The Clearlake City Council met for a budget workshop on Monday, July 17. Council members present included Peggy Smith, Curt Giambruno and Vice Mayor Judy Thein. Also present were members of city staff including City Administrator Kathy Kivley, Interim Director of Finance Michael Vivrette and Chief of Police Bob Chalk, among others department heads.
The nearly six-hour long session, held as a Public Hearing that was carried over to the July 27 regular meeting of the council, provided the opportunity for clarification of the city”s anticipated expenditures and revenues for Fiscal Year 2006-07. The document presented July 17 includes the city”s operating and capital improvement budget as well as the Redevelopment Agency”s budget and activities. The Clearlake Police Department”s proposed budget, including Measure P revenues, are also described in the document.
The city will begin the new fiscal year with a General Fund balance of $989,000. General Fund revenues for FY 2006-07 are projected to be $4,978,000 while budgeted expenditures are projected to be $5,493,00. The General Fund balance is projected to decline from $989,000 to $434,000 after transfers, which reflects a $555,000 reduction in the fund balance to be carried over to the next fiscal year.
Citywide revenues are projected to be slightly more than $8 million including Redevelopment Agency (RDA) revenues of $1.5 million, which represents a $400,000 increase compared to last year”s budgeted revenues.
RDA revenues have improved through the past several years to the point where the fund has more revenue than expenses. The agency will begin the year with a cumulative fund balance of nearly $400,000 and will end the fiscal year with a projected fund balance of $452,000. However, according to the document, there is a $3.6 million deficit in the Capital Projects Fund, which is offset by borrowing against other city funds. The city will be refinancing $6.3 million in outstanding RDA bonds coming due in December 2006, which will provide the city with an opportunity to obtain additional funds for RDA capital projects.
Property and sales taxes represent 70 percent of the city”s General Fund revenues. The city has seen an increase in property tax revenues, which staff expects will continue to grow based on current building activity in the city. Sales tax is being budgeted conservatively at last year”s actual levels as is the Transient Occupancy Tax (TOT), which showed a 21 percent increase in revenue over the prior year.
Staff anticipates an additional $300,000 will be generated with the city”s implementation of a revised fee schedule for building and planning services.
Capital projects included in the FY 2006-07 budget consist of the Midtown Overlay project, the Burns Valley Sidewalk project and winter slide repairs at Lakeshore and San Joaquin drives and Highway 53 at Olympic Drive.
Capital equipment allocated in the preliminary budget for the Clearlake Police Department include the replacement of some police vehicles, the addition of TASER equipment for the officers and upgrade of mobile video recorders for the police vehicles.
Budgeted for the Public Works Department is a water truck, replacement of a dump truck and lawn mower for the Parks Department.
According to the document presented to the council, during the budget process staff reallocated personnel costs to free up money in the Gas Tax fund to provide an increase in funding for road repairs. Furthermore, staff will continue to review and revise city revenues to keep them current and provide additional funding when possible for street and infrastructure repairs.
Citizens may review a copy of the preliminary budget at Clearlake City Hall during regular business hours. The council will be voting on the proposed budget during its July 27 meeting.
Contact Denise Rockenstein at drockenstein@clearlakeobserver.com.
