City of Santa Clarita
June 26, 2001
It is my pleasure to present to you the City of Santa Clarita's Fiscal Year 2001-2002 Operating Budget and Five-Year Capital Improvement Program. The leadership of the City Council provided the direction and prioritization necessary to provide this balanced budget that is responsive to the needs and priorities of the City's residents and businesses. The following information provides an overview of the Fiscal Year 2001-2002 Budget. This overview includes a summary of appropriations, revenues, department budgets, successes, and the Capital Improvement Program. BUDGET OVERVIEW Appropriations The Fiscal Year 2001-2002 Budget totals $132,305,596, of which $17,723,806 is made up of a variety of rebudgeted capital projects such as the Aquatics Center ($5.8 million); Open Space Acquisition - Whitney Canyon ($2.0 million); Newhall Rail Station Parking Expansion ($2.0 million); and Oak Springs Park ($800,000). The operating budget, totaling $82,622,880, includes Personnel, Operations and Maintenance, Debt Service, and Capital Outlay required for delivering an array of City services. The Capital Improvement Program budget includes 53 capital projects totaling $49,682,715. Again, this capital budget reflects the rebudget amount of $17.7 million. The City's appropriations are within the Proposition 4 (Gann) Appropriations Limit and are projected to remain within these limits.
BUDGET OVERVIEW Revenues An essential step in the budget process is estimating revenues for the upcoming fiscal year. This process is vital, as appropriations are based on these projections. In order to ensure accuracy in our projections, several factors are considered: historical trends, population projections/growth, known activities that affect revenues, and inflationary factors. With this information, the City can determine what revenues will be available for allocation. Additionally, the City utilizes long-range financial planning to ensure long-term solvency. Currently, revenues are growing at a pace sufficient to maintain our projected level of services. Revenues for Fiscal Year 2001-2002 are projected at $107,873,963. In addition to these revenues, $24,431,633 of Reserved Fund Balance dollars are being appropriated for one-time uses. This brings the total resources to $132,305,596, which are in line with total expenditures. There are over 40 different funds that make up the City budget. Each fund contains its own spending restrictions, and as such can only be allocated toward specific projects or purposes.
It is also important to note that there are continued discussions at the State and Federal level regarding Internet sales. It is estimated that sales over the Internet will reach into the hundreds of billions of dollars. The proliferation of sales over the Internet and the lack of a clear sales tax policy could result in deteriorating sales tax revenues to the City. It is important that the City continue to monitor the impact of such sales and work with our legislators to protect any loss of revenue to the General Fund. DEPARTMENT HIGHLIGHTS In developing the Budget, departments were given a base allocation and asked to thoroughly evaluate their current levels of funding and submit a responsible department budget. The following department summaries represent the results of those efforts, as well as highlights of those items being funded for the fiscal year. City Manager's Office The City Manager's Office is a service-oriented department that provides services to the City Council, the community, businesses, other agencies, and staff. The following areas are represented within the City Manager's Office budget: City Council, Public Information, Risk Management, Human Resources, Economic Development, Intergovernmental Relations, City Clerk, and Special Projects. The budget contains several key allocations, including $150,000 for the April 2002 municipal election, $29,610 for the SBC Senior Classic, and $27,000 for the Tourism Marketing Program. Another key budget addition is $250,000 for the continued opposition of Transit Mix Concrete's (TMC) Soledad Canyon Mining effort. Administrative Services The Administrative Services Department includes Finance, Technology Services, and Grant Administration. The department supports all divisions within the City, while serving as a key department in external delivery to our local merchants and vendors. A key addition to the department is a one-time appropriation of $50,000 to meet the new accounting standards set in GASB 34. This change in accounting standards is one of the most significant adjustments made to government accounting in the last 50 years. In the area of technology, the budget represents the City's ongoing dedication to building our technology infrastructure by adding $210,000 in one-time outlays for: E-commerce solution, additional phone lines, computer and printer replacement, project management system, upgrades to the City's financial system, and document imaging. Another key budget addition is $417,620 for the replacement of 14 vehicles, of which 25 percent are alternative fuel vehicles. Planning & Building Services Functions of the Planning & Building Services Department consist of Planning, Annexations, Building Permits, Code Enforcement, Building Inspection, Environmental Services, and Geographic Information Systems (GIS). This department continues to do an excellent job in managing the demands of growth. However, there is an anticipated general slowing in the economy and a slowdown in general construction activity that will affect revenues for the next couple of years. Additions for the department include $50,000 to address Brownfield mitigation and liability issues, $60,000 for architectural consultants, $11,000 to enhance the River Rally program, and the addition of the following two key positions: Assistant Building Official and Environmental Field Specialist. Transportation & Engineering Services The Transportation & Engineering Services Department is comprised of Engineering, Special Districts, Transit, and Capital Improvement Program.
