| Greater emphasis has also been placed
on making sure our existing facilities and infrastructure are properly maintained and
cared for. Even while we are looking to expand City facilities such as the Sports Center
and the Civic Center, we must not overlook the need to keep those assets already in our
trust in prime working order. To accomplish this you will see several new recommended
maintenance related positions which I will describe later. In addition, the Capital
Improvement Program (CIP) project list includes significant investments in infrastructure
such as street resurfacing ($800,000), sewer line repairs ($575,000) and over $1 million
in General Fund funded capital renewal and repair projects. |
The proposed General Fund
operating budget expenditures amount to $40.8 million, which represents a 3% increase over
the 1999-00 amended budget and a 5.6% increase over the original 1999-00 budget. After
projected budget savings of about $1.2 million are factored in, General Fund operating
expenditures are expected to be $39.5 million.
The total proposed operating budget expenditures for all funds is $61.1
million, which represents a 2.6% increase over the 1999-00 amended budget and a 5.6%
increase over the original budget. The total 2000-01 estimated revenues for all funds are
$69.2 million or 10.7% greater than the 1999-00 revised estimate.
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 $5.9 million). Significant Capital Facilities Improvements Reserves also exist to
provide partial funding for such projects as the Civic Center expansion ($4.3 million),
Sports Center expansion ($800,000) and the eventual purchase of the East Catellus property
($500,000). |
Return to top
General Fund
Revenues
We estimate that total General Fund revenues will amount to $39.9
million for 2000-01. This will represent a 2.7% increase over the $38.8 million currently
expected for the 1999-00 fiscal year and a 5.6% increase over the original 1999-00
budget's revenue projection.
Transient occupancy tax (T.O.T.) makes up 30% of General Fund revenues
and is by far the City's largest revenue source. We expect the General Fund to receive
$11.5 million in T.O.T. in 1999-00, which is a 5.7% (or $600,000) increase over last
fiscal year. Our estimates for next year include a more moderate increase in T.O.T. of 3%,
or an additional $345,000. This brings the total General Fund T.O.T. estimate to $11.8
million in 2000-01. An additional $2.2 million in T.O.T. (16% of the total) is estimated
to be allocated to the Neighborhood Improvement Fund in 2000-01.
Sales tax, estimated at $6.8 million in 2000-01, is the second largest
General Fund revenue source, amounting to 17% of projected revenues. This estimate
represents a 3% increase over the revised estimate for the current year. This increase may
appear modest but it is on top of a strong projected 10% (or $600,000) sales tax growth
rate in the current year. We believe competition from retail establishments (particularly
"big box" stores) in neighboring cities will continue to dampen Monterey’s
sales tax receipts. In addition, we believe a moderate projected growth rate is
appropriate given the unknown effect that competition from the exploding internet retail
market may have.
For the 2000-01 fiscal year we anticipate property tax receipts to be $3.5 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
$2 million respectively in 2000-01). |
Return to top
All of the special funds are programmed with balanced budgets which means revenues and
transfers in are sufficient to pay operating 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. The Presidio Public Works Authority Fund was 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 at the Presidio of Monterey.
Services provided to the Army include maintenance of buildings, streets, sewers, storm
drains and water systems and other special projects. The proposed operating budget for
this fund is $1.9 million all of which is, of course, reimbursable by the Army. This
budget includes a payment to the General Fund of $275,000 for the overhead and
administrative support the City provides to support this contract. Approximately $1
million has also been allocated for slurry sealing and Presidio Pathway Lighting Phase II
capital projects.
The Storm Water Utility Fund has reached the point in next year’s
budget that the anticipated revenues ($748,000) more than cover operating expenditures
($657,000) by about $90,000. This is good news. However, since this Fund owes $1.6 million
to the Sewer Line Maintenance Fund and the General Fund for past loans, for projects such
as the Del Monte Outfall, we propose using this year’s operating excess to repay some
of this debt. There are two programmed rate increases remaining (in 2001 and 2002) for
this utility which, when in effect, hopefully will support not only operations, but also
debt repayment and new capital projects as they arise.
The Sewer Line Maintenance budget proposal includes $550,000 in
operating expenditures and another $575,000 in the CIP budget for sewer line repairs. The
operating budget is fully funded by current revenues. We propose funding the CIP project
with an advance from the Sewer Main Improvement Fund since the money available in this
fund (which can only be used to increase capacity) is not expected to be needed right
away.
The Cemetery Fund operations are proving to be somewhat of a challenge.
