LAKEPORT, Calif. – During its midyear budget review on Tuesday, the Lakeport City Council got some good news both about revenues and expenses.
City Finance Director Dan Buffalo presented the thorough update to the council, noting that there were not a lot of surprises.
There is, however, a brightening economic picture, according to Buffalo's review of the city's fiscal status.
He said the general fund is balanced and in stable condition, with major revenues up by 7.6 percent.
Buffalo said sales tax is up 17.9 percent and Measure I, the city's half-cent sales tax measure, is up 19 percent over last year. At the same time, department expenditures are on pace with expectations
The increases, he said, appear to be primarily due to timing differences from late payment collection and other true-ups from the State Board of Equalization, making the actual revenue improvement closer to between 5 and 7 percent.
He said water and sewer revenues have increased by the anticipated levels due to rate adjustments, redevelopment dissolution is ongoing and some surpluses are being used for big projects, like the Library Park dock replacement.
After several years of economic recovery from the recession, Buffalo said he anticipates that in 2016 sales tax will equate – dollar for dollar – to 2006 levels.
“It's taken quite a while to get back to that point,” he said, noting that while city revenue has been recovering, expenses and costs haven't gone down.
Year-to-date, department expenditures are at 35 percent of what is budgeted, at $5.8 million of the $16.6 million total, which he said is a result of some funds being tied to as-yet completed projects.
Regarding the water enterprise fund, Councilman Kenny Parlet asked about the savings for the new meter reading system.
“I would consider it very significant,” said Buffalo.
Before the new water meters were installed, it took two staffers a total of 100 hours per month to read the meters. Now, it takes a total of four hours. “It's hardly inconsequential,” said Buffalo.
The redevelopment successor agency's budget includes $290,000 in general administration and debt service, with the latter category taking most of the funds. Buffalo said most of the “serious heavy lifting” in the dissolution process is now over.
Solid waste billings also are showing slight increases, Buffalo said.
“In a nutshell, everything's looking A-OK still,” he said.
Buffalo said that, so far this budget year, the council has made four budget adjustments: $63,911 to fill a police detective position; $154,215 for a water tank project; $45,658 for establishment of a project budget for solar feasibility; and $34,500 for chip seal preparation for Parallel Drive.
As part of the midyear budget review and update, Buffalo said staff was asking the council for an additional adjustment of $64,500 across all city funds.
That $64,500 is the total number following a number of budget changes, including a decrease in salaries and benefits totaling $178,624, and a $27,000 cost savings from retiree health plan modifications; a $186,640 appropriations increase for operations; a $1 million property acquisition for a new city police station, which is to be covered by an anticipated $1 million US Department of Agriculture Rural Development Public Facilities loan; a $10,053 increase in state-mandated cost reimbursement; and in the “other” category, $2,000 in unspecified revenue and $95,537 in appropriations.
Buffalo said the budget preparation process for the 2015-16 year already has started – ahead of the usual March timeframe – as he's responding to department requests to go over details.
Internal staff budget meetings will begin in early April, with the building of the budget document to begin mid-April, he said.
The first budget workshop with the council and public is tentatively set for June 2, with the second budget hearing expected to take place June 9, he said.
Buffalo's timeline included a June 16 date for the council to host a public hearing, at which time the final or tentative budget would be accepted.
Councilwoman Mireya Turner moved to approve the budget amendments as proposed by staff, with Councilman Marc Spillman giving the second.
The council voted 4-0 to accept the amendments, with Mayor Martin Scheel absent from the meeting.
In other business on Tuesday, the council approved abandoning a narrow strip of right-of-way on Martin Street in order to allow the Soper Reese Theater to move forward on renovations and the 2014 addendum to the Lakeport General Plan.
The council also authorized a staff request to seek additional funds and grants from the US Department of Agriculture to complete water and wastewater projects, and approved an excavator purchase.
Email Elizabeth Larson at This email address is being protected from spambots. You need JavaScript enabled to view it. . Follow her on Twitter, @ERLarson, or Lake County News, @LakeCoNews.
Lakeport City Council approves midyear budget update; revenues show slight uptick
- Elizabeth Larson
- Posted On