| All required General Fund reserves are
fully funded. This includes a Reserve for Economic Uncertainty equivalent to 15% of the
proposed General Fund operating expenditures (or $5.5 million) and a $2.7 million reserve
for payment of liabilities related to the Del Monte Dunes lawsuit. Significant Capital
Facilities Improvements Reserves ($3.2 million) also exist to provide partial funding for
such projects as the expansion of the Civic Center and Sports Center. |
| We estimate that total General Fund revenues
will amount to $37.7 million for 1999-2000. This will represent a 2.7% increase over the
$36.7 million currently expected for the 1998-99 fiscal year and a 3.7% increase over the
original 1998-99 budget's revenue projection. |
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Transient occupancy tax (T.O.T.),
which continues to make up 31% of General Fund revenues and is by far the City's largest
revenue source, has flattened out somewhat in 1998-99. Receipts through February 1999
(latest information available) show a less than one-percent increase over the previous
year’s comparable period. This trend, which may indicate that room rates and
occupancy levels have peaked somewhat, caused us to reduce our revenue estimates for
T.O.T. by $200,000 at mid-year. That brought our estimate to $11,000,000 for the General
Fund which still amounts to a 3.6% increase for this year. We believe that a stronger
Spring and early Summer, driven in part by aggressive marketing campaigns already in
progress, will still allow us to achieve our current T.O.T. revenue estimate.
|
Our revenue projections for 1999-2000 in the
General Fund show an increase of 3% or $330,000 over our current 1998-99 estimate. An
additional $2.2 million in T.O.T. (16% of the total) is estimated to be allocated to the
Neighborhood Improvement Fund in 1999-2000.
|
Our revenue projections for 1999-2000 in the
General Fund show an increase of 3% or $330,000 over our current 1998-99 estimate. An
additional $2.2 million in T.O.T. (16% of the total) is estimated to be allocated to the
Neighborhood Improvement Fund in 1999-2000.
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| For the 1999-2000 fiscal year we anticipate
property tax receipts to be $3.4 million. Property taxes make up 9% of all General Fund
revenues. Other taxes collected by the City include the business license tax and utility
users tax (estimated to be $2.2 million and $1.8 million respectively in 1999-2000). |
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All of the special funds are programmed with balanced budgets, where operating revenues
and transfers in are sufficient to pay the ongoing operational costs. Several funds are
also paying for capital project expenditures, including the Gas Tax Fund, Tidelands Trust
Fund, Sewer Line Maintenance Fund, Parking Fund, Marina Fund, and the Presidio Municipal
Services Fund.
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The Presidio Municipal Services Fund is
included in the proposed budget for the first time. This fund has been established to
account for all of the operational activities, projects, and revenues associated with the
municipal services contract between the City and the U.S. Army. This will facilitate the
tracking of ongoing expenditures and revenues, enabling us to monitor the fiscal impact of
the Presidio contract on the City's budget. The proposed operating budget for this fund is
approximately $1.6 million. In addition, more than $1 million is allocated for Presidio
Pathway Lighting projects as part of the proposed capital improvement budget.
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The proposed budget also includes a $600,000
advance from the Sewer Line Maintenance Fund to the Storm Water Utility Fund to pay for
the cost of the Del Monte Outfall capital improvement project. This advance will be repaid
over time, as the storm water revenue increases planned for funding of needed repairs to
the storm water system take effect. It is also proposed that the General Fund advance
$80,000 to the Storm Water Utility Fund to help pay for operational costs.
|
| For all funds, the total proposed operating
budget is $57,721,345, a 6.9% increase over the 1998-99 adopted budget. The total
1999-2000 estimated revenues are $61,410,729, or 6.5% greater than the 1998-99 adopted
budget. |
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The proposed 1999-2000 Capital Improvement Program budget amounts to more than $10
million. Of this amount, $2.24 million is allocated for Neighborhood Improvement projects,
and the remaining $7.86 million is allocated for various capital replacement and capital
improvement projects.
|
Included among the capital replacement
projects are $260,000 for several Conference Center repairs and upgrades, $187,000
for Library upgrades, $425,000 for street resurfacing, $500,000 for
miscellaneous sewer repair projects, and $600,000 for the replacement of the Del
Monte Outfall.
