainage Fund 925,523 9,850 935,373 SB 821 Bikes/Handicapped 579,434 (151,000) 428,434 Holly/Seacliff Assessment 3,284,000 3,284,000 Library Facilities 150,000 95,888 245,888 Blufftop Park 50,424 50,424 Civic Improvement Corp. 2,849,000 2,849,000 HBPFA ' 2,682,000 2,682,000 Reservoir Hill 164,000 164,000 Mello Roos 248,000 248,000 Water Utility 28,134,179 25,000 28,159,179 Water Master Plan 5,984,720 5,984,720 Water Capital Projects 206,636 206,636 Refuse Fund 8,746,857 8,746,857 Fire-Medical Fund 3,106,990 3,106,990 Emerald Cove Housing 844,488 844,488 Library Service Fund 471,550 (23,703) 447,847 Public Communications 402,672 402,672 Art Center Fund 366,273 366,273 Self Insurance Fund 10,307,295 10,307,295 Equip. Replacement Fund 3,784,750 3,784,750 Redevelopment Tax Increment 4,840,243 4,940,243 Redevelopment-Projects 3,352,734 3,352,734 Low Income Housing 2,765,063 21765,063 Redevelopment-Legal 200,000 200,000 Gas Tax Fund 3,626,397 85,000 3,711,397 Measure M 2,485,580 200,000 2,685,580 BGTRES97.XL_S 9/10/96 96-88 i. City of Huntington Beach Annual Budget FY 1996/97 x r ro rrat�ons art mount o Revised PP p Department/Fund Transfers Out Revision Budget er.: .ns Traffic Impact Fund 332,890 332,890 GMA#6 Fund 1,686,110 1,686,110 CALTRANS TSM Grant 30,887 30,887 OCTA/SIP Fund 200,000 200,000 HES-Federal Grant Fund 288,000 68,000 356,000 Library Grants 70,691 70,691 Narcotic Forfeiture Fund 420,174 420,174 Police Community Relations 25,000 25,000 Jail Donations Fund 15,000 15,000 Air Quality 94,035 94,035 COPS More Grant 231,972 231,972 Bureau of Justice Grant 191,550 191,550 Supplemental Law Grant 435,605 435,605 Police Special Training 20,000 20,000 Fourth of July 176,850 176,850 Flood Fund 1,000 1,000 CDBG Fund(additional funding) 1,975,300 1,975,300 Sub-Total Other Funds $101,327,195 $393,215 S101,720,410 Total City Appropriations $199,394,017 (400,692) S198,993,325 x t evenue an mount o evrse Fund Tale Transfers''In Revision Rev./Tran. General Fund $98,514,505 $97,629,505 Capital Projects Fund 900,000 900,000 1989 Parking Structure 75,000 75,000 Pier Reconstruction 145,000 145,000 Park Acquisition&Dev. 699,416 699,416 Sewer Fund 210,000 210,000 Drainage Fund 642,000 642,000 Flood Fund 4,000 4,000 Holly Seacliff 3,511,500 3,511,500 Water Facilities Master Plan 4,575,000 4,575,000 Library Facilities 245,000 245,000 FEMA Grant 1,338,699 1,338,699 Public Facilities Corp. 25,000 25,000 HBPFA 2,677,138 2,677,138 Civic Improvement Corp. 93B 1,163,000 1,163,000 Civic Improvement Corp. 93A 1,662,000 1,662,000 Mello Roos Capital Proj. 6,000 6,000 Mello Roos Debt Service 282,000 282,000 Debt Service-Reservoir Hill 212,000 212,000 Water Fund 22,837,000 22,837,000 Refuse Fund 8,700,000 8,700,000 Fire-Medical Fund 2,795,000 2,795,000 Emerald Cove Housing 787,000 787,000 Cable TV Fund 417,100 417,100 Library Service Fund 468,000 468,000 Art Center Fund 336,000 336,000 BGTRES97.XLS 9/10/96 96-88 City of Huntington Beach Annual Budget FY 1996/97 eyenue an;. mount 01 Revised Fund Tale Transfers In Revision Rev./Trap. Sell Insurance Puncl l2,U-i2,UUU l2,U-i2,UUU Equip.Replacement Fund 2,715,000 2,715,000 Redevelopment-Debt Service 4,567,000 4,567,000 Redevelopment-Capital Projects 1,566,000 1,566,000 Low Income Housing 1,016,000 1,016,000 Gas Tax Fund 3,485,000 3,485,000 Measure M 3,193,500 $245,000 3,438,500 Traffic Impact Fund 1,013,000 1,013,000 Reserve-Economic Uncertainty 180,000 180,000 Air Quality 212,000 212,000 Donations Fund 25,000 25,000 Fourth of July 183,000 183,000 Project Self-Sufficiency 19,900 19,900 Housing Subsidy 282,000 282,000 CDBG Fund 1,762,000 1,762,000 Other Grants 126,156 126,156 Narcotic Forfeiture Fund 375,000 375,000 Bureau of Justice Grant 191,550 191,550 Supplemental Law Grant 435,605 435,605 Police Special Training 20,000 20,000 Jail Donations 15,000 15,000 COPS More Grant 232,000 232,000 HES-Grant Fund 68,000 68,000 Use of Fund Balances 12,519,948 171,308 12,691,256 Total City Revenues $199,394,017 2 , BGTRES97.XLS 9/10/96 96-88 .. City of Huntington Beach Annual Budget FY 1996/97 Exhibit C ADDENDUM TO PROPOSED BUDGET FY 1996/97 ppropria ion Fund / Revision Funding Department Description 1996/97 Source Revisions to General Fund Appropriations: (Misc. Revisions) Departments: Fire Royalty payment for oil pumped from city oil wells. 48,000 General Fund Recent termination of Chevron oil processing agreement now requires the city to process the oil. (Offset by equal amount of change to revenue estimates.) i I Revisions to General Fund Appropriations: (Revised Budget Proposal) Non-Departmental Liability costs. Reduce transfer to Liability Fund. (400,000) All Departments Supplemental Retirement Cost. Reduce transfer to (100,000) i� Supplemental Retirement Fund. All Departments Equipment Replacement. Reduce transfer to Equipment (241,907) Fund. Revisions to General Fund Appropriations: (Library Development/CELF Fee) Community Services Reduce General Fund transfer to Cultural Arts Fund. (76,297) i Library Services Reduce expenditures for books,materials, &supplies. (23,703) Total Revisions to General Fund Appropriations: ($793 9907) Revisions to Other Fund Appropriations: Capital Projects Fund/ Fire Capital outlay related to oil wells;fencing, electrical 7,500 * CIP Fund meter, oil shipping heater. Community Services Parking Meters on Beach Blvd. (Capit.al/Oper.) 47,190 * CIP Fund Public Works Dept./ Misc. Street Improvements; Emergency and small 100,000 Measure M Measure M scale. Add to 96/97 budget. Formerly in Gas Tax. Ellis widening,Phase II Beach to Newland; increase 100,000 Measure M funding level. Carry-over 95/96 funding. * One Time Expenses BGTRES97.XLS 9/10/96 96-88 City of Huntington Beach Annual Budget FY 1996/97 Exhibit C ADDENDUM TO PROPOSED BUDGET FY 1996/97 Appropriation Fund / Revision Funding Department Description 1996/97 Source Revisions to Other Fund Appropriations (Con't� Gas Tax Fund Traffic Signals. Carry-over from 95/96. 210,000 Gas Tax Misc. Street Improvements. Delete from 96/97 budget. (125,000) Gas Tax To be funded in Measure M. Hazard Elimination Fund Yorktown Avenue Vertical Realignment,Beach to 68,000 HES Grant Valisle. Increase funding for 96/97 due to additional grant. SB 821 Fund Pedestrian Bridge over Talbert Channel. Delete (151,000) funding in 96/97. Project completed in 95/96. Water Fund Funding for City Treasurer billing collection expenses. 25,000 Water Fund Sewer Fund Warren Lane sewer. Carry-Over to complete project. 19,575 Sewer Fund Drainage Fund Halifax storm drain. Carry-over to complete project. 8,650 Drainage Fund Warner Ave.relief. Carry over to complete project. 1,200 Drainage Fund Flood Fund Michael storm drain. Carry-over to complete project. 1,000 Flood Fund Pier Fund Ruby's project. Carry-over to complete project. 93,915 Pier Fund Revisions to Other Fund Appropriations (Library Development Fee). Community Services/ Park Play Equipment,Benches,and Table Equipment. 202,000 P A&D Fund Park Acquisition and Increase Funding. Development Fund HCP Encylopedia Lot Acquisition. Delete from 96/97. (72,000) Huntington Central Park EIR and Specific Plan. 10,000 P A&D Fund Increase funding for 96/97. City Gym&Pool Renovation Phase II; Delete project. (225,000) Library.Services/ Reduce Books,Materials, and Supply expenses. (100,000) Library Service Fund Transfer to Cultural Arts Fund. 76,297 CELF Fee Library Facilities Reduce Transfer to General Fund. (100,000) Reduce Transfer to Library Service Fund. (50,000) Add funding for Books, Materials,and Supplies. 245,888 Library Dev Fee Total Revisions to Other Fund Appropriations: $393,215 BGTRES97YLS 9/10/96 96-88 City of Huntington Beach Annual Budget FY 1996/97 Exhibit C ADDENDUM TO PROPOSED BUDGET FY 1996/97 Revenue Fund / Revisions Funding Department Description 1996/97 Source _General Fund- Revisions to Revenues: (Misc.) Increase Royalties, Oil Wells account due-to termination 48,000 of Chevron oil processing agreement. Off-set by equal amount of increased expenses. Property Tax Revenue. Decrease estimate due to (678,000) recent information regarding assessed valuations. Increase estimates in the following revenue categories: Utility Tax 175,000 Fines,Forfeitures,and Penalties 8,000 Use of Money and Property 181,000 Engineering and Inspection Fees 190,000 Other,revenue 45,000 General Fund-Revisions to Revenues: (Revised Budget Proposal) Redevelopment Transfer to General Fund. Increase 100,000 transfer to General Fund. Eliminate Sewer Fee Revenue Estimate. (1,000,000) Eliminate Business License Increase($20/yr.) (320,000) Increase Business License Processing/Application Fee 136,000 Business License Audit 50,000 Increase Building/Planning Fees 196,000 Police Department Fees 84,000 General Fund- Revisions to Revenues: (Library Development Fee) General Fund Eliminate Transfer in from Library/Cultural Facilities (100,000) General Fund- Total Revisions to Revenues: $885 000 Other Funds-Revisions to Revenues: Measure M Grant revenue for Talbert rehabilitation project. 245,000 .Hazard Elimination Fund Grant revenue for Yorktoivn vertical realignment. 68,000 Other Funds- Total Revisions to Revenues: $313,000 BGTRES97.XLS 9/10/96 96-88 _� City of Huntington Beach Annual Budget FY 1996/97 Exhibit C RECAP OF BUDGET AMENDMENTS ONGOING EXPENSES: GENERAL FUND PRELIMINARY BUDGET APPROPRIATIONS 98,066,822 NET APPROPRIATION REVISIONS (793,907) TOTAL ONGOING GENERAL FUND EXPENSES 97,272,915 Plus One-Time Expenses TOTAL GENERAL FUNDAPPROPRIATIONS $97,272,915 ONGOING REVENLTES. PRELIMINARY BUDGET REVENUE 98,514,505 NET REVENUE REVISIONS (885,000) TOTAL GENERAL FUND REVENUE $97,629,505 TOTAL BUDGET PRELIMINARY BUDGET APROPRIATIONS 199,394,017 NET APPROPRIATION REVISIONS (400,692) TOTAL BUDGET $198,993,32fll PRELMNARY BUDGET REVENUE* 199,394,017 NET REVENUE REVISIONS (572,000) CHANGE IN FUND BALANCE USAGE 171,308 TOTAL BUDGETREVENUE $198,993,325 * Including use of fund balances. BGTRES97.XLS 9/10/96 96-88 FNLTO-97.XLS Exhibit D 9/9/96 CITY COUNCIL PERSONNEL BY CLASSIFICATION ORGANIZATION RANGE CLASSIFICATION FY 96/97 ELECTED --- Councilmembers 7.00 NREP 394 Administrative Assistant 1.00 TOTAL AUTHORIZED PERSONNEL 1.00 ADMINISTRATION PERSONNEL BY CLASSIFICATION BUDGET ORGANIZATION RANGE CLASSIFICATION FY 96/97 --- 638 City Administrator 1.00 NREP 613 Assistant City Admin. 1.00 NREP 531 Dep. City Administrator 1.00 MEO 493 Public Information Officer 0.00 . MEA 455 Video Enger.,Supervisor 1.00 NREP 439 Management Assistant 2.00 MEA 428 Information Specialist II 3.50 NREP 426 Executive Assistant 1.00 NREP 394 Administrative Assistant 1.00 MEA 381 Information Specialist II 0.00 NREP 372 Administrative Secretary 0.00 MEA 361 Office Specialist,Typist 1.00 MEA 306 Office Assist. I,Non-typing 0.00 TOTAL AUTHORIZED PERSONNEL 12.50 CITY TREASURER PERSONNEL BY CLASSIFICATION BUDGE ORGANIZATION RANGE CLASSIFICATION FY 96/97 ELECTED/NREP 531 City Treasurer(Elected) 1.00 MEO 522 Sr.Deputy Treasurer 1.00 NREP 394 Administrative Assistant 1.00 MEA 386 Customer Svc. Supervisor 1.00 MEA 366 Customer Svc. Rep., Sr. 3.00 MEA 346 Customer Svc. Rep 6.00 TOTAL AUTHORIZED PERSONNEL 13.00 96-88 FNLTO-97.XLS Exhibit D 9/9/96 CITY ATTORNEY PERSONNEL BY CLASSIFICATION BUDGETI ORGANIZATION RANGE CLASSIFICATION FY 96/97! ELECTED/NREP 599 City Attorney 1.00 MEO 549 Deputy Attorney III 6.00 MEO 484 Deputy Attorney I 1.00 MEO 467 Law Office Manager 1.00 MEO 428 Investigator 1.00 NREP 394 Administrative Assistant 0.00 MEA 385 Secretary Legal, Sr. 1.00 MEA 376 Secretary Legal 2.00 MEA 339 Office Assistant II-Typing 1.00 TOTAL AUTHORIZED PERSONNEL 14.00 CITY CLERK PERSONNEL BY CLASSIFICATION BUDGET ORGANIZATION RANGE CLASSIFICATION FY 96/97 ELECTED/NREP 519 City Clerk 1.00 MEA 408 Deputy City Clerk II 1.00 MEA 361 Office Specialist-Typing 1.00 MEA 359 Deputy City Clerk I 1.00 MEA 408 Deputy City Clerk II 1.00 MEA 361 Office Specialist-Typing 1.00 MEA 359 Deputy City Clerk I 1.00 MEA 339 Office Assistant I 0.00 TOTAL AUTHORIZED PERSONNEL 7.00 NON DEPARTMENTAL PERSONNEL BY CLASSIFICATION BUDGET ORGANIZATION RANGE CLASSIFICATION FY 96/97 MEA 464 Telecomm.Asst. 1.00 MEA 423 Comm.Tech. 0.75 MEA 412 Word Processing Coord. 1.00 MEA 381 Word Process. Syst.Asst 1.00 TOTAL AUTHORIZED PERSONNEL 3.75 96--88 FNLTO-97.XLS Exhibit D 9/9/96 ADMINISTRATIVE SERVICES PERSONNEL BY CLASSIFICATION 11 BUDGET ORGANIZATION RANGE CLASSIFICATION FY 96/97 NREP 585 Chief of Admin. Services 1.00 MEO 552 Director of Finance 1.00 NREP 531 Information System Mgr. 1.00 MEO 531 Personnel Director 1.00 MEO 525 Risk Manager 1.00 MEO 522 Accounting Officer 0.00 NREP 504 Personnel Manager 1.00 MEO 502 Supr./Sys.&Programing 1.00 MEO 509 Dir.Real Estate Svcs. 0.00 MEO 494 Purch./Cntrl. Svcs. Mgr. 1.00 NREP 489 Personl Analyst,Prin. 1.00 MEO 487 Accountant,Principal 2.00 NREP 481 Budget Analyst Sr. 2.00 MEO 472 Micro&Data Base Cord. 1.00 MEA 472 Systems Analyst,Sr. " 1.00 MEA 460 Real Estate Agent 1.00 MEA 457 Accountant 5.75 MEA 455 Programmer Senior 2.00 MEA 455 Cmptr. Operations, Supv. 1.00 MEA 450 Personnl Svcs. Coord. 0.00 MEA 443 Liability/Safety Analyst 0.00 MEA 435 Micro Tech Aide 1.00 MEA 434 Buyer 2.00 MEA 412 Word Processing Coord. 0.00 MEA 402 Printing/Forms Coord. 1.00 NREP 394 Administrative Asst. 1.00 MEA 386 Accounting Tech IV 1.75 MEA 382 Claims Supervisor 1.00 MEA 381 W.P. System Assistant 0.00 MEA 381 Real Property Assistant 0.50 MEA 369 Computer Operator Sr. 1.75 MEA 366 Accounting Tech III 3.00 NREP 365 Personnel Asst. II 3.50 MEA 365 Duplicate Equipment Operator 1.00 MEA 361 Med. Claims Processor 4.75 MEA 361 Claims Examiner 1.00 MEA 355 Stock Clerk 1.00 MEA 346 Accounting Tech I1 1.00 MEA 346 Secretary/Typist 1.00 MEA 339 Office Asst. II-Typ. 1.00 MEA 328 Office Spclst. Typ. 0.00 MEA 326 Inventory Clerk .1.00 TOTAL AUTHORIZED PERSONNEL 53.00 96-88 FNLTO-97.XLS Exhibit D 9/9/96 COMMUNITY DEVELOPMENT PERSONNEL BY CLASSIFICATION ORGANIZATION RANGE CLASSIFICATION FY 96/97 NREP 585 Director,Community Development 1.00 MEO 555 Planning Director 1.00 MEO 542 Building&Safety Director 1.00 MEO 521 Asst. Bldg.Official/Struc. Eng. 1.00 MEO 514 Principal Planner 1.00 MEO 499 Planner Senior 3.00 MEO 499 Inspection Manager 1.00 MEO 493 Plan Check Bldg. Sr. 2.00 MEO 478 Inspector,Chief 0.00 MEO 478 Inspector, Supr. Comb/Strc 1.00 MEO 473 Planner Associate 5.00 MEA 468 Inspector,Prin. Plmb/Mech 1.00 MEA 468 Inspector,Principal Elect. 1.00 MEA 468 Inspector III 7.00 MEA 455 Inspector Senior 0.00 MEA 455 Plan Checker Sr. 1.00 MEA 445 Plan Checker 0.00 MEA 445 Sr.Code Enforce.Officer 0.00 MEA 445 Planner Assistant 4.00 MEA 434 Code Enforcement Officer 4.00 MEA 412 Permit/Zoning Tech. 0.00 MEA 412 Permit Supervisor 1.00 NREP 394 Administrative Assistant 1.00 MEA 392 Planner,Drafter 0.00 MEA 388 Plan Check Coordinator 0.00 MEA 372 Administrative Secy. 1.00 MEA 355 Construction Permit Aide 3.00 MEA 346 Secretary Typist 0.00 MEA 345 Word Processor Sr. 0.00 MEA 339 Office Assistant II 2.00 THORIZED PERSONNEL 96-88 FNLTO-97.XLS Exhibit D 9/9/96 FIRE DEPARTMENT PERSONNEL BY CLASSIFICATION BUDGETI ORGANIZATION RANGE CLASSIFICATION FY 96/97 NREP 593 Fire Chief 1.00 MEO 552 Fire Chief Division 2.00 FA 531 Fire Battalion Chief 5.00 MEO 495 Fire Marshal Deputy 5.00 FA 495 Fire Captain Paramedic 9.00 MEO 481 Fire Protection Analyst 1.00 FA 473 Fire Captain 21.00 FA 473 Supervising Fire Controller 0.00 MEO 467 Department Analyst Sr. 1.00 MEA 464 FireMed Coordinator 1.00 FA 461 Fire Engineer Paramedic 0.00 MEA 455 Crewldr. Mech.Maint. 1.00 FA 449 Fire Protection Specialist 6.00 FA 449 Paramedic 33.00 FA 441 Fire Engineer 33.00 FA 425 Fire Controller Shift Supervisor 0.00 MEA 423 Building Maintenance Assistant 1.00 MEA 420 Mechanic,Heavy Duty 1.00 FA 418 Firefighter 24.00 MEA 418 Emergency Services Coord. 1.00 MEA Community Relations Coord. 1.00 MEA 416 Fire Education Specialist 2.00 MEA 408 Mechanic, Sr. 1.00 FA 398 Fire Controller 0.00 NREP 394 Administrative Assistant 1.00 MEA 381 A/V Media Specialist 1.00 MEA 372 Administrative Secretary 2.00 MEA 369 Fire Data Coordinator,RMS 0.00 MEA 361 Office Specialist,Typing 1.50 MEA 346 Customer Service Representative 1.00 MEA 346 Accounting Tech. II 3.25 MEA 345 Word Processor Sr. 1.00 MEA 339 Office Assistant II,Typing 1.00 THORIZED PERSONNEL 96-88 -(--A J. i FNLTO-97.XLS Exhibit D 9/9/96 POLICE DEPARTMENT PERSONNEL BY CLASSIFICATION BUDGETI ORGANIZATION RANGE CLASSIFICATION FY 96/97 Police Chief PMA 561 Police Captain 4.00 MEO 530 Criminalist,Chief 1.00 PMA 529 Police Lieutenant 10.00 MEO 522 Com.Adm./Info Sys Mgr. 1.00 MEO 496 Criminalist,Supervisor 1.00 MEO 488 Records Admininistrator 1.00 POA 484 Police Sergeant 31.00 MEO 481 Criminalist, Sr. 3.00 MEO 472 CAD Specialist 2.00 MEA 471 Helicopter Technician 1.00 MEO 467 Department Analyst Sr. 1.00 MEO 467 Senior Crime Analyst 1.00 POA 457 General Services Officer* 0.00 MEA 455 Crewleader,Mech.Maint. 1.00 POA 449 Police Officer Sr./Reg. 185.00 MEA 433 Forensic Specialist 2.50 MEA 428 Information Specialist 0.00 POA 426 Communications Supvsr. 6.00 POA 426 Detention Officer,Sr. 5.00 MEA 423 Communication Tech. 2.00 MEA 420 Helicopter Mechanic 1.00 MEA 418 Police Photographer 1.00 POA 415 Detention Officer/Nurse 3.00 MEA 412 Word Processing Coord. 1.00 MEA 408 Mechanic Sr. 3.00 POA 407 Detention Officer* 10.00 MEA 402 Service Officer 10.00 MEA 402 Property Officer, Sr. 1.00 POA 399 Communications Operator 16.00 NREP 394 Admininistrative Assistant 1.00 MEA 392 Administrative Aide I 1.00 MEA 387 Property Officer 1.00 MEA 386 Education Specialist 2.00 MEA 381 Crime Analyst 2.00 MEA 378 Shift Supervisor 3.00 MEA 372 Admin. Secretary 3.00 MEA 368 Court Liaison 1.00 MEA 368 Civilian Check Invest. 2.00 MEA 366 Accounting Tech. 11I 2.00 MEA 365 Service Officer/Lab 1.00 MEA 362 Police Alarm Specialist 1.00 MEA 362 Police Specialist 12.00 MEA 356 Asst. Comm.Tech. 1.00 MEA 355 Parking Control Officer 7.00 MEA 351 Police Clerk Sr. 3.50 MEA 340 Custodian 3.00 MEA 339 Office Asst. II,Typist 1.00 MEA 329 Police Records Tech 24.00 TOTAL AUTHORIZED PERSONNEL 96-88 FNLTO-97.XLS Exhibit D 9/9/96 ECONOMIC DEVELOPMENT PERSONNEL BY CLASSIFICATION BUDGET ORGANIZATION RANGE CLASSIFICATION FY 96/97 NREP 585 Director,Economic Development 1.00 MEO 570 City Engineer 0.10 MEO 531 Traffic Engineer 0.10 'MEO 515 Principal Civil Engineer 0.20 MEO 514 Project Manager 2.00 MEO 504 Traffic Engineer Associate 0.10 MEO 500 Civil Engineer Associate 0.10 MEO 476 Contract Administrator 0.05 MEO 473 Assistant Project Manager 3.00 MEA 471 Civil Engineer Assistant 0.20 MEA 460 Housing Rehab. Manager 1.00 MEA 455 Engineering Technician 0.70 MEA 455 Inspector Public Works,Sr. 0.20 MEA 455 Survey Party Chief 0.20 MEA 445 Development Specialist 2.00 MEA 435 Housing Rehab. Finance Spec. 1.00 MEA 434 Code Enforcement Officer 2.00 MEA 413 Recreation Leader, Sr. 1.00 MEA 413 Human Services Coordinator 1.00 NREP 394 Administrative Assistant 1.05 MEA 372 Administrative Secretary 0.05 MEA 361 Office Specialist,Typing 2.00 MEA 276 Outreach Assistant 1.00 UTHORIZED PERSONNEL LIBRARY SERVICES PERSONNEL BY CLASSIFICATION BUDGET 11 ORGANIZATION RANGE CLASSIFICATION FY 96/97 NREP 556 Library Director 1.00 MEO 497 Library Services Manager 1.00 MEO 434 Librarian, Senior 3.00 MEA 411 Computer Oper. Coord. 1.00 MEA 402 Librarian 6.50 MEA 395 Principal Library Clerk 1.00 NREP 394 Administrative Assistant 1.00 MEA 381 Audio Visual Coordinator 1.00 MEA 381 Library Assistant 4.00 MEA 381 Facilities Maintence Worker 0.00 MEA 378 Computer Oper.Asst. 1.00 MEA 361 Volunteer Coordinator 1.00 MEA 346 Library Clerk, Senior 11.00 MEA 340 Custodian 1.00 MEA 337 Literacy Projects Coodinator 1.00 MEA 328 Library Clerk 1.00 MEA 308 Library Clerk, Special 0.50 96-88 FNLTO-97.XLS Exhibit D 9/9/96 PUBLIC WORKS PERSONNEL BY CLASSIFICATION ORGANIZATION RANGE CLASSIFICATION FY 96/97 NREP 593 Director Public Works 1.00 MEO 570 City Engineer 1.00 MEO 556 Water Operations Mgr 1.00 MEO 537 Maint. Operations Mgr. 1.00 MEO 531 Traffic Engineer 1.00 MEO 515 Superintendent PTL. 1.00 MEO 515 Principal Civil Engineer 2.00 MEO 515 Construction Manager 0.00 MEO 504 Traffic Engineer Assoc. 2.00 MEO 500 Civil Engineer Associate 3.00 MEO 493 Supervisor,Tree/Landsc. Maint. 1.00 MEO 493 Supervisor,Building Maint 1.00 MEO 493 Supervisor Water Production 1.00 MEO 493 Supervisor Water Distribution 1.00 MEO 493 Supervisor Street/Sewer Maint. 1.00 MEO 493 Supervisor Park Maint. 1.00 MEO 493 Supervisor Mech.Maint. 1.00 MEO 476 Landscape Architect 1.00 MEO 476 Contract Administrator 1.00 MEA 471 Civil Engineer Assistant 2.00 MEA 467 Department Analyst Sr. 3.00 MEA 466 Plan Checker P.W. Sr. 1.00 MEA 455 Traffic Technician 3.00 MEA 455 Survey Party Chief 2.00 MEA 455 Inspector Electrical Sr. 0.00 MEA 455 Inspector Public Works, Sr. 4.00 MEA 455 G.I.S. Technician 1.00 MEA 455 Engineering Technician(1 unfunded) 8.00 MEA 455 Crewleader Electrical Maintenance 2.00 MEA 455 Crewleader Painting 0.00 MEA 455 Crewleader Mechancial Maintenance 1.00 MEA 455 Crewleader Building Maintenance 1.00 MEA 455 Crew Leader,Traffic 1.00 MEA 455 CADD Technician 1.00 MEA 450 Water Quality Coordinator 1.00 MEA 450 Crewleader,Street Maintenance 2.00 MEA 450 Crewleader, Street Landscape 1.00 MEA 450 Crewleader, Sewer Maintenance 1.00 MEA 450 Crewleader Water Production 1.00 MEA 450 Crewleader Water Operations 1.00 MEA 450 Crewleader Water Distribution 1.00 MEA 450 Crewleader Street Trees 1.00 MEA 450 Crewleader Pesticide Advisor 1.00 MEA 450 Crewleader Park Maintenance 1.00 MEA 450 Crewleader Irrigation 1.00 96-88 .a:il• r ., FNLTO-97.XLS Exhibit D 9/9/96 PUBLIC WORKS PERSONNEL BY CLASSIFICATION BUDGE ORGANIZATION RANGE CLASSIFICATION FY 96/97 MEA 445 Building aintenance Technician MEA 436 Vehicle Body Shop Coordinator 1.00 MEA 436 Leadworker Water Production 2.00 MEA 436 Leadwkr. Mech.Hvy.Duty 1.00 MEA 436 Equipment Support Coordinator 1.00 MEA 434 Inspector Water Service, Sr. 2.00 MEA 434 Cross Connection Control Spec 1.00 MEA 424 Water Quality Tech I 1.00 MEA 424 Leadworker Streets 4.00 MEA 424 Leadworker Water Services Rep. 1.00 MEA 424 Leadworker Water Construction 3.00 MEA 424 Leadworker Painter 1.00 MEA 424 Leadworker Mechanic 1.00 MEA 423 Electrician,Traffic Signals 3.00 MEA 423 Electrician 3.00 MEA 420 Water System Tech III 3.00 MEA 420 Telemetry Technician 1.00 MEA 420 Mechanic Heavy Duty 3.00 MEA 418 Surveyor 2.00 MEA 418 Plumber 1.00 MEA 412 Sign Shop Technician 1.00 MEA 408 Vehicle Body Repair Worker 1.00 MEA 408 Painter 0.00 MEA 408 Mechanic Sr. 10.00 MEA 408 Leadworker,Sewer Maint. 2.00 MEA 408 Leadworker,Landscape 11.00 MEA 408 Leadworker Water 1.00 MEA 408 Equipment.Operator H.D. 4.00 MEA 408 Carpenter 5.00 MEA 408 Block Masonry Worker 0.00 MEA 403 Leadworker Hydrant/Valve 1.00 MEA 403 Leadworker Water Meter Repair . 1.00 MEA 402 Warehousekeeper 3.00 MEA 402 Engineering Aide 1.00 MEA 402 Concrete Finisher 2.00 MEA 400 Water System Tech II- 4.00 MEA 397 Bldg Maint. Leadworker 1.00 MEA 396 Leadworker,Traffic Striping 1.00 NREP 394 Administrative Assistant 1.00 MEA 392 Tree Trimmer Aerial 3.00 MEA 392 Mechanic, Sewer Pump Sr. 1.00 MEA 392 Equipment Operator 23.00 MEA 392 Electrical Repair Worker 1.00 MEA 392 Chemical Applicator 4.00 MEA 392 Auto. Irrigation Worker 3.00 MEA 387 Storekeeper 2.00 96-88 FNLTO-97.XLS Exhibit D 9/9/96 PUBLIC WORKS PERSONNEL BY CLASSIFICATION BUDGET ORGANIZATION RANGE CLASSIFICATION FY 96/9711 MEA 387 Service Worker 8.00 MEA 387 Meter Repair Worker 4.00 MEA 387 Mechanic Sewer Pump 1.00 MEA 387 Equipment Support Assistant 1.00 MEA 381 Traffic Maintenance Worker 4.00 MEA 381 Tire Service Worker 1.00 MEA 381 Meter Reader Sr 1.00 MEA 381 Maint. Service Worker(1 unfunded) 19.00 MEA 381 Building Maintenance Service Worker 2.00 MEA 372 Administrative Secretary 4.00 MEA 365 Customer Service Rep. 2.00 MEA 365 Meter Reader 2.00 MEA 361 Office Specialist Typing 1.00 MEA 354 Maintenance Worker 5.00 MEA 340 Custodian 1.00 MEA 338 Office Assistant II, Typing 5.50 TOTAL AUTHORIZED PERSONNEL 96-88 PROOF OF PUBLICATION STATE OF CALIFORNIA) SS. County of Orange ) I am a Citizen of the United States and a _ resident of the County 'aforesaid; I am =- - over the,age of eighteen years, and not a party to or interested in the below entitled matter. I am a principal clerk of PUBLIC NOTICE T the HUNTINGTON BEACH INDEPENDENT, a NOTICEOF-BUDOET- newspaper of general circulation, printed HUNT DOPNCTow'EACH and published in the City of Huntington %On .Co rnlmber g 199 the Cldty�="Council:adopYted the bu get for Fiscal ear Beach, County of Orange, State of 1996197..TMe'budget_ap- pro pdates$198.999.32 5-for all funds. Of this.,.amount, California, and that attached Notice is a $97,278,915`has.been ap- propriatedtrue and complete copy as was printed Fund, t1' 1,7k,the 10 to Fund, end.$10t,720,410 to and published in the Huntington Beach all other funds. -Bud documents documents- are available' for public Inspection at City and Fountain Valley- issues of said the 20°° Maio Street In City-Clerks Office be- newspaper to wit the issues of: be- tween the hours-of thr AM &5:00 PM Monday through Friday. Copies are: also available for review at the Central Library located at 7111 Talbert Avenue, (Tal- bert&,Goldenwest),.and at ; all branch libraries. Dated 9117/96 September 26, 1996 Clay of. Huntington Beach By-Connle-Brockway; City Clerk' 2000 Main St., Nuri- tington Beach- CA I declare under penalty of 'per ur that 92648, Telephone: p ty p yJ (714)53"227 the foregoing is true and correct. Published 'Huntington Beach-Fountain Valley In- dependent.September 26, 1996' 094-395 Executed on- September 26� 1996 «. at Costa Mesa, California. Signature t , :,. `�UlA.apJ 9/a 6 It 7l9 6 NOTICE OF BUDGET ADOPTION CITY OF HUNTINGTON BEACH On September 16, 1996, the City Council adopted the budget for Fiscal Year 1996/97. The budget appropriates $198,999,325 for all funds. Of this amount, $97,278,915 has been appropriated to the General Fund, and $101,720,410 to all other funds. Budget documents are available for public inspection at City Hall, 2000 Main Street in the City Clerks Office between the hours of 8:00 AM& 5:00 PM Monday through Friday. Copies are also available for review at the Central Library located at 7111 Talbert Avenue (Talbert& Goldenwest), and at all branch libraries. Dated 9/17/96 City of Huntington Beach by: Connie Brockway,City Clerk 2000 Main St. Huntington Beach, CA 92648 Telephone: (714) 536-5227 **Notice to City Clerk ** This copy to run in news print legal section on September 26, 1995. Page 14 - Council/Agency Agenda - 10/07/96 (14) G-2. Ordinances For Introduction Recommended Action Motion to approve introduction of the following ordinances, by roll call vote, after City Clerk reads by title. G-2a. (City Council) Ordinance No. 3336 -Time Limits For Parking Of,Oversize Vehicles On Arterial Streets (640.10) - "An Ordinance Of The City Of Huntington Beach Amending Chapter 10.44 Of The Huntington Beach Municipal Code Titled Parking--Time Limits Of Oversize Vehicles." Submitted by the Police Department [Deferred to Later Date following meeting with Mr. Hicks and staff] G-2b. (City Council)Ordinance No. 3337 - Oversized Vehicles Parking On Arterial Streets - Measurement Definition (640.10) - "An Ordinance Of The City Of Huntington Beach Amending Chapter 10.08 Of The Huntington Beach Municipal Code Titled Enforcement--Oversized Vehicles." Submitted by the Police Department [Deferred to Later Date following meeting with Mr. Hicks and staff] H- Council/Agency Items H-1a. Submitted By Council/Agency Member Dave Garofalo (City Council) City Budget And Process Communication from Councilman Garofalo dated October 3,1996 submitting recommendations regarding the budget process. [Garofalo reported on need to privatize the budget and address infrastructure needs] H-1 b. (City Council) Appointment To The Fourth of July Board -Tammie Bechstead Announcement of Tammie Bechstead to serve as Councilman Garofalo's appointee on the Fourth of July Board, filling the vacancy created by the resignation of John Tillotson. [Defer for one week at Councilman Garofalo's request] H-2. Submitted By Council/Agency Member Tom Harman (City Council) Sports Facilities Improvement District (620.20) Communication from Councilman.Tom Harman regarding the fact that during several re- writes to the ballot language for the "Advisory Vote Only - Measure X on the November 5, 1996 election ballot, the words "swimming pool" were omitted from the election resolution adopted by the City Council. Recommended Action: Motion to: That Council reaffirm its intention to include a fifty meter swimming pool in the list of projects that would be built through the proceeds generated by the Sports Facilities Improvement District should the city determine through the public hearing process that it does intend to proceed with the assessment district. [Approved 7-0] (14) 1 MAYOR Dave Sullivan City Of HXMtJXJgt011 Death MAYOR PRO TEMPORE _ P.O. BOX 190 • 2000 MAIN STREET • CALIFORNIA 92848 Ralph Bauer SIM ' COUNCILMEMBERS sk—,"'Co= as Shirley DetfloN — David P. Garofalo Peter Green -w Tom Harman Victor Leipzig Tom r/City Council Fr: Dave Garofalo Re: 14H" Item - CITY E3UWET AND PROCESS I reluctantly accepted Councilman Bauerls request that we approve the current Budget unanimously. The understanding was that we would recommend that we approach the process in a different manner next time. My issues with the current process include: 1. We are approving dollar amounts and not programs, likewise when we cut the budget we are discussing dollars, while we should be discussing the. service delivery system we are empowered to manage. While we do get to program names, we are driven, in the main by the dollar goal more that any other issue. 2 . ECONOMIC DEVELOPMENT must be made part of the Budget process. Example: the acknowledged top priority of local government is public safety, usually followed by Public Works. I would propose that the next phase of the "BUDGET PROCESS" would be our review of where we can, invest if you will, those precious tax payer dollars that are left over after Public Safety/Public Works, into programs that make us money so we can not only better support public safety and public works, but also get on with our other responsibilities to deal with the social/ cultural issues that Contribute to the quality of life issues we all hold dear. Obviously this means investing in major Sales tax generators, TOT revenue contributors, even property tax generators and larger employers. Therefore, for my suggested approach to the Budget process is: (1) deal with the issue of Public Safety/Public Works - first, (2) look at all functions that we currently perform or could perform and determine if we could increase the return to the tax payer by supporting them more aggressively and (3) take the results of 2 and 3 above and deal with the myriad of other programs and services we perform and further prioritize them. I also have as a top Budget priority the additional issues of beginning the process to deal with infrastructure replacement and equipment replacement. I do not think we can adequately budget with out these points. We need a plan, as small as it might be, particularly in light of the continuing liabilities of legal matters and the ultimate cost of some of them should we not prevail . TELEPHONE 1714) 595.5353 - n FAX(714)536.5233 (� i► Council/Agency Meeting Held: %0-7�b Deferred/Continued to: _ Approved L3 Conditionally Approved ❑ Denied City Clerk's SignattVe Council Meeting Date: October 7, 1996 Department ID Number: AS 96-053 CITY OF HUNTINGTON BEACH REQUEST FOR COUNCIL ACTION SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS SUBMITTED BY: MICHAEL T. UBERUAGA, City Administ PREPARED BY: ROBERT FRANZ, Deputy City Administrator CE SUBJECT: YEAR-END BUDGET TRANSFER - SELF INSURAN UND Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachments) Statement of Issue: A transfer of $410,000 from the General Fund Reserve to the Self Insurance Fund is needed to cover unanticipated legal expenses and settlements. Funding Source: As indicated. Recommended Action: Approve the transfer of $410,000 from the General Fund Reserve to reimburse the Self Insurance Fund. Alternative Action(s): Do not approve the transfer and allow the Self Insurance Fund to remain in a negative cash position. The City's.outside auditors may later require a General Fund reduction if this alternative is selected. Analysis: In March 1996, the Self Insurance Fund Budget was reduced by $1,500,000 as part of the mid-year budget amendment. These expenditure reductions were with the understanding that if unexpected expenses were incurred during the 95/96 fiscal year, that the Self Insurance Fund would need to be reimbursed from the General Fund. Recent unanticipated claim settlements and legal costs have depleted the Self Insurance Liability Program Account. In order to make these required payments, the expenditures for settlements, legal fees and insurance premiums were paid out of the Self Insurance Medical Claims Program Account. As a result of the unanticipated settlements and legal fees, all of the cash reserves of the Self Insurance Funds have been depleted, and a $410,000.deficit has occurred. A transfer from the General Fund Reserve is requested to reimburse the Self Insurance Fund and bring its cash reserves out of a deficit (negative) position. r 0021317.01 09/27/96 4:09 PM REQUEST FOR COUNCIL ACTION MEETING DATE: October 7, 1996 DEPARTMENT ID NUMBER: AS 96-053 Environmental Status: Not applicable. Attachmentlsl: City Clerk's Page f FisCR�. lfr1PRCT Sr�TF3rIt/t/7" 0021317.01 -2- 09/27/96 4:09 PM i ATTACHMENT 1 Liability Self Insurance Fund Costs - 1990/91 to 1995/96 ... ............ ........ ... ..........................._..................... .._...................... .. ............... . . _. .. ..... _....... . _........ _ _ . ...._.. . ._................. . 1995/96 Budget: Operating Expenses FY 90/91 FY 91/92 FY 92J93 FY 93%94 FY 94/95 Amended Estimated Over or(tinder) 15 Months Budget Expenses Budgd Settlements $641,587. 1 $665,519.1 $500,264. 1 $2,025,477. 1 $1,175,529. $500,000. 1 $625,000. $125,000 .................................................................................................................................... .................................¢.....----....---.................................................... ....................--------....---.. ........................-----------..j......----................................ Property Insurance 201,678 1 151,318.1 242,932. 1 367,948. 1 686,325. 550,000. 1 500,000. 1 (50,000) ......................................................................................................................................>-........ .........................-....-.....................<................................. ......................................>......................................------.................--------......----- Aircraft&Watercraft Ins. 71,106. 63,775.1 171,783. 1 126,841. 1 131,275. 145,000. 120,000. € (25,000) ....................................................................................................{..................................j.................................1.................................1................................. ......................................j......................................j.......................................... Excess Liability Ins. 616,670. 764,037.1 554,819. 594,975. 1 557,196. 450,000. 1 530,000. 80,000 ---------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------------------------ ---------------------------------------------------------------------------------------------------------------------- Legal Services 243,323. 666,828.1 589,432. 1,323,818. 332,062. 200,000. 494,000. 294,000 ............................................................. ............................ ..................................................................1.................................i................................. ..................................... Litigation Services 0. 0. 51,573. 1 206,720. 1 39,147. 40,000. 30,000. 1 (10,000) .................................................................................................... ........................................---............----...... ----.............................;-----.....--------..........----- ...........----........--------------.j.............---............................................--------............ Contractural Services* 130,169. 116,669.:: 103,616. 115,953. 60,920. 100,000. 1 100,000. 1 ................................ ..................... ............ .................:............ ...................---...............................--------.................... Miscellaneous 117,867. € 185,639. 186,705. 1 0. 0. 5,000. 1 2,000. 1 (3,000) ...............................................................................................................---...........................................-----......:..............................................------................ .........---........-----...................-----.......-----..................................---...........----..... Other Expenses 5,556. 1 6,214.1 24,759. 1 48,053. 1 23,839. 11,500. 1 10,000. 1 (1,500) ......................................................................................................................................................................:................................................................... .........................................................----.........................---.............................. Accrual 0. 0.1 0. 1 0. 1 0. 0. 1 0. 1 Total $2,027,956.F$2,619,999. $2,425,883.F$4,809,785. $3,006,293. $2,001,500. $2,411,000. $409,500 *Third Parry Administrator (9/27/96) v , 0 J, CITY OF HUNTINGTON BEACH INTERDEPARTMENTAL COMMUNICA TION To: Michael T. Uberuaga, City Administrator From: Robert J. Franz, Deputy City Administrator Subject: FIS 97-02 Year-End Budget Transrer- Self-Insurance Fund Date: September 30, 1996 As required by Resolution 4832, a Fiscal Impact Statement has been prepared for a Year-End Budget Transrer- Self-Insurance Fund. If the City Council approves this. request the estimated September 30, 1997 unappropriated, undesignated General Fund Balance will be reduced to $3,055,456. ob rt J. an , Deputy Ci Administra r fis97-02 Adopted Budget $3,473,456 Revised Estimate $3,055,456 Adopted Current Funtl Balance General Fund Budget11 Estimate Beginning Fund Balance $3,116,866 $3,116,866 Budget Surplus/(Shortfall) 356,590 356,590 Less Approved One-Time Costs Less: Pending Budget Amendments (8,000) Less FIS 97-02 (410,000) Plus PERS Refund Estimated 9/30/97 Balance $3,473,456 $3,055,456 Fund Balance -General Fund 3 600 000 .. <$ $3,400,000 3 200 000 $3,000,000 $2,800,000 $3,473,456 $2,600,000 $3,055,456 $2,400,000 $2,200,000 $2,000,000 Adopted Revised Budget Estimate G:WCCTG�FIS.XLS]fis97-02 Page 1 Council/Agency Meeting Held: /o,A-1 9L Deferred/Continued to: l'Approved ❑ Conditionally Approved ❑ Denied City Clerk's Sign ure 7-0 Council Meeting Date: 10/21/96 Department ID Number: CS 96-037 CITY OF HUNTINGTON BEACH REQUEST FOR COUNCIL ACTION SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS SUBMITTED BY: MICHAEL T. UBERUAGA, City Administrdfsr / PREPARED BY: RON HAGAN, Deputy Director, Community Services` SUBJECT: FRENCH DOCK REPAIR Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(s) Statement of Issue: Should City Council approve an amendment to the FY 96/97 General Fund to repair the damaged dock at French Park in Huntington Harbour? Funding Source: General Fund Unappropriated Fund Balance. Recommended Action: Approve an amendment to the FY96/97 General Fund budget for Program # E-AA-CS-343-3-90-00 for $8,000 to contract with a dock repair company to repair the damaged dock at French Park in Huntington Harbour. Alternative Action(s): Do not repair the dock at French Park thus, eliminating the dock for public fishing and boating. (The city would then be in noncompliance of the Coastal Development Permit for Trinidad Island.) Analysis: The dock at French Park in Huntington Harbour has been damaged beyond the level of repair that can be accomplished with existing city maintenance staff. The damage is the result of dry rot because of the dock's age and public abuse. It was originally constructed in 1977. Current damage has been caused by boat operators not releasing their mooring lines from the cleats on the dock, thereby, tearing the dock off its supports and causing considerable damage to the dock itself. The Transpacific Management Service Association has written a letter to the city on behalf of the Trinidad Island Homeowners Association requesting that the dock be repaired as soon as possible (see Attachment 1). No funds were budgeted in the 96/97 operating budget; therefore, a request is being made of City Council for a special allocation from the Unappropriated Fund Balance of the General Fund in order to initiate repairs. The dock is currently stored at the marine safety boat dock at Warner Avenue because it was a potentia safety hazard to water traffic at French Park. If Council approves the funding, the dock will / REQUEST FOR COUNCIL ACTION MEETING DATE: 10/21/96 DEPARTMENT ID NUMBER: CS 96-037 be repaired by a private company and returned to its original location at French Park. Staff has researched the option of deeding French Park to the homeowners association, but this would require Coastal Commission approval and a successful Charter Section 612 vote, which are unlikely. Environmental Status: Not applicable. Attachment(s): City Clerk's Page Number ....... 1. Transpacific Management Service letter dated 8/26/96. 2. Location Map 3. Preliminary cos t estimate 4. Fiscal Impact to P Statement 0020539.01 -2- 10/04/96 8:57 AM ` �, Transpacific Management Service SERVING COMMUNITY ASSOCIATIONS SINCE 1966 August.26, 1996 Mr. Larry Neishi BEACH DIVISION SUPERVISOR CITY OF HUN'TINGTON BEACH 2000 Main Street Huntington Beach, CA 92649 RE: TRINIDAD ISLAND HOMEOWNERS ASSOCIATION DAMAGED FRENCH PARK DOCK Dear Mr, Neishi: Your letter of July 23, 1996, was received and presented to the Trinidad Island Board of Directors at the last meeting. The board has requested that I again relay their concern of not having a schedule for repair or replacement for this fishing dock. After reviewing tract maps and speaking with the Coastal Zoning Commission it was discovered that when the Trinidad Island was originally developed it was a policy within the coastal element and a requirement to have public access to the water by way of this fishing dock- I have been informed by this zoning commission that according to a specific state coastal act this dock must be present. Mr.Neishi, we ask you again to review this situation and give us your response on w this dock can be reinstalled. Look forward to hearing from you soon, eg ds, Pamela Pe ton On behalf of the Board of Directors TRINIDAD ISLAND I IOMEOWNERS ASSOCIATION 2112. P. FOURTH STREET, STE. 200, SANTA ANA. CALIFORNIA 9270S-8616 PHONE.7141283-2626 600/672.7600 'AX: 714/647.9393 CERRITOS 310626-3372 CORONA 909/371.2727 SAN CLEMENTE 7141246-;p22 09-05-96 12: 28PM P02 f= 11 �� A � 'llllll�,• • �< 1 � ` � •tom, � '' I�. r • ',• �y n CONTRACTORS INVOICE t C l 2-jQp 4-1 WORK PERFORMED AT: <�.�'n. �:tj„P:;F't:s'.r:%.y._,a�..ry,yf I ';,tv,•.,:s,4.��,,,���!Ytttylx""e' -,�, .�4�?��,,uf. .y": _`,.,�•,�'T'. 1471- t° " xt- .^,,ay.ro 1 < �- 1. -� ♦.'-,a 1 �;�n`d2 T �� l�t,'f5r�"y��'r�v��n,��'•'Sj��.�y to )-.4 04 At 4/4, BATE YOUR WORK ORDER NO. OUR BID NO:' 77- o'^nrf="'7a!y'a^.7A+'Y', rNiyv`y,•,`w.`i'sN.,Y�:.�>� _ v DESCRIPTION OF PERFORMED LIS KIM y ti, Ark,_ •,aS,?: r.M 1 _ L, i, :.i �.e..r,, _ d= s,,>:.. ^.�� •.:y. 7o Ws3:?. fit" ., d(�. b7�, w.. 'h •a. '-'w. ,Y.. _ ;i'�. ,:rr. ,y �•s,. .'il� '�i�� ...twr�' .'Ir. cw' ".4 ale'••, '`.'��'^ .L .s�'..)1 hr I <�?,2. ':Ji'�.ni�:t::t.:J.rv. �iX C. :�.1.',` .•fA��;.I,,.:�5:: ,r .rt,'i-: -I+' •.L - .P.�:, .Z �:�'+i'' - 'i'r�y •l ^.�,...1-n,2,..:•:i• ^:'g;Jrn� /'.yr.r ,>r�-h.;:'SS ..!wr - -a; •r1 `: r'>.:..�' 'fit .� _ ar f^^-"� ,.�:.�'2::::.s, =".iay 'x�` .,!''� �'r:.y'•�'�zrut.;�.' _��,� Y ..a,'4• Y.'�r"a,�:/• .,e ter. C:F". ,.IYUT - ?:� r ,..d !' - s,• ,y:; {r!\'.>f��t.ryr.':,11==[:''S'�=::1 ,K1, ... .. r r w.s+" • ' i...r •. _ .. .. ,•�.. f: jEe 10, zvH7' S P dtrr� irtl.S . eou)IL G /V .4�� r�.b V mMm(e'k bV�l 10dsZl • kll Material Is guaranteed to be as specified,and the above work was performed In accordance with the drawings and specifications )rovided for the above work and was completed in a substantial workmanlike manner for the agreed sum of Dollars($ ). this is a ❑Partial ❑Full invoice due and payable by: Month Day Year n accordance with our ❑Agreement d Pro coal No. Dated Month Day Year �r�R�� r`nntra�^t�rc Inaiiai�+o 09-1'7-y6 : 1 16E.M P0., CITY OF HUNTINGTON BEACH INTERDEPARTMENTAL COMMUNICA TION To: Michael T. Uberuaga, City Administrator From: Robert J. Franz, Deputy City Administrator Subject: FIS 97-01 Budget Appropriation for French Dock Repair Date: September 16, 1996 As required by Resolution 4832, a Fiscal Impact Statement has been prepared for a Budget Appropriation for French Dock Repair. If the City Council approves this request the estimated September 30, 1997 unappropriateo undesignated General Fund Balance will be reduce $3 ,4 6. Robert J. Fra z, Deputy City Administrator y F I S97-01 Adopted Budget $3,473,456 Revised Estimate $3,465,456 Adopted Current; Fund Balance General Fund: Budget: Estimate Beginning Fund Balance $3,116,866 $3,116,866 Budget Surplus/(Shortfall) 356,590 356,590 Less Approved One-Time Costs Less: Pending Budget Amendments Less FIS 97-01 (8,000 Plus PERS Refund Estimated 9/30/97 Balance $3,473,456 $3,465,456 Fund Balance -General Fund >_ .... :< « :`>:: 3 600 000 >:: $3,400,000 -f ,I $3,200,000 $3,000,000 $2,800,000 $3,473,456 $3,465,456 $2,600,000 $2,400,000 $2,200,000 $2,000,000 Adopted Revised Budget Estimate G:IACCTG jFIS.XLSIFIS97-01 Page 1 . a Council/Agency Meeting Held: Deferred/Continued to: 0 Approv d ❑ Conditionally Approved ❑ Denied City Cler 's Signature rn' Council Meeting Date: December 15, 1997 Department ID Number: AS 97--646 rn J C7 L3� r rn CITY OF HUNTINGTON BEACH "'rn T .REQUEST FOR COUNCIL ACTION = SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS SUBMITTED BY: RAY SILVER, Acting City Administrator 0410 PREPARED BY: ROBERT J. FRANZ, Deputy City Adminis r or SUBJECT: APPROVAL OF TRANSFER OF $1.8 MILLION TO SELF INSURANCE FUNDS Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachments) Statement of Issue: Due to the continuing economic recovery, 1996/97 revenues from ongoing and one-time sources exceeded our estimates as documented in the recently distributed Quarterly Budget Report. Staff recommends that the amount of the fund balance exceeding the budget estimates be transferred to replenish the depleted reserves and the Workers' Compensation and Liability Self Insurance Funds. Funding Source: General Fund, Unappropriated Reserve. Recommended Action: Motion to approve the transfer from the General Fund Reserve of $1,000,000 to the City's Workers' Compensation Self Insurance Fund and $800,000 to the Liability Self Insurance Fund. Alternative Action(s): 1. Do not transfer funds to these Self Insurance Programs and continue with the amounts in the two year budget. 2. Transfer different dollar amounts to the two Self Insurance Funds based on City Council direction. Analysis: As indicated in the attachments, the City's estimated fund balance to begin fiscal year 1997/98 was in 1996/97 $5.1 million. Due to a variety of reasons, one-time and ongoing revenues in 1996/97 exceeded our estimates by 2.74%. This has resulted in a beginning fund balance that is $1.8 million higher than the $5.1 million budget estimate. REQUEST FOR COUNCIL ACT ON MEETING DATE: December 15, 1997 DEPARTMENT ID NUMBER: AS 97-046 As the City Council is aware, our Self Insurance reserves have been depleted during the difficult financial years since the recession started and the State began reducing City revenue. The most serious depletion of revenues has occurred in the Workers' Compensation and Liability Self Insurance Funds. While a portion of the reduction in reserves was planned as part of our budget reduction program, additional factors were not anticipated such as several large settlements and court awards, higher than projected legal costs and higher than projected premium increases for excess insurance (due to the number of floods, earthquakes and fires that strained insurance company resources). The premium increases imposed on the City were not fully anticipated just as the natural disasters were not fully anticipated. The net result is that at the end of Fiscal Year 1995/96, our insurance reserves in these two funds were reduced to a negative position. The estimated 1996/97 ending balance in those funds is $200,000 (unaudited). This is far below the outside auditors recommendations that the reserves be fully funded at $11 million. The auditors could require a "reservation" of the General Fund monies to address the unfunded Self Insurance Program reserves. The 1997/98 and 1998/99 budgets include significant increases to address the above described problems. The 1997/98 Budget increases the transfers to the Self Insurance Funds by $900,000 with an additional $300,000 increase projected in 1998/99. Due to the unanticipated increase in the General Fund reserve, it is recommended that the transfer of $1.8 million from the General Fund to these two insurance funds be approved. This will result in us restoring our reserves in fewer years than originally planned. The two year budget projected that the combined reserves for these two funds would equal $2.0 million at the end of 1998/99. With this recommended additional transfer, the total reserve at the end of the two years would be $3.8 million. Environmental Status: Does not apply. AttachmeolUs : City Clerk's Page Number No. Description _ .............. .... 1. Internal Service Funds - Cash Reserves and Self Insurance - Cash _...._.. ...... ...... .. _............. .. .............. .............. .. ...... _.................. ......... Reserves 2. Quarterly Budget Report: 1996/97 3. FIS 98-14, Approval of Transfer to Self Insurance Funds RCA Author: Robert J. Franz 0029166.01 -2- 12/03/97 3:22 PM ATTACHMENT # 1 City of Huntington Beach Internal Service Funds - Cash Reserves Audit/Recommended Year Insurance Equipment Retiree Supplemental Total Cash Funds Replacement Medical Retirement Reserves Audited 1986 $ 3,562 $ 3,115 $ - $ - $ 6,677 Audited 1987 5,599 3,584 - - $ 9,183 Audited 1988 6,509 3,408 - - $ 9,917 Audited 1989 8,264 3,389 573 - $ 12,226 Audited 1990 9,413 4,260 1,755 - $ 15,428 Audited 1991 9,051 5,141 2,212 - $ 16,404 Audited 1992 7,237 5,432 2,711 - $ 15,380 Audited 1993 5,960 6,370 3,241 - $ 15,571 Audited 1994 1,755 6,200 3,841 - $ 11,796 Audited 1995 20 4,600 3,635 - $ 8,255 Audited 1996 (242) 883 3,298 (120) $ 3,819 Estimated 1997 200 1,100 3,600 2,400 $ 7,300 Adopted Budget 1998 1,000 1,600 4,000 3,200 $ 9,800 Approved Budget 1999 2,000 2,200 4,200 3,800 $ 12,200 Planned 2000 3,200 2,900 4,300 4,400 $ 14,800 Planned 2001 4,500 3,800 4,400 5,000 $ 17,700 Planned 2002 6,500 5,000 4,500 5,300 $ 21,300 $22,000 OSupplemental Retirement Retiree Medical $20,000 ®Equipment Replacement ®Insurance Funds $18,000 Approved Two $16,000 Year Budget $14,000 N 'o $12,000 C W to . c $10,000 t H .5 $8,000 $6,000 44 _ $4,000 $2,000 $0 »»>: ......... .._..... ......... ($2,000) 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Fiscal Year. Planned Self Insurance Funds - Cash Reserves $10,000 $9,413 ............................. $9,051 $9,000 $8,264 ................. $8,000 $7,237 Approved Two $6,509 1................... Year Budget $7,000 $6,500 ........ $5,960 $5,599 $6,000 0 $5,000 V $4,500 3,562 rs $4,000 $3,200 $3,000 $2,000 $1,755 $2,000 FA m m FM m $1,000 $1,000 $200 $20 OL J$24.21 lomm $0 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Fiscal Year Planned INTHIST.XLS Self Insurance Funds 12/3/97 ATTACHMENT #2 City of Huntington Beach COUNCIL - ADMINISTRATOR COMMUNICATION HUNTINGTON BEACH TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS FROM: RAY SILVER, Acting City Administrator6W SUBJECT: QUARTERLY BUDGET REPORT: 1996/97 DATE: NOVEMBER 20, 1997 Attached is a copy of the unaudited final General Fund revenue and expense data for 1996/97. Revenues were $2.86 million higher than originally projected in the Budget. Most of the additional revenue was used for budget amendments in 1996/97. The higher than anticipated revenues are being reviewed so that we can revise our 1997/98 & 1998/99 revenue projections. These revised projections will be presented to the City Council in December. Expense savings in 1997/98 were $158,958 (unaudited), resulting from budget control and the cancellation to some expenditure plans by departments. The Community Services Department over-expended their General Fund budgets while other departments had savings that more than offset the over-expenditures. In addition, one time revenues totaled $3.5 million, including $456,000 from the Retirement System (PERS) and $2.6 million from development activity. The net result of these operating results will be a higher than anticipated General Fund reserve to begin fiscal year 1997/98. As you know, this kind of positive fiscal news has been rare in the last few years, and will provide some welcomed flexibility as we begin to address the City's unfunded liabilities, underfunded reserves and other financial needs. Included in the attachments is a listing of over $30 million of unfunded or underfunded liabilities/projects. If you have any questions about the Quarterly Report, please let me know. RS:RF:skd 0022439.02 11/19/96 10:16 AM QUARTERLY BUDGET REPORT November 20, 1997 Prepared by: Robert J. Franz, Deputy City Administrator Fourth Quarter, 1996/97 This is the final Quarterly Report for Fiscal Year 1996/97, reflecting unaudited totals for the year: • Ongoing General Fund revenues for. 1996/97 were higher than original Budget estimates by: $2.86 million. In addition, an estimated $3.1 million of one time revenue, primarily from development activity,was received in..:1996/97,and $456,000 from a PERS refund(also one- time revenue). • General Fund ongoing expenses for 1996197 were$158,958 less than appropriations. • General Fund budget amendments added costs of$2.2 million to the budget during the fiscal year, mostly for one-time costs. • Total approved General Fund budget amendments for Fiscal Year 1996/97 were $4,503,960, including a$2.3 million transfer of PERS refunds. A listing of those amendments is included in Attachment 1. Revenues/Expenses • A comparison of on revenues and..expenses (General Fund) is indicated in the following chart: t Oopa no Revenues Ado Curren. - Net � E3peme Bu t,- >=stlmafes gwnpes Revenues $97,279,505 $100,141,943 $2,862,438 Expenses 97,278,915 97,350,957 72,042 Surplus/Shortfall $ 590 $ 2,790,986 The net change to the General Fund reserve (Fund Balance) from the above changes is an estimated increase from.$6.8 million to$6.85 million at the end of the year. General Fund Reserve The following chart summarizes the General Fund reserve(Fund Balance): x 1Bu "EMEM Beoinnina Fund Balance $6,787 717 $6,847,000 Plus: Budget Surplus 590 2,790,986 Plus: One Time Revenue(estimated) 3.062.000 Plus: One Time PERS Refund 456,000 Less: Budget Amendments 2 195,949) Less: Transfer of PERS Refund (2,308,011) Less Transfer to CIP Fund $0,800.000) Estimated Ending Fund Balance $ 6,788,307 $6,852,026 rid I QUARTERLY BUDGET REPORT-* A r1l gg g'i Revenue Summary Attachment 2 is a summary of the 1996/97 revenues for the General Fund. Also attached are summaries and details regarding unaudited actual revenues for 1996/97 compared to prior revenue projections. As indicated, unaudited total General Fund revenues for 1996/97 were $2.86 million higher than original budget projections. Unanticipated budget amendments used much of the higher revenue amount. x1 The economic recovery has resulted in most of the higher than projected revenues. For instance, sales tax was 2.12% higher than projected, utility tax was 2.61% higher, transient occupancy tax 6.25%higher, and other categories were also higher than projected. Overall General Fund revenue was 2.74%higher than projected with about half of this growth estimated to be one-time revenue. .= For the year, an estimated $2.6 million of General Fund revenue was related to development >: gW activity such as building permits, inspection fees, plan review fees etc. Building permit valuation '♦ for the fiscal year was $205 million compared to a 5 year average of $91 million (see chart attached). Property tax revenue from the new projects will generate an estimated $400,000 per year beginning in 1999/00. " We have used the unaudited 1996/97 total revenue for the General Fund to update the revenue estimates in the two year budget (1997/98 & 1998/99). This revision will be presented to the '{ City Council in December. Expenditure Summary Ongoing General Fund expenses are projected to be$158,958 less than appropriations. z Salary/Benefit Costs -- A $842,679 over-expenditure in overtime and temporary salary costs is estimated. Permanent salaries/benefits were over-expended by $61,299 due primarily to development processing costs in the Public Works Department. Non Salary Costs -- Savings of $1,062,936 is projected for 1996/97, therefore more than offsetting the over expenditures in salary/benefit accounts. Summary Ongoing revenues and expenses in the General Fund are estimated to result in a surplus of$2.8 million for Fiscal Year 1996/97. Most of the surplus was used for 1996/97 budget amendments. =° The General Fund reserve is estimated to increase from $6.8 million as of the beginning of the fiscal year to about$6.85 million due to the improved revenues and control of expenses. w Fourth Quarter Budget Report - Fiscal Year 1996/97 v Page 2 11 ATTACHMENT QUAk 'ERIY EXPENDITURE SU RY GENERAL FUND FISCAL YEAR 199.6l97 Quarter Endi 9l- 0l97 1 1 .1 . 7.. EXPENDITURES REVISED 12 MONTHS OVER/ EXPENDED BUDGET. EXPENDED (UNDER) _ . a aries ene fits . o Temporary Salaries 2,707,597 2,879,620 172,023 106.4% Overtime 4,386,541 5,057,197 670,656 115.3% Operating Expenses 25,638,359 24,795,909 (842,450) 96.7% Transfers/Interest* 5,832,106 5,771,049 (61,057) 99.0% Capital Outlay 935,894 776,465 (159,429) 83.0% TOTAL 101,925,875 101,766,917 (158,958) 99.8% *(Does not match other reports due to deductions of various administrative transfers not relative to this report. Less One-Time Expenses Operating Expenses (2,104,681) (2,104,681) Capital Outlay (3,268) (3,268) Transfers (2,308,011) (2,308,011) Total One Time Costs (4,415,960) (4,415,960) Total Ongoing Expenses 9.7 50%915 97350,957 *Includes the following approved budget amendments:(One-Time and Ongoing Costs) UN(iUINU <---------------ONE TIME--- -> DESCRIPTION EXPENSES OPERATING CAPITAL TRANSFERS TOTAL Capital Outlay(Treasurer) 3,268 3,268 Specific Plan/EIR(Developer to reimburse) 157,974 157,974 Legal Costs/Oil Spill II 16,000 16,000 Outside Legal costs 88,000 262,344 350,344 Gang Intervention Contract(96/97) 10,000 10,000 Diversion Counseling Services(96/97) 18,413 18,413 Development Services tContract 300,000 300,000 Reappropriate Plan Check 25,544 25,544 Blufftop Fence Repair 6,319 6,319 Transfer PERS Refund 2,308,011 2,308,011 Public Works Engineering Services 514,500 514,500 Library Books&Materials 46,577 46,577 Sewer Line Relocation 12,000 12,000 Central Park Cleanup 80,000 80,000 Youth Sports Field 128,149 128,149 French Dock Repairs 8,000 8,000 Sewer Line 19,500 19;500 Worthy Park Fence 6,828 6,828 Park Maintenance 17,906 17,906 Water Drop Bucket 4,100 4,100 Home Depot/Shea Dev. 30,000 30,000 EDAW/McDonnell 80,500 80,500 Consulting Services 9,000 9,000 Trash Can Dumper Repair 5,500 5,500 Replace Street Trees 6,000 6,000 Repair Newland House 4,999 4,999 Waste Line Repairs 18,200 18,200 Information Systems 122,809 122,809 Holly/Seacliff Reimbursement 77,000 77,000 McDonnell Douglass EIR 38,975 38,975 Other 77,544 77,544 > , QTRSUM97.XLS 11/19/97 4:19 PM ATTACHMENT 2 QUARTERLY REVENUE SUMMARY GENERAL FUND FISCAL YEAR 1996/97 Quarter Ending 9/30/97 1995/96 1996/97 GENERAL FUND REVENUE* CHANGE ACTUAL ADOPTED 3RD QTR. ACTUAL FROM INCREASE/ REVENUE REVENUE BUDGET ESTIMATE UNAUDITED PRIOR YR. DECREASE Property Tax $24,599,798 $25,024,000 $24,950,000 $24,855,880 256,082 1.0% Sales Tax 17,403,770 16,600,000 17,900,000 18,280,000 876,230 5.0% Prop. 172 Sales Tax 1,132,072 1,144,000 1,144,000 1,192,800 60,728 5.4% Utility Tax 13,221,979 13,630,000 13,600,000 13,955,141 733,162 5.5% Transient Occupancy 1,100,000 1,122,000 1,200,000 1,275,000 175,000 15.9% Tax Other Local Taxes 5,110,243 5,300,000 5,140,000 5,271,460 161,217 3.2% Licenses&Permits 3,898,174 4,834,830 4,671,000 5,650,082 1,751,908 44.9% Fines/Forfeitures &Penalties 2,133,763 2,355,000 2,245,000 2,618,327 484,564 22.7% Use of Money &Property 6,982,421 6,916,250 6,846,430 7,245,181 262,760 3.8% Revenue From Other Agencies 8,882,032 8,536,000 9,366,000 9,533,390 651,358 7.3% Charges for Current Service 9,058,468 9,254,725 10,218,530 10,094,836 1,036,368 11.4% Other Revenue 676,787 522,700 762,200 772,931 96,144 14.2% Transfers from Other Funds 2,959,000 2,390,000 2,412,515 2,458,915 (500,085) (16.9%) TOTAL $97,158,507 $97,62.9,,505 $100,4.55,675: :;$103,203,943 6,045,436 6:2% 1996/97 Revised Estimated includes an estimated$3,100,000 of one time revenue related to development activity. General Fuod Revenue Estimates - 1996/97 Original Budget 3rd Quarter Actual Increase or % Incr. Revenue Source Estimate Estimate (unaudited) Decrease or Decr. Property Tax $ 25,024,000 $ 24,950,000 $24,855,880 ($94,120) -0.38% Sales Tax 16,600,000 17,900,000 18,280,000 380,000 2.12% Proposition 172 Sales Tax 1,144,000 1,144,000 1,192,800 48,800 4.27% Utility Tax 13,630,000 13,600,000 13,955,141 355,141 2.61% Transient Occupancy Tax 1,122,000 1,200,000 1,275,000 75,000 6.25% Other Local Taxes 5,300,000 5,140,000 5,271,460 131,460 2.56% Licenses & Permits 4,834,830 4,671,000 5,650,082 979,082 20.96% Fines/Forfeitures/Penalties 2,355,000 2,245,000 2,618,327 373,327 16.63% Use of Money and Property 6,916,250 6,846,430 7,245,181 398,751 5.82% Revenue from Other Agencies 8,536,000 9,366,000 9,533,390 167,390 1.79% Charges for Current Services 9,254,725 10,218,530 10,094,836 (123,694) -1.21% Other Revenue 522,700 762,200 772,931 10,731 1.41% Transfers from Other Funds 2,390,000 2,412,515 2,458,915 46,400 1.92% Total Revenue $97,629,505 $100,455,675 $103,203,943 $2,748,268 2.74% One Time Revenue: One-Time Reimbursements 289,000 Development Review Fees 2,643,000 Other 130,000 Total One Time Revenue $3,062,000 Estimated vs. Actual General Fund Revenue Property Tax I I Sales Tax Proposition 172 Sales Tax Utility Tax Transient Occupancy Tax Other Local Taxes Licenses&Permits � 0 Budget Estimate ❑3rd Quarter Estimate Fines/Forfeitures/Penalties Il ■Actual (unaudited) Use of Money and Property 4- Revenue from Other Agencies I Charges for Current Services Other Revenue Transfers from Other Funds $_ $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 Actvsest Print Date: 11/14/97 SIGNIFICANT CHANGES - REVENUE ESTIMATES Final Revenue (Unaudited) Compared to Third Quarter Estimate Revenue Change Comment Sales Tax +$ 380,000 Although Fourth Quarter receipts were up only 0.3% compared to the prior year, increases in the first three quarters resulted in a 5.0% increase for the year. Utility Tax +355,141 Both telephone and cable TV billings have grown faster than budget projections. Permits +979,082 Most of this unanticipated revenue is one-time development permit fees. Revenue in the last 6 months of the fiscal year (April-Sept 1997) was almost $1 million higher than our budget projections. Fines& Forfeitures +373,327 Parking fines exceeded projections by $250,000 reflecting the generally higher number of autos visiting downtown and the beach. Alarm fines were up $125,000 due to enforcement of new rates/fees. Use of Money/Property +398,751 Beach parking revenue was up $300,000 (due to good weather continuing through September of 1997 and number of special events during the summer.) Other + 261,967 Net change from numerous other adjustments to individual revenues. Total Change +S 2,748,268 0022247.01 11/19/97 4:00 PM QUARTERLY BUDGET REPORT LIST OF CHARTS/SUMMARIES Unfunded and Underfunded Liabilities/Projects Property Tax Revenue - General Fund Secured Property Tax Refunds - 1989/90 through 1996/97 Quarterly Sales Tax Summary Hinderliter de Llamas Quarterly Sales Tax Report Net Change in Assessed Valuation - 1991/92 to 1997/98 Parking Revenue Summary Quarterly Report - Building Permit Valuation Monthly Report - Transient Occupancy Tax Revenue Regional Economic Data California State Budget -August, September, October, 1997 0015694.09 11/21197 10:20 AM ATTACHMENT #3 City of Huntington Beach INTER-DEPARTMENT COMMMUNICATION HUNTINGTON BEACH TO: RAY SILVER, Acting City Administrator FROM: DAN T. VILLELLA, Acting Deputy City Administrator SUBJECT: FIS 98-14 --Approval of Transfer to Self Insurance Funds DATE: December 3, 1997 As required by Resolution 4832, a Fiscal Impact Statement has been prepared for subject proposed action. If the City Council approves this request (total transfer $1.8 million) the estimated unappropriated, undesignated General Fund balance at September 30, 1997 (beginning of the fiscal year) will be $5.1 million. 