LAKEPORT, Calif. – The Lakeport City Council sat down for its first review of the city's draft 2015-16 budget on Tuesday evening.
The budget workshop, which immediately preceded the regular council meeting, is part of an intensive process that began early this year, according to Finance Director Dan Buffalo.
In February, city staff began developing the budgetary approach and format, holding a goal setting setting with the council in March.
In April, budget instructions and workbooks were distributed to city departments, the first round of meetings between City Manager Margaret Silveira and the departments were scheduled, with the first round of internal budget meetings to follow, according to the city timeline.
The second round of budget meetings occurred in May, with Silveira developing the budget message and draft document.
In June budget hearings, final revisions, document finalization and, ultimately, adoption of the document are scheduled to take place, Buffalo said.
Buffalo told the council that the 225-page draft document includes a balanced budget.
This year's budget process started earlier, was more collaborative and strategic, focuses on project completion, includes continued emphasis on efficiencies, as well as service delivery enhancement and effectiveness, he said.
Buffalo said that, through the budgeting approach, the city is attempting to position itself well to meet the coming challenges.
“We're trying to tell a story in this budget. It's not just a legal document, it's not just a bunch of numbers,” he said.
The budget prioritizes investments in operating efficiencies and cost control, economic development, and infrastructure and capital.
Buffalo said it includes five citywide goals:
– Maintain strong council/staff relations and encourage leadership development.
– Strengthen community and regional involvement.
– Establish and promote effective public outreach efforts.
– Enhance activities and programs to support local and regional economic development.
– Focus efforts on infrastructure improvements.
He said Silveira chose five projects and objectives that got the most votes from the council and were considered the most attainable: completing the lakefront strategic plan, completing the annexation of South Main Street and Soda Bay Road, retaining authorized police staffing and resubmission of a school resource officer grant, continuing road projects as funds are available, and increasing Neighborhood Watch and other community program.
The financial picture
In going over the financial highlights, Buffalo said the budget estimates city revenues of $18.19 million, including funds from the US Department of Agriculture for projects to improve the city's sewer and water systems.
Total expenditures are estimated at $20.90 million citywide, across all funds. He said the city is using some funds for one-time expenditures like the Main Street revitalization project.
The city's general fund will be balanced and enterprise funds will be strengthened, with a strong focus on cost control, project execution and economic development, he said.
Buffalo said $2.52 million is budgeted for roads, including $1.9 million for downtown Main Street. Another $7.98 million is budgeted to complete the USDA sewer and water projects, and $400,277 will go for purchasing vehicles and equipment.
The city is planning to work on filling vacant positions and restoring public safety staffing to an optimal level, he said.
There is estimated to be a budget surplus from fiscal year 2014-15 due to savings from unfilled positions, operations and capital projects, with regular revenues relatively flat, and costs up for pensions and health care, Buffalo said.
He said Silveira wants to carry over some of the surplus and reserve some of it. “We do have a healthy reserve but we're facing some challenges coming up.”
Water and sewer funds are becoming stronger due to rate restructuring, and now have no operating deficits, Buffalo said.
Capital projects in those funds include a water main on Giselman Street, a possible issue with the city's water plant and replacement of 1960s-era Army surplus generators used during power outages.
Buffalo also reviewed with the council the city's property tax distribution, which goes to the following agencies: Lakeport Unified School District, $2,633,251; County of Lake, $1,849,144; Education Augmentation Fund, $1,240,091; city of Lakeport, $860,443; Lakeport Fire Protection District, $615,684; Mendocino College, $512,279; Lake County Office of Education, $227,603; and Lake County Vector Control, $140,023.
As for sales tax distribution, the breakdown is as follows: state general fund, $5,344,107; city of Lakeport, $2,173,874; state local revenue fund, $1,539,827; local public safety fund, $724,625; state local health fund, $724,625; state general fund, $362,312; state education protection fund, $362,312; and transportation fund, $362,312.
Regarding Measure I, the unrestricted half-cent sales tax voters passed in November 2004, the city anticipates generating $730,893 from that tax in the coming fiscal year, Buffalo said.
At the time Measure I was passed, voters also passed the advisory, and nonbinding, Measure J, which asked voters if the proceeds of Measure I should be used to fund repairs and maintenance of city streets, park and community service facilities, and expansion of public services and programs.
In keeping with the spirit of that advisory measure, the city is proposing to use the Measure I proceeds to help with funding a variety of projects, including an overlay on Beach Street, a valley gutter at Lakeport Boulevard and South Main Street, digouts and crack repair on 11th Street, a freestanding roof for the city's fuel pumps, roof on a sign room, Tasers, lease for a patch truck, general road maintenance, and parks buildings and grounds.
Buffalo said Measure I funds also are proposed to be used for the Westshore Pool, which is expected to cost the city $117,191 to operate in 2015-16. Approximately $57,495 in Measure I funds is proposed for the pool.
The council couldn't get through Buffalo's entire budget review in the hour set aside for it, and is considering a special upcoming meeting to continue its initial document review.
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Lakeport City Council looks at budget during first workshop
- Elizabeth Larson
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