Niches at the new columbarium are moving move slowly than originally anticipated. The
projected shortfall in this fund next year is approximately $130,000. All but $20,000 of
that shortfall is debt service on the columbarium. It is projected that sales of all
niches from the columbarium will far exceed the total debt service costs. However, since
the loan will be paid off more quickly than all niches will be sold, there will be a
short-term need for advances from the General Fund.
The Marina Fund’s proposed budget of $1.3 million includes debt
service on state loans and on a General Fund advance of $485,000 and $100,000
respectively. In addition, the Marina Fund transfers $75,000 to the General Fund each year
to assist with the expense of maintaining Wharf II. Included in this proposal is a new
Waterfront Maintenance Supervisor that will be split with the Harbor budget in the
General Fund.
The proposed $4.9 million Parking Fund budget includes $1.8 million in
debt service. Also included is $31,000 for a WAVE shuttle subsidy program and a new
Parking Maintenance Worker. |
Return to top
The proposed 2000-01 Capital Improvement Program budget amounts to $5.8 million. Of this
amount, more than $2.1 million is allocated for Neighborhood Improvement Projects and $3.6
million is allocated for various capital renewal and capital improvement projects. Some of the notable projects being proposed are various Conference Center
repairs and improvements ($250,000), Library repairs and improvements ($116,000),
circulation element improvements ($134,000), street resurfacing ($800,000), Calle
Principal restrooms ($200,000), Catellus parking study and master plan ($100,000),
Window-on-the-Bay landscaping and park development ($341,000), sewer line repairs
($575,000) and Sports Center expansion ($250,000). |
Return to top
| 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. |
Return to top
| Though this budget
proposal does not include a request for new Window on the Bay property acquisition
money, we have included in the CIP budget (as mentioned above) $341,000 from the Tidelands
Fund for the landscaping and development of some of the parcels already purchased. We
believe that at this point we have already appropriated sufficient money (mostly from
non-City sources) to acquire the remaining two parcels in the West priority section.
We have also programmed $100,000 in Parking and Tidelands money into
the CIP budget to do a Master Plan on both the West Catellus parcel now owned by
the City and the East Catellus parcel on which we have an option to
purchase. Also, in regards to the East Catellus parcel, this budget includes setting aside
$500,000 into a General Fund Capital Reserve to help fund the eventual purchase of that
property. Of course, we are also continuing to seek outside funding for this project.
The CIP budget includes $250,000 from the Neighborhood Improvement Fund
for the upcoming Monterey Sports Center Expansion project. In addition, we propose
setting aside $325,000 into the General Fund Capital Reserve – Sports Center which
would bring the total in that reserve to $800,000. The reserve, NIP money, fundraising and
some debt financing are all potential pieces of the funding puzzle for this project.
No additional appropriation for the Civic Center Improvement
project is being requested in this budget since most of the $1 million from last
year’s budget is still available. We have, however, issued a Request for Proposal for
Civic Center design services which is the first step in the long process that will
culminate in a new office building, renovation of the first floor of Colton Hall as a
museum, remodeling of the second floor of Few Memorial Hall, and expansion of the El
Cuartel public safety building.
Return to top
Though we are not requesting an additional appropriation at this time
we have programmed into this budget the setting aside of $775,000 into the General Fund
Capital Reserve – Civic Center. This would bring the total in that reserve to $4.3
million which is substantial, but only a portion of what is necessary for full funding. It
should be noted that $620,000 of the amount going into this reserve would come from the
eventual sale of the Parmalee Victorian house. Some long-term debt financing will likely
have to be factored into the funding picture for the Civic Center project. We will bring
more information to the Council at a later date on the financing of this and other
high-priority capital projects.
As I mentioned earlier, properly maintaining our existing facilities
and infrastructure must remain a top priority. This does not mean we cannot consider the
expansion of other maintenance intensive facilities such as the Sports Center, Civic
Center and the new and planned public restrooms at the Lower Presidio, Calle Principal and
Monterey Bay Park. However, it does mean that as we consider new facilities we must not
forget the associated ongoing costs.
To keep existing facilities at the high standard of cleanliness and working order to
which Monterey is accustomed, we are recommending in this budget the following positions: Building
Maintenance Craftsworker, Park Maintenance Worker, Parking Maintenance
Worker, Waterfront Maintenance Supervisor, a Custodian in the
Conference Center (paid for by a new catering contract), the reorganization of
our City-wide custodial operations, and a regular part-time Office Assistant II
in parks for support of maintenance related services. Even with the position additions and
upgrades listed above it should be noted that we are still concerned about being able to
keep up with custodial demands brought about by the addition of several new public
restrooms. The organization of custodial operations is currently under review. |
Return to top
| Public safety will always be one of the
highest priority programs a local government can offer. Creating a "sense of
safeness" in Monterey at school, work and home remains one of our primary goals. We
must continue to work with the schools, neighborhood and business associations,
particularly in the East Monterey/North Fremont area, to address safety concerns and
reinforce or enhance our community’s "sense of safeness."
