RPV Long Range Financial Plan Volume II - Financial Forecast, Analysis and Alternatives (1981) RALPH ANDERSEN AND ASSOCIATES
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CITY OF RANCHO PALOS VERDES
LONG RANGE FINANCIAL PLAN
VOLUME II
FINANCIAL FORECAST, ANALYSIS AND ALTERNATIVES
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E
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1446 ETHAN WAY • SUITE 101 • SACRAMENTO, CALIFORNIA 95825 • (916) 929-5575
CITY OF RANCHO PALOS VERDES
LONG RANGE FINANCIAL PLAN
VOLUME II
FINANCIAL FORECAST, ANALYSIS AND ALTERNATIVES
April , 1981 Prepared by:
Ralph Andersen & Associates
1446 Ethan Way
Suite 101
Sacramento, California 95814
(916) 929-5575
TABLE OF CONTENTS
Page
Number
CHAPTER I
INTRODUCTION AND OVERVIEW 1
CHAPTER II
FINANCIAL FORECAST 5
SECTION A: REVENUES 6
SECTION B: EXPENDITURES 15
CHAPTER III
ANALYSIS AND CONCLUSIONS 22
CHAPTER IV
FINANCING ALTERNATIVES 32
APPENDICES
APPENDIX A: Current City Boundaries, Revenue Forecast A-1
APPENDIX B: Current City Boundaries, Expenditure Projections. B-1
APPENDIX C: Eastview Area Annexation, Revenue Forecast C-1
APPENDIX D: Eastview Area Annexation, Expenditure Projections D-1
APPENDIX E: Full-Time Employee Projection E-1
INDEX OF TABLES AND CHARTS
Table Page
Number
1 1981-82 and 1990-91 Principal General Fund Revenues 7
2 Annual Percent Change In Revenue 10
3 Annual , Recurring Expenditure Categories As A Percent
Of Total Expenditures 17
4 Parks Development Projection 20
5 Civic Center Master Plan Expenditure Projection 21
6 Revenue vs. Expenditure Forecast by Fund 23
7 General Fund Without Parks Maintenance & Operation 24
8 Summary of Operational Resources and Requirements (Constant Dollars) 28
9 Summary of Operational Resources and Requirements (Inflation Dollars) 29
10 Summary of Eastview Area Revenue and Expenditures 31
Chart
1 Revenue Growth: In Constant Dollars 12
2 Revenue Growth: Including Inflation 12
3 Expenditure Trend: In Constant Dollars 16
4 Expenditure Trend: Including Inflation 16
5 Annual , Recurring Expenditure Trends 18
CHAPTER I
INTRODUCTION AND OVERVIEW
This Is One Of Two Volumes Of Which The Long Range Financial Plan Is Comprised
The Long Range Financial Plan Report is separated into two volumes which are:
. Volume I, a detailed presentation and definition of assump-
tions used in preparing revenue and expenditure projections
of the Financial Plan. That volume not only makes clear the
basis for financial projections, but also provides the City
with important information necessary to update the plan per-
iodically,
er-
iodically, or modify assumptions in light of changing con-
ditions.
on-
ditions.
. Volume II, A presentation of all financial projections,
including ten-year annualized revenue and expenditure pro-
jections, an analysis of trends, conclusions, and alterna-
tive financing approaches.
This Volume Presents The Long Range Financial Plan Projections, Analysis, Con-
clusions and Alternative Financing Approaches
Volume I involved a number of tasks which developed assumptions and methodolo-
gies to be used in the Financial Plan. This volume represents the completion
of subsequent tasks that developed revenue projections (Appendices A and C)
detailed by revenue source in both constant (1980) dollars and with inflation
assumptions. Likewise, expenditure projections (Appendices B and D) were de-
tailed by each City budget category in both constant and inflationary dollars.
1
This rgport is organized into chapters which identify financial forecast trends
(Chapter II) , provide an analysis and conclusions regarding the City's long
term financial condition (Chapter III) , and present financing alternatives
(Chapter IV) . Detailed revenue and expenditure data are contained in a series
of appendices.
