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Item 5 - Additional Information for FY 94/95 Budget DISl'RIBUTED ~~ <1 If'Y4 - '! AGENDA REPORT ~ F G'''; II::-i;.- CITY OF POW A Y TO: Honorable Mayor and Members of the City Council FROM: James L. Bowersox, City Manager , INITIATED BY: John D. Fitch, Assistant City Managerf5)f Peggy A. Stewart, Director of Administ ative servic~ DATE: June 21, 1994 SUBJECT: Additional Information for FY 94/95 Budget BACKGROUND At the first public hearing on June 14, 1994, for the FY 94/95 Budget, the City Council requested additional information about the amount of money the City had spent on the Hughes Heiss Report and how much money had been saved as a result of implementing its recommendations. FINDINGS The City spent a total of $109,000 on the Hughes Heiss Management Audit. The City achieved an estimated direct salary and benefit savings in FY 93/94 of $491,460. This savings was offset somewhat by the costs of early retirement. It is projected that the City will achieve a direct salary and benefits saving of $612,290 in FY 94/95 over FY 92/93 actuals. ENVIRONMENTAL REVIEW Environmental review is not required for this agenda item according to CEQA guidelines. FISCAL IMPACT None. ADDITIONAL PUBLIC NOTIFICATION AND CORRESPONDENCE None. RECOMMENDATION It is recommended that the City Council receive and file this report. ~ ACTION: -' ~ h JUN 21 1994 ITEM 5 " "-~----- -- --_._._._~_.- ------- - f)-~ ~ ~~/YfjL' (( . AGENDA REPORT F w 0.' dJ- CITY OF POW A Y TO: Honorable Mayor and Members of the City Council FROM: James L. Bowersox, City Ma~ INITIATED BY: John D. Fitch, Assistant City Manager Peggy A. Stewart, Director of Administrative servi~ DATE: June 21, 1994 SUBJECT: Additional Information for FY 94/95 Budget BACKGROUND City staff was advised on MOnday by the League of California Cities of a proposal to shift $100 million in vehicle license fee revenues from cities to counties. This proposal is one on a list of budget options being examined by the Democratic caucuses of both the Senate and the Assembly. According to the League, the list is being developed to provide alternatives to the health and welfare cuts being proposed by the Governor in county programs. FINDINGS The estimated impact of this proposal to the City of Poway is a reduction of $215,000 in motor vehicle license fee revenues from the FY 94/95 General Fund budget. An analysis of the $100 million shift follows: /t ~ ~ ~ I ACTION: ~ 1 0" /. JUN 2 1 19S4 ITEM ,5 'I Agenda Report June 21, 1994 Page 2 ANALYSIS OF STATE TAKING OF MOTOR VEHICLE IN LIEU FEES Description Initial FY 94/95 Revised FY 94/95 Revenue Loss Estimated revenue $865,921,000 $765,921,000 to be aooortioned Estimated 26,395,084 26,395,084 Pooulation Amount Per Capita $32.80614678 $29.01756251 Poway Population 46,326 46,626 Poway Budget $1,559,580 $1,344,270 $215,310 The City of Poway has lost a total of $800,000 in tax revenues to the State of California annually to support state programs and expenditures. This additional taking of City revenues will increase the City's annual loss to just over $1,000,000 in general fund tax revenues which are no longer available to provide local services. In addition, the State is taking $545,000 in tax increment revenue from the Poway Redevelopment Agency. ENVIRONMENTAL REVIEW .r Environmental review is not required for this agenda item according to CEQA guidelines. FISCAL IMPACT The taking of additional vehicle license fees will result in a revenue loss to the City of Poway of $215,310. With no contribution being made to the Capital Replacement Fund in FY 94/95, the City's proposed FY 94/95 General Fund Budget would remain balanced by approximately $54,000. ADDITIONAL PUBLIC NOTIFICATION AND CORRESPONDENCE Additional public notification sent to members of the Budget Review Committee. RECOMMENDATION It is recommended that the City Council receive and file this information. 2 of 2 JUN 211994 ITEM 5 II _ ~ &~'f)or:P ~...~ . :I. 6~ ~ ...._ u ....._.____ .u q3/14 JB'35)~-S9} I.o\D-{~lJ2~31 380_~t/o':'1 ) q~/1S .' 32) 4~ \ ? Soq _J;(J 3e71_Cl'2,q ~~) -----....--.--- .---- ._-- - ---~ _.I[~u. ~.~_*~.,j ~. ~. . ~.__._u~I._~ Od-nv4~~Lj-_IDI'" DO.'c..__:___.~ __. _ ____~_ ~t, ll'''~) -9-l-~<5b~. ~ 1\,. -t-,' ~) . --_.....~.~,~:~.~_~~ -Iltosoj OOO_~ _. -- C~~ ~~,u~1_) yI _m._. ... 3'~I.I).\.LoV)\.~ ~.. ; +loOIOoO ..... 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