|
| Among the capital improvement projects,
$1,000,000 is allocated for Civic Center expansion, including funding for planning
and design work; more than $2,000,000 is included for Window on the Bay property
acquisition and park development; and $225,000 is included for final design work for the Sports
Center expansion. In addition, $700,000 is allocated for undergrounding of utilities
on Del Monte Avenue between El Estero and Park. This project is funded by Rule 20 A monies
made available through PG&E. |
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The budget proposal represents an action plan for accomplishing the primary goals,
objectives, and priorities of the City Council. The following discusses some of the more
significant priority programs that are being addressed within the proposed budget plan. |
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The capital improvement budget includes more than $2 million in funding for the
acquisition and development of the Window on the Bay park project. The biggest
share of this funding ($1.5 million) is provided by the General Fund via Redevelopment
Agency debt payback. Other funding sources include the Tidelands Trust Fund ($350,000),
Gas Tax Fund ($140,000), and Neighborhood Improvement Fund ($100,000). We are also
continuing to seek outside funding for this project and we are hopeful that we will be
able to secure significant funding from State and other agencies.
|
| The CIP budget includes $75,000 from the
General Fund and $150,000 from the Neighborhood Improvement Fund for the final design
phase of the Monterey Sports Center Expansion project. Plans are also being made
for the development of a program to raise private funding to help defray some of the costs
for the expansion of the Sports Center. We will also be investigating and planning for the
possibility of using long-term debt financing for this project. |
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Initial capital costs ($1,000,000) are
included in the General Fund CIP budget for the Civic Center Improvement project.
This will provide funding to develop a phasing plan, specifications and cost estimates for
the recommendations presented in the Civic Center Master Plan, including a new office
building, renovation of the first floor of Colton Hall, remodeling of the second floor of
Few Memorial Hall, and expansion of the El Cuartel public safety building.
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| In support of these three high priority
projects, staff has developed a preliminary, Major Project Financing Plan that
identifies various funding options available to finance the cost of these improvements. We
intend to work closely with Council to fine-tune this plan and to update it on an ongoing
basis as appropriate. The current plan demonstrates that we may be able to pay for the
large majority of these capital improvement costs using current revenues and reserves. |
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We are continuing to expand our
involvement in the maintenance and upkeep of the buildings and infrastructure at the Presidio
of Monterey in support of the Department of Defense demonstration project for
provision of municipal services on military installations. The proposed operating budget
includes $1.59 million for buildings, streets, sewers, storm drain, water systems
maintenance and other special projects. In addition, the CIP budget includes approximately
$1 million for the construction of pathway lighting at the Presidio. These costs will be
fully reimbursed to the City by the U.S. Army.
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We also anticipate that by October 1999, an
agreement will be reached with the Army that will require a significant expansion of
building maintenance services. This will entail the appropriation of additional staffing
and resources beyond what is currently provided for in the proposed budget. Once the
agreement is finalized, staff will return to Council with a request to appropriate the
necessary staffing and resources to provide the required services. Again, the cost of
these services will be fully reimbursed by the Army.
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| We are proposing the conversion of the Management
Analyst position in Public Works Administration from a contract basis to a regular
full-time position. We have determined that this position will be required on an ongoing
basis to provide the necessary administrative support to provide municipal services at the
Presidio. We will continue to be reimbursed by the Army for the cost of this position. |
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The expansion of the Monterey Senior
Center is a priority project for which the call for bids for construction was recently
issued at the May 18, 1999 Council meeting. We anticipate the award of bid to happen in
July, with construction currently projected to be completed in January or February, 2000.
Funding for this project is included as part of the 1998-99 capital improvement budget in
the amount of $180,000.
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Another project is the City-wide Records
Management System. We have included $15,000 in the City Clerk's budget for the initial
costs associated with an electronic document management system which will be combined with
$50,000 carried forward from the 1998-99 budget. This will allow funding for a portion of
the first phase of the city-wide system. While it may be several years before this system
is fully implemented, it is clear that the City will eventually reap significant
efficiencies and improved customer service once it becomes fully operational.