4DANT. LELLA Acting Deputy City Administrator RJF:DTV:skd 0029178.01 12/03/97 3:29 PM RCA ROUTING SHEET INITIATING DEPARTMENT: Administrative Services SUBJECT: Approval of Transfer to Self Insurance Funds COUNCIL MEETING DATE: I December 15, 1997 .. RCA ATTACHMENTS STATUS Ordinance (w/exhibits & legislative draft if applicable) Not Applicable Resolution (w/exhibits & legislative draft if applicable) Not Applicable Tract Map, Location Map and/or other Exhibits Not Applicable Contract/Agreement (w/exhibits if applicable) (Signed in full by the City Attorney) Not Applicable Subleases, Third Party Agreements, etc. (Approved as to form by City Attomey) Not Applicable Certificates of Insurance (Approved by the City Attorney) Not Applicable Financial Impact Statement (Unbudget, over $5,000) Attached Bonds (If applicable) Not Applicable Staff Report (If applicable) Attached Commission, Board or Committee Report (If applicable) Attached Findings/Conditions for Approval and/or Denial Attached EXPLANATION FOR MESSING ATTACHMENTS ........ ........ ....... . .... ........ .. .... ........ ... .. .. . . ... _ ........ ........ .............. .......W -- D_ ._ V _.....Administrative Staff ( ) ( ) Assistant City Administrator (Initial) ( ) ( ) City Administrator (Initial) City Clerk ( ) ...... .. EXPLANATION FOR RETURN OF ITEM (BelowOnly) RCA Author: Robert J. Franz CITY OF HUNTINGTON BEACH Inter-Departmental Communication Administrative Services, Budget and Research City of Huntington Beach TO: Department Heads FROM: John Roulette, Budget Analyst, Sr. Administrative Services Department SUBJECT: Annual Budget, FY 1996/97 DATE: January 10, 1997 Please find enclosed a copy of the City's Final Budget document for FY 1996/97. This new edition has a laminated cover which will hold up better over time. Otherwise, the document is unchanged from the original delivered to you in December. Please keep it for your personal files and pass on the other copy to a staff member. As you probably know, we publish a limited amount of"color" budget documents, but sufficient black and white copies are available for distribution to each department. Please let me know if you have any ideas or suggestions for the budget. s s 's Thank you J C, �.�C r�Ao cc. Michael T. Uberuaga T Ray Silver Richard Barnard 5 ®, 4j, leg mw A 6*w I kv"Inj I , V14 u 7- Clxrlf 51 ()79/c City of Huntington Beach Annual Budget Fiscal Year 1996/97 City Council Dave Sullivan, Mayor Ralph Bauer, Mayor Pro Tern Council Members David Garofalo Tom Harman Peter Green Shirley Dettloff Victor Leipzig Submitted bv: Michael T. Uberuaga, City Administrator S Y 5 ' Executive Management - - Michael T. Uberuaga City Administrator Ray Silver Assistant City Administrator Shari Freidenrich City Treasurer Gail Hutton City Attorney Connie Brockway City Clerk Robert J. Franz Deputy City Administrator/ Administrative Services David C. Biggs Director, Economic Development Ron Hayden Director, Library Services Les M. Jones, II Director, Public Works Ronald E. Lowenberg Police Chief Michael P. Dolder Fire Chief Melanie S. Fallon Director, Community Development Ron Hagan Director, Community Services REM ,. ter_ t,= Table Of Contents City Administrator's Budget Message 1 Budget Charts and Graphs 15 Summary Information General Fund Revenue Descriptions 30 Revenue Summary 32 Expenditure Summary 34 Department Budgets: Budget Summary 36 City Council 38 Administration 40 Non-Departmental 42 City Attorney 43 City Treasurer 44 City Clerk 45 Administrative Services 46 Economic Development 48 Community Development 50 Fire Department 52 Police Department 54 Community Services 56 Library Services 58 Public Works 60 Capital Improvement Program 62 General Information City Demographics 66 Budget Adoption Resolution 67 Statement of Fund Balances 68 Inter-fund Transfers/Expenditures 69 Future Debt Requirements and Payment Schedule 70 Quantitative Measures 71 Glossary 75 :ram y F City .of Huntington Beach • 2000 MAIN STREET CALIFORNIA92648 I I OFF ICE* H O THE CITY ADMINISTRATOR Budget Message 1996/97 Fiscal Year Honorable Mayor and Members of the City Council: The total City budget for all funds for fiscal year,-1996/97 is $198,999,325.which includes interfund transfers of$25,338,714. The total budget_is 4.3%-higher than last year's adopted budget. The General Fund budget is $97,278,915 or 1.3% higher than the adopted General Fund Budget for last year.,...,: .- RECAP , - BUDGET/FI,N,ANCIAL .PLANNING ISSUES As the.City Council is aware, we=,began the budget planning process earlier than usual this year. While the recession is over, the City has a number of significant financial issues that need10 be addressed. Priorities were adopted in November of 1.995 by the.City Council so that staff could focus on the most important financial issues. The'top.three priorities_ were 1) Reinvent the City Budget (evaluation of alternative ways of doing- business), 2) Long Range Financial Planning, and 3) Infrastructure Funding. -Some of the. reasons-staff recommended these priorities are described below; including the estimated impact of the financing changes approved in the 1996/97 budget: 1. General Fund Reserve - Our Fund Balance-General Fund fund balance (reserve) in the $10 General Fund has declined $8 $ �'� from $8.2 million in 1993 to a, ass projected $3.1 . million at $6 00 September 30, 1996. $4 2. Future Shortfalls Projected - $2 In.-February we completed a .5 - s0 92 93 90 96 96 97 year. Revenue. and Expense Ems -.Eat projection that estimated a. General Fund shortfall of $3.6 Million in 1996/97, growing to over $9 Million within. 5. years. .- This.: 1996/97, shortfall was eliminated. by the changes described in this document, and future, year projected- shortfalls will be reduced- significantly as .result of the 1996/97 .actions. The..multi-year projections will be updated in January, 1997. Telephone (714) 536-5202 1996/97 Budget Message 3. Revenue Growth - Post recession growth in revenues is anticipated to lag behind inflation in several key areas. Sales tax will be negatively impacted by the transition occurring at the Huntington Beach Mall. 4. Redevelopment - The Redevelopment Cash Reserves Agency does not have $10 sufficient cash to $7.9 $s.3 aggressively pursue new VW; ions projects in the Main-Pier . 01 $8and Huntington Center ` $a project areas. Existing $2 contractual obligations will $0 result in a depletion of ($2) 98 97 98 89 100 '01 reserves within four years unless changes-are made. . 5. Insurance Reserves - The Insurance Reserves Self. - Insurance - Fund 510 $9.1 $in Millions ,reserves declined from $7.19 - , - . $9.4 million in 1991 "to a ": -$e $6.0 $6.0 reserved' D projected;r 'for $4.1 September 30, 1996 of $4. .7 $250,000. a2 $1s s2 4 6. Eauipment Replacement 99 91 92 93 9a 95 N 97 98 99 •oo o - The reserve in this fund has, declined from 44.2-.- Equipment Reserves million in 1993 to$256,000 $8 $in Millions projected for September 00 30, 1996. . $a $3 7. Infrastructure Needs - $2 The Public Works Commission and Finance $1 $0.3 r Board are working on a $0 92 93 94 9s 99 97 detailed description of est "t needs to repair/replace infrastructure such as streets, alleys, sidewalks, block walls, harbor bulkheads, sewers, drainage facilities, buildings and other infrastructure. The City's infrastructure needs are significant-. 8. Salarv/Benefit Needs ---Employees have not received across the board cost of living salary increases since October of 1992 (Police/Fire) -or December of-1992 (other employees). :At some point increases wirill be necessary in order to attract and retain highly qualified employees. 2 1996/97-.Budget'M&ssage 1996/97 General Fund Budget: Increased Costs'. Following is.-a list.of 1996/97 increased General Fund costs that`are.included in this budget to begin the multi-year:- process of addressing -the- above-'sissues.. Also- listed "Care uncontrollable. cost increases that will occur ,iri- 1.906/97 just:-to maintain a "Status Quo";Budget. =t=• = Redevelopment - Reduce payment to the General Fund $ 1.00,000 Liability/Self Insurance - Increase General Fund Payment . 800,000 Workers Compensation - Increase General Fund Payment 470,000 Supplemental-Retirement - Increase General Fund Payment 350,000 Equipment Replacement - Increase General Fund Payment 500,000 Merit'Step Increases,- Employees who*are not at the top step:.,f.,; _ 425,000.' their' salary range (about 14°!0 of employees) will be,_eligible, , based on merit, to move to the next step in 1996/97. l Attrition - Police,Department -,We,•anticipated.-a_normal,--llev-el of.. 240,000 vacancies in the Police Department in 1995/96 and reduced their budget $240,000 in anticipation of salary savings. This reduction is not included•for-1996/97. Holiday Overtime-Costs During 1995%96" the calculation 125,000 methods-,vice . have been using" to budget mandated overtime. costs for -work on holidays in the''' .Police '- Department underestimated the cost and a.correction is required. Other - Examples of other uncontrollable cost increases 'are,for. -264.328 postage ($95,000), fuel costs increases, etc; . . Total $3,274,328 Alternative Solutions - The $3.3 million in increased General Fund costs required new revenues and a reduction in other General Fund costs,�,The`City Council held seven Budget Study Sessions-from February-through August -of-1996, -reviewing many alternative solutions to the projected General Fund shortfall. This budget: includes $2.1 million in expense reductions and.'$1*:3"-million -in new revenues- in- order to address the above needs. General Fund Expense Reductions - A description of the'impact of the budget; reductions is- included in the DEPARTMENT BuDGETs section of this document. . A chart itemizing the changes by Department is included in the section following the Budget Message. ; Details: New Revenues'- A description of the new revenues is included, in the, Section following the Budget Message. Following is a list'of'the new.revenues' 3- 1996/97'Budget Message Parking.Fee Changes (Approved in,March) $. 400,000, Library and.Cultural Development Fee T 100,000 v New Parking Meters-- Beach/Magnolia Blvd. -• 44,000 Beach -.,Preferred Parking Plan - 100,000 User Fee Increases 50,000 User Charges - Land Acquisition 35,000 Enforcement- Business Licenses 75,00.0 Business License Processing%Application Fees 136,000 Business License Audit 50,000 . .Building/Planning Fees. .:.. 196,000 Police Department Fees 84,000 Total = $ 11270,000 General Fund Reserve - The General Fund reserve (Fund Balance) at the .end of fiscal year 1996197 is estimated ,to'total $3,487,456 or-3.6%0. The ,City's-fiscal Policies require a 3-50/6 reserve. Fundl8alance Summanr .; Following is a summary of the General Fund budget for 1996/97. - ... _....... .. _ _. Summary. General Fund Budget: 1996/97 Estimated Beginning Fund Balance $'..3,136,866 Estimated Ongoing Revenues • $ 97,279,505 - - "Ongoing Expenses $ 97,278,915, Budget Surplus 590 Plus: Estimated One-Time Revenue 350,000 Estimated Ending Fund Balance. $3,487,456 Reduction in Number. of •ErriPi6Vees -12.76- General 'Fund. ,positions..are, eliminated in '1996/97. Some layoffs may be required. As indicated in the Full-Time Employees graph, a decrease in General Fund. full- time Employees feom 1.,007 to 891 has -1100 1119 occurred since 1988/89. } _ `y3 E3 k 1037 1000 Total Full-Time Employees - The total 9o0 number of budgeted full-time City _ employees will. be reduced . by 45 in soo' • 1996/97. During the recession, `many 700 positions were transferred from the 99,99 99190 90191 91re2 92193 93194 94199 9W99 96197 4 1996/97,Budget Message .General-Fund,to other :funds to balance.the General.Fund ,budget,, -increasing:016, number of positions funded by Transportation Funds,:S6ver,Fund,-Drainage Fund` and others. This trend has leveled off. and-has.'been_reversed in :some~-Funds. The,•total,,number. of budgeted-permanent-•employees'hasp declined-from 1;1 M'.'50' in--:1991/92toi1;;037:30 in-the .1996/97 6udget•;_a•declineof:8.1.20-. r Gerieral'Fund Expenditures= By Department_, x .. _ .... .. -.... _.. - �� 1 995196 1990 97 1995/96 Estimated Ado ted ;. DepaCtnlent BudgetExpenses* Budget - -,City Council ' $ 245,800: 242,942 $ 240,712 f City Attorney 1,378,947 1,480,728 1„27.4,654 --City--Clerk- 509,170 _ 539,.775 _.524,648.--- ;_ City Treasurer_____ �73 ._.5,807 -` _' 771,909 _ 787;696-`' i• Administration ` _ _ 945,194: _ 925,563 S\ - Administrative Services: 4,160;888. _4,153,337 ` 4,263,'382__:-•�•_ '' Commuriity,`Development 3,339;61_7 = 3,292,889 31284;75.6 _Fire Department- _ 16,137,7�50',, 15,886,957• �=16;357 Police Department _ 31,767;121 .'.32,357,413 _ '32;757;311::'- .Community,.Services _ _=46,816,007 6,816,619 _ 6;687;536P. C..Libra'ry 3,041,250 _• 2;�8851819 `Public Works; _ .15,375,7.0;1 14,940,653_ �A 269 812 _? Non-Departmental == 11.614.43.1- r11,602.412 12,376_;9.81- ' �. . Reduction.to Equip:Rep. A.. . - t & Sup. Ret. Transfers_. - -. _ _ n. _ . (341 970)- Total:. $96,074,916 $96,052,447; $97,278,915. *Includes Mid-Year,Budget Amendments_ v Reduction of Service L. evels - This. budget will represent a reduction in the quantity7',and quality of service provided to the community -because'--of- the- downsiiii g of the organization which isIoccurnfig'While'the demand for city services is.growing. Overview Total Budget- All funds -The following chart shows a comparison of the total City budgets for 1994/95, 1995/96 and 1996/97. Although the�Gene'ral Fund budget necessarily receives most of the attention during budget review, it is 53 1996/97;Budget.Message obvious from reviewing the summaries that there are significant City expenditures other than .those in the: General Fund. Some,of these other funds," such as.the Water, Refuse and FireMed funds; are enterprise operations that are'operated on a "business-within-a-business"basis-whereby expenditures are limited to tthe amount of revenue received: Expend itures:of other typesW funds are restricted to specific purposes, such as the Park Acquisition and Development Fund, Grant Funds, Debt Service Funds, Redevelopment_Funds, and Transportation Funds. The revenue sources-for these funds are:typically'"r_estrictedby State or' Federal laws...which autliorize,spending the revenues only for specified programs or capital projects. Total City Expenditures - All Funds Mill IOa �+�*�-s�� s V,&..-.�,+ � - qy�+.�mSUs 3r,3, tGKt, fT 3 -f. x-.,-' w. S 5s "s ' 'S", �� Pgg� , ' {. ADOPTED ADt?PTEDfi 4wADPTED 95I96 ; Sf" i '2i ,x, n--sf22v 7Y I�,r� �����a -���"��� BUDGET xDGET� ��� �1 F JND { _ � 1994/95 s Is',W I96 8 1996/97 gg%97 General Fund $ 96,075,778. $ 96,074,916 $97,278,915. ..1.3% Water Funds• 25,165,988 26,547,267 28,159,179 ,6.1% Refuse! Collection Svc. Fund 8,317,978_ 8,877,244_ 8,746,857 ., A.5% Other Enterprise Funds _ 8,619,913. .- " 6,909,803 : 5,1.68,270, -25.2% Transportation/Street Projects-I 7,484,983; 9,265,301 9,002,864. -2.8% Redevelopment Funds 13,285,268 13,847,151 11,158,0,40 -19.4% Debt Service Funds 7,680,000. -6,529,500 5,943,000 -9.0% Internal Service Funds 14,293,342 :16,197,246 14,092,045... _13.0% Other Capital;Projects Funds , 8,840,755 ".4,720,618 15,793;978- .-234.6% Other Funds" 21208,179_ 1,842,815 3,656;177 98.4% s..'31 IT -,, Total CrtyF�cpendrtures �; $�191 9T2,1$4 $190,811,$61 $198,99,9,325 .�.i :. xn -..� .+xr -�i��'.�` 3 n..... __..r �.a .`�'i! ..' i-%�.R:c..Ji�` �,`:z"'" Threats to City Finances The primary threats to City finances are 1) The potential`impact of Proposition 218, 2) Potential_ future court actions to extend the impact of Proposition 62 to charter cities, 3) reduced `cash reserves, and 4) deferred maintenance costs. Periormance-Based_Budciet Data - The, Departments spent "extra;tiine tkiis year to review,,. update, *and,.improve the performance related statistics and measurements. A separate section of this budget document has been added,to, list the various performance data that has been updated. This step will put us'in position,to use this information in the future years as a more integral part of the Budget review process. "= 6 1996/97-Budget Message Meet and Confer Process The Meet and Confer process will be, an important part of the current year'budget�considerations. If-there are any cost increases resulting from those discussions; -they' would need- to be -funded from expense- reductions, revenue increases, orreserves..7 _ . Federal/State/Countv.%Budgets Federal budget-.deficits- preclude any realistic hope of General Fund financial assistance from the:-Federal- government. The State and County governments show no tendencies to view City budget problems realistically. Instead, we- :expect, a _.continuation _of Ahe trend of transferring Federal/State/County costs to cities, new fees from the County,-or loss-of revenue. _ traditionally provided to cities. Citv Investments in Orange-County Investment Pool - Huntington Beach had $43.6 million,in Orange County's Investment. Pool (out of a total City investment portfolio of $103 0 million). ' The City was.one of. over 190 public'-agencies participating in the County-investment Pool which-had investments totaling over$7 Billion_. 82%-of the City's` invested funds were returned last year-(_1.994/95).totaling ' $35,868,1,61.. During the .current fiscal, year ,(1995/96), additional proceeds, withheld taxes-and 'interestwere returned to-the City. '$9,015,809 of our invested `funds have still not been:returned to the City,_and_will.be received'if settlement or" court ordered payments from third party.. professionals reach specified amounts. - Further return of invested funds has not been anticipated in the 1996/97 budget. California State Budget Imgact.on City Finances 1996/97-State Budget - None of the StaWlegislative budget solutions for 1996/97 will take additional money-'from,the City. . Funding" approval was- obtained ".for .,additional,.Police services that will provide. an.-estimated . $4351605 to Huntington Beach in 1996/97. '`There-will-be'attempts to make ' , this a permanent funding source for futureyears. • Total Revenue Loss to State = In 1990/91, the State of California started taking revenue fro ni'cities .to_ balance the .State budget. The .cumulative- -: ._effect of these losses to;the City revenue-base is that $6..7.rqilIion si -,going 4 " to the'State in 1996/97 instead'of.the City. The totaf loss to the State over 6 years equals an estimated$31.1 million. t� , 7 1.996/97 Budget Message O'ENERAL FUND REVENUES - DETAILS Except for the new revenues, estimated ongoing General, Fund revenues 'are up only $175,550 from last year's revised revenues. Following is a chart of three fiscal years, including estimated.1996/97 General .Fund-revenues (including new revenues) by major categories: ' General Fund Revenue Summary % CHHAAN"GE tW- - � ' 1994/95 ����'ESTiMATE�� ES�IMAaTED �4 � RIcVENUESOURCE $(1=2MON HSj1995%9E - 199619796/97 Pro erty Taxes ; , $25,254,894 $24,800,000 $25,024,000 ;, 0..9% Sales Tax, 16,684,322 16,700,000 16,600,000` `-0.6% Proposition 172,Sales Tax .1,030,227 .1,100,000 1,144,000 4:0% Utility Tax 1.2;916,733 13,125,000 13,630,000— 3.8% Transient Occu anc Tax 1,039,045 1,100,000 1,122,000 2.0% Other Local Taxes 4,674,464 '4,970,000 .5,300,000 ' .6.6% Licenses & Permits 3,980,190 4,270,300.. 4,834,830 13.2% Fines/Forfeitures/Penalties 2,134,642, 2,220,000 2,355,000 6.1% Use of Money &-Property 6,070,779 6,587,250 6,916,250` 5.0% Revenue from Other Agencies 8,459;953 10,325,627 8,536,000 : --17.3% Charges for Current Service 8,438,616 8,759,500 9,254,725 6.7% Other Revenue 468,526 543,000 522,700. ; -3.7% Transfer from Other Funds 2,900;000 2,990,000 21$90,000 '20.3% � n,� y.- ' +rt�'`'{"�s `- �6S ' b*1''_ R'n".e4'6� 4 To �$. 94,052,39{i�- $97;490;677 �$97;629,505 < �uyr a c - esa OneFTimeRevenue " 240,2 48 . 4 179,62? 350;000 MM �: MMI Total�Ongomg�Revenue $93,812;1�43 • Revenue Assumptions - Total General Fund revenues are projected to grow 1.5% in 1996/97 and at an average rate of less than 2% in the next four years. These conservative assumptions are based on a concern about our major revenue sources (property tax and sales tax) and a projection that 8 1996/9:7.:Budget-Wisage low.,inflation.will continue to keep property *Value, and:retail.sales growth rates at ,.low• =levels, :.compared..to the--:,1980's: Although'= the' City is experiencing growth related to the economic recovery, that growth has been slow. See the revenue section .of this..budget for,.more detail on General Fund revenue assumptions. • Property Tax - Although property tax "revenue has.decreased 14.9% since. 1991/92, all of the decrease was due to the State Government actions to -take City revenue. a •,� Sales Tax - The City's sales tax revenue is estimated._to total $16.6 million ,-in:.1996/97 and is not projected to return to the pre-recession:total-.of,$18.4 million for several years: The $16:6 Million estimate-represents a-projected ,`decrease in sales, tax revenue for fscal_year_1996/97. . Tle-•decrease is projected due..to the..closing of the Broadway at the Huntington .Beach Mall. We expect Huntington Beach sales tax, to increase_ at ,the relatively low annual growth.rate of 2--3% in future years. - - - - - .Charges to Other Funds -Included in the General Fund revenues are" `allocations from the Water Fund ($2,700,000), Gas Tax Fund-($2,200,000), Redevelopment-Fund ($1,100,000);'and the Refuse Collection_Service Fund .,,($250,000) to reimburse the General Fund for services_provided;to :these operations by General Fund,departments. Also; transfers from-the Fir6Med ` --'Fund, Sewer.Fund, Drainage Fund,-"and Cable-TV'Fund `cover a portion' of ;..i,"Ahe .General Fund costs of these programs. and services. None of these _transfers has been increased for.1996/97,compared to 1995/96. • Business Development Program ` A-continued' a"mptiasis has been placed on --business.. retention/attraction 66&d ,-expansion' by- the City's Economic-Development-Department. Numerous new•,programs'have been initiated in this priority area. Recent successful efforts led to'Uhisource and Sharp deciding to move their headquarters to Huntington Beach, adding jobs and tax dollars to the local economy. 9 1996/97 Budget Message ► Personnel Costs - following is ,a chart which compares '1995/96 and 1 99.6/97costs for various categories of salaries and benefits. Salary & Benefit Costs = General.Fund . ... __. 1995/96 199.6/97 1=xpenditure Category Budget Budget Difference . Base Sala $ 45,304,763 $44,256,235 $1,048,528 Temporary Salaries 2,824,305 2,718,097 106,208 Overtime salaries 3,877;524 4,138;878 261,354 Holiday Salary 772,919 890,012 117,093 Education Incentive Pa . 707,987 717,018 9,121 Retirement •PERS 7,956,187. - 7,429,897. 526,290 Workers Comp Mandated 1,438,378 1,891,564 453,186 Insurance 5,886,002 5,807,456 j : 77,646 ,Deferred Com 11- -481545 , .42,328 6;217 FICA Medicare Mandated ` -256,481- 272,811 16,330 Retiree Medical/Su lement 1;025,793 1,512,054 487J06i Totals• $ 70,097,884 $69,677,240 (420,644) Mimi The cost I reduction is due to 1) the reduction. in .the_ number of personnel :in -1996/97, and- 2) the rate reduction for retirement benefits, provided by the Public- Employees Retirement System :,(PERS). 10 1:996/97--Budget Message' OTHER FUNDS .... • REDEVELOPMENT - NON HOUSING PROGRAM BUDGET _...__... ....... ... .. .... .. ......... .._.. ...._ _.__. ..... ........-. ....... . ._...._. UMMARY OF ESTIMATED REVENUES:-AND"':,:EXPENDITURES 9/30/96 ESTIMATED CASH BALANCE: ' ;' $ , -276,872 1996/97 Estimated Reve.hues:• "- $6,041867 1996/97:. Expenses;-, : • . Administrative Costs $ 826,032 Debt and Mandated Payments ., 4,840,243 r.. - Redevelopment Capital Projects 2,1801:000 = ' Business Development Program 346,702 Legal Costs 200,000 Total Expenditures:. -r $8,392,977 . 1996/97 NET EXPENSES ($ 2,349;110)4 __ ` ... ... 9/30/96 ESTIMATED CASH BALANCE: $:5,927,762 The Redevelopment cash balance-is-for five.separate"project..areas. -.,Unless the Project Areas are merged..(currently.scheduled for 'completion.�in F1997/98)';.each project area balance.-can only,.-be.:spent .within. the .borders of:that area: The Agency debt..repayment..to the,City_for 1996/97-is $1;100,0004hich is"$100,000 less than the current year payment to the,General Fund-. • Arts Center Fund - This fund was created. in 1993/94; to,collect the revenue from fund raising, donations, fees, admission charges and sale of materials in support of the new Center which opened in 1994/95. There is no General Fund cost for this program in 1996/97. • Library Service Fund - Similarly, this fund is collecting the revenues being generated as a result of the expansion of the Central Library. The new revenues related to the Library expansion are projected to offset all of the costs of the expansion, including the debt service costs for the construction of the expansion. We will need to monitor the costs and revenues carefully for the next two years to ensure that all costs are being offset by new revenues. 11 1.99,6/97 Budget.Message ► Water Fund - This enterprise operation has balanced its ongoing revenues and expenses by reducing expenses in past years. A rate increase during 1995/96 will help this fund keep pace with increased costs of purchasing water and to begin a program to reduce deferred maintenance. Narcotic Forfeiture Fund = 9 full-time Police Department positions were- supported by this fund in -1993/94. Due to a decrease-in revenue from asset seizures, 5 of-.the 9 positions have .-been transferred.to the General Fund. One additional transfer is in 1996/97. Depending on' the amount of funds received in 1996/97, a mid year budget amendment may be necessary to transfer additional positions to the General Fund. A. �► Refuse Collection - Under:the -Rainbow Disposal refuse collection contract, the monthly refuse; costs to the City will not increase in 1996/97. A total residential refusecollection rate of $13.55 per month will be charged in 1996/97. ' Recycling Center - Also included in the Refuse Collection Service fund is an estimated cost of $1,620,000 in 1996/97 to- operate,.a recycling center as required under State law. This cost is funded by a $3.00 per month fee per residence. This is another, unfunded State . y mandate (SB 939).; Eauipment Replacement - The Equipment Replacement budget.is _ $2,054,750. The estimated revenue for the Equipment Replacement Fund is $2,473,093. -This,-Budget will, therefore, restore-$418,343 of the, Fund's:Reserve. ..: In addition, $1,730,000 is budgeted.-for the City's; 1996/97 *commitment,,,to the 800 MHz County-wide radio system. • This Js- a portion of the City's- $5.9 million contractual obligation to update the 25:-year..old radio communications system used by public safety agencies. A long term debt issue is planned for 1997 in order to provide th&funds-for-this"project. 7 12 1996/97 Budget Message CAPITAL IMPROVEMENT PROGRAM 1996/97 t,..,? r r 's'F -; x . 1.�:' kr `S. # r sy ��� xPROJECT CATEGORY�,� .���� BUDGET�� ��� �����UND_INGASOU S�� � , Capital Improvement Projects $1,375,000 Loan from the State Energy Fund Commission and proceeds from bond defeasance Transportation Projects 9,002,864 State Gas Tax, Measure M, Traffic Impact Fees Sewer Projects 760,616 Development Fees Drainage Projects 935,373 Development Fees Water Utility Projects 12,118,636 Water Fund Housing Projects 2,650,000 Redevelopment Housing Revenue Redevelopment Projects 2,180,000 Land Sales, Developer Advances Park Acquisition & Development 927,000 State Grants, Development Fees Handicapped 428,434 State Grants Im rovements/Bike Trail CDBG Projects 940,346 Federal Entitlement Funds Fire Station 3,284,000 Developer Grants 1,338,699 Federal and State Grants Miscellaneous 255,498 Donations, Grants .. Total $36197,156 . As indicated above, major capital improvement projects in the City are funded by the Federal Government, Redevelopment, Developers and Transportation Funds. General Fund Capital Improvement Costs - General Fund revenues are used to repay the long term debt that was issued to provide Capital Improvement funding for the Library Expansion, City Hall and the downtown parking structure. The General Fund debt service cost for these purposes is $2,380,000. Impact on Current and Future Budgets - The City has diligently enforced its financial policy to not approve any Capital Project unless revenues are identified to cover increased operating costs. Recent examples are the Art Center and Library expansion. In 1996/97, examples are the Water Utility projects resulting from years of staff and community review (and approved rate increases in September, 1995), the Energy Efficiency Project funded from a State loan, Sewer/Drainage Projects, and the Fire Station funded by developers. Operating costs for all of 13 1-996/97 Budget-Message Sewer/Drainage Projects, and the -Fire Station funded by developers. -Operating costs for all of these projects wil[be paid .from identified revenues or will result in decreased costs. CONCLUSION -This budget will diminish-the quantity and quality_ of city services as,the demands for services increase while budget realities require that-.City programs be. reduced:_These budget- balancing measures were required because of the slow economic growth,_the loss of city revenues.to.-the,State of California, and the need to address the decline in our reserves during the recession. _ ACKNOWLEDGMENTS Preparation of this years .budgef included -seven City Council -bud- stud et y; sessions and a-`very, significant-work 'effort from -the City--staff. -'I sincerely appreciate the hard' work by the. City Council, Department:Heads,`and :other"City' staff members in the-development of this budget. Additionally, I would-like'to thank the,Administrative Services staff for`their'effor't's in preparing this document. The -budget was prepared-`Under''the"direction"of' Robert J. Franz, , Deputy-City ;Administrator/Administrative Services. -He Was". assisted assisted principally by,-Shari,K. Donoho," Administrative Assistant, John Roulette. and Jim Lewis, Budget -Analyst; Seniors, and -Dan'Villella; Director of�•Finance: Photo. Services were-provided-'by Jim Hanggi & Robert-Kinsler--of-the'-Public Information Office.-.. -Additionally, I extend.my thanks to all of the other. dedicated City employees who have worked .diligently.;, over the past year to develop a' balanced budget-for fiscal year-1996_/97:*_= - Respectfully submitted, MICHAEL-T. UBERUAGA, City.Administrator- 14 Charts and Graphs 100 80 60 40 - 20 0 � 1st 2nd 3rd 4th 20% Qtr Qtr Qtr Qtr 12% 52% 16% 200 160 100 50 1st 2nd 3rd 4th Qtr Qtr Qtr Qtr City of Huntinaton Beach Annual Budget Charts and Graphs CITY OF HUNTINGTON BEACH GOALS Maintain a safe community Pursue entrepreneurial approaches for seeking new business and tourism to expand the City's revenue base. . Assure long-term adequate of the Cky. infrastructure facilities. Enhance and maintain the environmental;quality of`the community. Improve the 'City's long-term, transportation system and integrate .it-into the regional:system as it evolves. : Improve; policies and strategies to ensure.,,,:-:a, .viable business: environment throughout the community and expand st he City's revenue base. Adequately, address .the City's, human issues antl recognize their"importance to preserving the health and safety of the.community. Provide for diverse housing stock throughout.the%community and maintain the quality,of housing stock. Maintain and continually improve organizational effectiveness. Continue to provide diverse educational, cultural and recreational opportunities for all citizens. CITY OF HUNTINGTON BEACH FISCAL POLICIES Ongoing expenditures should be'supported by ongoing revenues. General: Fund reserves should be maintainetl at no less than 3'/° with a 5% reserve being desirable. No new capital ,improvements should be approved until associated operating costs a"re funded by recurring revenues. Each enterprise fund should be approved until associated ;operating .costs .are funded by recurring revenues. Each "enterprise fund �should`�reflect the true cost of operation including direct and indirect costs supported by the General Fund. If the City's budget is balanced, General Fund reserves in excess of 5% should be'transferred to Capital-Improvement Projects Fund on an annual basis. To; implement the: above fiscal policy statements,l. aphase-in period will. be required. 