A Series of Tasks Were Completed
Project tasks were divided into four phases. A major phase was Phase I, which
resulted in Volume I of this report, Revenue and Expenditure Assumptions.
After the City Council and City staff reviewed and approved assumptions and
methodology detailed in the draft Volume I, any necessary changes were incor-
porated into the current Volume I, and staff proceeded with the remaining
phases of the project. The remaining phases and tasks which have been com-
pleted include:
Phase II:
. Developed a long range forecast of revenues and expenditures
using the assumptions defined and agreed upon in Phase I.
. Developed appropriate charts, tables, and graphics depicting
revenue and expenditure trends and forecasts.
Phase III:
. Identified financing alternatives available to the City for
a long range financial plan considering the results of the
long range expenditure and revenue forecasts developed in
Phase II.
2
. Identified alternative revenue sources to accomplish the
capital project goals of the City.
Phase IV:
. Prepared a draft final report (Volume II) for review with
the City which presents a long range financial plan and in-
cludes: n-
cludes:
- Ten year annualized revenue and expenditure
projections showing net overall surplusCorD
deficit for each per i cid, including:
.. Separate forecasts for current City
boundaries and the planned Eastview area
annexation.
.. Projections in both constant (1980)
dollars, and inflated dollars.
.. Separate projections for ongoing opera-
tions, and non-recurring costs.
.. Identifiable impacts of Proposition 13
and 4.
- An identification of alternative revenue
sources that might be available to fund any
proj ected deficiencies.
. Prepare a final report which incorporates any needed modi-
fications to the draft report, and present it to the City.
After review of the report by the City, the remaining task will be accom-
plished.
3
. Conduct a training session for designated City staff on use v
of the financial plan and procedures for updating the plan.
4
CHAPTER II
FINANCIAL FORECAST
Revenues and Expenditures Are Forecast In Constant And Inflationary Dollars To
The Year 1990-91
This chapter contains a summary of forecasted revenues and expenditures for the
ten-year period 1981-82 through 1990-91. Separate forecasts are made in con-
stant dollars and inflationary dollars. The constant dollar forecast permits
an analysis of real growth and trend changes without the distorting effects of
inflation. This inflation forecasts help identify the compounding impact of
inflation on City finances.
This chapter is divided into two sections which discuss revenues and expendi-
tures
tures respectively. Major changes, patterns or trends are discussed and are
supported by the detailed data contained in the appendices which are organized
as follows:
l
4 Appendix A: Current City Boundaries Revenue
Appendix B: Current City Boundaries Expenditures
Appendix C: Eastview Area Annexation Revenue
Appendix D: Eastview Area Annexation Expenditures
Appendix E: Full-Time Employee Projection
Financial Forecasts Are Based On Assumptions And Methodology Presented In
Volume I Of This Report
On January 13, 1981, project staff reviewed with the City Council and City
staff, recommended assumptions and methodology for preparing the financial
5
forecasts contained in this report. The City Council approved those assump-
tions with certain modifications and those are contained in Volume I of this
report. In reviewing all projections, it is important to note that forecasted
revenues and expenditures reflect the extension of current _policies_ and levels
of service over the next ten years. An important use of this report will be
to re-evaluate certain policies and service levels in light of the information
provided.
Section A: Revenues
Certain Key Revenue Categories Continue To Have A Major Influence On The City's
Total Resources
As indicated in Volume I, certain revenue categories generate significantly
more revenue than others. In 1980-81,0of the 21 recurring ger.eral fund rev-
enue categories generated nearly 90% of the total . These eight revenue cate-
gories, representing approximately 38% of the revenue sources continue to gen-
erate nearly 90% of the City' s total general fund revenue over the ten year
period. Since many of these revenue sources grow proportionately more in
inflationary periods, their impact is then even greater considering inflation.