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| A new full-time Parks Maintenance Worker
position is proposed for the Parks Division. The cost for this position will be fully
reimbursed by the State Parks Department through a contract for the maintenance of the Custom
House Plaza. The total ongoing cost is approximately $50,000 per year, including
supplies. |
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Public safety will always be a mainstay on the list of high priority programs. It is
difficult to overstate the importance of public safety to the people that live in, work in
and visit our community. This is reaffirmed time and again in the responses to the
periodic citizens surveys that we conduct through the City's newsletter, the Focus.
|
We must continue to work with the schools,
neighborhood and business associations to address safety concerns and reinforce the safety
aspect especially in light of the recent tragedies that have taken place on high school
campuses throughout the nation. We need to stress that we must remain cautious however not
let fear impact the overall quality of community life.
|
| We are very pleased with the preliminary
results of our Youth Diversion program. To further enhance the program we want to
explore the possibility of creating a mentor program for youth at risk. We do not intend
to duplicate an existing program i.e. Big Brothers, as our clients will be those youth who
are assigned to the diversion program. We will first consider the use of municipal
employees as mentors and then determine if we want to expand it to other potential adult
role models. |
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In a 2 year period we have expanded the use
of volunteers in the police department from 1 to 30+. The volunteers consist of Police
Explorers, office volunteers and the Monterey Volunteers in Policing who patrol the
downtown area. The latter has spun off a similar program in Carmel by the Sea. MVPs have
aided Fisherman’s Wharf and Del Monte Shopping Center on occasion. It is our intent
to expand the MVP program to include the Recreation Trail and Cannery Row. We are also
exploring the creation of a Police Reserve unit whereby citizen volunteers who undergo an
extensive training program will ride along with patrol officers (in uniform) to assist
them in their duties. Not only will it be an opportunity for residents to give back to the
community in a special way, it will also enable us to assess a potential police officer
pool of candidates.
|
| We have introduced the concept of Community
Oriented Policing and Problem Solving (COPPS) to all police personnel, city
administration and executive staff from other departments. The philosophy of COPPS now
needs to be instituted on a trial basis in a specific area of the city to assess its
overall capabilities. We have decided to focus on North Fremont and the East side of the
community as the pilot program site. Our experience will guide the future utilization of
this policing concept. |
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| In the Police Department, we are allocating
funds to increase our technological capabilities, including the purchase of a new Police
Records Management System. The $75,000 cost of the records management system will
be paid through the Information Services budget, and will be recouped over a five-year
period from the Police operating budget via the annual Information Services chargeback.
This new system will enhance the Police Department's crime analysis capabilities
(including mapping and photo analysis), allow access to the database from the mobile
computers in the field units, and also ensures Y2K compatibility. |
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We are also budgeting $40,000 in the
Information Services budget for the acquisition of 14 mobile computers. The City
has received a grant from the U.S. Department of Justice COPS-More 98 program in the
amount of $107,531 for the acquisition of these computers; $40,000 is the local match
required. The Information Services Fund will recoup this acquisition cost from the Police
operating budget over a three-year period. These mobile computers will provide the patrol
officer with increased communications tools and improved access to police information.
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In the area of traffic planning and
traffic safety, we have allocated funding in the amount of $20,000 toward the
reorganization of our Traffic Engineering division. The reorganization analysis is
currently underway, however we expect to return to Council with a recommendation that will
provide for the allocation of upgraded staffing toward the area of transportation
planning. This will allow us to improve our transportation planning/analysis capabilities
and enable us to address a backlog of traffic, parking, and other circulation and traffic
safety- related issues.
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| The Fire Department is also undergoing
an analysis of its management organization and service delivery. No specific
funding has been included in the current budget proposal for recommendations that may
arise from this analysis, however, staff will return to Council for any future budget
adjustments that may be required. The primary objective will be to create a management
structure which will be best suited to guide and support the Fire Department's service
delivery in the future. |
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Historic Preservation and its corollary issues are of great importance to the citizens of
Monterey. Several historic related programs, projects and issues are addressed in the
proposed budget.
|
One position that is being recommended for
addition is an Archivist in the Library. This position has been funded over the
last couple of years through a contractual arrangement. The proposed budget includes a
regular part-time position in order to perform the archival functions in the Library at a
cost of approximately $27,400. This position will enable the Library to continue and
improve upon its efforts to preserve our community's history through programs and projects
like the California History Room, "Shades of Monterey" photo project,
"Preserving Your Familiy's History program", and others.
|
| Another position recommended for upgrade is
the Museum Attendant position. It is proposed that this position be upgraded from a
temporary, part-time status to regular, part-time status. This will provide additional
support of the many Museum and historic related programs in which the City is currently
involved. |
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The Cannery Row Survey for buildings
and districts is expected to be completed during the fiscal year. $30,000 has been
included in the Planning budget to complete this survey by the fall of this year. The
survey will be used to assist in the implementation of the Cannery Row Land Use Plan.