15 City of Huntinaton Beach Annual Budget Charts and Graphs All Funds - Projected Resources FY 1996/97 Total = $1989999,325 Transportation Redevelopment $7,936,500 Other Funds Internal Service $7,149,000 $4,059,211 Use of Reserves $14,747,000 $11,394,017 Other Enterprise s: ' $6,027,900 Refuse Fund$8,700,000 tic PM Water Fund$22,837,000 Debt Service$6,027,138 Capital Projects General Fund $12,345,615 $97,629,505 All Funds - Budget by Category FY 1996/97 Total = $198,999,325 General Fund Capital Projects $ 5,793,978 $97,278,915 Debt Service $5,943,00 I Water Fund $28,159,179 i Refuse Fund ao $8,746,t'57 Other Enterprise $5,168,270 Internal Service $ 4,092,045 Redevelopment $11,15 ,040 Transportation $9,002, 64 Other Funds $3,656,177 i 0 20,000,000 40,000,000 60,000,000 80,000,000 100,000,000 $ Millions 16 City of Huntington Beach Annual Budget Charts and Graphs General Fund - Projected Resources FY 1996/97 Total = $97,629,605 Charges for Curren0ther Revenue $522,700Transfers $2,490,000 Services $9,450,725 Property Tax $25,024,000 From Other Agencies i $8,356,000 Use of Money/Property $6,816,250 Fines,Forfeitures, , . Penalties $2,355,000 � .,, M` _` � Licenses/Permits $4,638,830 Sales Tax $16,600,000 Other Taxes $5,300,000 Prop 172 Sales Tax Transient Occupancy $1,144,000 $1,122,000 Utility Tax $13,620,000 General Fund - Budget by Department FY 1996/97 Total = $97,278,915 City Treasurer P $786,111 Public Works $15,163, 91 Police $35,713, 93 Non-Departmental — $9,584,282 Library Services $2,590,275 Fire $16,32 ,281 Community Services $6,66 i.299 City Clerk $523,976 Community Development • $3,276,585 City Council $240,620 City Attorney $1,272,576 Administrative Svcs. $4,235,55 Administration $906,770 0 10,000,000 20,000,000 30,000,000 40,000,000 $ in Millions 17 C tv of Huntinaton Beach Annual Budget Charts and Graphs Summary - General Fund Budget Reductions - FY 1996/97 Department/Pro-gram Description Annual Savings LIBRARY Administration Privatize Photocopying $15,000 Reception/Information Replace Librarian with Clerk 7,459 Facilities Maintenance Replace 1 Permanent Position with Temporary 47,694 Facility Maintenance Temporary Position and supplies- Decrease.Maintenance 14,772 Other 1,075 Library Subtotal 86,000 COMMUNITY DEVELOPMENT Code Enforcement Transfer_1 Permanent Positions to CDBG funding 67,000 Reduce Operating Costs Consultant costs will be reduced in 1996/97 37,000 Add 1 Intern Abandoned Vehicle Abatement Program (10,000) Community Development Subtotal 94,600 PUBLIC WORKS Construction Management Two positions- Increase Charges to City Projects 58,724 Painting Three positions- Eliminate most maintenance painting 196,448 Traffic Engineering One Position - Delay Electrical Inspection Services 13,168 Building Maintenance One Position - Contract Repairs thru Insurance Co. 55,521 Electrical Maintenance One Position - Reduce service to Departmants 61,635 Streets Temporary Salaries- Summer help for Street Cleaning 3,000 Public Works Subtotal 388,496 FIRE DEPARTMENT Telecommunication Telephone cost reductions 137,665 Communications Transfer Communications to North Net J.P.A. 175,000 Paramedic Paramedic Differential Reimbursement 156,924 Training Clerical Position Eliminated 38,800 Other Adjustment for Fire Engineer positions (46,051) Land Acquisition Annual Funding for Fire Station 6 (132,149) Fire Department Subtotal 330,189 POLICE DEPARTMENT Temporary Salaries Reduce to 1995/96 level of actual expenses 105,000 Video Production Eliminate One Permanent Position 67,000 Aero Bureau Eliminate One Permanent Position 85,000 Accident Investigation Eliminate One Permanent Position 80,000 Police Department Subtotal 337,000 18 City of Huntington Beach Annual Budget Charts and Graphs Summary - General Fund Budget Reductions - FY 1996/97 Department/Program Description Annual Savings NON DEPTARTMENTAL Operating Debt service costs - net reduction 398,250 Non-Departmental Subtotal 398,250 ADMINISTRATIVE SERVICES Accounting Reclass Mgt. Position to Non-Mgt. 38,667 Accounting Reduce 2 positions to 3/4 Time 11,346 Info. System. Mainframe Computer Costs 17,000 Personnel Reclass Mgt.. Position to Non-Mgt. 28,000 Administrative Services Subtotal 959013 ADMINISTRATION Administration Eliminate 2 Permanent Positions 81,000 Administration P.I.O. non salary costs 15,500 Alternate Commute Transfer some costs to General Fund (16,346) Administration Subtotal 80,154 COMMUNITY SERVICES Oakview Transfer funding to CDBG: one position 54,000 Oakview Reduce 2 Temporaries 10,000 Project Self Sufficiency Transfer funding to CDBG: one position 83,333 Seniors Outreach Transfer funding to CDBG: two half time positions 28,120 Nature Center Reduce 2 Temporary positions 12,500 Parking Structure Reduce hours of Security contract 20,000 Administration Reduce 1 Temporary position 8,000 Community Services Subtotal 215,953 CITY ATTORNEY Attorney Eliminate 1 Permanent Position. Consolidate duties. 54,274 Attorney Temporary Salary cost reduction 12,000 Attorney Outside Contract Legal Services. 10,000 Attorney Reduce non-salary costs. 17,000 City Attorney Subtotal 93,274 TOTAL GENERAL FUND BUDGET REDUCTIONS $2,118,329 19 City of Huntington Beach Annual Budget Charts and Graphs Summary - Approved New Revenues Estimated Annual Descri[)tion Revenue Parkin Fee Changes - Changes to parking meter rates, parking structure rates and other $400,000 changes to the management of the City's various parking operations. Increased revenue is anticipated to result from these changes, estimated to total $400,000 per year. Approved by the City Council in March of 1996. Library/Cultural Facilities Development Fee - A new development fee will generate substantial 100,000 additional revenues through the buildout of the City at which time a fairly low level of annual revenue would be received. Parking Meters: Beach / Magnolia - New parking meters will be installed on Beach and 44,000 Magnolia Streets. The estimated annual net new revenue from these is estimated to be $44,000 per year. Beach Parking Lots: Preferred Parking Plan - A change from current "Flat Fee" to several 100,000 levels of parking fees depending on the Beach parking location will be implemented prior to the 1997 summer season. User Fees: Charges for Services - City departments annually review fees for all services and 50,000 recommend adjustments where appropriate. The MSI Study was used for a major two year review of all feed in 1991/92. Staff has updated the MSI Study once and will be completing a second update this year. User Charges: Right of Way Acquisition - Under provisions of the Holly/Seacliff Development 35,000 Agreement, the City is required to acquire all right of way needed for street widening. The developer pays all costs for such acquisitions, including the estimated increased City staff costs of $35,000 for 96/97. Business License: New Enforcement Program - The Community Development and 75,000 Treasurer's Departments have developed a new program for Business License enforcement that is expected to generate a minimum of$75,000 of new revenue in 96/97. The program will assign on Code Enforcement Officer to Business License responsibilities. Business License Processing/Application Fees - Increase Annual Business License Renewal 136,000 fee and Initial Business License Application fee. Business License Audit- Perform an audit to maximize collection procedures. 50,000 Building/Planning Fees - Revise Building Inspection fees, Permit Issuance fees, Plan Review 196,000 fees, and misc. Inspection Services to cover costs of these services. Police Department Fees- Increase Traffic Accident Report Fees, transfer DUI fees from fines to 84,000 vehicle release fees, and establish a booking fee for.arrestees. Total New Revenue: $1,270,000 20 City of Huntington Beach Annual Budget Charts and Graphs Per Capita Sales Tax Huntington Beach -' $7 Westminster $94 Fountain Valley $134 Newport Beach $149= Costa Mesa . 22 $0.00 $50.00 $100.00 $150.00 $200.00 $250.00 City of Huntington Beach Major Revenues Compared to Major Expenses $55 -------------------------------------------------------------------------------------------------------------------------=--_ ---- Police,Fire&Marine Safety Costs $50 ----------------------------------------------------------------------------- $49.7 ------------------- ----------------- c $45 --------------------------- 4z:s $40 $38�1 -------------- ---------------------------------------------------------------------------- c - Property&Sales Tax Revenue v} $35 ------------ - --------------------------------------------------------------------------------------- - 00 $30 ----- 33.0--- $25 87 88 89 90 91 92 93 94 95 96 21 City of Huntington Beach Annual budget Charts and Graphs History of Employees per 1 ,000 Population Number of Full Time Number of Employees per 1,000 Employees Population Year General Fund Total Population General Fund Total 1976177 826 1,000 157,800 5.2 6.3 1977/78 836 1,059 161,300 5.2 6.6 1978/79 866 1,007 167,400 5.2 6.0 1979/80 863 955 170,505 5.1 5.6 1980/81 881 954 173,327 5.1 5.5 1981/82 888 952 175,007 5.1 5.4 1982/83 895 949 176,370 5.1 5.4 1983184 888 946 176,329 5.0 5.4 1984185 900 963 176,156 5.1 5.5 1985/86 912 980 177,988 5.1 5.5 1986/87 944 1,015 178,788 5.3 5.7 1987/88 975 1,035 178,260 5.5 5.8 1988/89 1,007 1,065 178,896 5.6 6.0 1989190 995 1,079 181,519 5.5 5.9 1990/91 997 1,086 182,100 5.5 6.0 1991/92 981 1,119 183,600 5.3 6.1 1992/93 952 1,115 185,300 5.1 6.0 1993/94 946 1,111 187,200 5.1 5.9 1994/95 938 1,097 186,600 5.0 5.9 1995/96 913 1,082 187,200 4.9 5.8 1996/97 891 1,037 187,200 4.8 5.5 Employees per 1 ,000 Population 7.0 ------------------------------------------------------------------------------------------------------------------------------------------------------------ 6.6 6.5 ------- ------------- --- Total-Emp/pyees-------------------------------------------------------------------- 6.1 �111111, 6.0 ----------------- ---------` - - ----------- 5.6 5.6 5.5 ------------------------------- -- -------------------- ------------ ---------- ---------------------------------- 5.2 5.0 ------------------------- ---------------------------- -------------------------------------------------------------------------- ----- --------------- General Fund Employees 4.8 L-4O ----------------------------------------------------------------------------------------- ----------------------------------------------------------------- 7 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 22 City of Huntington Beach Annual Budget Charts and Graphs CITY OF HUNTINGTON BEACH BUDGETED PERMANENT POSI,=TIONS y DEPARTMENT (All Funds) DEPARTMENT 1991/92 " 1992/93 1993/94 " 1994L95 : .1995196 .1996/97 City Council 1.00 100 .1.00. 1U0 1".00 4.0 Non-Departmental 1.75 1 75 ` 2.75 2 75 2:75 3 75 Admuustration 20:00 17 00 19 00 15 00 15 50 -12 50 City Treasurer< 14.00 3. .00 13 00 13 00 13:00 13.00 City Attorney" I8.00 16 00 16 00 I5;00 15:00 14 00 Ci Clerk 7.50 156 7 50 7.00 7 00 7 00 ty Administrative.:Services 61.25 "58.50 57 25 56'00 5530 53 00= Economic Development 17:00,. 18 00 14 80 13:00 15..00 20 05 Community Development 53.00 :51 50 49 50 4T50 `: 45.00 -43 00 ' Fire Department 179.00 L.82.00 179 00 178:00 175.00 I58 75 Police Department, 374.00 375.00 376 00 383.00 381 0.0 371 00 Community Services 64.50 66 00 ` 6'6.75 6750 67.50 61 75 LibrarySernces 41.25 39.00 40 00. 38.25 37 00 36 00 Public Works 266 25 269`00 268.25 259:75 - 263.75 248.50 Total Prm eanent P ons 1118.50 1,115.25 1,110.80. „1,096.75 1',094.00 ositi 1,049.30 ENERAL FUND 981.25 052.05 045.55. 038 IS .25.9.5 ;003 20 Less vacant General"Fund positions not funded ub total General Fund Budgeted Posrhons - �913 9$ 89120._ OTHER FUNDS 137".25 163.20 165.25 158 60 168.05 146.10 TOTAL"BUDGETED POSITIONS -1,118.50 1,115:25 13,1,0.80 1,096 75 I,082.00 1037:30 PERMANENT EMPLOYEES ALL FUNDS , ,50 , 1130 1 097 d f110 1,082 -1090 O 1070 z t A -- I UJI E 1050: � i; 1991l92 1992l93 1993/94 1994l95 1995196 1996197 j Fiscal Year 23 City of Huntilipton Beach Annual Budget Charts and Graphs General Fund Budget Per Capita General Fund population General Fund Budget Adjusted for Year Budget per Capita Inflation 1975/76 $24,117,187 151,500 $159 $159 1976/77 $28,222,345 157,800 $179 $168 1977/78 $30,976,571 161,300 $192 $170 1978/79 $31,521,765 167,400 $188 $152 1979/80 $35,902,254 170,505 $211 $154 1980/81 $42,047,169 173,327 $243 $152 1981/82 $47,212,276 175,007 $270 $154 1982/83 $51,033,990 176,370 $289 $158 1983/84 $54,281,000 176,329 $308 $171 1984/85 $59,715,204 176,156 $339 $189 1985/86 $67,254,388 177,988 $378 $213 1986/87 $70,634,126 178,788 $395 $220 1987/88 $75,189,066 178,260 $422 $232 1988/89 $79,672,569 178,896 $445 $240 1989/90 $86,701,454 181,519 $478 $254 1990/91 $94,316,355 182,100 $518 $271 1991/92 $94,107,104 183,600 $513 $249 -1992193 $97,771,379 185,300 $528 $249 '1993/94 $97,166,095 187,200 $519 $230 '1994/95 $96,075,779 186,600 $515 $219 '1995/96 $95,619,916 187,200 $511 $208 Budget Per Capita F$6007---------------------------------------------------------------------- ----------------------------------------------------------------- 'l 'O"General Fund Budget per Capita a $528 511 $500 -------------- Adjusted for Inflation $400 1------------------------------------------------------------------ $300 ------------------------------------------------------ ---------------------------------------------- i $200 $159----------- - ---- - ---------------------------------- -------------------------------------------------------------------------208 $100 -------------------------------------------------------------------------------------------- - ----------------------------------------------------------- $0 F 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 24 City of Huntinaton Beach Annual Budget Charts and Graphs Revenue Losses to the State of California Revenue Loss 1990/91 1991/92 1992/93 1993/94 1994/95 1995/96 1996/97 Property Tax $2,083,000 $5,156,660 $5,259,793 $5,364,989 $5,472,289 Redevelopment 805,000 275,000 275,000 Traffic Fines 500,000 500,000 500,000 500,000 500,000 500,000 Parking Tickets 0 490,000 250,000 250,000 Cigarette Tax 150,000 265,000 265,000 265,000 265,000 265,000 Vehicle License Fees -944,000 Tax Administration Fe( 290,000 260,000 250,000 245,000 236,000 236,000 238,000 Booking Fees 20,000 20,000 20,000 20,000 20,000 20,000 20,000 Total $310,000 $930,000 $3,923,000 $5,517,660 $7,045,793 $6,636,989 $6,745,289 Cumulative Total $310,000 $1,240,000 $5,163,000 $10,680,660 $17,726,453 $24,362,442 $31,107,731 City Revenue Taken by the State $8,000,000 Total Loss = $31.1 $7 oas 793 $6,635 989: $61745 289 $7,000,000 � $6,000,000 _ $5,000,000 $3,923,000: O $4,000,000 C $3,000,000 $2,000,000 $930,000 $1,000,000 $0 1990/91 1991/92 1992193 1993/94 1994/95 1995/96 1996197 25 City of Huntinaton Beach Annual Budget Charts and Graphs ell— Property Tax - Distribution of Basic 1% Property Tax Levy Elementary Schools High Schools 22.3% 22.0% Other Mgr : ' � Community Colleges 9.3% City 15.6% State County 16.5% 10.6% Sales Tax - Allocation of Huntington Beach Sales Tax Revenue Sales Tax % State 6.00% City 1.00% Transportation Health/Welfare Public Safety 0.50% P 6 ° Measure M 0.50 Measure M 3.2% 'S /° /O Transportation 0.25% 6.6% HealthlWelfare 0.60% Public Safety Total 7.75% 6.6% 1Y: City 12.9% State 64.5% 26 CITY OF HUNTINGTON BEACH c •o c� � x - ASSISTANT CITY; ;P 1VIINISTRA�O ADM MSTRATIONi DEPUTY CITY ADMINISTRATOR PUBLIC INFORMATION UA1I •U 1 ���� 1 I. U IBR�It Ernnomic Uniform Fire Recreation& P-hi Development Planning Engineering Division Prevention Finance Human Svcs Service Administrative Information Heach Support Redevelopment Building Water Division Operations Systems Division Services Investigation Emergency Cultural Housing Landscape Division Services Personnel Arts Maintenance Servces Tele- Real Division ommunications Property Insurance &Benefits Central Services ORGANIZATIONAL CHART 27 City of Huntington Beach Budget Process ANNUAL BUDGET/ CAPITAL IMPROVEMENT PROGRAM CALENDAR OF EVENTS FY 1996/97 DATE BUDGET PROCEDURE ACTION BY 03/01/96 Distribution of budget schedule and general instructions for Budget & Research preparation of Departmental budget requests. Distribution of Budget forms. 03/01/96 Development to begin on General Fund, Internal Service Funds, Departments and Capital Projects Funds budget requests. 03/03/96 Accounting report printouts for the first 5 months of the current fiscal Accounting & Records year are delivered to departments. (regular distribution) 03/18/96 Preliminary Budget historical and current year expenditure data, and Budget & Research personal service cost projections are delivered to departments. Cost information for"Equipment Usage" accounts is included. 03/18/96 Departments begin review of departmental fees, fines, and Departments permits for potential revisions. 04/15/96 Preliminary General Fund revenue estimates are completed. Finance Director 05/06/96 All General Fund and Other Fund operating budget requests are Departments submitted to Budget & Research (Not including C.I.P. requests.) 05/01/96 Budget requests from departments are reviewed for procedural Budget & Research conformance and assembled into a draft document for submission to the City Administrator. 05/20/96 Capital Improvement Project requests are submitted to Budget Departments & Research. 05/20/96 Capital Improvement Project requests from departments are Budget & Research reviewed for procedural conformance and assembled into a draft document for submission to the City Administrator. 05/20/96 Summaries of departmental operating budget requests are Budget & Research submitted to the City Administrator. 28 City of Huntington Beach Budget Process ANNUAL BUDGET/ CAPITAL IMPROVEMENT PROGRAM CALENDAR OF EVENTS FY 1996/97 DATE BUDGET PROCEDURE ACTION BY 05/20/96 Review of Departmental budget requests and Capital City Administrator Improvement Project requests to begin with Departments. Departments Schedules will be provided. Budget& Research 05/20/95 Department proposed revisions to Comprehensive Fee Schedules Departments are submitted to the Finance Director. 06/01/96 Final revenue projections completed for All funds. Finance Director 06/10/96 Final review of Department budget requests & C.I.P. project City Administrator requests by the City Administrator to determine funding levels. Departments Schedules will be provided. Budget & Research 07/01/96 Preliminary Budget as recommended by the City Administrator is Budget & Research prepared and assembled for submission to the City Council. 08/01/96 The City Administrator's recommended Preliminary Budget is City Administrator submitted to the City Council per City Charter. 08/07/96 Revise all revenue estimates as necessary. Finance Director 08/12/96 A study session is conducted with the City Council on the City City Council Administrator's recommended Preliminary Budget and Capital City Administrator Improvement Program. (Additional study sessions are conducted as Departments needed.) 09/02/96 A public hearing is conducted by the City Council on the The Public recommended Preliminary Budget and Capital Improvement City Council Program. City Administrator 09/03/96 The Budget/C.I.P. Resolution is prepared according to City Council City Attorney direction. Budget & Research 09/16/96 The Budget/C.I.P. is adopted by Resolution of the City Council. City Council 09/17/96 The Adopted Budget/C.I.P. document is processed for publication. Budget & Research 29 • • Summary Information -= • • • General Fund Revenue Categories City Wide Revenue Summary City Wide Expenditure Summary e ANNUAL BUDGET FISCAL YEAR 1996/97 GENERAL FUND REVENUES 0 DESCRIPTION AND ASSUMPTIONS • Property Tax - $25,024,000 -- Property Tax is the largest source of revenue for the 0 General Fund. After Proposition 13 was passed by the California voters in 1978, property tax declined from 39% of total General Fund revenues to about 26% today. • This revenue has been further impacted by the State taking our property tax revenue and giving it to schools. Variables having the most effect on property tax revenue are 40 the assessed valuation of property located within the city and the percent of all property tax paid that goes to the city. Currently, the city receives about 19% of the total 40 property taxes paid by its residents. The 1996/97 projected increase of 0.9% is based on last years total revenue being reduced by $1.3 million due to refunds resulting from 0 assessment appeals. Refunds should be much lower in 1996/97, resulting in higher total revenue received. Sales Tax - $16,600,000 -- A decrease is projected for 1996/97 based on projected loss of sales due to the Broadway closing its anchor store at the Huntington Beach Mill. Slow revenue growth in future years is also related to uncertainty about the Mall and an anticipated transition period before sales return to prior levels. Proposition 172 sales tax of $1.1 million is projected to grow slightly faster since it is based on County- wide sales. Utility Tax - $13,630,000 -- The City's 5% utility tax applies to water, gas, electricity, telephone, and Cable TV. Deregulation and other industry trends have kept gas and electrical utility revenues fairly flat for a few years while the other utility revenues have grown. These trends are projected to continue. Other Local Taxes - $5,300,000 -- Other local tax sources include the Water Utility In Lieu fee of$3.3 million, which is paid to the General Fund "in lieu" of franchise fees and property taxes, and other Franchise Fees estimated to be $2 million. Licenses and Permits - $4,834,830 -- Major single categories in this group include the Business License, projected at $1.6 million and oil well taxes at $550,000. New audit enforcement programs are projected to result in revenue increases in 1996/97. The majority of remaining revenue consists of building permits of various types which should produce over $2 million, some of which is considered one time revenue due to increases in development of residential housing tracts in 1996/97. Fines, Forfeitures, and Penalties - $2,355,000 -- Funds collected for parking and other traffic citations issued by the Police Department, residential and commercial burglar false alarm fines, and fines related to library operations. No significant changes are anticipated in these revenue sources. 30 ANNUAL BUDGET FISCAL YEAR 1996/97 GENERAL FUND REVENUES DESCRIPTION AND ASSUMPTIONS Use of Money and Property - $6,916,250 -- Categories within this group include interest income from the investment of city money ($1 million) rentals, leases of city facilities ($1.2 million), parking fees ($3 million), revenue from city owned oil wells ($260,000), and repayments of Redevelopment Agency loans ($1.1 million). Repayment from the Redevelopment Agency will decline in future years while parking and facility rental revenue will increase as downtown business and beach activities continue to grow. Revenue from Other Agencies - $8,536,000 -- The major, constant source of revenue is Motor Vehicle License fees (VLF) which will provide an estimated $6.9 million. Other sources include the real property transfer tax at $460,000 and Cable Television Franchise at $730,000. VLF fees, collected by the State, continue to show healthy growth as auto sales improve statewide. Property transfer taxes are conservatively estimated and could be higher if home sales increase. Charges for Current Services - $9,254,725 -- Sources received cover a wide variety of city services and functions. Fees in this category are recreational, developmental and special services. Development related fees should total about $1.3 million. Recreation oriented revenue is estimated at $1.4 million. The Water Utility and other city enterprise funds will pay $3.3 million to the General Fund for various services rendered such as billing/collection services and staff support. Ambulance system charges will total $825,000. Fee for service revenue has grown in past years as the City has increased fees to cover costs. Development related revenues are projected to be fairly high for the next two years before decreasing as the current building activity declines. Other Revenue - $522,700 -- This section is largely for miscellaneous reimbursements and sales, special inspection fees and sales of surplus equipment. Transfers - $2,390,000 -- The amount of this category has varied as the recession has prompted a review of all funds that can be legally transferred to the General Fund. The transfer of $2.2 million from the Gas Tax Fund is to fund street maintenance, and is not projected to increase in future years. If other General Fund revenues increase in future years, it would be desirable to reduce the transfer of Gas Tax Funds to the General Fund and instead expend those funds on street projects. 31 REVENUE SUMMARY CITY-WIDE • Fiscal Years 92/93 Thru 96/97 (15 Month) Revised FUND/CATEGORY Actual Actual Actual Budget Estimate Estimated FY 92/93 FY 93/94 FY 94/95 FY 95/96 FY 95/96 FY 96/97 Genera/Fund • Property Tax 27,730,743 33,347,665 25,254,894 25,700,000 24,997,000 25,024,000 Sales Tax 16,000,272 20,414,356 16,684,322 16,800,000 16,700,000 16,600,000 Proposition 172 Sales Tax 0 1,027,000 1,030,227 1,050,000 1,100,000 1,144,000 Utility Tax 12,572,120 16,068,000 12,916,733 13,200,000 13,225,000 13,630,000 Transient Occupancy Tax 890,016 1,266,000 1,039,045 1,050,000 1,100,000 1,122,000 Other Local Taxes 3,971,826 4,950,000 4,674,464 4,770,000 4,770,000 5,300,000 Licenses & Permits 3,642,247 4,934,299 3,980,190 4,401,000 4,270,300 4,834,830 Fines/Forfeitures/Penalties 1,353,720 1,912,837 2,134,642 2,200,000 2,240,000 2,355,000 Use of Money and Property 5,052,042 7,792,306 6,070,779 6,186,000 6,530,155 6,916,250 Revenue from Other Agcys 8,171,808 11,116,279 8,219,705 7,955,000 8,576,000 8,536,000 Charges for Current Svcs 6,193,404 8,838,221 8,438,616 8,707,300 8,759,500 9,254,725 Other Revenue 852,183 788,050 468,526 544,500 543,000 522,700 Transfers from Other Funds 4,287,290 5,775,855 2,900,000 .3,000,000 2,990,000 2,390,000 -Sub Total 90,717,671 118,230,868 93,812,143 95,563,800 95,800,955 97,629,505 Capita/Projects Capital Improvement Fund 782,960 576,027 772,479 825,000 375,000 900,000 1986 Parking Structure 258,541 187,598 34,883 0 40,000 0 1989 Parking Structure 341,756 285,092 76,209 90,000 90,000 75,000 Pier Rebuilding 574,874 1,579,523 138;539 190,000 440,000 145,000 Park Acquisition & Develop 1,028,225 984,849 2,181,897 385,000 575,000 699,416 Sewer Fund 387,404 526,711 228,787 290,000 202,000 210,000 Drainage [Fund 349,539 640,088 418,785 282,000 312,000 642,000 Flood Fund 5,534 12,679 3,945 0 4,000 4,000 Holly Seacliff 246,911 342,010 803,559 186,500 0 3,511,500 Water Facilities Master Plan 0 0 0 0 2,240,000 4,575,000 Library Cultural Facilities 0 0 0 0 0 245,000 FEMA Grant 0 0 0 0 0 1,338,699 -Sub Total 3,975,744 5,134,577 4,659,083 2,248,500 4,278,000 12,345,615 Debt Service Public Facilities Corp 416,260 816,899 445,707 427,000 424,000 25,000 HB Public Financing Auth 1,529,066 3,561,374 3,014,693 2,700,000 2,662,068 2,677,138 Debt Service - Park Bond 528,868 595,710 29,650 0 0 0 Parking Authority-Debt Svc 178,823 872,878 27,649 0 25,000 0 Civic Improvement Cp 93b 1,201,496 1,841,257 1,179,128 1,046,000 1,179,000 1,163,000 Civic Improvement Cp 93a 0 2,560,523 1,668,412 1,472,742 1,668,000 1,662,000 Mello Roos-Capital Projects 16,173 18,574 8,484 6,000 6,000 6,000 Mello Roos-Debt Service 309,890 213,630 437,076 279,000 298,000 282,000 Debt Service-Reservoir Hill 204,268 201,685 208,409 196,000 208,000 .212,000 -Sub Total 4,384,844 10,682,530 7,019,208 6,126,742 6,470,068 6,027,138 Water Fund -Sub Total 17,101,867 22,378,353 16,391,067 22,145,000 19,286,300 22,837,000 Refuse Fund -Sub Tota/ 6,152,359 9,062,985 7,921,480 8,700,000 8,700,0001 8,700,000 32 . REVENUE SUMMARY CITY-WIDE Fiscal Years 92/93 Thru.96/97 • (15 Month) Revised FUND/CATEGORY Actual Actual Actual Budget Estimate Estimated FY 92/93 FY 93/94 FY 94/95 FY 95/96 FY 95/96 FY 96/97 Other Enterprise Funds Fire Medical Program 2,338,578 2,844,241 2,495,094 2,760,000 2,760,000 2,795,000 Emerald Cove Housing 859,919 1,092,492 792,098 828,000 767,000 787,000 Meadowlark Golf Course 447,132 486,976 307,546 280,000 310,500 0 Joint Powers 1,550,472 2,396,714 1,911,147 1,562,000 1,699,218 0 Cable TV Fund 623,399 546,680 420,389 403,000 403,000 417,100 Library Services 5,101,002 2,816,173 293,736 503,000 508,000 468,000 Cultural Arts 463,735 207,000 1,441,322 411,967 336,000 336,000 Sub Total 11,384,237 10,390,276 7,661,332 6,747,967 6,783,718 4,803,100 Internal Service Funds Self Insurance Fund 8,522,479 12,756,449 9,228,694 9,692,000 9,837,000 12,032,000 Equipment Replacement 3,033,025 3,939,685 2,940,482 2,006,000 2,107,233 2,715,000 -Sub Total 11,555,504 16,696,134 12,169,176 11,698,000 11,944,233 14,747,000 Redevelopment Fund Redevelopment Debt Svc 4,874,928 7,120,466 5,116,073 4,536,000 5,978,500 41-567,000 Redevelopment apital Prj 1,990,801 6,440,281 6,592,637 7,039,000 6,142,800 1,566,000 Low Income Housing 1,188,331 1,364,146 1,039,497 980,192 1,013,000 1,016,000 -Sub. Total 8,054,060 14,924,893 12,748,207 12,555,192 13,134,300 7,149,000 Transportation/Street Proj Gas Tax Fund 6,004,414 6,539,901 5,995,625 3,819,413 3,819,413 31485,000 Transportation Fund 2,641,708 3,778,542 2,527,960 3,419,000 1,480,000 3,438,500 Traffic:lmpact Fund 0 498,510 374,062 413,000 413,000 1,013;000 Sub Total 8,646,122 10,816,953 8,897,647 7,651,413 5,712,413 7,936,500 Other Funds Reserve-Eton Uncertainty 0 5,096,462 239,792 250,000 180,000 180,000 Air-Quality. 215,649 261,173 212,173 182,000 182,000 212,000 Donations Fund 27,913 78,880 43,918 25,000 25,000 25,000 Fourth of July 115,015 280,859 141,394 298,000 193,000 183,000 Projecf Self`Sufficiency 25,241 20,885 20,124 16,900 21,200 19,900 Housing Subsidy 424,527 55,850 136,091 355,000 282,000 282,000 Comm. Dev. Block Grant 1,387,447 2,191,421 1,646,637 1,810,000 1,810,000 1,762,000 Other Grants 18,648 150,174 649,865 130,016 112,599 194,156 Narcotic Forfeiture Fund 886,447 709,797 0 385,000 225,000 375,000 Helicopter Replacement 0 182,036 151,219 0 160,000 0 Bureau of Justice Grant 0 0 0 0 0 191,550 Supplemental Law Enforce. 0 0 0 0 0 43 5,60 5 Police Special Training _ 0 0 0 0 0 20,000 Jail Donations 0 0 0 0 0 15,000 .COPS MORE Grant 0 0 0 - 0 0 232,000 -Sub Total ' 3,100,887 9,027,537 3,241,213 3,451,916 3,190,799 , 4,127,211 Use:of Fund Balances 12,697,256 Grand Total 1165,073,295 227,345,105 174,520,556 176,888,530 175,300,786 198,999,325 33 EXPENDITURE SUMMARY CITY-WIDE • Fiscal Years 92/93 Thru 96/97 (15 Month) Estimated DEPARTMENT Actual Actual Actual Budget Actual Adopted FY 92/93 FY 93/94 FY 94/95 FY 95/96 FY 95/96 FY 96/97 Genera/Fund Administration 906,879 1,016,713 838,038 945,194 925,563 906,770 Administrative Services 4,200,248 5,257,526 4,232,793 4,218,888 4,153,337 4,235,556 City Attorney 1,810,043 2,083,840 1,877,488 1,378,947 1,480,728 1,272,576 City Council 208,813 284,544 225,146 245,800 242,942 240,620 Community Development 3,373,267 4,226,240 3,379,850 3,377,618 3,292,889 3,276,585 City Clerk 446,081 524,385 484,797 509,170 539,775 523,976 Community Services 6,879,558 9,319,998 6,824,159 6,821,265 6,816,619 6,666,947 Fire Department 15,263,225 20,044,481 15,498,357 16,137,750 15,886,957 16,3201281 Library Services 3,109,202 4,204,741 3,099,140 3,080,590 3,091,250 2,590,275 Non-Departmental 10,854,491 22,316,120 12,061,507 11,929,199 11,802,412 12,682,634 Police Department 30,922,061 39,175,437 32,065,926 31,883,695 32,357,413 32,613,293 Public Works 14,890,238 18,555,929 15,418,655 15,467,995 14,940,653 15,163,291 City Treasurer 704,114 901,223 713,174 762,897 771,909 786,111 -Sub Total 93,568,220 127,911,177 96,719,030 96,759,008 96,302,447 `97278,915 Capita/Projects Capital Projects 2,748,985 2,273,282 1,387,896 1,356,095 162,520 1,375,690 Parking Structures 4,748,214 4,031,112 111,501 210,000 210,000 0 Pier Rebuilding -.1 14,208 139,418 1,388,392 97,000 0 183,915 Pier Plaza fund 0 0 0 0 0 71,583 FEMA Grant e 0 0 0 0 0 :1,338,699 Park Acq &. Development 269,713 1,588,499 0 1,710,662 1,462,396 927,000 Sewer Fund 1,003,396 1,392,568 925,875 675,865 331,115 760,616 Drainage Fund 1,396,719 1,763,263 443,532 1,216,944 344,669 935,373 Flood Fund 0 0 0 0 0 .1,000 SO 821 Fund 0 0 151,625 265,696 50,186 428,434 Holly/Seacliff Assessment 10,000 0 870,637 47,438 47,438 3,284,000 Library Construction 2,017,359 1,074,572 619,315 0 0 0 Libr/Cultural Facilities 0 0 0 0 0 245,888 Water Capital Projects 0 0 0 0 0 206,636 Master Plan 0 0 0 1,035,000 330,000 5,984;720 Blufftop Park 0 55,805 40,822 644,728 48,679 50,424 -Sub Total . 