In the Santa Clarita Lighting District, $345,000 was added to address any potential increase in annual energy/maintenance costs and $17,000 for professional services to assist in annexing new parcels into the district. Field Services The Field Services Department includes most of the field and maintenance functions within the City, including Urban Forestry, Street Maintenance, Vehicle Maintenance, Facilities Maintenance, and Stormwater Field Services. The department primarily serves the citizens of Santa Clarita. However, Field Services must also ensure that the facilities and amenities maintained for employees of the City are safe and aesthetically pleasing. The budget reflects required maintenance items that are a result of increased City services and programs. $160,000 is being allocated toward the cost of maintaining the Activities Center at the Santa Clarita Sports Complex. $108,100 is for an increase to all electric utility accounts. Additionally, the following positions are being added to accommodate the increase in services: Oak Tree Specialist, Maintenance Supervisor, General Maintenance Worker, and two Street Maintenance Workers for the Stormwater Utility function. Public Safety This section of the budget represents the cost of contracting for fire protection and police services. Police services are contracted with the Los Angeles County Sheriff's Department. This year's police services budget totals $11,899,725. The Public Safety budget includes an addition of $7,500 for a Family Violence Task Force. Santa Clarita has consistently ranked in the top six safest cities in the nation among cities with populations over 100,000. Parks, Recreation & Community Services Functions of the Parks, Recreation & Community Services Department include Landscape Maintenance Districts, Parks Maintenance, Median Maintenance, Park Development and Planning, Recreation, Emergency Preparedness, Cultural Arts, and other community services. This department is making huge strides in providing services for the growing and demographically diverse population of the Santa Clarita Valley. This budget reflects the demand for services based on the operation of new parks and activity facilities, completion of capital improvement projects, the pressing needs of the community, and maintenance of current service levels in other areas. Key allocations include $161,050 for programming of the new Activities Center, $55,500 for ongoing maintenance of Pamplico and Central Parks, $51,850 for the Character Counts Education Program, $30,000 for a van due to expansion of the Community Center programming, and an additional $3,000 to convert one Mobile Afterschool Program to a PLAY (Providing Leisure Activities for Youth) site. The Landscape Maintenance District budget includes $848,920 in various capital improvement projects to further enhance the level and quality of services being provided by the City, and $143,569 for four newly formed zones. FIVE YEAR CAPITAL PLAN The Capital Improvement Program is a key component of this document and the community as a whole. It represents a balanced approach for meeting the community's current and future needs. It accomplishes the City's major goals for projects, while maintaining critical ongoing maintenance. The Capital Improvement Program for 2001-2002 totals $49,682,715; however, this budget reflects a variety of rebudgeted projects. The Capital Improvement Program is broken down into nine project classifications.
This year's program includes funding for Annual Overlay and Slurry Program ($5 million); Practice Fields ($1.4 million); Traffic Solution/Golden Valley Road Phase III ($2.6 million); Aquatics Center ($8.29 million); Sherzinger Lane Improvements ($1.1 million); Open Space Acquisition-Beazer Back Country ($700,000); Haskell Canyon Bridge Widening and Road Improvements ($923,000); as well as many other important projects. The entire Capital Improvement Program represents a proactive and tangible effort toward enhancing the quality of life of our residents, while continuing to address priority issues expressed by the community. A detailed description of all projects contained within the 2001-2002 Capital Improvement budget, as well as corresponding location maps, can be found in the Capital Projects section of this document. UNFUNDED NEEDS Each year, departments present funding requests through the budget process; however, because needs always exceed the resources available, not all requests are funded. The following list represents some of the items not included in the budget for funding.
A SUCCESSFUL YEAR Through the City Council's leadership and the coordinated efforts of multiple City departments, we have achieved many successes during the 2000-2001 Fiscal Year.
CONCLUSION This budget has been established to enable the City to meet a myriad of challenges over the next fiscal year. I would like to thank the City Council for its policy leadership throughout the year, and especially during the preparation of the budget. I would also like to thank all the Commissioners and City staff who, every day, commit themselves to providing the highest-quality services to this community. Furthermore, I would like to recognize each of the budget officers, who worked diligently to prepare the document now before you. Specifically, thanks go to each member of the lead budget team Elena Galvez, Management Analyst, Barbara Boswell, Accounting Manager, Tina Haddad, Administrative Analyst and Steve Stark, Director of Administrative Services, for their work in preparing the Budget. In addition, I would like to thank Mary Navarro, Program Specialist, and Kevin Tonoian, Senior Management Analyst, for their hard work preparing the Capital Improvement Program section of the document. Through the City Council's continued leadership, I am confident that the City will fulfill its vision to ensure that the City of Santa Clarita's enviable quality of life both improves and endures. It is clear that strong leadership by the City Council, quality staff, and involved citizens are the key ingredients to making this community a place we are all proud of. I look forward
to the challenges of the upcoming fiscal year and the completion of
yet another successful year of cityhood. Respectfully Submitted,
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The
City's largest fund is the General Fund, which equates to approximately
50 percent of the total revenue picture, or $51,709,845. The General
Fund is vital to the operation of the City, as it is discretionary revenue,
which the City Council can allocate toward any project or need within
the community. Sales tax continues to be the City's largest revenue
source, accounting for 36 percent of the General Fund, or $20,400,000.
Other revenue sources not included in the City's General Fund such as
Gas Tax, Community Development Block Grants (CDBG), Transportation Development
Act (TDA), Park grants, Transit funds, and Stormwater Utility, among
others, are restricted funding sources, which fund programs, projects,
and services; these special revenues total $56,164,118.