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The draft Historic Master Plan is
currently undergoing the review and approval process. It is anticipated it will be
approved this fall as will be the updating of the historic preservation ordinance. The
City has applied for a grant to complete the historic surveys.
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| We will continue with the implementation of
the Lower Presidio Historic Park and Museum. The Council approved a request for
proposals for the development of the Master Plan for the Lower Presidio Historic Park at
its meeting of May 18, 1999. The current schedule calls for the completion of this master
plan by June, 2000. In the meantime, we are proceeding with the repairs and renovations to
Presidio Museum building. A call for bids for this work was also issued by the Council at
the May 18, 1999 meeting. Approximately $30,000 is included in the proposed Museum
operating budget and will be added to the $30,000 included in the 1998-99 operating budget
for the development of exhibits at the Presidio of Monterey Museum. |
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We continue to expand Public
Education on historic preservation programs. Through articles in the Focus
newsletter, workshops and other forums, we will bring attention and focus to the historic
preservation issue. We are making plans to host the California Preservation Conference in
Monterey in April, 2000. We are ensuring that the programs and sessions for this
conference will be designed to be of particular interest to local historians and property
owners.
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To encourage property owners to participate
in historic preservation programs, the Council will consider new incentive
programs in the current proposed historic preservation ordinance. We have adopted the
provisions of the Mills Act which provides property tax relief for the owners of historic
properties. The proposed budget includes $65,000 in the Housing program and $10,000 in the
Economic Development program budget for historic preservation grants. We will investigate
the feasibility of other types of incentive programs as well.
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| The Sesquicentennial Commemoration is
another high priority program that requires significant resources. The proposed Museum
budget includes another $43,750 for costs associated with Sesquicentennial programs and
exhibits. A page has also been developed on the City's web site that highlights the
various programs and activities planned, as well providing other information about the
important moments in the history of California. |
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We are currently planning to initiate the process for updating the City's General Plan.
The first phase of this process involves an update of the plan for references to the year
2000. This will be done by staff and will be completed during the next fiscal year. This
includes the required staff analysis, development of required plan amendments, public
meetings and hearings by the Planning Commission and City Council. The next phase will be
the full General Plan update and will be done with the assistance of a consultant firm
after the year 2000 census is completed. This process is expected to require thousands of
staff hours, hundreds of hours of public meetings, and several years to complete.
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| The Tynan Lumber site is a
strategically located parcel that has recently been vacated. This represents an important
opportunity to evaluate this site and develop plans which identify the highest and best
use for this area in light of current day requirements. Staff has already developed new
guidelines for this area and is awaiting responses from the current property owners. After
input is received from the property owners, staff will make recommendations to the
Planning Commission and City Council regarding the adoption of new development guidelines,
or the maintenance of existing ones. |
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The completion of the Coastal Plan
Implementation program is another high priority scheduled for the budget year. The
City has received a grant from the State of California which we will use to hire a
consultant to complete the implementation plan. Upon development of recommended
amendments, these will be forwarded to Council for adoption.
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| The Del Monte Beach Re-subdivision,
environmental impact review, and the requisite local coastal plan amendment will be
accomplished during the fiscal year. We are currently developing estimates of the cost to
do an EIR on the re-subdivision plans. After the final plans are submitted by the
applicants, proposed coastal plan amendments will be developed, the EIR will be conducted,
and the Planning Commission will conduct required public hearings prior to submitting them
to the City Council for consideration and adoption. |
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Upcoming development projects like the
Cannery Row Marketplace and the large screen theatre project proposed for South Cannery
Row will continue to be reviewed for consistency with the Cannery Row Land Use Plan.