12,080,178 12,318,519 5,939,595 6,224,428 2,657,004 15,79.3,978 Debt Service Civic Improvement Corp. 2,936,788 4,499,527 2,531,024 2,849,000 2,849,000 2,849,000 HBPFC 495,324 768,482 30,375 399,500 399,500 -0 HBPFA 1,753,627 6,076,725 3,504,940 2,822,000 2,682,000 2,682,000 Debt Service-Park Bond 470,300 479,950 462,272 0 0 0 Parking Authority 173,311 1,421,089 14,000 171,000 0 0 Reservoir Hill 325,583 269,073 170,049 164,000 164,000 164000 Mello Roos 271,179 492,393 1,862,464 248,000 248,000 248,000 -Sub Total 6,426,112 14,007,239 8,575,124 6,653,500 6,342,500 51943,000 Water Fund Water Utility 20,943,262 31,198,011 19,611,280 27,184,435 21,398,594 28,1591179 -Sub Total 20,943,262 31,198,011 19,611,280 28,219,435 21,728,594 '28,159,179 Refuse Fund -Sub Total 6,470,092 9,670,137 9,004,555 8,913,993 8,807,026 8,746,857 34 • EXPENDITURE SUMMARY CITY-WIDE Fiscal Years 92/93 Thru 96/97 • (15 Month) Estimated DEPARTMENT Actual Actual Actual Budget Actual Adopted FY 92/93 FY 93/94 FY 94/95 FY 95/96 FY 95/96 FY 96/97 Other Enterprise Funds Fire Medical 2,109,162 2,618,084 2,330,326 2,637,885 2,602,373 3,106,990 Fire Joint Powers 1,535,356 1,979,076 1,718,574 2,342,902 1,711,999 0 Emerald Cove 803,505 920,898 558,068 844,488 844,488 844,488 Meadowlark Golf 136,356 163,579 503,702 350,000 0 0 Library Service Fund 2,017,358 664,613 790,004 490,477 490,477 447,847 Public Comm. Fund 490,688 567,507 534,027 395,424 395,345 402,672 Art Center 0 210,184 376,349 400,103 394,890 366,273 -Sub Total 7,092,425 7,123,941 6,811,050 7,461,279 6,439,573 5,168,270 Internal Service Funds Self Insurance Fund 10,962,491 13,819,506 10,789,660 11,277,121 9,688,372 10,307,295 Equipment Replacement 2,302,800 3,968,894 3,488,330 4,686,489 4,686,435 3,784,750 Helicopter Replacement -653,975 175,842 179,953 233,636 116,818 0 -Sub.Total 12,611,316 17,964,242 14,457,943 16,197,246 14,491,625 14,092,045 Redevelopment Fund Redevelopment Debt Svc. 3,875,827 8,750,745 4,990,257 4,927,191 4,883,333 4,840,243 Redev. Capital Projects 7,143,963 17,838,154 9,115,953 8,629,964 5,265,008 6,117,797 Legal Services 30,000 208,874 -25,990 200,000 200,000 200,000 -Sub Total. 11,049,790 26,797,773 14,080,220 13,757,155 10,348,341 11,158,040 Transp/Street Projects Gas Tax Fund 6,959,755 12,668,969 4,529,764 4,200,486 3,138,486 3,711,397 Measure M Fund 2,121,804 2,026,031 2,506,760 3,242,827 522,546 2,685,580 Petroleum Violators 0 322,522 168,719 24,476 24,452 0 Traffic Impact Fund 0 274,474 192,968 339,308 339,117 332,890 OCTA -.GMA#6 0 0 0 1,681,1 10 215,000 1,686,1 10 Cnty/Federal CRP Grant 2,962,552 2,562,075 180,370 0 0 0 CALTRANS - TSM 0 139,016 9,511 0 0 30,887 CRP/OCTA/SIP FUND 0 0 0 0 0 200,000 HES Fund 0 0 0 288,000 0 356,000 -Sub Total 12,044,111 17,993,087 7,588,092 9,776,207 4,239,600 9,002,864 Other Funds Library/Other Grants 938,252 964,562 0 40,566 28,827 70,691 Narcotic Forfeiture 1,264,257 1,271,710 952,753 859,565 344,174 420,174 Pol. Comm. Relations 59,745 11,937 11,537 25,000 25,000 25,000 Jail Donations 0 398 2,234 8,400 8,400 15,000 Air Quality 156,944 249,584 95,747 195,132 142,316 94,035 Cal CAP/COPS More 221,172 321,723 211,711 255,095 249,748 231,972 Bureau Justice - PD 0 0 0 0 0 191,550 Supplemental Law 0 0 0 0 0 435,605 Special Training-PD 0 0 0 0 0 20,000 Fourth of July 180,886 299,701 181,601 177,441 176,375 176,850 CDBG Fund 0 0 0 576,392 485,269 1,975,300 -Sub Total 2,821,256 3,119,615 1,455,583 2,137,591 1,460,109 3,656,177 Grand Total 1185,106,762 268,103,741 184,242,472 196,099,842 172,816,819 198,999,325 35 MR- Department Budgets Elected :& Administrative Offices :,, n Commun-ity Servi-ces = 'Parks& Recreation _. .Y��" s•^ .rt;��, ,-` ram" ;,- Y. 'ittit.�..= Economic & Comm-un5ity.,Development Pu-blic Works H:ar..b-,ors &-Beache;��i -F ire=& Po l ice �T >C k s City of Huntington Beach Annual Budget BUDGET SUMMARY City Mission Statement: To maintain a safe community, high quality of life, the most cost effective and highest quality services, facilities, and products in response to the changing needs of our community. To be recognized as a model organization, respected for valuing the community it serves, and the people it employs. Budget Description: The General Fund is made up of 11 departments plus City Administration. General Fund revenues can be used for "any municipal purpose". Services funded by General Fund revenues include police, fire, paramedics, beach operations, street maintenance, sewer maintenance, parks, recreation, planning, building safety, libraries, and many others. In addition to the General Fund, numerous special purpose funds and enterprise funds collect revenues that are restricted either legally or by policy. Enterprise funds provide resources for the City's water utility, a city-wide refuse collection service, cable TV, Library Service Fund (library expansion), Cultural Arts Fund, seniors' housing project (Emerald Cove), a prepaid paramedic program, an equipment replacement program, and a Narcotics Forfeiture fund. General Fund - AdoWd Butlets � tCapfitat � I" c i W5 60 COpreb ting _ -40 72.47 69.56 70.1 69.6 13ersannetR '93/94;_ 94/95 - 95/96 96%97 The General Fund is a labor intensive operation with 70% of funding used for personal services. The majority of direct city services are provided by the General Fund. This chart depicts Adopted Budgets over 4 years. General Fund Actual-15 Mo Actual Rev. Budget Est. Actual Adopted FY 93/94 FY 94195 FY 95/96 FY 95/96 FY 96/97 Description Personal Services 89,317,840 69,871,016 69,998,869 69,145,985 69,677,240 Operating Expenses 38,044,707 26,412,055 26,457,015 26,818,390 27,256,130 Capital Outlay 548,630 435,959 303,124 338,074 345,545 Total General Fund 127,911,177 96,719,030 96,759,008 96,302,448 97,278,915 Personnel Elected 7.00 7.00 7.00 7.00 7.00 Safety 364.75 374.75 368.75 368.75 367.75 Non-Safety 580.80 563.40 557.20 553.20 535.45 TOTAL 945.55 938.15 925.95 921.95 903.20 36 City of Huntington Beach Annual Budget FISCAL-,YEAR 1996/97 The budget.message at the-beginning of this document•provides details-on overall City funding.issues. The,City's totalbudget.,for 199e/97: is. $.198,999,325 which is 4.3 _o.greater-than last;-year's adopted budget. The Generai Fund portion of the budget1>totals 1 $97,278,915 which is ,1.36% more than;:last year's adopted General Fund Budget. The 1996/97 budget includes the first major year of the implementation of the.11 year,,Water.Capital Improvement program. .Also included.in Other Funds r 1... - , budgets is the cost of a new Fire Station-funded by the Holly/Seacliff developer. _ a 1 . . r Other Funds FY 19�96/97` r =f - - ` jr ` { ri Public 111lorks$= z 0 S 4 10 .- F�re 1 3y3 2 3 2 .r Admen CJ y I�IISC Capital r r Attorney' AdmFnI'V. P. r - Y s Non . r •._ _, ._ .. 'tom: ..�.::!�•. ._ ttl•. ,,__ _ � - _ � :. The majority of Other Fund Activities are supervised by the departments of Public:Works " - Administrative Services, and Economic Development Other Funds -Actual-15 Mo Actual tual•Rev. Budget ' Est.Ac : Adopted J ' FY 93/94 FY 94/95' FY 95/96 FY'95/96 `` "FY 96/97 By Department .. Non-Departmental " ` 16,6'17,262 8,6729625 6,6'k,500 3,552,500 5,943,000, Administration 817,091 629,774 590,556 i 537,661 496,707 City Attorney }_ 208,874 - t , 4.1,748 , 268,652 .268,583, _,,t 269;611 Administeative.Services,_ 1't788:40Q, 1:4,210,252 : , "15,894,958 14,306,224 14,022,434 Fire Department ��: 4;597;160 4,048,9y00, .,'..�4,,980,787 4;314,37.3 4,445,689 Police Department 1',781;610 ' V 1;358,186 , 1,381,696 744,140 1,339,301 Community Services 4,603,950_ 1,633,720 , 4,230,086 3,363,418 4,289,91.1. . Library Services 'F 2,70.3 .47 ` ` Y,409�31.. : 531',043 _;:� 519,304 764,426 Public Works - 40,868;148-- 28,615;835- 38,814,538 30,750,621 44,783,502, Economic Developm%ent 26,588,899 14,106,2.10 13,557,155 _ 10,148,341 10.-,958;040=�•.`. Capital Improvements -`;', 23,617,423 12,796;8.71`_ 12.398,863. 5,009,207 _ 14:407189 Total Other Funds ''" 140,192,564 87,523,441' 99,340,834 76,514,372 101,720,410' Total All Funds _ 268,103,741 . 184,242,472:. 196,099,842 172,816,820 _190 999,325 Personnel � .. r :. . . Safety 19.25 15.25 15.25 15.25 13.25 Non-Safety 5- C 180.70 170.90 178.10 187.10 J136:85 TOTAL 199.95 186.15 193.35 202.35 "150.A0 2" . 37 City of Huntington Beach Annual Budget CITY.30U:NG1. Mission 'atatement: To adopt overall City' goals_and establish'.policies-'`to "provide*-effective."and, efficient-municipal services, including policies'°to address-the.community's development, economic, physical and social conditions. Work of the Council Develop a general and specific visionfor'the.city_and its 'projects 'and transmit, this to the staff & community for'their input: Iterate as many times as necessary to reach consensus'. Develop a long-term-financial strategy that demands organizational effectiveness and efficiency. Such a strategy must identify the resources.for financial support of public services and facilities. Develop clear policy direction for responsible -growth management. "'Develop a multi-faceted community participation program which includes volunteerism and citizen input to all city activities. Complete revitalization of downtown. In order to promote.business and create new jobs, develop an aggressive program to attract and retain commercial and light industrial businesses. Resolve the Bolsa Chica question by identifying the maximum extent of�'open space acquisition and then following, as appropriate, tgasonable housing density on .the mesa. Determine the need for a cross gap connector and evaluate alternatives: Develop a Bolsa Chica program which maximizes benefits to residents of Huntington Beach. Improve..both the ,building inspection: process and compliance with city codes. _ Continue the city's strong programs fort-senior- citizens as well as the cultural and recreational opportunities for-all citizens: Develop a system to evaluate and"monitor*organizational effectiveness and efficiency in.providing services to the-community. Develop goals and objectives for.-all city departments-and annually evaluate their ability to meet those. goals and-objectives in:a cost effective manner.' "Develop and maintain'high standard policies-and procedures for hiring training, evaluating, promoting; and describing jobs for all, employees,; Evaluation of employee nst s should be made annually agai objective•standards. Maintain a. high ethical' standard`in conducting city business: _ l Maximize,income`from existing revenue streams through careful,monitoring and auditing as necessary of all contractual relationships, active enforcement"of codes and ordinances, and aggressive.collection of all monies due the`city. "Simultaneously look for new_revenue producing opportunities. General:f=und :Actual-15 Mo Actual,; `,Rev. Budget, Est. Actual`" ' Adopted,' ;. FY 93/94 FY 94/95:.' .. FY 95/96, FY 95/96 ;, �FY 96/97: Description Personal Services 132,317: 100,845. - 167,599 104,729 ' 1.09,516 � Operating'Expenses- - 152,227-. :; 124;301 138,201. 138,21.3 131,1.0.4 Capital Outlay 0 0 0- 0 , 0 Total General Fund'` 284,544 225,146 245,800 242,942 240,620. Personnel Elected- �7.00 7.00 ' 7.00 7.00 7.00 Non-Safety 1..00. . 1..00.- 1.00 1.00 1:00- TOTAL 1.00 1.00 1.00 1.00 1.00 38' City of Huntington Beach Annual Budget !jIGHLIGHTS '. .. 1 , - 1, .. � - .. � The City, Council -budget includes the City Council (Office)-,and ...Inter- o 'ernmental Affairs. Inter,- governmental f i- I a governmental-Affairs(has been reduced by 13.1%.by eliminating the,Cit _,merpbership.in, Jhe National, League , ... ! J :: - some 11 1 — ... " ''eliminating : ` ".Y" gue of Cities and cutting s e of the funds avai,labl,pjR,pttend conferences, City Council 1996 From left: Tom Harman ja Shirley Dettloff;-.:MayoCDave Sullivan, Mayor.ProTem Ralph Bauer, Peter Green;.David Garofalo,Victor Leipzig...... ..... _1A All City Council meetings are televised live by Huntington Beach City Hall complex inclU;des the H BTV3, the City's loc"al access cable' channel. City Councir-Chambers where the City Council'-'meets Planning Commission meetings are also televised. on the 1 st and 3rd Mondays of each month. 39 City of Huntington Beach Annual Budget ADMINISTRATION Mission" statement: Department Description. - To provide +supervision of all .'city departments, except City'Attorney, City Treasurer, and City Clerk-departments;-and to carry:oat,the policies of the City Council along with the day-to day operations of`the City. Department Description: Office-- of --the—City City _. Administrator - Provides .deadershipy:r-in the ==r development of policy recommeridation_s-, establishes;: systems and procedures to 'effectively and efficiently utilize available resources,`and Is responsible for,the , 1L � submission of an annual budget.'to the'City'Council.., Develops specific goals= and objectives for each., department . `t ADMINISTRATION STAFFING A:budget'study session-is conducted by the City } v Administrator Ove`r..' the past several years, a considerable "amount .of.time has been spent on 25 Y get matters:., - 20 fi« - - e -bud - 20 15 S- ° " Pubfic Information' - Provides a 10 comprehensive public relations program to a foster_ understanding_of the City Government's s organization, functions, programs and services r o which are provided to the citizens of Huntington 91/92 92/93 93/94 94/95 95/96 96/97 Beach. City Administration has participated in the overall downsizing of permanent City staffing. General Fund Actual-15 Mo.' u�_._ _ Actual Rev: Budget . .,,Est Actual .: Adopted FY 93/94 .r! FY 94/95 95/06 E� FY: 6197 Description Personal Services :9.16732 736,667 829;690 817.;151 <796;420 Operating Expenses :98;399, 101,371 115,504 . a., 108,413 `:. 1107,950 Capital Outlay -' a.v- 1.,582 0 0 0 2,4`00 Total:'Gerteral Fund . _1,016,713Y 838,038 �945,194. -f 925 563, 906,770 Personnel Non-Safety 11 00: 11.00 11.00 1.1.00 , TOTAL 11.00 11.00 11.00 11.00 9.25 40 City"of Huntington Beach Annual Budget HIGHLIGHTS ` The City Administration. budget rincludes-the-Office Mr of the,City.Administrator,.the-Public-Information Office PIO and and the operation of HBTV-3 For 1996/97., .,the .reduction of one Administrative r Secretary position-was implemented in the fourth-,floor > � � office of Administration. The remaining three clerical positions will absorb.the work previously performed by F r that. position. Also -eliminated is the first floor information desk Office Assistant position. Additional Y volunteers will serve in this capacity along with . tt � utilizing a staff support position from ,the Public Information_Office on an as needed. basis..:-Lastly, an Public..Information provides original programming Information Specialist- position.,is,eliminated from the.Ahrough-HBN3 to inform the community of local Public Communications program which will result in a. issues and events. reduction.in HBTV-3 programming. The: natural draw of .--the coastline, provides a constant flow., of. -,visitors. to, Ahe,o-City. Maintaining services for the visiting public as .welly, as meeting the specific needs of y the community, has. presented a challenge to the Office ofahe .City-. Administrator during-.,this ` apt period of budget:_reductions. The adopted financial priorities are 1) Reinvent the City Budget by evaluating alternative ways of. doing business, 2) Long Range. Downtown Huntington Beach looking north toward Los Angeles Financial Planning, and 3) Infrastructure Funding. Other Funds Actual-15 Mo Actual_ Rev. Budget Est Actual Adopted F_Y 93194 FY 9465,' IFY 95/96 Description Air.Quality- 249,584 95,747. . 195,132 142,316 94;035 Public Comm. Fund` ` 567,507' 534,027 395,424 395,345, 402,672 Total Other Funds 817,091 - : 629,774 590;656 _ 537,661 496,707. . Personnel No ' . 8 00 .. 4.00 4.00 4.00 TOTAL i 8.00 . 4.90 4.00 4.00 3.75 41 City of Huntington Beach Annual Budget NON DEPARTMENTAL Mission 'Statement: To provide appropriations for expenses which.are City-wide in nature, including Utility costs, street lighting costs, debt service payments, some contractual'.services, and the cost of the rCity's liability, self insurance program. Department'. =Description:=. at3esides funding city-wide ' Teleco-Amunications costs I ' " ' General Fund;,' expenses--for -the General Fund, several other- funds are included in the 'Non s800,000r _MajorGeneral Fund Expenses z soe,�so . De pa rtmental uti $600,060 i TR,A r ,program group. x hk.A x s' $400,000 E = `LI ,��"ns Major expenditures of these "funds in I s200,000 . Emp1.Bents C ude °�^«O funding - for debt �E0 W ' 93/94 84/95 95/9f1 98197 �� service payments for o , 2 = a 4 ' Certificates of Participation ad in 1986`"and�1989.-; The $In Millions revenues to make these"payment9.are,derived'from to transfer from the General Fund. =The Huntington Beach •-Public Financing Authority provides funding for debt service payments for the $33.5 million revenue bonds issued by the Authority in-1992. The revenue to make these payments is derived from tax increment revenue of the Redevelopment Agency. General Fund Actu61-15.I0I6 -..< Actual, Rev.;Budget Est Actual . Adopted FY 93/94` "FY-:94/95 FY 95/96 FY 95l96 ;FY 9.6/97=. Description Personal Services 1,528,124 •T 1,721;255, 1";038,572 833,576 : ; � -945,067-. Operating-(Expense �s 20,787;996 ; 10;340,252 10,890,627 _,10,968 836: 1-1 566;332 Capital Outlay ;0.,. 017$1;235 Total General Fund 22,316,120 12,061-,507 11,929,199 11;802,4{12 12;682;634 Personnel j Non-Safety 2.75 2.75 2.75; .fi �2.75 '.3.75 . , y TOTAL 2.75 2.75 2.75 2.75 3.75 Other Funds ._-Y!_Actual-15 Mo Actual Rev. Bud" g'cit 7 Est Actual Adopted" FY 93/94 FY 94/95 a 95/96 . FY 95/96 FY 96/97, Description _ Civic Improv. Corp. 4,499,527 2,531,024 2,849,000 2,849,000 2,849,000 Debt"Svc.-Park Bohd, 479,950 462,272 0 0 - 0 H BPFA 6,076,725 3,504,940 . 2,822 000-, 2,682,000 2,682,00.0 H BPFC 768,482 30,375 399,500' "° 399,500 r 0 Mello Roos 492,393 1,862,464 248,000 248,000 248,000 Parking Structures 4,031,112 111.,501 210,000 210,000 0 Reservoir Hill 269,073 1701,049 164,000 164,000 164,000 Total Other Funds 16,617-1262 8,672,625 6,6921500 6,552,500 5,9433000 42 City of Huntington Beach Annual Budget CITY ATTORNEY." ; Mission Statement: To represent the City in all legal matters and before administrative bodies, provide legal-counsel=and services to the City Council sand-to-all•officers'of the City,..and,to represent the City in court litigation and prosecutes on behalf of the people, violations'of'the-'City Charter and' Municipal Code. Department;Descriptiom. The City.Attorney:is-an elected;official-and--serves a four•yea.r term- -The City Attomey, is .also---,recognized ,as.-..a,,Departmerit Head. -The department 'prepares-'ordinances, resolutions., leases, contracts andother legal documents and approves-as to form all,:bonds;=insurance and contracts made by the City. FormaGand informal i legal opinions-.,are-,prepared.' Responsibilities include attendance at meetings of the City Council, Planning commission and Personnel commission to,provide legal advice to-ensure City activities comply with:all;pertinent-laws. -` HIGHLIGHTS: The net change in 1996/97 will be the reduction of one Administrative Assistant position effective January:1; 1997, and:the:addition-of.a• half-time,"temporaryy-clerical position. 'Also, nonrsalary costs'for the'department'will-be reduced $27,000;and temporary legal salary expenses will be reduced $12,000. =_ ; General Fund Actual=15 Mo Actual Rev. Budget Est Actual Adopted FY 93/94 FY 94/95- -FY 95/96 FY 95/96 FY 96/97 Description Personal Services 1,696,874- 1,139,833 1,242,099 1,080,918. 1,153,266 Operating,Expenses =r, 382,466 735,7811. 136,848 399,810; 119,310 Capital Outlay 4,500 1,874' 0 0 0 Total General Fund- 2,083,840 1,877,488' ;1,378,947 1,480,728 1172,676. Personnel ._Y' _.. ...-- -z - ._ .... - r, .. .�. - _ . ;;,- • I: Non-Safety - "- 16.00 - - 14.00 14.00--- - -14.00 - 13.00. TOTAL 16.00 14.00 14.00 14.00 13.00 7-- Other Funds a= Actual-16 Mo- - Actual-- Rev. Budget- Est Actual .,Adopted FY 93/94- , FY 94/95 FY 95/96.., , FY 95196 _ -FY 96/97.. Description Redevelopment-Legal 208,874 -: -25,990- 200,000 200,000. . _..2-00,000_ Self Insurance-Legal 0' 67,738 68,652 68,583 690611 Total Other Funds- - 208,874' 41;748 268652 268,583- 269,611+ r Personnel _ - Non-Safety 0.00 1.00 1:00 1.00 1.00 TOTAL '' 0.00 1.00 1.00 1.00 1.00 43 City of Huntington Beach Annual Budget CITY.. TREASURER Mission;statement:•, To collect and invest all moneys• received by the City-at.thei,highest rate 'of return with maxim umi safety.. Department Description: The City Treasurer is an elected official and serves a four year term. As a Department Head the-City Treasurer is responsible for collecting and investing all moneys received by the City. -The-department processes over: 350,000� payments annually; handles--over.20,000 service requests, and changes,-administers.over. 16,000 business licenses, and is responsible:for overseeing the revenues for transient occupancy tax and.oil-well production.: The department has an on-going program Hof utilizing automation,to maximize efficiency; service, and investment revenue. Approximately $3.3 million was earned on investments in 95/96. HIGHLIGHTS:- There-are,no•staffing changes-in the Treasurer's Office for 96/97; .A new program..- involving ,aggressive enforcement of the.-Business License Ordinance will be:instituted by.dedicating on Building Code Enforcement Officer to that function. Business License Revenue Occupancy Tax 1.94 2 21 49 1 47 1 65 1.2 2 1 38 ,� 1 _ C N Fa05 w� dt f O p 1 :�1.5 IWO 3 a- ,'Mir 0.9 0' , 3 .. � 0.7 92/93 93194 94/95 95/96 96197 92193 93/94 94/95 65/96 ... 96197 General Fund Actual-15 Mo Actual Rev. Budget Est Actual Adopted FY 93/9.4 ,,; FY 94195 FY 95/96 FY 95/96 FY 96/97 Description Personal services 873-081- 683;268• 707,358• 717,068 .748,165, Operating Expenses 28,142 29,906. . 28,540. . 28,139 37946 Capital-Outlay 0. 0 271'000 - 26,702 0 Total.General Fund 901,223 713,174 762,097 771,909. _.786,111.. Personnel Non-Safety 13.00 13.00 13.00 13.00 13.063 TOTAL 13.00 1.3.00 13.00 13.00 13.00 44' City of Huntington Beach Annual Budget CITY CLERK . Mission Statement: To function as the Corporate Secretary of the City of Huntington Beach and.. Clerk of the City Council. r: ' �' Department Description: The City Clerk's Office is responsible for fulfilling all duties mandated by the"Huntington Beach-City Charter-*and -,the State and Federal Government. The-City--Clerk's`'office produces all City Council agendas, attends all Council meetings, records:and communicates-Council legislative actions and proceedings. The City Clerk conducts all municipal elections, coordinates and advises public officials and candidates for public office and the publib�of election matters. The City Clerk serves=as the filing' and auditing officer for election campaign reports -and -statements of economic-,interest f&=designated employees and certain appointed officials. Coordinates City Council, City Administration, City Attorney, -City Treasurer and Planning Commission.,-filings,with the State of: California Fair Political Practices Commission. ' The City Clerk maintains in-protective custody all documents certifying corporate actions and authority including deeds, contracts, agenda related materials,�:_public� notices "•arid- assures archival preservations of records for public and official,.-,use. Receives."Public'Works bids'and attends bid openings, accepts and logs claims and service of legal process. The City Clerk performs budgeting,-planning, supervisory and training responsibilities in administering the functions.of the"City•Clerk's Office under°the authority of.the City Charter, the City Council and the electorate: - HIGHLIGHTS The City. Clerk's ,office also offers the public access to city"'information through the Huntington- Beach City Clerk's--Information Highway Bulletin Board System. Information' made, available on the system includes City Council Agendas and minutes, public notices, agendas and minutes of various other boards, commissions, and committees and library information. General Fund A_c_ tual-15,Md Actual `7Rev. Budget .: _ Est Actual Adopted FY 93/94 FY 94/95 FY 95/96 FY 95/96 FY.96/97 Description Personal-Services :".J 494,548: 412;551 407,320 427,925 412 426 Operating Expenses . 26,780 72,246 101,850 111,850 1.11,550 Capital Outlay 3,057 0 0 0 0 Total General Fund 524,385 484,797 509,170 539,775 523,976 Personnel Non-Safety 7.00 7.00 7.00 7.00 7.00 TOTAL 7.00 7.00 7.00 7.00 7.00 45 City of Huntington Beach Annual Budget ADMINISTRATIVE SERVICES Mission Statement: To provide quality information and output in a timely manner to City Departments, the City Council, the public, and other groups and organizations. Department Description: The Administrative_ Serv.ices..Department is responsible for. the annual budget processOus.six divisions: - Finance: Includes payroll, accounts payable, audits, accounting and Annual Financial Report. Information Systems: Provides data and -word processing- services and-- strives -to, maintain a; leadership position in automation technology in-a cost effective manner.._.. Personnel_: -Administration of a centralized personnel, system .including recruitment, examination affirmative action, labor relations, training, 3 classification, and employee records. General, Fund,Staffing Property . Management:.. Acquisition; v disposition, and. management :;of ,real -<. • _ property. �.,: 55. 0 1 50.00. Self Insurance:.-, Insurance .and claims . services in the areas of liability and worker's45.00. compensation. Also, administers the self = insured employee medical indemnity plan. 40 00 Central Services: Purchasing, mail.--room,, .35..00 printshop and store room. - 91/92 .92/93 = 93/94 94/95 95196 96/9.7 General Fund Actual-15 Mo Actual Rev. Budget Est Actual Adopted a, FY 93194. FY 94/95 5 FY 95/96 FY 95196 FY 96/97 Description Personal Services 3,928,881 3,077,283 3,065,782 2,994,448 2;930,599 Operating Expenses 1,314,951 1,146,025 1,13a,129• 1,144,889 -1,261;752 Capital Outlay 13;694 9,485 14,977 - 14,000 .34;205 Total General Fund 5,257,526 4,232,793 4,218,888 4,153,337 4,235,556 Personnel Non-Safety 47.50 45.25 44.75 44.75 TOTAL 47.50 45.25 44.75 44.75 43.25 46, City of Huntington Beach Annual Budget HIGHLIGHTS r Staffing Reductions:- .2:management level:positions have.,been eliminated•and reallocated to-.lower! level, non-management positions saving over$65,000 per year. Computer cost reductions of$17,000 have been,:accomplished:. by switching contractors for--maintenance :services. _ Two accounting- positions.have been reduced from full-time to part timesaving over$11,000-per year:_. Computer Automation projects will be continue in-.96/97.• Over;400 personal-computers (PC's) have been networked, providing the ability to use the latest technological-improvements. A second major, omputer i. automation project is the development of a Geographic Information 'System' (GIS), which is a computerized map of every piece of..property;in the City.:.All streets are mapped, plus_wat-er> lines-,--.traffic_signals,, fire_hydrants, parcel --boundaries and- information such as-,owner, address, zoning ,and tractInumbers.. The end result will;be-a more efficient organization and better. service to the public in regards to•information needs. ; Budget and iResearch will begin development of a 2-year budget ;document-'and iprocess. It--is hoped Administrative-Services that this-will enable the city to .streamline the budget General Fund.Adopted,Budgets preparation process and create an `opportunity to = -:•; ,,., develop information-for:they second year.enabling a 4.5 "fine-tuning process" rather that a full budget 4.4 preparation from the ground up each year. ° a a :: . _ 4s18. _ n4.2 Monthly expenditure reports, ' and_. . Quarterly revenue/expenditure reports of General Fund 4•1 ' activity will continue to be prepared in 96/97: These 4. reports- provide.the current.and :projected.status of 92193 93/94. 94/95 95/96' 96197 the General'Fund and are used to identify problem salary-and 'Benefit costs continue' to decline in 96/97;` areas and-'make"mid-year adjustments= however;=operating eapen§es'-for postage,.iprinting,==and f equipment replacement were.increased.' Other Funds. •Actual-15 Mo Actual Rev. Budget Est Actual Adopted FY 93/94 FY 94/95 FY 95/96 FY 96/96 FY.96/97 Description Equipment _ 3,968,894 3,488,330- 4,686,489 - 4,686,435 3,784,750" Replacement Self Insurance Fund t.; 13,751,768'...' '10,720;922. -.11,208,469 - 9,619,783 10,237.,,684- Total.Other,Funds. , 1.7,720,662.r, 14,209,000 15,894,610.:. 14,306,218 . 14,022,434.- r Personnel Non-Safety 9.75. 1.0;75. 1.0.75. 10.75 9.75 TOTAL 9.75. 10.75. 10.75 10.75 9. 5 47 City of Huntington Beach Annual Budget ECONOMIC DEVELOPMENT Mission Statement: To carry out the overall administration and implementation of Business- Development, Redevelopment.and Community Development Block Grant(CDBG) Programs: a Department Description: -,The Department of Economic Development is-organized. into`three (3) divisions. The goal of- the department. is to preserve and •enhance the'--economic' base of the community by business attraction and retention, using Redevelopment to revitalize the five (5) adopted .Redevelopment Project Areas, and to-improve and support lower income areas with the Community Development Block Grant Program. Major projects include a) within the Main Pier Repayments to General Fund Project Area: Implementation a major mixed t use project, negotiations-to provide a=timeshare 1.4 3 project, homes, and a� hotel adjacent to the 1 2 0:9 fin x �.. 1 4 x Hilton Hotel. b) in the Talbert-Beach Area: o Y .: Completion of construction of the Sasounian = 0 8 Capital Ventures, Inc. Project - of 38 g ' 0.6 7 condominium units including 25 units reserved 0.4 Y for moderate income.. buyers through the 0.2 p 3 agency's Housing Set-A-Side Program; c in the Huntington Center Area: . Negotiations _ 90/91 91/92 92/93'93/94 94/95.95/96 96/97- with the-owner of the Huntington Beach Mall regarding agency assistance,, on=!repositioning Property Tax Increment the mall-.in today's market;:dfOakview Project 5.2 Area: Continuing to provide jsuppot to social 5 05 service agencies and rehabilitation; of multi- family housing units;.,and e)-Yorktown-Lake: 5 The development.-of an affordable . housing o " 4.8 4 58. 4 61; 4 59 project. The. repayment of, redevelopment 46 funds.to the.City will continue!in this fiscal year ; __ 4.6 with payments of.$1;.100;000. 4.4 4.2 90/91 91/92 i92/93 93/94 94/95 95/96 96/97 Economic = Actual-15 Mo Actual Budget Est Actual _Adopted Development FY 93/94, FY 94/95 FY 95/96 FY 95/96 -FY 96/97 Description Projects,, 17,838,154 9,115,953 .. 8,629,964 5,265,008 ;6,117'.797. Tax Increment " 8,750,745 4,990,257 4,927;1'91 4,883,333 4,84'0,243 Total Economic Devi. 'Y 26,588,899 ' '14,106,210 `13,557,155 10,148,341' 10,958,04o Personnel _ - Non-Safety 14'80 1'3.00 1'5.00 15.00 20.05 TOTAL 14.80 13.00 15:00 15.00 20.05 48 ' City of Huntington Beach Annual Budget HIGHLIGHTS '-, = L Over the past several years, the downtown area has undergone a major revitalization under the guidance of the Redevelopment Agency.; With the:completion of Ruby.'s"Surf City",Diner at the:end of the Pier, the soon:to,be.cornpleted,"D.wkes" restaurant at the foot of the Pier:, and the.Pier Plaza which will be completed in early 1998, downtown Huntington Beach been transformed into a contemporary, visitor serving destination as well as a revitalized draw for local area residents. Oil rc Pierside Pavilion entrance to Edwards Cinema. •1 . Huntington_Beacli Pier,-Ruhy's_y`Surf City"Diner Oceanview Promenade (left) and Pierside Pavilion offer retail shopping, professional office suites, restaurants, and entertainment. S MY 1 YJ:x "{r - i .. b.. - -.. A recent commercial addition to downtown. Waterfront Hilton Resort Hotel on PCH south of the Pier. 49. City of Huntington Beach Annual Budget COMMUNITY DEVELOPMENT Mission :statement: To provide direction and leadership{in providing building and'planning services: for the people of-Huntington,Beach within the context of the City's goals andl objectives. Department Description: The Community. Development Department is divided into two divisions, Planning and Building & Safety: ._..The -Department is responsible for ensuring that proposed development within"�the City'conforrims to=all:applicable laws and regulations embodied in state and local codes. These; regulations include enforcement of building codes and land use and zoning regulations. Planning Division: -This Division. processes development applications for land use entitlements grid code amendmenfs-to,various zoning4tind municipal codes. In-addition, the division processes General Plan Amendments and.ensures that.developments are planned in conformance with the General Plan. The Division provides,staff support to 6h Planning Commission and City Council :on land use and planning issues: The division is.also. responsible for the enforcement of zoning and`municipal:codes through the Code Enforcement-program. Development Related Revenue Building Division: This Division issues 2 _ building permits, performs plan checks r and inspections to ensure conformance 1.5 with -the applicable building codes. N Approximately :9,000 permits are issued ° 1 < `, annually *for electrical,: ..mechanical, plumbing, swimming pool,-and structural c 0.5 work. ei4 89/90 . .91/92 93/94 95/96 x. 13 PERMITS m BUILDING FEES 13 PLAN CHECK } General Fund Actual-15 Mo Actual Rev. Budget Est Actual Adopted FY 93/94 FY 94/95 FY 95/96 FY 95196 FY 96/97 Description - - Personal Services . .3;896,507 2,800,789 2,912,734-. 