� � The top 3 revenue categories represent 54% of general fund revenue in 1981-82
�,i
( and grow to 62% by 1990-91. These are Motor Vehicle In-Lieu Fees, Sales Tax,
` 'and Property Tax. It is significant to note that while Proposition 13 has
significantly reduced property tax revenues, they continue to be a principal
revenue source for the City of Rancho Palos Verdes, particularly as the City
grows toward the build-out anticipated by the General Plan. The major revenue
sources and the changes occurring from 1981-82 to 1990-91 are indicated by the
following table:
6
TABLE 1
1981-82 Principal General Fund Revenues
Constant $ Percent Inflation Percent
Rank Revenue Source Amount of Total $ Amount of Total
1 Motor Vehicle In-Lieu Fees $ 714,188 28% $ 773,952 28%
2 Sales and Use Tax 384,961 15 410,150 15
3 Property Tax 284,067 11 292,183 11
i 4 Interest 243,000/ 9 270,000 10
5 Franchise Taxes 189,312 7 - 206,387 8
6 Building and Safety Fees 155,000 6 155,000 6
7 Property Transfer Taxes 125,837 5 139,571 5
8 Cigarette Tax 109,496 4 109,496 4
TOTALS $2,205,861 86% $2,356,739 86%
All General Fund Revenue $2,560,048 100% $2,952,338 100%
1990-91 Principal General Fund Revenues
Constant $ Percent Inflation Percent
Rank Revenue Source Amount of Total $ Amount of Total
1 Motor Vehicle In-Lieu Fees $ 749,280 25% $1,679,160 27%
2 Sales and Use Tax 663,754 22 1,394,226 23
3 Property Tax 440,681 15 717,505 12
4 Franchise Tax 214,200 7 480,060 8
5 Building and Safety Fees 155,000 5 318,532 5
6 Property Transfer Tax 142,380 5 404,040 7
7 Interest 113,156 4 275,786 5
8 Business License Tax 110,944 4 242,079 4
fTOTALS $2,589,395 88% $5,511,688 90%
All General Fund Revenue $2,952,338 100% $6,112,106 100%
7
•
The City Has Little Direct Control Over Its Principal Revenue Sources
An important consideration in City financial planning is the fact that the City
has little direct control or influence over the eight revenue categories that
constitute nearly 90% of City general fund revenue. Of those revenues shown
in the preceding Table 1, all but two have tax rates or fees established by
State law. As for the other two, Building and Safety fees are required by
State law to bear a relationship to the cost of the service, and interest
revenue is a direct function of the availability of other revenues and prevail-
ing investment rates.
The amount of revenue can, however, be influenced indirectly by the City. For
example, by agressively encouraging additional sales tax generating businesses
to locate in the City, additional sales tax revenue can be derived. The City
has taken another unique approach in this regard by the agreement with the City
of Rolling Hills Estates to share their sales tax revenues to offset Rancho
Palos Verdes public safety costs. Other revenues relate very closely to the
rate and amount of development or population growth in the City. These would
include Motor Vehicle In-Lieu fees and Cigarette Tax (per capita) , Property
Tax and Property Transfer Tax (growth by the value of new construction), Fran-
chise Fees (growth influenced by development) , and Building and Safety Fees
(directly affected by construction).
Development And Population Are Major Influences On City Revenues
The City is well aware of the effects of population on City revenues, having
set aside a special reserve for the anticipated revenue decline in 1981-82 when
the City's official population (for purposes of per capita revenue subventions)
will be based on the 1980 United States Census data (36,510) rather than the
8
estimated amount of three times the number of registered voters (59,925) esta-
blished when the City incorporated, which remained in effect until the official
census. The City will face a similar situation with the Eastview area annexa-
tion which will have per capita revenues come to the City based on three times
the registered voters (approximately 12,501) rather than the estimated actual
population of 6,671. The City will benefit from this "windfall" provision of
State law until the next Federal Census in 1990 or until the City's actual
population exceeds the estimate (not likely until after 1990) .
A number of revenues come to the City as State subventions all or in part, on
a per capita basis. These include:
. Motor Vehicle In-Lieu Fees 8o - SI 1 , 75- 7, 7 y o = Lio ?"