Last year we reported that we were exploring the creation of a Reserve
Police Officer unit whereby citizen volunteers who undergo an extensive training
program will ride along with patrol officers (in uniform) to assist them in their duties.
This proposed budget includes resources to begin such a program with six Reserve Officers.
A Reserve Officer force can provide several benefits to the Police Department and the
community. They can augment the regular officers in the field to provide higher visibility
and can be called in to assist in securing crime scenes to free up regular officers to
conduct investigations. In addition, this would provide a ready reserve of trained
personnel to assist with a variety of situations including special events, traffic control
and building security. Reserve Officers must meet rigorous standards prior to appointment
and they are subject to intense training requirements as well.
Most importantly, this program would provide an opportunity for
volunteers in the community who have expertise in a variety of areas to offer their skills
to the City of Monterey. This program has the potential to further enhance the
relationship between the Police Department and the community which is directly in line
with the expansion of the volunteer program and our philosophy of community oriented
policing.
We are also recommending in this budget the upgrading of one of the
Traffic Officer positions to a Senior Traffic Officer. Because the Traffic Officer
positions rotate after an eighteen month or three year assignment, it is difficult to
develop a skill level high enough to become an expert in this field. Just as Traffic
Officers begin to develop proficiency in the collision investigation aspect of their job,
their assignment is up and that knowledge is not fully utilized. Having a Senior Traffic
Office position would provide continuity and depth that would greatly enhance our traffic
safety objectives.
One position being considered that is not currently a part of the
budget package is a third School Resource Officer (SRO). The two existing SROs have proven
to be highly effective but adding a third position would allow us to dedicate a full-time
SRO to Monterey High School to address obvious safety concerns. The other two positions
would allow us to provide expanded DARE instruction and provide better coverage for Colton
Middle School as well as the elementary schools. The Police Department is actively seeking
a grant that would help fund this position. We will bring this possibility back to Council
should it prove to be economically feasible.
Return to top
The proposed budget includes $7,200 for the purchase of two
additional defibrillators to bring the total number of units in the Police Department
to four. This will expand the Police Department’s ability to support "code
blue" (life threatening) medical calls. Portable defibrillators are used on CPR
patients to assist in restoring a heartbeat, blood flow and breathing. All officers have
been trained in the use of these devices and they are in service 24 hours a day. These
additional units will allow for deployment of one defibrillator on each of the three
primary beats (areas of the City) as well as one in the Field Supervisor’s vehicle.
Police officers on the beat often have the opportunity to be first on the scene of many
medical aid calls. This equipment will allow them to be better prepared to handle certain
life threatening situations when they occur.
We are also budgeting $58,000 for the acquisition of two additional
mobile computers and the hardware and software necessary to interface all
sixteen of these mobile computer units with the Police Department’s Records
Management System (RMS). These mobile computers will provide the patrol officer with
increased communications tools and improved access to police information. They will be
purchased under the umbrella of the U.S. Department of Justice COPS-More 98 grant program
and the cost shown above is net of grant proceeds. An additional $5,300 is also budgeted
for annual City costs for a digitized finger printing and automated processing
system we are expecting to receive from a Department of Justice program.
Last year we reported that the Fire Department was undergoing an
analysis of its management organization and service delivery. The primary objective
is to create a management structure which will be best suited to guide and support the
Fire Department's service delivery in the future. One of the recommendations coming from
that analysis was the addition of an Administrative Analyst position. Since the
elimination of the Assistant Fire Chief position several years ago, the Fire Chief has had
to take on more and more administrative duties. This has meant less time has been
available to coordinate and manage the work of five Division Chiefs as well as focus on
labor relations, customer service and participation in Citywide management activities.
Adding an Administrative Analyst to the Fire Department’s staff would allow the Chief
to focus more on important operational development needs.