2;828,0.05 3,033,692 Operating-Expenses ' 329,733 572,783 . --4,38,884 438,884 '�2421893 Capital Outlay. 0 6,278. j,. �26000 26;000-.:` 0 Total Genneral Fund.'3 4,226;240 3,379,850 3.;377,618 :: :3.292;889 ` -1276,585 Personnel -' Non-Safety 53.00 ' 50.50 47.50. 47.50 -45:00 Total Personnel 53.00 50.50 47.50 47.50 45.00 50 City of Huntington Beach Annual Budget HIGHLIGHTS �3V _i•.�: :J . The Community Development Department is handling a busy.workload,w,,ith;many,diverse.types.:of projects. The. Planning Division.is:continuing to;oversee requests for entitlements in 'the Holly-Seacliff area.: The,proposed .Bolsa.Chica development; is, being processed•through. the,County-of Orange but-.the: City,-�is .expending considerable resources -to assure -that its input is.adequate .and -complete. The Pla1.nning ,Division,,is also: completing--work,on ,revisions to. the.City,'s General Plan and is facilitating communication and decision making between the city and our five school districts:: The-Zoning .Code: Enforcement Section is continuing to do an excellent job, responding to complaints received, even though-the volume of violations-reported has-increased:.,-, r. The Buildinct Division is ,handling a large volume'.of permits;, many;of..which,are housing--remodels and. additions. Structural, mechanical, and. electrical inspectors -are being -trained for combined; inspections. At the same time, the Division isrmaking a;concerted effort to provide.the;best•possible. customer service to the residents. _ vl it The Holly/Seacliff development project will eventually A major business park is under development consist of over 5,000 residential units of various sizes near the McDonnell Douglas Space Systems and price ranges. The project will complete the last, Center. large area of undeveloped.land in the.City,:: _ Other Funds Actual. Act -15 Mo Rev. Budget . _ Est Actual. Adopted-: FY'92/93 FY-43/94 FY*94/95;- FY 94/95n FY 95/96-- Desdription _ H'C.D.' Block Grant 0 0 0 0 0 Total'Othdr Funds _ , .. 0 4. 0 Personnel Nor =Safety ::;, 0'00 1.00 �1.00 1.00 0:00 Total Personnel - 0.00 . 1.00 1.00_ 1.00 0.00 51= City of Huntington Beach Annual Budget FIRE DEPARTMENT Mission ;statement: To maintain a safe and secure community by providing quality public services., with the highest professional standards: Department Description: The Huntington Beach Fire Department_operates and maintains seven fire- stations within�the City's boundaries, plus -thee Joint Powers Training =Facility. The Department provides 'a fire'and 'rescue/paramedic system) on a 24' hour basis.-The Department )maintain s' an aggressive•fire•prevention and:education'program as an integral part of its,fire!control"mission.-` The Fire'Department also operates and maintains the City's Civil Defense Em- ncy 'Services facility located below the Civic Center.'' - The Department maintains a Hazardous Materials Response Unit`virhich operates as part of a'County- Wide Response Team. The Fire Department also operates a subscription based paramedic program called -,Fi-reMed. This voluntary' membership program 'offers -a mechanism 'for residents and- businesses to ,cap -their emergency medical:,siervic'e' and ambulance transportation costs, while supporting the expansion of the City's paramedic system: `' }" t+i"¢-a�t � +�ili kR!�'" § �1j�,�, - off{�}^�• �, k 'i .'2L<a �1a•y - aJ- p� General Fund Actual-15 Mo Actual Budget 'E'st-Actual "Adopted FY 93/94 FY 94/95 FY 95/96 FY 95/96 FY 96/97 Description s_ , personal :iervice _ : . 17,068'266. 13,130,892 13701-,386-.-, 13,435,795 -13,728,296'-- Operating.Expenses' 2,597,236 2,33 4,350° 2:432;089t 2,451,162 2,565,580 . Capital Outlay 378,979 33,115 s4,275 0 26,405 Total General Fund 20,044,481 15,49.8,357 16,137,750 15,886,957 16,320,281 _. Personnel Safety 132.75 132.75 129.75 129.75 129:75 ; Non-Safety `1`7.00 '16.00 16 00 16.00 15.00 TOTAL 149.75 148.75 146.75 145.75 . r 144.75' 52 City of Huntington Beach Annual Budget HIGHLIGHTS • Reductions-.of $330,,000 were made-for.+96/97,from a combination:,of changes:which include::.the. elimination of one clerical position; the elimination of 14 dispatch.positions and.expense reductions due to the fomation of a new, Joint Powers Authority for communications with the cities of .-Anaheim;;;.Fountain Valley, Fullerton; Garden-:Grove;. Orange; Newport Beach,:•and,:Huntington 1 Beach; and.new revenues from the city's FireMed :.program,"reimbursing,.paramedic-differential, -costs. Ztarting;in -1997/98 •there-will-be.increased costs-for Fire Station_6dand ,acquisition. The, ,:.cost for the acquisition.will.,be.offset by the_costsaving.programs being implemented for 1996/97. • The City's ambulance service-'which began operatingt {n. , in November 1993, was honored with: the..League of _ yY California Cities' Helen Putnam . Award for :x Excellence. The program, serving as, a model-"for Y other'-agencies, ."has proven. to, be. successful.-in- l 1 T:F providing '.enhanced - medical services in - a -.cost.. effective manner: =" Paramedic services were- -_ reorganized into .an-`all paramedic: engine deliveryF . system in November 1995. '.This';program provides a paramedic= engine in _.every:fire station and will r ,,,:im rove emer enc medical; response 'times-;to:,all p g Y� � p = areas.of the:City while,reducing,operating:costs.__ '�r3c. Nc�l i3.t SE' N. y,4 FJ OFF • ; Planning continues for the relocation of fire station 8-Heil. Funds- area bud eted this ear,.�for R RRsite s } r� acquisition.;for the°'future Holly Seacllff "fire station 'ti (Holly/Seacliff Engineering Fund). tevelope-- are' �' funding. the construction.:of:.the ;Fire.. Station -and contributin annual) fo the'staffn of the facilit f) g s Y_ 9 Y r • The Joint Powers,Authority shown on.left operates, training facilities for the cities of Fountain Valley, 17 Huntington Beach, and Newport Beach. Other Funds Actual4s=Mo.-:'.K. Actual-',.-- Budget _. _ Est Actual Adopted FY 93/94 FY 94195 FY 95/96 FY 95/96 'FY96/97 Describtion - - i FEMA,Grant 0` - .0 0 0 1,336,699 Fire Joint Powers' 1,979,076` 1,7185741` 2,342;902` 1,711,999 "'' ' 0'. Fire Medical 2,618,084 2,330,326 2,637,885 2,602,373 3,106,990 Total Other Funds 4,597,160 4,048,900 4,980,787 4,314,373 4,445,689 Personnel Safety: IQ 9.25 9.25 9.25 9.25 9.25 Non-Safety 20.00 20.00 20.00 20.00 7.75 TOTAL 29.25 29.25 29.25 29.25 17.00 53' City of Huntington Beach Annual Budget POLICE DEPARTMENT Mission Statement: To.maintain=a safe.and secure community by.providing.'quality':public-,services with the highest professional standards. Department Description: :,The Police Department- has; for many years,," been a' leader in "the implementation and-use of advanced'technology for the 'provisions1-of safety services: Examples of these are computer dispatch and: automated reporting systems, -quiet technology helicopters with infra-red night viewing capability, and an advanced scientific laboratory complete with the CAL-ID fingerprint cross-matching system. The Policy; Department's main base.of operation is housed in a * , � �af modern; three level structure, located,:at- the Civic Center complex. The.Department maintains a full service jail facility at `z the main; station'.. - Other.operation's located at: the main station include.the"communications•=:center; the training center and all administrative and 'investigative activities. Nearby, a heliport •facility provides a permanent,base of operations for the helicopters. 5.. The Deoirtment .also staffs four substations.-located-at 'Huntington- Center, 'Oakview, Huntington Harbor,` and downtown'for bringing police service closer_to the community'and to address"specific crime problems. The department also has a mobile substation designedµ•:;to provide flexible deployment for transitory�crlme problems. y Organizationally; the Police Department consists of four divisions; Uniform, Administration, Investigation, k, and Services. ,x , General Fund Actual-15 Mo Actual Rev. Budget Est Actual Adopted . . FY 93/94 .: FY 94/95. FY 95/96- FY 95/96 FY 96/97 Description t Personal Services 35,704,847 28,344,822 28,157,335 28,588,363 28,807,645 Operating Expenses 3,423,779 3,648,067 3,687.,688 3,735,878 3-,787,948 Capital Outlay 46,.811 73,037 381672 _ 33,172. 17,700 Total General Fund 39,175,437 32,065,926 31,883,695 32,357,413 32,613,293 Personnel Safety 220.00 230.00 228.00 228.00 227.00 Non=Safety 143.00 143.00 144.00 144.00 142.00' TOTAL 363.00 373.00 372.00 372.00 369.00 54 City of Huntington Beach Annual Budget HIGHLIGHTS. - The Department's total General Fund budget increased from $31.8 million in 95/96 to $$2.6 million.in ,ii If t -.for-' . .-..1 +r 1. y. �I ll.-' s. - .1..4r• 96%97 due 'to increased funding 'overtime, reinstatement• 6 4-funding removed in prior years -for ' �•� ram- •-.�o .. .., - , attrition,-equipment re'placemenf'costs; and-uncontrollable�increases: Because=of declining Narcotic Forfeiture Fund revenue, the department has implemented a plan of gradually transferring personnel to the' General Fund: One Officer was transferred for 96/97. - Three positions were eliminated in 96/97. One, a helicopter pilot, will require thbr'Aero`.Bureau Sergeant'to fill this vacancy.'-:The result-will be'a:reduction of the Sergeants ime spent of day.to.day supervision of Aero operation,=and will reduce the availabl6:back-up}hou�s�ln the event'of;vacancies due to vacations•or illnesses. •The`elimination of one �of-the existing 7 Accident Investigator-positions will impact taxi,'and towing company inspections; may delay DUI.billings and'VIN verifications;'and will cause the closing -of the Traffic Bureau on Fridays: `The-elimination of the Information Specialist position will impact preparation-of department training videos: Operating expense reductions pnrnanly impact maintenance and training accounts. ' �:. '^�.�^ _.. - f!C5_ Ste- - -. 1 .: .. , !_. ,r . •y.i. 3 : _ . . The Department recently, implemented a new Retired .Senior Volunteer Program which -recruits seniors citizens""who wish to-,contribute.their time k � � and -expertise for non-hazardous tasks. The •Department- provides--extensive`-,training prior to r 4 their assignments and-so-far, have graduated-over seventy-five seniors for duties" that include residential vacation checks, illegally g g y posted sign i removal; 'some. parking enforcement _(particularly handicapped 'parking' Violations) and(-'other miscellaneous"administrative tasks: Their valuable assistance has:.enabled.the-Department to provide improvei&service to the community.. = Othee-Funds. L � - Actual=15`Mo -'�' Actual:, Rev:.Budgef" _.;Est Acfual= Adopted t- "�." FY"93/94 -;r-"� FY 94/95' '�= IFY 95/96,' "-FY,95/96 `�!'= -FY 96/9T: Describtiori - , • �: :� r, �,._ 4 :,�,.. - _ _. Bureau=JUstice -tPD 0.�: . 0 ,. . 191'550`' Cal CAP/COPS More 321,723 211,711 255,095,' 249.748=" i'`' 231`;972 Helicopter Repl. 175,842 179,953 233,636 116:818 0 Jail Donations "-- 398 ti =' 2,234_� 8;400 8,400 :1:5,000 Na"r..cotic Forfeiture kZ. 1,27A 71.0 952 753 85.9;56`5 '''. 344,174 420,174 Pol. Comm. Relations 11,937 11,537 25,000 25,000 - .25,000 Special:Training -+PD - 0'. 01 _ 0'; `• 0t- 20,000 Suppl: Law - PD _,. 0 0 0 L.:. :0 - . 435605 Total Other Funds 1,781,610 1,358;188:, 1,381-,6961 744,140 1 339;301 - Personnel Safety 10.00 6.00 6.00 6.00 �f4:00 Non=Safety 17.00 5.00 =4.00 4.00 400 TOTAL 27.00 11.00 10.00 10.00 �8.00 55 City of Huntington Beach Annual Budget COMMUNITY SERVICES Mission Statement: to-provide.outstandi:ng-park and recreationalq.:cultural services,-P,uman_,services, marine• safety, .beach-pier-harbor,:maintenance; .and .,park-beach development planning on a ear round basis _ :. . ,;Y " Department Description:The Community Services Department is organized under four divisions: The.Beach..-Recreation &Zeveloament Division provides'for .marine,.safety ,-..(lifeguards), beach-pier-harbor: ,maintenance; beach,,parking ;and; camping, : residential-,business-recreational e r „-zone parking meters,'Main 'Promenade Parking Structure,-Junior iLifegpards, Huntington Central Park-and.Shipley Nature Center;. �~ Edison:and Murd Communit Centers/Parks -Clt ,:G m:-and Y ,r Y° , , Y, f Y Y. . ' Pool, contract classes,.--..youth, sports, `day.: camps;,,.aquatics; Lifeguard Boat Rescue operations are Adventure Playground, and special events. headquartered in Huntington Harbour at A joint.use facility.with,the Fire Dept. = ,The,Recreation/Human Services' Division•;is responsible:.for-,:the: Rodgers Senior Center, Senior Outreach:Center, Oak.View.Center, clubhouse- • rentals, Projeet,;Self-Sufficiency, adult sports, Cove_Senior' Housing; Fourths-of July: Parade, .and_ .'special programs'such- as Santa \fisitation. The .Cult iral Services Division provides arts and historic. programming throughout the city including the H`B Art: Central'Park provides ar`elaxing, passive use Center, Concert_.Band, i Newland;.Museum, Concerts id';the . environment as well as active pursuits such as Park, and numerous special,events:and.festivals1.,- ,, .. ;\.:.~2(" - Frisbee Golf;'playgrounds and a DogPark:." The Administration,and.Develoament Division-supervises the�.other.divisions and provides clerical and operational support' to programs.', In addition,_;°itt, is responsible for park and beach planning, master plan development, and facility design, as well administration of concession agreements; monitoring of Meadowlark Golf Course, the Huntington Central Park Equestrian Center,,andlmarketing the "Surf City" licensing.program:- i,'l.r' General Fund Actual-15-W Actual Rev. Budget Est Actual .,.` Adopted; ; ..: .. a, FY 93/94:,? FY 94/95 FY 95/.96> FY 95/96' FY,96/9:7 Description Personal Services 7,090,387 5,177,663 5,13.1,402 5,142;234 : ".51004'144 ' Operating Expenses 2,216,576 1,602,287 1,689,863 1,674:386 1•;653i655'- Capital�Qutlay 13,035 44,209,_ 0•: 0 :. ` :: ,.:' 9 148 Total General Fund 9,319,998 6,824,159 6,821,265 6,816,619 6,666,947 Personnel Safety s; 12.00 (12.00 .1:1.00 11.00 Non-Safety 51.00 51.00 49.75 49.75 46.75 TOTAL 63.00 63.00 60.75 60.75 57.75 56 City of Huntington Beach Annual Budget HI-0- ALIGHTS H.B. Muhicioal;Art Center T he Huntington Be' ach Art Center is a community art center that provides local citizens and a regional audience with opportunities for exposure to an involvement in the visual arts. The Center presents the work.of living artists working,,in all media and:addressing-a.wide:range, of concerns,'.",._Thro*bgh.exhibitions and* concurrent _prqgrpmMjipg,__4he-,Hunti!nqtoh_.-Beach Art -Center serves 'tp 'advancd; public awareness. i3rid un'd6isitiandin6 'of, c6ntp(np'q'ra'ry,:;a-'�rrt'/ide'!a:s;,.',a'r4,,- ' creates, 6ppofturfities-`for local,-6666hal, and international artists and the'co mi miuhity't6 share in.a climate of. experimentation, education and expression. The Huntington Beacli'Art' Ide' riteir is apublic/priva 1 te partnership with the City:ofHuntington -Beach and,the Huntipgton -Beach Art..Center_Fqyndation,.a private n6ri-profit organiiciti6n.- Park and Beach dw"lov:mi'eht'No' ri�a' ra d6l Gibbs Park�vai recently coa�pret 6d -as'.a- :nlatural,area.. and habitat for migrating Monarch butterflies. 'Skateboard 'areas a' -Murdy, Community Park and Huntington Beach -High School -Stadium, were completed ,last...yppr; and. .have-proven extremely successful_in-n-elirhinating.skateboard damage parks and. campuses. Booster. and' Prince_.Parks, in. th 6'.H u nti ngton'H arbor beein' -renovate&..,at recently installed,...accessible Dlay-e uipTf�nt.at; ... received 1. . 1 .1 comments '- . _ the .. q Bboifet and* Mutdy' t6m:'.'mu;'ni'ty '06rks'has� 'received positive comments form thd disabled and. the, parents of small children Marine Safety. A safety recent survey of coastal communities showed the Huntington Beach,marine w' - y operations 16- bd"io-nie. of`the busiesf and well-managed operations"on' the coast. Staff recently completed a reorganization and developed a comprehensive procedural manual outlining all aspects of marine safety. Chances for J996/97: Geheral-!Fund reductions include the-elimination of-two recurrent Recreation Lectiders'at-Oak View Center, thereby reducing hours; reduction i-n-hours at the- %Naturp'Ceriter by the elimination;of a -recurrent ranger; elimination of a recurrent Clerical staff position ;- and reduction in ho&s of security surveillance of the Main-Promenade Strudtilre (due to changed idoriditions-reducing the needfor sumeilla`nob kours). Other-Funds- .-Actual-15 Mo. Actual. - -Budget Est Actual Adopted FY 93/94 FY 94/95 FY 95/96 FY 95/96 FY 96/97 Description_ Art 400,103 Cehi6e_ 21 0,A 84" 376,349.' '2N,890 -- 366-,273 cbBG--F-un' d 0 0: 576,392 _ - 485,269 1,975,300,Emerald Cove 920,898 558,068. 844,4881. 844,488 :"-844-488_' Fouirth"of July 299*701 18 f,60 1,-. 177 441: % 176,375 _-1 76,856 Mbadowla'rk Golf ' 163,579 503:702 350,000. Park Acq & 1,588-1499 0 1,7101662 1,462,396 927r,000' Development Parking Authority 1,421,089,<-- 14,000" 171,000 01- _0 Total Other Funds 4,603,950 1,633,720 4,230,086 3,363,418 4,289,911 Personnel Non-Safety 0.75 6.50 6.75 6.75 6.75 TOTAL 015 6.50 6.75 6.75 6:75' � 57 , City of Huntington Beach Annual Budget LIBRARYSERVICES Mission Statement: To strive to meet the educational informational, and cultural needs .of the community. «. Department Description: The Central Libras;and four branches circulated over 1� million items in 1995/96•and answered-252,000 reference questions. '20,700 childrenattended weekly:story hour and: other programs.= The-library system._has over '340,000 books, 700 magazine subscriptions, 3,500 videos, and 3,600 compact discs: There are over 135,000 I&ary'card holders and over 1 million people visited the library.system this past year. The nonresident library card fee was established with 4,500 nonresident 'patron's paying` their annual fee of $20. 60% of the fee proceeds is used to purchase books ($53,000),,and 40% of the fee is placed in the City's General Fund`($37;000). - The Literacy Program affords anyone wanting to learn to read that opportunity.- Volunteer tutor work; with'students on an individual basis to develop their-reading skills: This 'rewarding program has'been. successful in giving•many people the opportunity that they world not have otherwise had -to learn to. read. , k Materials in Gfrculation ��� E L'ibrary- Permanent Positions40.00 '. 2. gg u� p1 20 = 112 11� 1.14 38.00 k- t t0 0 36.00 c �' ores a r: N. 34.00 ` u 32.00 : �ors� s1192s z�ss a9/ea$ s4 ss 98/98 98197 91/92 92/93 93/94 94195 95/96 96/97 General Fund Actual-15 Mo Actual - Budget. Est Actual 'Adopted FY 93/94 FY 94/95 FY 95/06 FY 95/96 FY 96/97 Descriptioni Personal Services 2,689,333 2,116,.846 ' 2,119,858. 2,130,518 .2,058,276, Operating Expenses 1,506,488 . 973,466 - 952,732 .. 952,732 531,999. Capital Outlay 8,920 8,828 8,000, 8,000 0 Total General Fund 4,204,741. 3,099,140: 3,080,590'- 3,091,250 . •-2,59%275. . Personnel` Non-Safety 38.75 36.75 36.00 36.00 35.00 e TOTAL 38.75 36.75 36.00 36.00 35.00 58. City of Huntington Beach Annual Budget HIGHLIGHTS: The most=significant change is-,a;reductiornof.bnemaintenance.position,,. reduction of funding for, temporary-maintenance personnel. .-The -new:Library/Cultural- Development Fee-may !allow. the- restoration of,funding•for.:the temporary:personnel.? One-position:;will.be reallocated,to a lower level; and photocopying services will be privatized. Last year, the Library Services Department reorganized to provide funding for a position within Literacy as well as funding to upgrade r 4 positions;,to. line .isupervisor, -functions,: reorganizing positions,; eliminated-over.the last-four..years'L 0. i4 The library will sponsor several f ; n musical events in the Library .€ Y Theater. These 3 ro rams swill ' z � � increase_.revenuesi49d. bring cultural _ enrichment V to.-the community-.- ...In. -addition;,;the„library,will':assist the. i Huntington Beach Music. Society in their programming of musical concerts within the Libra The Library eater. a � The, -art groups, the Arts _Associates. and the Art � ➢u,,,zs ,t>ytt-.r �. - t: t �-`.t ``- T ^ ye; ,t� ,,,��'y�. «y � League_. will continue to - _operatetheir galleries at the Central.Library. The friends of the .Library :will. continue to hold their semi-annual .;used. . book. sales with f � 5 i proceeds ..going`,--to, -.the Y-; library. . The.Central,.Library_` y�r "~ r was the first non.Civic Center.location to;be.placed on the City's computer network. Other Funds Actual-15 Mo Actual Budget Est Actual Adopted R. FY 93/94, FY 9.4/95. FY 95/96;,- ..,i-f.FY 95/96 FY 96/97- Descrinti6n - _ _ - Libr/Cultural Facilities 0- ""� 0_ T"0 0 .245,888 Library;Construction-. ,. 4,1,0741572 619;315<, ff, 0.-.. 0 g 0 . Library.Service Furid 664,;6'13.- - 790,004;. ; :, 490,477 490,477 447,847 - Library%Other Grants 964,;562-, } 0 40;.566 28,827 70,691 - Total Other Funds.. 2,703,747 1,409,319 , 531,943 519,304 764,426 Personnel Non-Safety . _.1,25 ; ,1..50 1,.50 1.50 '1.00 F . . fir' .[ . .. TOTAL. 1..25. ._ j.50 , 1:.50 1.50 1.00, 59= City of Huntington Beach Annual Budget PUBLIC WORKS Mission :3tatement: To meet the health and safety needs of the community by maintaining the City's infrastructure including.,the,streets,:sewers, water; traffic,-.and drainage systemsi .Also; maintain City assets :and, structures =such:,--as.-parks, <street.~-.trees,, libraries, recreation centers; vehicles, and equipment. Administer the :enterprise:funds for"'water-operations-and- refuse collection; and speciaP funds for sewer, drainage, and street projects.:. = Department Description: x Engineering Division-provides planning, design and inspection 'services for-public improvements such as':streets,, sidewalks, -andA,utilities. Development projects are reviewed for compliance with safety and construction standards. Engineering staff manages the construction of new City facilities and the special funds projects: = Maintenance Operations Division -is responsible for the maintenance of-tlie-streets, sewers, storm drains, bridges, -City buildings;-and vehicles; Cleaning and--repair activities preserve,,the value of facilities and equipment; and minimize public safety hazards. The division administers the'refuse.and recycling programs.:. Park, Tree and Landscape Division provides' maintenance - .. z services for the parks; street trees, playground equipment,;and _ , " =' r�` � sports fields throughout=the City. All street medians and facility - � landscaping •are. kept in -a--safe and- attractive .condition: Certified personnelTorovide weed and-.pest control services to City properties. New landscape projects.,are review_ ed .'and' .in for compliance with City ordinances. The Donald Kiser Corporate.Yard is the base of-operations for the City's Public Water Division-` "operates and maintains' :.the.: City's water Works mai�itenance division. system. Responsibilities include;.water.,product on, _distribution,. meter maintenance, water quality, and,.planning. The Water Division is also responsible f61r th-e`development`of new�water"facilities`'and will dire:6t implementation of the 1995 Master plan. i s Generai--Fund =' .Actual-1'Sy�Mo-= Actual :: Budget-- Est Actual Adopted FY 93/94 FY 94/95 FY 95/96 FY 95/96 Description ` Personal Services 13297,943. 10,428,302 ' 10,577,736� , 10,045,255.. '9;940,818'-, Operating Expenses: 5:179,934- 4,731,220 4,706;060.. ' 4,665198 5,13.,6,373 Capital Outlay 78,062 259,133 184,260 230:200 - 86,1.00' Total General Fund 18,555,929 15,419,655 �' ``15,467,995 - ;-14,940,653 15,163,291 Personnel _ Non-Safety 183.30 175.15 172.95 169.95 163.45 TOTAL 18330 175:15 172.95 169.95 163.45 60 City of Huntington Beach Annual Budget HIGHLIGHTS The 1996/97 Public Works budge provides funding forpriprity departmental services;,but, defers n- ssentia' l facilit�'rfiaihteriiance`land-r`ed6ces non-iemergency'rhaint6nance,support t6,.d6partm6nts._ Eight'Positions,,r6laf66-"fo''tti6g6'*services-fia'V be';-e'�n"-:e"iim"i:-%nla-*tned;'-"three Painters,'one Masonry-Work 6fi6,`Electrician-,--6n6 Construction Matictige"r, one Surveyor; and one Elcictrical'In8pect6r. ,The department will not provide painting services or block wall repairs. -These facility maintenance 1 �,j4 _7. - _. .. 1. In--, . ...,--11 - .- . I I . needs are being d&f6rr_6'd`"Re"q 66- sts-for spedialtt:Udie�br engineering,desig' fismust-include source.. Construction management and survey se rvi cesfbr City'projects will_ I b&delaye( or contracted.- lih' Ddidys-i'difi,66 'e"xp'6-ct-Lmd-l�in'--tr"a.ffii'.-C' 9ig`h'9_-l`_'a_n' -6't-h-er'i--nfrd'si*'r-"u,tture inspections-'' Non--e rdr`genc'y ele'ctrical services will be prioritized by need. The,-dejparbrTi_e`nt'will_continue to use'privak"es"O"urces- or-variou services; -Fu ing f6r,sUbdivision:se`ry se (has-be'onincreas"e d t meet -ffietemp'oi'fairy` deilm6ndis' 6fp'la'6,checking;"i'h'. 'spe'c-tio-n-.-'a' other development processing. This service will be` contracted as needed. • '..'Contiribe to r:Li.-v%i'e-w-,-'jth'f6'-'-tnuititu'de:-of-tals'k"-s'now-performed by:-' .-P-0 ic--works. k ctions ".'be"I laentified-- and resources w 7 directed toward maintaining essential operations. The cost/benefit ofless-Vital activities,will be analyzed.' The'City has a major.investment-in trees,. and- landscaping which requnre reign ar maintenance. • Preparer(Wifre a I o n g-"-r-"a 666 capital -improvement- pi-ah",i6i outline1� necessary infrastructure expansion and major-repairs. • 6infinue implementation of the Water Master Plan, an eleven year capital improvement program- 16-66n"struct n6' ':W� aker storage 'and'production 1;ic4fti`e' s. Use. Measure.J:M funds to expand ,the residential -curb and sidewalk replacement -p I r.ogra I m Othr&*ghout thb-City. ThroughoUt it40ty, dama-ge.frgm street"tree is a growing problem.. Other Funds r. --`-Actual-15 Mo Actual -'7 B4it- -.c' u9 0 0S FY 93/94 FY 94/95 FY 95/96' FY 95/96 -99/97 Description U Wai(ir'Wster Plan _ 0_'?� 1,035000 330,000 c'-.'5,984'720I A OCTA:L'GMA#6 1,681,110.. . 215,000 1,686,-1 10 RefUiq Fund 9,670,-137 9,004.-,655.,_-'. 8,911-,993-- 8,807,026..:,7, -_8746,85T Water C. r0i .0 66 �pital P 0 0 2 636 Water Utility, 31,198,011 .1-9,611,,280,.. .27,184,435- 21,398594 24,r159,179 " Total,6&r*und 4 0,8 6 8";'11'418 --28,615,835 '38,814-,538 30,750 621 44,183�,502 Personnel Non-8afety 60.75, 60.6 66-.56- 63.50 60.50 TOTAL " C 66.75 60.06 66.5 0 63.50 61;.' City of Huntington Beach Annual Budget CAPITAL IMPROVEMENTS Departrrii?nt`.Description: 'The Capital Improvement,rProgram (CI;P)`is :prepared in gjmulti-year, formate. The CIP is divided into several .major. ,categories such as:Transportation, F?arks; ;Drainage;__ Sewer, Redevelopment,. General Facilities,; etc. Projects, are budgeted in.the Capital--Improvement Program only when a funding source has been identified. A,signlfic�ii.nt portion ofahe .CIP-is.projected.ao~.be-funded from revenues restricted to use;forthe types. of projects for which they were' originally collected, i.e.,..Parks, Streets,.*.`Drainage,,etc: ' Other funding sources, .both restricted;.and non-restricted,, are water revenues;and grants .from other governmental: agencies. Each project category is presented as a budget program.cost,eenter. Although_under the supervision of various, City departments, the..CIP programs-are grouped.,together to provide a comprehensive Capital Improvement picture. , A summary schedule, of project-_expenditures for, FY 1995/96 and projected expenditures for the folWving,five.years is included._ Other Funds Actual-15 Mo Actual . Rev. Budget : Est Actual . Adopted FY 93/94 FY 94/95 FY 95/96 FY;95/96 .,FY 96/97 Description - Bluffi`op Perk 55,805 40,822: 4_ .;; 644,7.28. •; 48,679 , .50,424 CALTRANS,,:.TSM 139,016 9,511 0 0 30,887 Capital Projects 2,273,282 .: ,41.1,387,896,, :1,356,09,5 162,520 r_ 1_475;690 Cnty/Federal CRP 2,562,075 1_80,370 0. 0 ��:_,_� : ,0 Grant CRP/OCTA/SIP F, : ; 0 0. r :0 ,. = "i 0: .._ ;,200;000 Drainage Fund 1,763,263 ,:.443,532 ;1,216,944 344,669, 935,373 Flood Fund 0 0 0 0 1,000 Gas Tax Fund 12,668,969 4,529,764 ,4,200,,4 3;138,486 3,711:,_397 k HES Fund 0 .�;' 0.. 288,000. 0 356 000 Holly/Seac.liff 0 870,637 47,438 47;438 3,284,000 Assessment Measure M Fund 2,026,-031 2,506,760 • 3,242,827, ..522,546 2i685,580 Petroleum Violators 322,522b 168i71.9, 24,476 ,.:� 24,452 - 0 Pier Plaza Fund f 0 `" 6 - 0>. 0 71,583. Pier Rebuilding _ 139,418 1,388,392 97,000 0 t183,61'5 .; SB 821 Fund 0' 151',625 2651696 50,186 - _428,.434. Sewer Fund 1,392;568 925,875 675,865,, , 331,115 ` 760,6,16 Traffic Impact Fund ` 274,474 ' 192;968 339,308 339,117 ,332,890 ,, Total Other Funds.:` 23,617,423 :12,796�,87,1,'.`t 12,398,863 6,009,207 14,407,789 Personnel Non-Safety 24.20 24.55 24.30 30.30 .; :�24'55" TOTAL 24.20) 24.55 24 30• 30.30 24.55 . 62- City of Huntington Beach Annual Budget HIGHLIGHTS Most of the 1996/97 Capital Improvement Program is focused on Water Capital Improvement Projects and Street/Transportation projects. The General Fund does no finance any Capital projects. The Water Projects are part of an 11 year Capital Improvement Program approved in 1995. Improvements include additional water storage, new water wells, improvements to external supply connections, and a rehabilitation of existing facilities. Operating costs are part of the approved plan, with rate increases Pik ' Y approved in 1995 including the estimated revenue to cover increased operating costs. The Street/Transportation projects are also part of a multi-year �a h approved plan. Since major portions of the multi-year program are funded by revenue from other agencies (Federal Government, Orange County Transportation Authority, etc.), the multi-year plans must be regularly updated by the city, then reviewed and approved by those ' authorities. y " The city also must plan for operating costs for maintaining existing and new street infrastructure, which is currently accomplished with a combination of General Fund and Gas Tax funds. Although there are current deficiencies in funding for street maintenance, the planned Capital Program will improve some streets currently needing maintenance, thereby reducing a portion of the deficiencies. j4Sy'a" F 4a-r t_ Y -A. a -; t, x •r 3„� „� s k }�, rF'^ris- ,� � }$7S i rSrF fi a t 4 A =4, zf� s g 2'' i,*2s AMt� a t acats. -- M NEW ..t' v' " y�Rz��_��`Y+ � z.5r-._` , d d _�chFri 7� J yam'-a;s -A::..i'��• . AIM CA IN, t 4 ! 3.a � The City's most important visual Capital Improvement, The Pier, was completed on time,under budget,and was an engineering innovation. 63 City of Huntington Beach Annual Budget CAPITAL Il"ROVEMENT PROGRAM Expenditure History By Fund (15',Month), L Estimated ,Department s DEPARTMENT/ Actual Actual Budget Actual Request Adopted FUND ,FY 93/94, . .FY 94/95 ,FY 95/90, FY 95/96 ,, -FY 96/97 i1 : Nit M ` �J9 i > Fed Commined Roads 2,562,075 180,370 0 0 0 0 $B 82},PrrleCts 0 151,625 265,696 50,186- 428,434 48,43- LYbrary Construction ' 1,074,572 619,315 0 '0 0 U Trafficlmpact 274,474 192,968 339.,308 339,117 332,890 332,89U Gas Tax 12,668,969 4,529,764 4,200,486 3,138,486 3,711,397 : 3,71 .397 Sever Fund 1,392,568 925,875 675,865 331,115 r, 760,616 76 ,616 Dia nage Fund 1,763-263 443,532 1,216,944 344,669 - 935,373 935a373 Measure Zvi 2,026,031 2,506,760 3,242.827 522,546 3'`:-"-2;685,580 2 6$5,580.. CALTRAAIS CTSM '� 139,016 9,511 0 0 30;887 30,887 Petroleum Esscrrt?�tY '322,522 168;719 24;476 24,452 0 Q PierReconstructton 139,418 1,388,392 97,000 0 183,915 183,915 Pier Plaza 0 0 0 �' O:v 71,5.83 71.. 93 C . al Pmsects Fund 2,273,282 1,387,896 1,356,095 162,510 2,510,300 1,375,6�3f Hoti Seact f#Engr 6 ' 870,637 47,438 47,438 3,284,000 3,2$4,000 Bluff Top P irk 55,805: 40,822 644,728 . 48,679 50,424 50424 Grocyth Area& 0 r 0 1,681,110 r 215,000, ;y' 1;686110 168611U 1vS$f ,. .... Hazard Elimsnaton 0 0 288,000 :: . 0 356,000 356,0 FEMAfxtt�t 0 0 0 -y,- 0 1,338,699 1,338,699 CI3B.GPro3ect. . . 0; 0 0 0 940,346 940,346 4CTA/S1P Grant 0 0. 