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| The proposed budget also includes funding
($10,000) in the Planning program for a multi-modal transportation study. This
study will research the feasibility and possible location for a multi-modal transportation
center within the downtown area. |
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The construction of the C-21 Project, including a six-screen theatre, retail, and
housing is well underway. It is anticipated that the project will be completed by next
winter. Required funding of approximately $900,000 is included in the Housing Program
budget for the completion of this project. It is anticipated that this project will be an
economic generator for the downtown area.
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The economic revitalization of North
Fremont business area and surrounding residential neighborhoods is an important
priority. One of the issues we are asking Council to consider is the appropriation of
consultant funding for the development of a plan for the North Fremont area.
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The City continues to encourage retention
and expansion of existing local business. We continue to provide funding in the
Economic Development budget for the commercial building façade grant program in
the amount of $42,000. We also are continuing support for the micro-loan program
for small businesses within the Housing & Community Development program. This program
is administered by the California Coastal Rural Development Corporation and has provided
business advice and assistance to more than 90 individuals since its inception in 1995-96.
Loans to small businesses range from $5,000 to $25,000. In addition, the City provides
staff support and funding to business improvement districts such as the Old Monterey
Business Association and the New Monterey Business District.
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| The implementation of the "supplemental
water" feasibility study is expected for the budget year. The feasibility study
has been completed and is being printed for distribution at this time. The study will be
reviewed at an upcoming City Council study session. Staff will seek guidance from Council
as to the direction to take with respect to the various options presented in the study for
creating water credits for public and other not-for-profit projects. |
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The development of a child-care center at the Presidio is among the highest of the
many priority projects in which we are involved. At the recent community forum on City
priorities that was conducted during this year's budget process, this was one of the most
often mentioned. In addition to the $90,000 included in the 1998-99 NIP program budget,
another $100,000 is included in the proposed Neighborhood Improvement program for repairs
and renovation of the Child Care Facility at the Presidio. We are proceeding with the
development of this significant priority, and anticipate issuing a request for proposals
from private providers for the operation of the day care program within the next few
months. This will occur after lease negotiations with the Army are completed.
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| We are also in the process of
evaluating the adequacy of current recreational afterschool programs to meet
community needs. This item, in addition to programs for older teens, will be referred to
the Parks & Recreation Commission for their recommendation regarding possible new
programs, schedules, and appropriate fee structure. |
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In connection with afterschool programs, the
proposed budget calls for the conversion of the Library's Afterschool Academic
Enrichment Program Coordinator from a contract position to a regular, full-time
position. This program has proven to be a great benefit to our community, including the
students, parents, educators, and volunteers who have worked very hard to make this the
success it has become.
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The City's volunteer program also
continues to be a success story. Although the grant funding we previously received from
the Packard Foundation has run out, we continue to fully fund the volunteer program. We
are in constant search for ways to increase our volunteer efforts throughout the City.
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| I've touched here on some of the most
significant aspects of our work program for the budget year. For a complete list of
proposed Council priorities, please see the attached "City Council Priorities for
1999-2000". |
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For the 1999-2000 fiscal year, we have a balanced budget and an unappropriated General
Fund ending balance of $261,000. However, over the course of the next five years our
forecast indicates that expenditures, transfers and reserve requirements exceed available
resources by a cumulative total of more than $3 million. This means that in the years
ahead we will have to find additional revenues, reduce reserves or make other expenditure
reductions in order to balance the budget.
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| We are very fortunate here in Monterey to be
able to fund the many worthwhile programs mentioned in this memo. However, given the
financial forecast discussed above, we must be cautious about adding ongoing costs in the
years ahead. In addition to the costs associated with supporting our current programs, we
are also attempting to set aside adequate funds for high-priority capital projects such as
the Civic Center, Window on the Bay and the Sports Center expansion. This is a delicate
balance but I believe the budget plan presented here will meet the priorities established
by the Council and provide the citizens with a high level of service. |
Fred Meurer
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Budget Overview
Total Revenues - All | General Fund
Revenues | Special Funds Revenues
Operating Expenditures - All | General
Fund Operating Expenditures
Capital Improvements Program | Staffing by
Program
General Fund Revenue & Expenditure Trends | Demographics & Statistics
Rev. 10/25/07 - J. Splane -
http://www.monterey.org/budget/1999/cmmessage.html
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