The time has come to replace the two oldest fire engines. These
twenty-seven year old units have now lasted beyond what is normally considered a useful
life of twenty to twenty-five years and are becoming less and less reliable. Because of
the high cost of these engines (approximately $350,000 each), we are proposing purchasing
these vehicles using a lease-purchase arrangement. It is common for cities to finance
high-dollar equipment such as this. In fact, the City of Monterey purchased two fire
engines in 1984 using just such an arrangement. Both the recently departed Interim Fire
Chief and our new Fire Chief are very concerned about the condition of the existing
engines and have made a strong case to replace both next year. In order to keep costs to a
minimum the Fire Department has agreed to "tag on" to a larger agency’s bid
for fire engines that would meet Monterey’s needs as well.
Return to top |
The preservation of Monterey’s many historic assets continues to be of great
importance to the citizens of Monterey. One enhancement recommended in the proposed budget
is the upgrading of the existing regular part-time Archivist to a full-time position
on a one year contract basis. The Library’s Local History Collection is a uniquely
valuable historical resource and the California History Room is used daily by researchers,
writers, students and City officials as well as community residents and visitors. The
part-time Archivist has already accomplished much, such as the examination and description
of the collection, repairing and rehousing of fragile items and the cataloging of hundreds
of Library and Colton Hall Museum books. In addition, he helped develop the successful
Shades of Monterey project. A full-time Archivist would devote time to
a variety of important additional services such as the solicitation of photographs and
other materials from local residents, development of a database of non-book archival
holdings and coordination of collection development, access and promotional activities
with other historical organizations. Along with this position upgrade, a $28,000 NIP
project is in this budget to construct work and storage space next to the California
History Room to allow better supervision and security. Expanding the Library Archivist
position and supporting the proposed changes to the California History Room will directly
address one of Council’s top priorities: preserving and promoting Monterey’s
history.
This budget also includes $43,000 for a Historic Surveys Consultant.
Following adoption of the Historic Master Plan and Historic Zoning Ordinance this
consultant will perform historic surveys of four areas of the City.
The proposed budget includes $122,000 to design, install and staff
the Lower Presidio Historic Park and Museum. Staffing will consist of a new regular
part-time Presidio Museum Coordinator who will work under the supervision of the
Cultural Arts/Historical Facilities Manager. The Presidio Museum Coordinator will
interpret the history of the Presidio of Monterey to the public, train and schedule
volunteer guides, manage a small shop and manage special events in the Presidio Historic
Park. This would implement one of Council’s high priority historic preservation
projects.
To encourage property owners to participate in historic preservation, the proposed
budget includes $75,000 in the Housing program (a $10,000 increase over the current year)
and $10,000 in the Economic Development program budget for historic preservation grants.
This program has been successful and demand is expected to continue with the completion of
the City’s Historic Master Plan and the Historic Preservation Ordinance. |
Return to top
We are ready to move forward with updating the City's General Plan. In this
proposed budget is nearly $200,000 to accomplish this task. This funding will allow us to
hire an Associate Planning Contractor to augment planning staff to care for normal ongoing
historic and other duties. This will allow one of our current Senior Planners to take the
lead role in completing the General Plan. This funding will also pay for the use of a
consultant for various technical studies and other assistance related to the General Plan
update. In addition, staff will be working next fiscal year to complete
an Implementation Plan for the area covered by the five coastal plans. This includes
the Cannery Row, Harbor, Del Monte Beach, Roberts Lake-Laguna Grande and Skyline areas. |
Return to top
| The review process is, as
you know, well under way for the design changes to the previously approved Cannery Row
Hotel. This project remains perhaps the highest economic development priority in the
City. The completion of this project would provide a significant increase to the
City’s tax base allowing us to provide more and better service to the community. Of
course, we cannot only look to the dollars but must be sure that what is built is the
right thing for Cannery Row and for Monterey.
The economic revitalization of the North Fremont business area and
surrounding residential neighborhoods is another important priority. Included in this
budget is $7,900 to hire a consultant to assist staff in establishing a Business
Improvement District for the North Fremont area. In addition, a matching contribution
of $6,400 to help fund a newly formed Business Improvement District is also recommended.
The City continues to encourage retention and expansion of existing
local business. We propose continuing the funding in the Economic Development budget
for the commercial building façade grant program in the amount of $55,000. We also
are continuing support for the micro-loan program for small businesses which
is administered by the California Coastal Rural Development Corporation. They provide
business advice and loans that range from $5,000 to $25,000 to small businesses. 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.
The Sales Division of the Monterey Conference Center has recently taken
a brand new and very aggressive approach to selling Monterey as a group meeting
destination. This approach involves more direct contact and continued follow-up with all
potential clients. This has resulted in a substantial increase in direct business booked
by the Sales office. However, it has become obvious that with this new focus on lead
development and closing sales we need a new Sales Manager position to support this
higher workload. This position is fully funded by a combination of expenditure cuts
elsewhere in the budget and an increase in tradeshow revenues.