0 0 200,000 200,000 WaterCThht3 Prbf 8,960,606 2,376,814 6,214,967 2,033,401 6,597,000 f,59?,00U Waferlviast6r 'lan ,:0 ' 0 1,035,000 0 5,984,720 5,984,72(3 Water Ca 1 En 0 0 0 0 206,636 206%x63f P Subtotal 33,652,601 15,793,000 21,329,940 7,257,608 32,294,910 31,160,300 conomac ►evelanme>pt Huningtan C teren 432,190 9,921 0 0 0 0 1vI0tnlPter 11,092,658 1,716,423 6,268,065 3,852,936 2,180,000 2,180 000 TalbertJBeaeh 47,340 -0. - ;.. 0-- 0 0 0 Law Income 13nusirg 2,704,929 128,345 .1 028 000` 295,000 2,650,000 2,fi50,00U 4 _ - u - Sub ota4 14`,277,1.17 ,1,854,689 ""7,296;065 % 147,936 4,830,000 4,83.0,0�0 77 ( ;S� - q} -b- 1. Cvrrimunity.4erv�ees _ . Park j, q .Frey 1,588,499 0 1,710,662 1,462,396 1,012,000 1,01 ,000 64 City of Huntington Beach Annual Budget CAPITAL Il"ROVEMENT PROGRAM Expenditure Projection By Fund DEPARTMENT/ PROJECTED FUND ............................... . ...................................................................... ..........................................._.. llrc Works Fed<Combined Rvads 0 0 0 0 0 SB 821 Projects 200,000 205,420 210,987 216,726 222,794 Ljbrary Ccistructi©n 150,000 600,000 200,000 250,000 0 . TrafficTpact 342,511 351,793 361,326 371,154 381,547 Gas.>Tax 3,731,200 3,832,315 3,936,171 4,043,235 4,156,446 ...... Fund 762,457 783,120 804,342 826,220 849,354 Drainage Fund 952,271 978,077 1,004,583 1,031,908 1,060,801 Me2sure M .......... 2,557,413 2,626,719 2,697,903 2,771,286 2,848,882 ....................................................................... ....................................................................... ........................................................................ CATRAN /TSM 31,780 32,641 33,525 34,437 35,402 Ntoleum E�cro�v: 0 0 0 0 0 ......................................................................... ......................................................................... PxerReconStr Man 92,601 95,110 97,688 100,345 103,155 ...... ......... ......... ..... ....... ....................................................................... ...................................................................... .........._......._.................................._. PerPlaza 73,652 0 0 0 0 Capital Projects Fund 250,000 256,775 263,734 270,907 278,493 Holly SeaGliff E�tgnrg 200,000 205,420 210,987 216,726 222,794 Sluff Tap Park 51,881 53,287 54,731 56,220 57,794 Growtl3 Mgt Area#6 0 0 0 0 0 Haaard Eli►�inattoi 0 0 0 0 0 Eir%1A Grant ........: ............::. 0 0 0 0 0 ...................................................................... ......................................................................... ..................................................................... ......................................................................... CDBG Projects 400,000 410,840 421,974 433,451 445,588 OG A/SIP Grant: 0 0 0 0 0 WaterUt�lityPra3ects 6,787,653 6,971,599 7,160,529 7,355,295 7,561,244 WaterMasterPlan: 6,157,678 6,324,551 6,495,947 6,672,637 6,859,470 Water CaptalEngr 212,608 218,369 224,287 230,388 236,839 . Subtotal 22,953,704 23,946,037 24,178,715 24,880,936 25,320,602 EcarsRevelment Hung i".Center 0 0 0 0 0 Mai�11'ier 2,243,002 2,303,787 2,366,220 2,430,581 2,498,637 . . TaiberiJBeaeh 0 0 0 0 0 ......................................................................... ........................................................... ... ......................................................................... ...........................__......... ......................................................................... Law Tncame Housing 2,726,585 2,800,475 2,876,368 2,954,606 3,037,335 Subiotal 4,969,587 5,104,263 5,242,588 5,385,187 5,535,972 rty,servi Om rriun ces Pa#k A:cc &Rev 1,041,247 1,069,465 1,098,447 1,128,325 1,159,918 .......:..................... ... .................................. ........................................................................ ................................................................... ................................ _....... ......................................................................... __..... , .; 65 F -tea General Information City Demographics Budget Adoption Resolution Statement of Fund Balances Interfund Transfers/Expenditures Future Debt Requirements Quantitative Measures Glossary d?' 3 j a "1 t a. OFF City of Huntington Beach Annual Budget HUNTINGTON BEACH General Information Huntington Beach is more than the coastal jewel in Southern California. The city is a great place to live, work and play. Incorporated in 1909, Huntington Beach remained a sleepy seaside town until the oil boom in the 1920's. During the 1960's Huntington Beach became identified as Surf City when the popular Jan and Dean song "Surf City" climbed the musical charts, bringing the fantasy of the beach life-style to the nation. Today, with the city hosting the International Surfing Museum, professional surfing contests, and some of the best year-round recreational surfing, it continues to hold the title of Surf City, USA The city also has several fine expansive parks, equestrian trails, and recreation facilities. The city boasts five acres of park space per 1,000 residents -five times the standard recommended by the National Parks and Recreation Association. A variety of cultural opportunities exist within Huntington Beach, including the Huntington Beach Art Center, a 350-seat local theater located in the Central Library and Resource Center, and the Huntington Beach School District's School of Performing Arts. Huntington Beach was selected by California Business Magazine in 1993 as the best big city in which to do business in the state. Citing the openness of city officials with business owners, free seminars and one-on-one business counseling at the Huntington Beach Small Business Assistance Center, the city ranked top among 55 cities with populations over 100,000. The city also ranks as the number one safest city in the nation with populations over 100,000. It ranks as one of the lowest in unemployment and one of the lowest in crime rates in a study published by Governing Magazine. Huntington Beach was also ranked as the top city for children in Southern California by the Zero Population Growth group. The study showed that there are many factors that reduce the amount of stress of Huntington Beach children: classroom spending per pupil is above the state average, largest children's library in the state and second largest in the nation, designated bike routes on 75% of all city streets. The city is proud if its reputation as a great place for children. Today, with population of nearly 190,000 and growing commercial and industrial base, Huntington Beach still maintains itself as a great city to live, work and play. LOCATION: Southern California coast, 18 miles southeast of the nearest seaport terminal at Long Beach, 35 miles Southeast of Los Angeles, and 90 miles northwest of San Diego. AREA: Land: 28 square miles; Water: 26 square miles. CLIMATE: A Mediterranean climate that is sunny and warm. GOVERNMENT: Incorporated Feb. 17, 1909 with a population of 915. Huntington Beach is a Charter City, administered by a Council/Administrator government. EDUCATION: 35 elementary schools and five high schools. Golden West College and nearby Orange Coast College, University of California, Irvine, State Universities at Long Beach and Fullerton. CHURCHES: Churches represent all leading denominations. LIBRARY:A world class Central Library located in 300-acre Central Park. Three branch libraries. CULTURE: Variety of cultural opportunities throughout Orange County. Huntington Beach Art Center, 350-seat community theater, and the Huntington Beach School District's School of Performing Arts. RECREATION: 56 parks and 8 1/2 miles of beaches in the city and a wide variety of recreational activities in the county area. TRANSPORTATION: Easy freeway access to L. A. International Airport, John Wayne Orange County Airport, Long Beach Airport, bus service and rail freight service. UTILITIES: Southern California Edison Company, Southern California Gas Company, Municipal Water Department, General Telephone of California. INDUSTRY: Space systems, public utility, petroleum, manufacturing, data and computer research, precision instruments. NEWSPAPERS: Orange County Register, Los Angeles Times, The Local News, Huntington Beach Independent, and the Huntington Beach News. TELEVISION: HBTV-3 (Municipal Government Channel), Channel 50 (Golden West College), Paragon Cable, Los Angeles and Orange County Commercial stations. 66 City of Huntington Beach Annual Budget A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH Adopting A Budget For Fiscal Year 1996/97 (Enabling Document for Authorized Appropriations Shown in Expenditure Summary) WHEREAS Article VI of the Huntington Beach City Charter requires the City Administrator to present and the City Council to adopt an annual City Budget; and The City Council has received and considered the Preliminary Budget for Fiscal Year 1996-97, the other staff reports, and public testimony and information received in a noticed public hearing on the City Budget; NOW, THEREFORE, the City Council of the City of Huntington Beach does resolve as follows: Section 1. That the budget for the City of Huntington Beach for Fiscal Year 1996-97, as set forth in Exhibit A attached hereto and incorporated herein by this reference, is hereby adopted. Section 2. That the estimated revenue and transfers for Fiscal Year 1996-97, Exhibit B, which when combined with reserves is sufficient to fund the above appropriations, is set forth in Exhibit A, which is attached hereto and incorporated herein by this reference, Section 3. That the Preliminary Budget for Fiscal; Year 1996-97, Exhibit B, providing detail for appropriations and estimated revenue, is hereby approved as amended in Exhibit C. Both Exhibits B and C are attached hereto and incorporated herein by this reference. Section 4. That the City Administrator may transfer funds from one object or purpose to another within the sane fund, department, office of agency, provided that there is no increase in approved total appropriations contained in the budget. Section 5. That the Tables of Organization, attached hereto as Exhibit D and incorporated herein by this reference, is hereby adopted. The City Administrator, subject to compliance with the City Charter Section 403, may revise the Tables of Organization as long as the authorized number or personnel and the appropriation within the same department, office of agency are not exceeded. Section 6. That the City Council, by affirmative action of a majority of the Council, may authorize all appropriations transfers not described in Sections 4 and 5 herein by minute action. Section 7. Acquisition of new capital items shall be limited to the specific items included in the approved budget. Acquisition of capital items to replace existing capital equipment shall not exceed the total appropriation for the Equipment Replacement Fund. Changes to the procurement of specific items may be authorized by the City Administrator as long as the total appropriation for any department, office or agency are not exceeded. Section 8. That it is necessary to continue the levy of a 5% utility tax on cable TV services in order to avoid additional budget reductions in the Police and Fire Departments, and further reductions in other city department budgets. PASSED AND ADOPTED by the City Council of Huntington Beach at a regular meeting held thereof on the 16th day of September, 1996. 67 City of Huntington Beach Annual Budget STATEMENT OF FUND BALANCES Estimated Revenues Expenditures Estimated F Beginning Balance &Transfers &Transfers Ending Balance FUND @ 9-30-96 FY 1996/97 FY 1996/97 @ 10-30-96 General Fund 3,136,866 97,629,505 97,278,915 3,487,456 94/95 Hsg Subsidy 282,000 282,000 Air Quality 175,926 212,000 94,035 293,891 Art Center (262,041) 336,000 366,273 (292,314) Bureau of Justice Grant 191,550 191,550 0 Cable TV 39,209 417,100 402,672 53,637 Capital Projects 645,555 900,000 1,375,690 169,865 CDBG Fund - HCD 1,762,000 1,975,300 (213,300) Civic Impr Cp 2,868,370 2,825,000 2,849,000 2,844,370 CAP/COPS MORE Gr 13,109 232,000 231,972 13,137 Dbt Sv-Pk Bond 127,219 127,219 Donations 25,000 25,000 Drainage Fund 1,343,759 646,000 936,373 1,053,386 Emerald Cove 2,593,918 787,000 844,488 2,536,430 Equip Rpl Fund 584,520 2,715,000 3,784,750 (485,230) FEMA Grant 1,338,699 1,338,699 .0 Fire JPA Fund 920,018 920,018 Fire Medical 1,279,051 2,795,000 3,106,990 967,061 Fourth of July 9,576 183,000 176,850 15,726 Gas Tax Fund 939,460 3,485,000 3,711,397 713,063 Grants/Other 169,156 301,578 (132,422) Growth Mgt Area#6 1,686,110 1,686,110 0 HB PFA 2,814,332 2,677,138 2,682,000 2,809,470 Holly/Seacliff 85,154 3,511,500 3,284,000 312,654 HES Fund 356,000 356,000 0 Jail Donations 15,000 15,000 0 Library Cultural Facilities 245,000 245,888 (888) Library Service Fund (559,842) 660,000 447,847 (347,689) Low Income.Hsg 3,197,854 1,016,000 1,188,331 3,025,523 Mello Roos 1,034,551 288,000 248,000 1,074,551 Narcotics Forf (156,003) 375,000 420,174 (201,177) Park Acq & Dev 609,009 699,416 927,000 381,425 Parking Struct 2,051,967 75,000 2,126,967 Pier Rebuilding 1,377,042 145,000 183,915 1,338,127 Pier Plaza Fund 243,194 71,583 171,611 Pkg Authority 10,474 10,474 Police Community Rel (130) 25,000 25,000 (130) Police Special Training 9,300 20,000 20,000 9,300 Proj Self Sufficiency 38,302 19,900 58,202 Public Facil Cp 521,031 25,000 546,031 Redevelopment 1,870,157 6,133,000 9,969,709 (1,966,552) Refuse Fund (1,045,839) 8,700,000 8,746,857 (1,092,696) Resrv-Econ Uncert 180,000 180,000 Reservoir Hill 240,497 212,000 164,000 288,497 SB 821 Fund 428,434 428,434 0 Self Insurance 739,015 12,032,000 10,307,295 2,463,720 Sewer Fund 2,513,013 210,000 760,616 1,962,397 Suppl. Law Enf. Grant 435,605 435,605 0 Traffic Impact 429,138 1,013,000 332,890 1,109,248 Transportation Fund-M 2,122,121 967,956 2,685,580 404,497 Water Fac-Master Plan 2,255,594 4,575,000 5,984,720 845,874 Water Fund 8,464,072 22,837,000 28,365,815 2,935,257 Indicates Working Capital 68 City of Huntington Beach Annual Budget INTERFUND TRANSFERS/EXPENDITURES GENERALFUND Paid From: Paid To: Amount Purpose General Fund Civic Improvement Corp 2,380,000 Debt Service-Civic Center(COP's) General Fund Self Insurance Fund 3,400,000 Employee medical plan costs General Fund Self Insurance Fund 1,891,564 Workers Compensation costs General Fund Self Insurance Fund --3,100,000 Liability Insurance costs General Fund Self Insurance Fund 504,285 Medical retirement costs General Fund Self Insurance Fund 908,569 Retirement supplement costs General Fund Equipment Replacement 2,348,093 Capital asset replacement General Fund Art Center 4;703 General Fund Contribution -Sub Total General Fund 14,537,214 OTHER FUNDS Paid From: Paid To: Purpose Gas Tax General Fund 2,200,000 Street maintenance Drainage Fund General Fund 50,000 Sewer system maintenance Sewer Fund General Fund 100,000 Drainage system maintenance Water Fund General Fund 2,700,000 Service provided to Water Department Refuse Collection_ General Fund 250,000 Billing/collection/recycling Mello Roos General Fund 40,000 Administrative costs of Mello Roos Fund Cable TV Fund General Fund 89,000 Facility lease payment Fire Medical Fund General Fund 150,000 Services provided to FireMed Fund Fire Medical Fund General Fund 825,00.0 Ambulance Service Program Redevelopment General Fund 1,100,000 Redevelopment loan repayment Emerald Cove Housing , - General Fund 25,000 Admin. costs of Emerald Cove Housing Air Quality Fund General Fund 10,500 Administrative costs of Air Quality Fund Economic: Uncertainties General Fund 150,000 Interest earnings on reserves Redevelopment HB Public Financing Auth. 2,677,000 Debt service on Redevelopment bonds Housing Set-Aside Emerald Cove Housing .35,000 Rent subsidy Enterprise Funds Self Insurance Fund 90,000 Non-General Fund benefit costs Pier Fund Civic Improvement Corp. 90,000 Debt Service on COP's Library Service Fund Civic Improvement Corp. 220,000 Debt Service on COP's -Sub Total Other:Funds; 10,801,600 Grand Total 25,338,714 The City's total budget of$198,999,325 includes the above detailed interfund transfers or expenses totaling $25,338,714. As indicated, most of these transfers or expenses are related operating Internal Service funds for Self Insurance programs, Equipment Replacement, and Debt Service. Also included are Enterprise Fund expenses for services provided by General Fund departments, assuring that those funds are operated on a "business-within-a-business" basis. 69 City of Huntington Beach Annul Budget FUTURE DEBT REQUIREMENTS WITH REPAYMENT SCHEDULE FISCAL YEAR 96/97 Amount Annual Years to Source of Description Outstanding Payment Maturity Payment Revenue Bonds: Public Financing Authority $30,053,000 $2,655,000 22 Tax Increment Revenue (Redevelopment) Leasehold Mortgage Bonds: HBPFC Library $385,000 $399,000 1 General Fund Certivicates of Participation (COP): Civic Improvement Corp-1993A $19,865,000 $1,650,000 26 General Fund & Library Services Fund Civic Improvement Corp-1993B $15,035,000 $1,150,000 26 General Fund Emerald Cove Housing $5,390,000 $455,000 22 Rental Income Assessment District: Reservoir Hill $1,200,000 $156,000 15 Property Assessment Community Facilities District: CFD No. 1990-1 (Mello Roos) $2,285,000 $205,000 . 26 Special Property Tax Levy Future Debt Reguirements - The City's current General Obligation debt is insignificant compared to the City's legal debt limit of 12% of total assessed valuation of the City. The legal debt limit would allow $1.4 Billion in debt. In the last few years two debt issues have been retired: Parking Authority Bonds ($170,000 per year) and Park Bonds ($500,000 per year). This year, the Library leasehold bonds (399.000 per year) will be retired. Current and future operating budgets will benefit from these reduced costs as part of the City's budget reduction program. In addition, the new Pier Plaza Capital project will be required to generate parking and concession revenue to pay a proportionate share of the annual debt service on the 1993 COP's. Moody's Investor Services confirmed the City's General Obligation bond rating (AA) prior to the retirement of the Park (General Obligation Bonds) and our lease-financing debt rating (Al). The Redevelopment Agency's revenue bonds were downgraded by Moody's from Baa to Ba due to one of the five project area's debt service coverage failing below the required margins established by Moody's. The Agency is currently merging the five project areas, which should eliminate the coverage requirement problem and restore the Baa rating. The City's current policy is to not incur any new debt unless identifiable and confirmed new revenue sources are available and approved to pay for any new debt service. 70 QUANTITATIVE MEASURES Selected Departmental Programs The Budget of The City of Huntington Beach is presented on a departmental basis. Within each department,there are numerous Programs. Each Program has developed statistics to measure program activities. Following is a sampling of the Program Activity Measures. This data is used in the Budget process and its use will be expanded in future years. DEPARTMENT ACTUAL ESTIMATED PROJECTED Pro rarn MEASURES 1994/95 1995/96 1996/97 Cable TV Video Unit Televise City Council and public meetings 322 407 407 -- - --------------------------- ---p-9------------------- Video Unit Produce original programing 850 850 850 City Treasurer CentrlCashiering Interest earned $3,565,000 $3,300,000 $3,300,000 ----------- ---9--------------------------------------- Busine:;s License Average Active Licenses 1 15,400 15,500 16,000 Administrative Services Accounting Accounts Payable Invoices 62,000 62;000 -- ----------------------------------------------------------------------- Information Sys. Payroll,employee checks 41,000 41,000 ------------------------------------------------------------------------- Information Sys. Accounts Receivable Billings 14,400 14,400 ------------------------------------------------------------------------- Information Sys. Muni Svs Billings(Water,Fire-Med,Refuse) 500,000 650,000 - -- -- - ------- ------ - -- --- - Information Sys. Medical Claims,#Handled 26,730 26,730 ------------------------------------------------------------------- Information Sys. E-Mail Message Handled 39,000 45,000 ------------------------------------------------------------------------- Information Sys. Calendar/Schedule Appointments Handled 20,000 20,000 ---------------------------------------------------------------- Central Services %of change order issued 9% 9% 7.7% ----------------------------------------------------------- Central Services Turnaround time for requisitions 10 days 9.3 days 10 days - -- ------ ---- - - Centrat Services #of purchase orders issued 2960 2960 3000 ----- - - ----------- -------- Personnel Applications Processed 2,500 2,961 3,000 erson-- ---------------- li i --- fists--------------- -person --------------------- nel Eligibility Lists Established 75 35 40 Personnel fraining of Employees 275 1 189 1 250 - -------------------------------------------------------- ------- PnnUng Cost per impression .02912 .03028 .03033 Community Services Marine Safety Rescues 1,443 2,800 2,800 ------------------------------------------------------------------------- Marine Safety Preventive Actions 14,478 18,000 20,000 -- -------------------------------------------------------------- Marine Safety Medical Aids 1,191 1,500 1,500 - ------------------------------------------- ----------------------------- Marine Safety Beach Attendance 8,177,646 8,300,000 8,500,000 ------ --- - - ---- ------- - Parking Facility Park Campers 8,500 9,000 9,500 - --------------------------------------------------------- Parking Facility Park Beach Day Use Autos 316,000 350,000 350,000 ------------------------------------------------------------------ Parking Facility Park Autos in Main Promenade Pkg Structure 559,000 600,000 600,000 ------------------------------------------------------------------------- Parking Facility Sale Municipal Passes(Beach&Main Prom.) 6,000 7,000 7,000 ------ ----- - ----------------------------------- Parking Meters Service&repair malfunctioning meters 250 250 250 ----- ----- - ---- --- - ----- --------- - - Parking Meters Respond to meter complaints 300 300 300 - - - -------------------------------------------- Mechanical Maint. Complete Mechanical Repair Work Orders 300 300 300 Mechanical Maint. Complete Maintenance Work Projects 200 200 200 Mechanical Maint. Vehicle Tune-Ups&Adjustments 175 175 175 ------------------------- ------------------------ Jr.Lifeguards Junior Guard Participants 935 1,000 1,000 ---------------------------------- -------------------------------------- Parks/Nature Ctr. Park visitors 536,400 570,000 575,000 ------------------------------------------------------------------------- Parks/Nature Ctr. Provide Nature Tour Hours(also#of people) 9,000 9,000 8,000 Community Cntrs Public using park facilities 318,000 318,000 318,000 Community Cntrs Public using meeting/classroom 62,000 62,000 62,000 - ------------------------------------------------------------------------ Community Cntrs Public using gameroom 39,000 39,000 39,000 ----------------------------------------------------------- City Gym&Pool Public using gym 35,000 35,000 35,000 - -- - ------- ---- -=-- City Gyrn&-Pool - Public using meetingrooms 6,000 6,000 6,000 ----- ----------- City Gym&Pool Public using gameroom 21,000 21,000 21,000 •--------•--------------------------------------------------------------- City Gym&Pool Public using pool 19,500 19,500 19,500 •--------•--------------------------------------------------------------- Tennis Classes offered 405 405 405 - ------------------------------------------------------------------------ Adult Sports Summer Softball Teams 397 320 320 Adult - - - - ----- lT- ----------------------------- Adult Sports Fall Softball Teams 401 315 315 Adult Sports Winter Softball Teams 376 315 315 ---------•--------------------------------------------------------------- Youth Sports Youth basketball participants 1,026 911 1,100 •--------•--------------------------------------------------------------- Youth Sports Volleyball participants - 136 110 160 Youth Sports Youth softball/baseball participants 586 375 500 ---------------------------------------------------------------- 71 QUANTITATIVE MEASURES Selected Departmental Programs DEPARTMENT ACTUAL ESTIMATED PROJECTED Program MEASURES 1994/95 1995/96 1996/97 Youth Sports Flag Football participants 370 370 400 •------------------------------------------------------------------------ Advnture Playgrnd . Estimated attendance 10,202 11,000 11,000 --------------------------- - ------------------------------------------- Instruct.Classes Number Sands publications per quarter 80,000 80,000 80,000 Aquatics Swim lesson participants 6,500 6,500 6,500 ----------------------------------------------------------------- Aquatics Recreation swim participants 16,700 17,000 17,000 ------Camp------------------------------------------------------------- Day Camps Participants 286 420 420 ------------------------------------------------------------------------- Seniors'Center TLC/Congegate Meals Served 22,500 23,590 24,770 •------------------------------------------------------------------------ Seniors'Center Wellness/Fitness Classes/Programs 6,000 12,950 13,598 - - Center Recreation CIasses/Programs 7,000 7,460 7,833 ------------------------------------------------------------------------- Oakview Center English as a 2nd language participants 14,500 12,250 12,250 •- --------------------------------------------------------------------- Oakview Center Distribute Federal Surplus Food(#people) 1,100 1,100 1,100 •- --------------------------------------------------------------- ---- Oakview Center .Rec.Activity Programs for Children 130 130 130 •------------------------------------------------------------------------ Clubhouses Rentals of Clubhouses(HV, LP, LV) 211 210 215 Srs'Outreach Provide Meals to the Home from Pacifica 10,000 11,688 12,000 - ------------------------------------------------------- Srs'Outreach Provide Meals to the Home from Feedback 35,200 49,170 50,000 ----------------------------------------------------------------- Library Services Reception Svcs Enter Library cards 23,000 24,000 24,000 •------------------------------------------------------------------------ Reception Svcs Answer phone calls 54,500 55,500 55,600 ------------------------------------------------------------------------- Reference Svcs Answer questions, in person&phone 263,315 200,000 200,000 ------------------------------------------------------------------------- Reference Svcs Select material for library 15,000 15,000 15,000 ------------------------------------------------------------------------- Childrens Svcs Children's book circulation 253,000 253,000 ------------------------------------------------------------------------- Childrens Svcs Children's reference service 50,000 35,000 35,000 ------------------------------------------------------------------------- Childrens Svcs Children's program attendance 23,000 28,000 28,000 •------------------------------------------------------------------------ Circulation Svcs Check out materials 931,224 1,000,000 1,000,000 ------------------------------------------------------------------------- Media Svcs Video Tapes(Children and Adult) 22,000 21,000 23,000 ------------------------------------------------------------------------- Media Svcs Compact Discs 22,000 10,000 10,000 ------------------------------------------------------------------------- Main Street Branch Circulation 43.831. 40,500 40,500 •------------------------------------------------------------------------ Main Street Branch Volunteer hours 1,200 1,250 1,250 •------------------------------------------------------------------------ Banning Branch Circulation 49,197 53,836 53,836 ------------------------------------------------------------------------- Banning Branch Volunteer hours 1,451 1,050 1,050 •------------------------------------------------------------------------ Graham Branch Circulate Books 37,678 37,556 37,556 ------------------------------------------------------------------------- Graham Branch Volunteer hours 861 792 792 •------------------------------------------------------------------------ Technical Svcs Process all library materials 148,000 140,000 135,000 ------------------------------------------------------------------- Technical Svcs Add,revise&update computer records 12,000 18,000 20,000 . ------------------------------------------------------------------------- Federal Literacy Gr No.of literacy students at Oak View 59 59 60 •------------------------------------------------------------------------ Federal Literacy Gr No.of tutors at Oak View 52 52 60 ------------------------------------------------------------------------- Federal Literacy Gr Hours of tutoring 2,342 2,500 2,500- ------------------------------------------------------------------------- Federal Literacy Gr No.of storytimes 40 30 40 ------------ -- Adult Literacy No.of literacy students served 200 200 200 •--------------------------- ---------- - ---------------------------- Adult Literacy No.of volunteers 250 250 250 •------------------•----------------------------------...--------------.. Adult Literacy Tutor hours 10,000 10,000 10,000 •------------------------------------------------------------------------ Adult Literacy Computer lab hours 3,000 3,000 3,000 ------------------------------------------------------------------------- Oakview Branch Issue library cards 353 500 500 --:w------------------ --- ---------------------------------------- Oakview Branch Circulate books 8,589 21,000------------------------------------------------------------------------- 21,000 Economic Development Code Enforcement Prosecutions/Citation/Request for Legal Service 23 17 - ------- ------------------------ Code Enforcement Inspections Conducted 1399 2500 ------------------------------------------------------------------------- Code Enforcement Complied Violations 986 1600 ------------------------------------------------------------------------- Prj Self Sufficiency New Parents(yearly) 26 30 100 Families Seniors Outreach Case management 85.families ------------------------------------------------------------------------- Fire Department Fire Prevention Number of occupancy inspections performed 7800 8000 8250 ------------------------------------------------------------------------- Fire Prevention Number of site plan reviews and inspections. 1365 1300 1560 ------------------------------------------------------------------------- Fire Suppression Number of Fire responses 464 488 500 - - - --------- - ----------------------------------- Fire Suppression Number of Medical aid responses 6277 6306 6400 •------------------------------------------------------------------------ Fire Suppression Number of Other incidents 3247 3232 3300 •------------------------------------------------------------------------ Fire Suppression Number of Fire prevention inspections 7901 7950 7950 ------------------------------------------------------------------------ Fire Suppression Percent of Fires responded to in 5 minutes 55% 64% 80% 72 QUANTITATIVE MEASURES Selected Departmental Programs DEPARTMENT ACTUAL ESTIMATED PROJECTED Program MEASURES 1994/95 1995/96 1996/97 -------------- ----------------------------------------- Fire- Suppression Percent of Fires responded to in 10 minutes 96% 99% 100% --------------------------------------------------------- Fire Suppression Percent of Medical response within 5 minutes 71% 67% 80% ----- --------------------------------------------------------- Fire Suppression Percent of Medical response within 10 minutes 99% 99% 100% --------.•------ -------------------------------------------------------- Fire Suppression Average First-In response time to all fires 4:52 4:33 5:00 - •----- --------------------------------------------------------- Fire Suppression Average First-In response time to all Med.aids 4:30 4:34 4:30 -- -- ------ ------ ---------------------------------------- Paramedics Number of Paramedic responses to Med.aids 5787 5962 6500 -------------------------------------------------------------------- Paramedics Paramedic arrival within five minutes(percent) 72% 72% 72% ------------------------------------------------------------------------- Emergency Svcs. SEMS training(employee training hours) 0 1930 10,500 •-------------------------------------------------------------- Emergency Svcs. Number of Certified Disaster Worker graduates 40 107 150 ----..---------------------------------------------------------------- Emergency Svcs. Number of CERT newsletters mailed monthly 1200 2000 2500 •• ----------------- --------- --------------------------- Hazmat Response Number - hazardous materials incidents 308 276 352 ------------------------------------------------------------------------- Emerg.Ambulance Number of ambulance responses to Medl aids. 7199 7704 7850 Emerg.Ambulance Number of Advanced Life Support transports) 3150 3355 3410 -------------------------------------------------------------------- Emerg.Ambulance . Number of Basic Life Support transports) 1930 2057 2090 ---------------------------------------------------------------------- Fire-Med Admin. Maintain medical history files. 12,000 20,000 30,000 ------------------------------------------------------------------------- Fire-Med Admin. Maintain membership roster. 23,000 29,000 31,000 - ----------------------------------------------------------------- Fire- -Mt;d Admin. Maintain collection rate. 60% 65% 67% ---- ------- --------------- --- -- -- p--- -------------- ------ F---MEad Admin. Maintain membershi rate. 32% 38% 40% Police Department Admin.Support Personnel Records Mgt. 15750 16000 16250 --------------------------------------------------------- Admin.Support Personnel Transactions 315 350 375 • --. - - --- ---------------------------------------- Comm Liais.Team 1. N/W Newsletters 155000 156500 156500 -----------7------------------------------------------------------------- Comm Liais.Team 2.Comm.Crime Prev.Mtgs. 180 180 180 Records Reports 35000 35000 ----------------------- --------------------------------------- Records Impounds 8100 8100 ------------------------------------------------------------------------- Records Warrants -- 5450 5450 -------------------- Records Court complaints 8600 8600 - - - - Records Subpoenas 23500 23500 Records Bookings 10300 10300 ------------------------------------------------------------------------- Records vehicle Release 4000 4000 --- ------------------------------------------------------------------ Aero Flight Hours 2700 2800 3200 Aero Misdemeanor Arrests 300 300 300 -------------- - ------------------------------------ Aero Felony Arrests 215 215 215 ---- - -------------------------------- Aero RNSP Surveillance Hours 195 200 220 - ------------------------------------------------------------------------ Investigation Crimes Against Persons 4400 3000 3500 '_f-ve ti ------------------------------------------------------------ 8600 Crimes Against Property and Juvenile 8600 10000 11500 ------- - ---------------- - ---- --- - Investigation Economic Crimes 8 Auto Theft 5300 3000 3500 - - ------- ----- - - - Narcotics Narcotic Cases 701 735 770 Narcotics Narc. unit arrests 171 180 200 - - - - - - - ------------------------------------ Narcotics Search Warrants 65 70 77 - ------------------------------------------- ----------------------------- Narcotics Drug seizure value 950000 1000000 1100000 .------------------------------------------------------------------------ Scientific Investg. Blood/Urine/Breath Analysis 1113 1340 1407 ------------------------------------------------------------------------- Scientific Investg. Narcotics Analysis 1928 1688 1857 •------------------------------------------------------------------------ Scientific Investg. Crime Scene Investigations 3924 5161 5419 ------------------------------------------------------------------------- Scientific Investg. Fingerprints compared 94799 98976 103924 ------------------------------------------------------------------------- Patrol Calls for Service 187743 192216 197000 ------------------------------------------------------------------------- Patrol - - Arrests _ 7788 8000 8200 Patrol COP Citizen/Business Contacts 10888 14000 •------------------------------------------------------------------------ Traffic Traffic Accident Invest, 3108 3230 3070 ------------------------------------------------------------------------- Traffic Hit and Run Invest. 720 650 650 •------------------------------------------------------------------------ Traffic Moving Traffic 23129 28217 29000 ------- ---------- - --- ----------------------- Gang Enforcement Gang case investigations 189 235 295 ----------------- ------- - --------------------------------- Parking Enforcem. Parking Citations 41878 51875 60000 ------------------------------------------------------------------------- Fleet Aanagement vehicle safety inspections 2000 2050 2050 -- --- -agem n - is Fleet Management vehicle conversions 47 47 47 - -------------------------- ---------------------------------------------- COPS MOR Grant Identify Career Criminals 200 200 220 - ------------------------------------------------------------------------ COPS MOR Grant Track Stolen Cars 5470 5470 5500 -- M rani------- -- -- ---- Ur---MOR Grant Identify Serial Crimes 120 120 130 Public Works Department Administration Present RCA's 180 190 1 200 QUANTITATIVE MEASURES Selected Departmental Programs DEPARTMENT ACTUAL ESTIMATED PROJECTED Program MEASURES 1994/95 1995/96 1996/97 ------------------------------------------------------------------------- Subdivision Engin. Grading Plan Checks 54 80 95 ------------------------------------------------------------------------- Subdivision Engin. Encroachment Plan Checks 450 600 650 ------------------------------------------------------------------------- Subdivision Engin. Development Plan Check 95 150 ------------------------------------------------------------------------- Traffic Maint. Street Miles Striped 100 150 150 ------------------------------------------------------------------------- Traffic Maint. Street Signs Installed 3,250 6,000 6,500 ------------------------------------------------------------------------- Traffic Maint. Curb Footage Painted 380,000 400,000 400,000 •------------------------------------------------------------------------ Traffic Signl Maint Maintain Park Lights 489 612 612 ------------------------------------------------------- Traffic Signl Maint Maintain Parking Lot Lights 340 460 460 - -------------------------------------------------------- Traffic Signl Maint Maintain Street Lights 989 1,005 1',017 Maint.Admin. Answer Service Requests 6,340 6,240 6,400 ------------------------------------------------------------------------- Maint.Admin Process Work Orders 479 494 500 ------------------------------------------------------------------------- Fleet Management Procure and Issue Parts 20,700 21,000 21,000 ------------------------------------------------------------------------- Fleet Management Process Vehicle Service Orders 2,342 2,400 2,400 ------------------------------------------------------------------------- Equipment Maint. Perform Vehicle and Equipment Repairs 2,886 3,000 3,000 --------------------------------------------------7---------------------- Vehicle Body Maint Make Vehicle Body Repairs 256 264 264 ------------------------------------------------------------------------- Building Maint. Complete Work Orders 180 180 150 Building Maint. Complete Maintenance Projects 1,200 1,200 900 ---------------------------------------------------------- Central Warehse. Process Requisitions 9,000 9,000 6,000 - ------------------------------------------------------------------------ Painting Maint. Complete Work Orders 58 15 0 ._-ain----- ------------------------------------------------------------ Painting Maint. Vandalism Repairs 1040 1,500 1,500 -- -------------------------------------------------------------------- Electical Maint. Complete Work Orders . 48 30 24 •------------------------------------------------------------------------ Electical Maint. Maintenance Projects 1,095 1,000 750 ------------------------------------------------------------------------- Str.&Bridge Maint Street Repairs(tons) 12,000 12,000 12,000 •------------------------------------------------------------------------ Concrete Maint. Concrete Repairs(Cubic Yards) 1,100 1,200 1,200 •------------------------------------------------------------------------ Street Sweeping Curb Miles Swept 40,000 20,000 20,000 ------------------------------------------------------------------------- Sewer Line Maint. Clean Sewer Lines(miles) 340 357 357 ------------------------------------------------------------------------- Sewer Line Maint. Clean Storm Drains(miles) 135 135 135 •------------------------------------------------------------------------ Sewer Line Maint. Clean Catch Basins 700 720 720 ------------------------------------------------------------------------- Sewer Lift St Maint Repair Sewer Pumps 66 64 64 •------------------------------------------------------------------------ Landscape Maint. By City Forces(Square Feet) 2,558,000 2,558,000 2,600,000 •------------------------------------------------------------------------ Landscape Maint. License Agreement(Square Feet) 550,000 550,000 600,000 •------------------------------------------------------------------------ Tree Maintenance Trim Trees 18,000 22,000 22,000 •------------------------------------------------------------------------ Pesticide Maint. Treat Highway Landscaping(millions of sq.ft.) 2.58 2.58 2.73 ------------------------------------------------------------------------- Pesticide Maint. Treat Park Acreage 523 530 530 - -----•----------------------------------------------------- Pesticide Maint. Treat Miles of Streets 378 400 415 Ma int., Park Maintenance Maintain Park Acreage 523 530 530 •------------------------------------------------------------------------ Park Mechanics Implement Repairs 1.600 1 1,750 1,900 •------------------------------------------------------------------------ Park Irrigation Park Acres irrigated 523 530 530 Flood Control Emergency Callouts 28 28 30 Public Works - Water and Refuse Enterprise Funds Refuse Collection Units of Service 43,574 44,203 44,600 ------------------------------------------------------------------------- Refuse Collection Senior Exemptions 525 540 600 •------------------------------------------------------------------------ Refuse Collection Review Billings 524 540 540 •------------------------------------------------------------------------ Water Admin. Active Services 48728 49210 49700 ------------------------------------------------------------------------- Water Admin. Water Sales(Acre Feet) 31970 32438 34310 •------------------------------------------------------------------------ Water Production Acre Feet Pumped 24,200 26,254 27,400 •------------------------------------------------------------------------ Water Production Acre Feet Purchased, 9,700 9,147 9,100 •------------------------------------------------------------------------ Water Production Fluoride Added(Ibs) 167,000 219,807 307,000 ------------------------------------------------------------------------- Water Production Chlorine Added(Ibs) 70,360 90,576 93,200 ------------------------------------------------------------------------- Water Maint. Fire Hydrants Serviced 5,348 5,500 5,500 ------------------------------------------------------------------------- Water Maint. Valves Operated 9,175 12,500 12,500 ------------------------------------------------------------------------- Water Maint. Pipe Footage Installed 115 150 600 Water Meters Meters Read (1,000's) 283000 294000 295000 ------------------------------------------------------------------------- Water Meters Meter Vault/Lids Replaced 1077 4725 2250 •------------------------------------------------------------------------ Water Quality Fluoride Test 2431 2936 2988 •------------------------------------------------------------------------ Water Quality Bacteria Test(System) 2273 2188 2300 - --------------=------------------------------------------------ Deferred Maint. Valve Box Replacement 0 300 200 ------------------------------------------------------------------------- Deferred Maint. Valve box Raise to Grade 0 200 130 Def.Meter Maint. Small Meters Re laced 0 2600 4860 -- - ---------- ------------------------------- DefMeter Maint. Boxes/Lids Replaced 0 1343 4860 _ -- - 74 City of Huntington Beach Annual Budget GLOSSARY ACCOUNTING METHOD - The City of Huntington Beach accounts for its financial position and operations according to generally accepted accounting principles for governmental units prescribed by the Government Accounting Standards Board (GASB). A fund or account group is an accounting entity with a self-balancing set of accounts to record the financial position and results of operations of a specific governmental activity. The City prepares financial statements on the modified accrual basis for all governmental ofund types except for the financial statements of the proprietary fund types that are prepared on the accrual basis ACCRUAL BASIS - The basis of accounting under which transactions are recognized when they occur regardless of the timing of related cash flows. ACTIVITY - A specific and distinguishable line of work performed by one or more organizational components of a government for the purpose of accomplishing a function for which the government is responsible. APPROPRIATION - A legal authorization granted by a legislative body to make expenditures and to incur obligation for specific purposes. APPROPRIATION ACCOUNT - A budgetary account set up to record specific authorizations to spend. The account is credited with original and any supplemental appropriations and is charged with expenditures and encumbrances. BUDGET-A plan of financial operation embodying a summary and detail of authorized expenditures for a given period and the proposed means of financing them. CAPITAL IMPROVEMENT PROGRAM-A plan for capital expenditures to be incurred each yearly over a period of fixed years to meet capital needs arising from the long-term work program of otherwise. CAPITAL OUTLAY- Expenditures which result in the acquisition of or addition to fixed assets. DEBT An obligation resulting from the borrowing of money or from the purchase of goods and services. DEBT SERVICE REQUIREMENT - The amount of money required to pay interest on outstanding debt, serial maturities of principal for serial,bonds, and required contributions to accumulate monies for future retirement of term bonds. DEFICIT-The excess of the liabilities of a fund over its assets. EQUIPMENT REPLACEMENT-Appropriations which are budgeted for the purchase of replacement equipment. ENCUMBRANCES-Commitments related to unperformed contracts for goods or services. ENTERPRISE FUND -A fund established to account for operations that are financed and operated in a manner similar to private enterprise. Examples or enterprise funds are those for water, gas and electric utilities, etc. EXPENDITURES - Use of net financial resources. Expenditures include current operating expenses, debt service, and capital outlays. FISCAL YEAR - The 12 month period to which the annual operating budget applies and at the end of which a government determines its financial position and the results of its operations. FUND - A fiscal and Accounting entity with a self-balancing set of accounts recording cash and other financial resources, together with all related liabilities and residual equities or balances, and changes therein, which are segregated for the purpose of carrying on specific activities for attaining certain objectives in accordance with special regulations, restrictions of limitation. 75 City of Huntington Beach Annual Budget FUND BALANCE -The fund equity of governmental funds and trust funds. GENERAL FUND - The fund used to account for all financial resources except those required to be accounted for in another fund. The General Fund is the"operating"fund of the city. GENERAL OBLIGATION BONDS - Bonds for the payment of which the full faith and credit of the issuing government are pledged. GENERAL PLAN -A comprehensive, long range policy guide. GENERAL REVENUE - The revenues of a government other than those derived from and retained in an enterprise of restricted revenue fund. GRANTS - Contributions, gifts, cash, or other assets from another government to be used or expended for a specified purpose, activity, or facility. INTERFUND LOANS- Loans made by one fund to another. INTERNAL SERVICE FUND-A fund used for the financing of goods or services provided by one department or agency to other departments or agencies, or to other governments, on a cost-reimbursement basis. LONG TERM DEBT- Debt with a maturity of more than one year after the date of issue. MUNICIPAL BOND-A bond issued by a state or local government. OPERATING BUDGET - Plans of current non capital improvement expenditures and the proposed means of financing them. OPERATING INCOME -The excess of proprietary fund operating revenues over operating expenses. OPERATING REVENUES - Proprietary fund revenues directly related to the fund's primary service activities. OTHER FUNDS-Within this budget document, those funds which are not included as part of the General Fund. PERSONNEL SERVICE COSTS-Appropriations budgeted for the salaries& benefits of employees of the city. PROGRAM BUDGET-A budget wherein expenditures are based primarily on programs of work and secondarily on character and object class. REVENUES - Increases in governmental fund type net current assets from other than expenditure refunds and residual equity transfers. TAXES - Compulsory charges levied by a government for the purpose of financing services performed for the common benefit. This term does not include specific charges made against particular persons or property for current or permanent benefits such as special assessments. TAX INCREMENT - Property tax which is collected as a result of increased valuation within an adopted ,redevelopment area. TAX RATE - The amount of tax stated in terms of a unit of the tax base; for example, .25 cents per dollar of assessed valuation of taxable property. TAX RATE LIMIT-The maximum rate at which a government may levy a tax. 76 i Council/Agency Meeting Held:,3 ,R�q 7 Deferred/Continued to: 2-Approved ❑ Conditionally Approved ❑ Denied City Clerk's qnature Council Meeting Date: March 3,1997 Department ID Number: /ate CITY OF HUNTINGTON BEACH REQUEST FOR ACTION SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL SUBMITTED BY: MICHAEL T. UBERUAGA, CITY ADMINISTRA PREPARED BY: RON HAYDEN, DIRECTOR OF LIBRARY SERVI SUBJECT: PUBLIC LIBRARY FUND ALLOCATION Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(s) yQ Statement of Issue: The City Council must approve the allocation and expenditure of the Public Library Fund, distributed by the California State Library in accordance with the California Education Code. Funding Source: Additional cost of books is funded by increased revenue from the State. Recommended Action: Amend the 1996/97 budget by appropriating $46,577 for Library books and other material into Account 392320. Alternative Action(s): 1. Do not approve the recommended allocation and allocate differently. 2. Reject the Public Library Fund allocation from the State. AnalysiK. Section 18024 of the California Education Code provides for the Public Library Fund to assist in meeting the State's obligation for public library funding. Section 18025 (d) establishes that the "State funds provided under this chapter shall supplement, but not supplant local revenues appropriated for the public library." The last few years the State- wide Public Library Fund totaled $8,870,000 annually from which the City received $62,886 into the General Fund. t Fortunately, the FY96/97 State-wide amount was increased to $15,870,000, providing a total allocated amount this year of$109,463. In that the Library's book (material) budget has been severely reduced over the last five years and these funds must be used to supplement the library budget, staff recommends that the funding over the base general fund amount received last year be used for books (material). Therefore, staff recommends the $46,577 of increased revenue be allocated for books (material). Environmental Status: Not Applicable. Attachment(s): A. California Library Services Board Allocation Document. CALIFORNIA STATE LIBRARY LIBRARY DEVELOPMENT SERVICES•P.O.BOX 942837•SACRAMENTO,CA 94237-0001 TELEPHONE:(916)653-5217 CAIIFORNIA STATE LIBRARY MEMO DATE: February 10, 1997 TO: Public Library Director FROM: Liz Gibson Chief of Library Development Services SUBJECT: Public Library Fund Allocations, 1996/97 The certification of local revenue process for the allocation of the 1996/97 Public Library Fund (PLF) appropriation has been completed and payment to local libraries has been initiated. The list of public libraries qualifying, together with their PLF allocations for 1996/97, is attached. If you have questions or need further information, please contact Jay Cunningham in LDS at (916) 653-8112. Enclosure PUBLIC LIBRARY FUND 2/6/97 FY 1996197 BUDGET (15,870,000) 1 2 3 4 5 6 7 Population Sec. 18023 Per Percent State Adjusted Payee FY 96/97 Income Capita Of Per Capita Payment Payment FY 96/97 (1/2) 17.532 (4X 1.948) (1 X 5) Alameda 78,300 1,705,025 21.78 100% 1.948 152,528 45,785 Alameda Co. 512,450 14,336,357 27.98 100% 1.948 998,253 299,648 Alhambra 88,500 1,547.865 17.49 100% 1.943 171,985 51,625 Alpine Co. 1.180 200,225 169.68 100% 1.948 2,299 690 Altadena L.D. 48,380 1,187,824 24.55 100% 1.948 94,244 28,290 Amador Co. 34,000 475,040 13.97 80% 1.552 52,782 15,844 Anaheim 293,200 5,800,137 19.78 100% 1.948 571,154 171,445 Arcadia 52,100 1,407,460 27.01 100% 1.948 101,491 30,465 Auburn-Placer Co. 138,325 1,879,336 13.59 77% 1.510 208,815 62,681 Azusa 43,950 733,132 '16.68 95% 1.853 81,459 24,452 Banning Unif. S.D. 26,000 353,600 13.60 78% 1.511 39,289 11,793 Beaumont L.D. 21,730 325,500 14.98 85% 1.664 36,167 10,856 Belvedere-Tiburon 10,650 1,107,835 104.02 100% 1.948 20,746 6,227 Benicia 27,200 686,425 25.24 100% 1.948 52,986 15,905 Berkeley 104,700 7,632,000 72.89 100% 1.948 203,956 61,222 Beverly Hills 33,300 51-355,716 160.83 100% 1.948 64,868 19,472 Brawley 21,550 245,108 11.37 65% 1.264 27,234 8,175 Buena Park L.D. 72,700 1,610,800 22.16 100% 1.948 141,620 42,510 Burbank • 101,400 3,747,929 36.96 100% 1.948 197,527 59,292 Burlingame 35,570 2,082,478 58.55 100% 1.948 69,290 20,799 Butte Co. 197,000 1,055,911 5.36 31% 0.596 117,323 35,217 Calaveras Co. 36,950 317,537 8.59 49% 0.955 35,282 10,591 Camarena (Calexico) 24,700 Ineligible 0.00 0% 0.000 0 0 Carlsbad 68,200 2,825,124 41.42 100% 1.948' 132,854 39,879 Carmel (Harrison) 4,460 538,043 120.64 .100% 1.948 8,688 2,608 Cerritos 55,300 2,303,290 41.65 100% 1.948 107,724 32,336 Chula Vista 153,200 3,632,574 23.71 100% 1.948 298,434 89,582 Coalinga-Huron U.S.D. 17,720 342,000 19.30 100% 1.948 34,519 10,362 Colton 44.500 760,877 17.10 98% 1.900 84,542 25,377 Colusa Co. 17,950 244,144 13.60 78% 1.511 27,127 8,143 City of Commerce 12,700 2,106,976 165.90 • 100% 1.948 24,740 7,426 Contra Costa Co. 779,900 10,340,400 13.26 76% 1.473 1,148,933 344,878 Corona 99,500 1,610,933 16.19 92% 1.799 178,993 53,729 Coronado 28,550 1,189,306 41.66 100% 1,948 55,615 16,694 Covina 45,950 714,490 15.55 89% 1.728 79,388 23,830 Daly City 99,500 1,565,707 15.74 90% 1.748 173,967 52,220 Del Norte CO.L.D. 28,650 190,181 6.64 38% 0.738 21,131 6,343 Dixon Unif. S.D. 19,230 167,055 8.69 50% 0.965 18,562 5,572 Downey 97,600 1,587,604 16.27 _ 93% 1.807 176.400 52,951 El Centro 37,800 265,433 7.02 40% 0.780 29,493 8,853 El Dorado Co. 144,900 2,008,928 13.86 79% 1.540 223,214 67,003 El Segundo 16,050 1,345,418 83.83 100% 1.948 31,265 9,385 PUBLIC LIBRARY FUND 2/6/97 FY 1996197 BUDGET (15,870,000) 1 2 3 4 5 6 7 Population Sec. 18023 Per Percent State Adjusted Payee FY 96/97 Income Capita Of Per Capita Payment Payment FY 96/97 (1/2) 17.532 (4X 1.948) (1 X 5) Escondido 118,300 2,152,141 18.19 100% 1.948 230,448 69,174 Folsom 41,450 466,033 11.24 64% 1.249 51,781 15,543 Fresno Co. 743,780 5,435,837 7.31 42% 0.812 603,982 181,299 Fullerton 122,100 2,446,660 20.04 100% 1.948 237,851 71,396 Glendale 193,500 5,272,207 27.25 100% 1.948 376,938 113,146 Glendora 51,200 1,073,572 20.97 100% 1.948 99,738 29,938 Hayward 122,200 2,230,008 18.25 100% 1.948 238,046 71,455 Hemet 52,600 817,913 15.55 89% 1.728 90,879 27,279 Humboldt Co. 125,500 1,597,257 12.73 73% 1.414 177,473 53,272 Huntington Beach 187,200 4.108,587 21.95 100% 1.948 364,666 Z109,463 Imperial 6,950 52,401 7.54 43% 0.838 5,822 1,748 Imperial Co. 49,120 Ineligible 0.00 0% 0.000 0 0 Inglewood 116,000 2,790,229 24.05 100% 1.948 225,968 67,829 Inyo Co. 18,550 568,641 30.65 100% 1.948 36,135 10,847 Irwindale 1,090 125,748 115.37 100% 1.948 2,123 637 Kern Co. 624,700 8,001,854 12.81 73% 1.423 889,095 266,882 Kings Co. 118,900 815,420 6.86 39% 0.762 90,602 27,196 Lake Co. 55,300 448,809 8.12 46% 0.902 49,868 14,969 Larkspur 11,600 316,557 27.29 100% 1.948 22,597 6,783 Lincoln 7,950 39,298 4.94 28% 0.549 4,366 1,311 Livermore 65,400 2,101,820 32.14 100% 1,948 127,399 38,242 Lodi 54,500 941,000 17.27 98% 1:918 104,556 31,385 Lompoc 67,080 642,536 9.58 55% 1.064 71,393 21,430 Long Beach 437,800 10.676,961 24.39 100% 1.948 852,834 255,997 Los Angeles 3,638,100 63,527,151 17.46 100% 1.940 7,058,572 2,118,788 Los Angeles Co. 3,324,500 52,099,000 15.67 89% 1.741 5,788,778 1,737,631 Los Gatos 28,950 961,710 33.22 100% 1.948 56,395 16,928 Madera Co. 108,900 741,746 6.81 39% 0.757 82,416 • 24,739 Marin Co. 131,370 4,771,464 36.32 100% 1.948 255,909 76,817 Mariposa Co.- 16,050 193,961 12.08 69% 1.343 21,551 6,469 Mendocino Co. 84,500 626,048 7.41 42% 0.823 69,561 20,880 Menlo Park 30,200 1,101,340 36.47 100% 1.948 58,830 17,659 Merced Co. 198,500 775,079 3.90 22% 0.434 86,120 25,851 Mill Valley 13,750 955,626 69.50 100% 1.948 26,785 8,040 Mission Viejo 89,900 1,081,266 12.03 69% 1.336 120,141 36,063 Modoc Co. 10,150 299,500 29.51 100% 1.948 19,772 5,935 Mono Co. 10,600 410,600 38.74 100% 1.948 20,649 6,198 Monrovia 38,900 679,751 17.47 100% 1.942 75,528 22,671 Monterey 32,200 2,015,228 62.58 100% 1.948 62,726 18,828 Monterey Co. 188,290 3,318,792 17.63 100% 1.948 366,789 110,100 Monterey Park(Buggermeyer) 64,000 1,199,841 18.75 100% 1.948 124,672 37,423 Mountain View 71,300 2,961,986 41.54 100% 1.948 138,892 41,692 PUBLIC LIBRARY FUND 2/6/97 FY 1996/97 BUDGET (15,870,000) 1 2 3 4 5 6 7 Population Sec..18023 Per Percent State Adjusted Payee, FY 96/97 Income Capita Of Per Capita Payment Payment FY 96/97 (1/2) 17.532 (4X 1.948) (1 X 5) Napa City-Co. 113,470 2,281,531 20.11 100% 1.948 221.040 66,350 National City 54,700 847,033 15.49 88% 1.721 94,115 28,251 Nevada Co. 87,000 Denied 0.00 0% 0.000 0 0 ` Newport Beach 69,100 3,915,762 56.67 100% 1.948 134,607 40,405 Oakland 401,500 12,025,757 29.95 100% 1.948 782,122 234.771 Oceanside 147,200 2,714,750 18.44 100% 1.948 286,746 86,073 Ontario 142,400 3,073,885 21.59 100% 1.948 277,395 83,266 Orange 119,700 2,366,685 19.77 100% 1.948 233,176 69,993 Orange Co. 1,258,950 19,292,540 15.32 87% 1.703 2,143,616 643,454 Orland 12,930 222,781 17.23 '98% 1.914 24,753 7,430 Oxnard 153,300 2,442,384 15.93 91% 1.770 271,376 81,460 Pacific Grove 17,150 703,682 41.03 100% 1.948 33,408 10,028 Palm Springs 41,700 1.583,326 37.97 100% 1.948 81,232 24,383 Palmdale 112,000 1,485,840 13.27 76% 1.474 165,093 49,556 Palo Alto City 58,500 4,160,671 71.12 100% 1.948 113.958 34,207 Palo Verde Valley L.D. 36,070 135,305 3.75 21% 0.417 15,034 4,513. Palos Verdes L.D. 69,050 2,532,520 36.68 100% 1.948 134,509 40,376 Pasadena 137,100 7,628,315 55.64 100% 1.948 267,071 80,167 Paso Robles 21,450 552,720 25.77 100% 1.948 41,785 12,543'. Placentia L.D. 48,025 933,000 19.43 100% 1.948 93,553 28,082 Plumas/Sierra Co. 23,840 319,862 13.42 77% 1.491 35,540 10,668 Pomona 139,800 2,159,262 15.45 88% 1.716 239,918 72,017 Porterville 34,550 465,705 13.48 77% 1.498 51,745 15,532 Rancho Cucamonga 115,900 1,258,200 10.86 62% 1.206 139,800 41,964 Rancho Mirage 13,630 929,279 68.18 100% 1.948 26,551 7,970 Redlands(A.K. Smiley) 65,600 1,260,418 19.21 100% 1.948 127,789 38,359 Redondo Beach 63,900 1,887,450 29.54 100% 1.948 124,477 37,365 Redwood City 71,800 3,960,582 55.16 100% 1.948 139,866 41,984 Richmond 90,900 3,136,367 34.50 100% 1.948 177,073 53,152 Riverside City-Co. 1,090,600 11,731,744 10.76 61% 1.195 1,303,527 391,283 Roseville 59,700 1,838,471 30.80 100% 1.948 116,296 34,909 Sacramento 1,081,930 15,299,960 14.14 81% 1.571 1,699,996 510,292 Salinas 122,500 2,570,800 20.99 100% 1.948 238.630 71,630 San Anselmo 12,150 305,507 25.14 100% 1.948 23,668 7,105 San Benito Co. 41,750 274,299 6.57 37% 0.730 30,478 9,149 San Bernardino 181,700 2,832,300 15.59 89% 1.732 314,700 94,464 San Bernardino Co. "973,050 7,959,570 8.18 47% 0.909 884,397 265,471 San Bruno 40,450 1,094,900 27.07 100% 1.948 78,797 23,653 San Diego 1,183,100 20,799,577 17.58 100% 1.948 2,304,679 691,801 San Diego Co. 937,125 8,082,340 8.62 49% 0.958 898,038 269,566 San Francisco 755,300 35,576,252 47.10 100% 1.948 1,471,324 441,651 San Jose 849,400 25,341,830 29.83 100% 1.948 1,654,631 496,675 PUBLIC LIBRARY FUND 2/6/97 FY 1996197 BUDGET (15,870,000) 1 2 3 4 5 6 7 Population Sec. 18023 Per Percent State Adjusted Payee FY 96/97 Income Capita Of Per Capita Payment Payment FY 96/97 (1/2) 17.532 (4X 1.948) (1 X 5) San Juan Bautista 1,620 Ineligible 0.00 0% 0.000 0 0 San Leandro 71,500 2,637,427 36.89 100% 1.948 139,282 41,809 San Luis Obispo City-Co. 210,900 3,951,683 18.74 100% 1.948 410,833 123,321 San Marino 13,400 523,844 39.09 100% 1.948 26,103 7,835 San Mateo 94,930 2,765,594 29.13 100% 1.948 184,924 55,509 San Mateo Co. 262,085 8,890,513 33.92 100% 1.948 510,542 153,250 San Rafael 52,400 907,541 17.32 99% 1.924 100,838 30,269 Santa Ana 305,800 3,642,185 11.91 68% 1.323 404,687 121,476 Santa Barbara 217,030 3,553,164 16.37 93% 1.819 394,796 118,507 Santa Clara 98,000 3,379,927 34.49 100% 1.948 190,904 57,304 Santa Clara Co. 380,030 15,656,229 41.20 100% 1.948 740,298 222,217 Santa Cruz 208,725 4,353,348 20.86 100% 1.948 406,596 122,049 Santa Fe Springs 15,700 997,200 63.52 100% 1.948 30,584 9,180 Santa Maria 110,490 1,312,410 11.88 68% 1.320 145,823 43,772 Santa Monica 90,300 4,952,974 54.85 100% 1.948 175,904 52,802 Santa Paula(Blanchard) 26,700 475,100 17.79 100% 1.948 52,012 15,612 Sausalito 7,650 437,988 57.25 100% 1.948 14,902 4,473 Shasta Co. 161,600 610,463 3.78 22% 0.420 67,829 20,360 Sierra Madre 11,150 424,614 38.08 100% 1.948 21,720 6,520 Signal Hill 8,775 175.750 20.03 100% 1.948 17,094 5,131 Siskiyou Co. 44,600 683,493 15.32 87% 1.703 75,944 22,796 Solano Co. 326,630 5,892,555 18.04 100% 1.948 636,275 190,992 Sonoma Co. 421,500 7,108,373 16.86 96% 1.874 789,819 237,082 South Pasadena 24,850 1,060,901 42.69 100% 1.948 48,408 14,531 So. San Francisco 57,000 1,776,066 31.16 100% 1.948 111,036 33,330 St. Helena 5,575 515,253 92.42 100% 1.948 10,860 3,260 Stanislaus Co. 415,300 5,229,890 12.59 72% 1.399 581,099 174,430 Stockton-San Joaquin Co. 474,875 7,379.021 15.54 89% 1.727 819,891 246,109 Sunnyvale 126,100 4,174,879 33.11 100% 1.948 245,643 73,735 Susanville D.L. 14,700 109,700 7.46 43% 0.829 12,189 3,659 Sutter Co. 74,100 584,591 7.89 45% 0.877 64,955 19,498 Tehema Co. 54,400 272,615 5.01 29% 0.557 30,291 9,092 Thousand Oaks 112,000 4,408,358 39.36 100% 1.948 218,176 65,490 Torrance 139,800 4,314,582 30.86 100% 1.948 272,330 81,746 Trinity Co. 13,400 157,121 11.73 67% 1.303 17,458 .5,240 Tulare 39,750 380,130 9.56 55% 1.063 42,237 12,678 Tulare Co. 277,100 2,149,173 7.76 44% 0.862 238,797 71,680 Tuolumne Co. 52,700 463,233 8.79 50% 0.977 51,470 15,450 Upland 66,200 1,125,729 17.00 97% 1.889 125,081 37,546 Ventura Co. 424,075 5,145,200 12.13 69% 1.348 571,689 171,605 Vernon 80 8,650 108.13 100% 1.948 156 48 Watsonville 34,250 835,689 24.40 100% 1.948 66,719 20,027 .r ' PUBLIC LIBRARY FUND 2/6/97 FY 1996/97 BUDGET (15,870,000) 1 2 3 4 5 6 7 Population Sec. 18023 Per Percent State Adjusted Payee FY 96/97 Income Capita Of Per Capita Payment Payment FY 96/97 (1/2) 17.532 (4X 1.948) (1 X 5) Whittier 82,500 2,278,428 27.62 100% 1.948 160,710 48,241 Willows 13,650 193,712 14.19 81% 1.577 21,524 6,461 Woodland 43,250 745,140 17.23 98% 1.914 82,793 24,852 Yolo Co. 108,925 2,000,991 18.37 100% 1.948 212,186 63,692 Yorba Linda 57,600 2,262,500 39.28 100% 1.948 112,205 33,681 Yuba Co. 62,200 287,737 4.63 26% 0.514 31,971 9,597 32,214,290 617,548,127 52,869,621 15,870,000 Explanation for Columns 3 to 7 Column 3. Income (Column 2) divided by population (Column 1). Column 4. Local per capita divided by $17.532. Column 5. Column 4 multiplied by 1.948. Column 6. Column 1 multiplied by Column 5 equals full PLF authorization' IF FULL FUNDING WERE AVAILABLE. -Column 7. Total PLF funding available is 30% of the full authorization. Column 7 is .300172381 of Column 6. File:Dk041FlNPLF96