The proposed budget also includes the upgrade from regular part-time
to full-time of an Office Assistant II position in the Conference Center. The recent
office restructuring and an ever-increasing workload have necessitated this upgrade. This
change is being funded by expenditure reductions elsewhere in the Public Facilities
budget.
Return to top |
| Earlier in this memo I
mentioned the goal of making sure we take care of people first. A good example of that is
the development of the Childcare Center at the Presidio. This has been one of our
highest priority projects and it is set to open for business this summer. Between NIP and
General Fund money the City has invested over $400,000 for repairs and renovation of this
facility. We believe this program will help our local families with that all-too-common
dilemma of how to find quality childcare at a reasonable price.
Another example of taking care of the people in our community is the Afterschool
/Holiday Youth Program being proposed in this budget. This program will provide a
structured and supervised afterschool and holiday program at Hilltop Park Center, Archer
Park Center, Casanova Oak Knoll Park Center and Larkin School. The children will be signed
in and out rather than simply accepted on a "drop-in" basis. Instead of one
Recreation Leader supervising all the children, there will be Recreation Leaders assigned
to specific groups of children to supervise their homework time and play activities. In
addition, there will be extended hours of operation to accommodate working parents. The
cost of this program is expected to be fully offset by user fees.
The highly successful Monterey Sports Center is proposing to upgrade
three positions to better serve their customers. Having a full-time Control Cashier
will reduce the turn-over associated with using part-time employees in this position.
Since over $2,000,000 flows through that operation each year, it is important to be
adequately staffed at all times. With over 2000 participants using this facility daily it
is becoming harder and harder to keep up the high level of cleanliness and service that
our customers expect. Therefore we propose upgrading to an additional regular part-time
Facility Attendant. This is also in line with my earlier statement that we want to
make sure we are adequately taking care of our flagship facilities. Finally, we propose
the addition of a regular part-time Recreation Specialist to help with various
morning and afternoon sport/gymnasium programs. This will provide backup and assistance to
the Sports Coordinator who is required to work a lot of overtime. This will result in
having a person with proper sports skills and knowledge to supervise the Center’s
numerous programs and provide better quality service to our customers. The cost of all of
the above Sports Center position upgrades are off-set by a combination of expenditure
reductions in part-time temporary hours and revenue increases at the Sports Center.
This proposed budget includes $25,000 to enhance the Library’s
text-based Innopac catalog system. As the public adapts to web-based technology they
find navigating the existing non-graphical system more cumbersome. The proposed upgrade
will provide Library customers, including both on-site users and the growing number of
off-site users, the ease of a graphic interface with the power and convenience of the
World Wide Web.
We are also proposing adding more internet public access computers
at the Senior Center (3), Archer Park Center (2) and the Library (3). This will enhance
recreational and educational opportunities for our seniors, those in our Teen Drop-in and
Afterschool programs as well as the general public.
Here I've touched on some of the more 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 2000-01". |
Return to top
For the 2000-01 fiscal year, we have a balanced budget and an unappropriated General Fund
ending balance of approximately $300,000. However, over the course of the next five years
our estimate of expenditures, transfers and reserve requirements versus our estimate of
revenues and other resources indicate that a structural imbalance may exist. If our
estimates prove correct we are projecting an operating imbalance of about 4% by 2004-05.
This would mean being out of balance by $2,000,000, not an insignificant amount. Since I
would not send you a budget that was not balanced, this may mean that in the years ahead
we will have to find additional revenues, reduce reserves, rephase priority projects or
make other expenditure reductions. We continue to give our best effort
to propose a budget that both meets the ever- expanding demands for new or improved
services and is fiscally prudent. One does not have to look too far to see examples
of the problems that can arise if governmental agencies do not spend within their means.
The City of Monterey is in good fiscal health. However, as discussed above, in the years
ahead we must be very cautious about adding ongoing costs that are not off-set by either
expenditure cuts or new revenue. This is the only way we will be able to maintain a
balanced budget while simultaneously attempting to set aside adequate funds for
high-priority capital projects such as the Civic Center, Window on the Bay, Catellus and
the Sports Center expansion. This balancing act continues to be a challenge but I believe
the budget plan presented here goes a long way toward meeting the priorities established
by the Council in a responsible way. |
Fred Meurer
Return to top
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. 09/27/00 - J. Splane - http://www.monterey.org/budget/2000/cmmessage01.html
|