. Cigarette Tax �- / ' 3 5 �� 3 c.. 7 -
. Highway Users Taxes
. Federal Revenue Sharing
In 1980-81 these amounted to $1,757,740 or 40% of the City's annual , recurring
revenues. In 1981-82 these will decrease to $1,359,367, a reduction of
$398,373 or 23%/In the future, this amount will increase proportionate to the
City's population growth. Also, a new revenue source, Financial Aid to Local
Agencies should come to the City from the State, with one half the amount based
on population, and is estimated at $75,724 in 1981-82. The effect of popula-
1 �_
tion change on City revenues can be seen further in the following review of the
revenue forecast.
9
After An Anticipated Decrease In 1981-82 And 1982-83, Total City Revenues Will
Increase An Average Of 1.2% Per YearAs Real Growth Until 1990-91
In 1981-82 the City will experience a decrease in revenue as a result of a
change to actual population being used as the basis for receiving State per
capita subvention revenue. In 1982-83, further decrease will occur due to de-
creasing grant revenue in the Highway and Transportation Fund. In subsequent
years, total revenues will increase an average of 1.2% per year, with general
fund revenues increasing an average of1.6%,;-5per year in constant (1980) dol-
1 ars. When inflation assumptions are taken into consideration, total revenue
will increase an average of <1.5% per year\ through 1990-91, with general fund
revenues increasing by an average of<9.p . When the City is bu i l tout
---
in 1990-91, total revenues wi 11_ decline again due_to a sharp reduction in non-
recurring development related revenues. This is demonstrated by the following
table.
TABLE 2
ANNUAL PERCENT CHANGE IN REVENUE
Constant Dollar Change Inflationary Dollar Change
Year General Fund All Revenue General Fund All Revenue
1981-82 (-8.6%) (-21.6%) (-2.4%) (-16.6%)
1982-83 0% (-8.9%) 7.8% (3.8%)
1983-84 2.4% (1.0%) 10.4% 4.4%
1984-85 0.8% 1.0% 8.9% 6.6%
1985-86 1.0% 0.8% 8.4% 7.7%
1986-87 2.1% 1.5%. 9.7% 8.7%
1987-88 2.3% 1.6% 10.0% 8.9%
1988-89 2.2% 1.5% 9.9% 9.0%
1989-90 2.2% 1.6% 9.9% 9.0%
1990-91 1.6% (-12.2%) 9.3% (-10.1%)
10
As can be seen from Table 2, general fund revenues will grow at a faster rate
than the total . In fact there is essentially no real growth in revenues out-
side the general fund, with the exception of Highway Users Taxes which are
subvented to the City on a per capita basis. Other non-general fund revenues
are primarily non-recurring and related closely to development in the City.
The trend in City Revenues Can be seen graphically by Chart 1 and 2 on the
following
Pae.9
Non-Inflationary Growth In Revenues Is Minimal , And Is Largely Due To Develop-
Ment, Population Growth, And Real Economic Growth
As can be seen on Chart 1, the City will experience relatively little real
growth in_revenue over the next ten years. Including inflationary influences,
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revenue will increase an average of approximately 8.5% per year. This is
largely offset by the i nfl ati mary....impact_._on---_expenditures as noted in Section
B of this chapter. Real revenue growth will occur as a result of development,
_pcmulatei -r-owt.h,_ and _r_eaL_aconomic growth (primarily affecting sales tax
revenue). The impact of each of these factors is summarized as follows:
I
. Development will affect General Fund revenues primarily in
the areas of property tax and property transfer tax as the
value of new construcion increases the base to which these
respective taxes are applied. The Parks and Recreation Fund
i s highly dependent_up vel oprnent_ to maintain revenues
in areas of Quimby Act Park Fee revenue and Environmental
Excise Tax revenue. Without development, the Parks and
Recreation Fund must depend solely on Federal Revenue Shar-
ing, and there is considerable doubt as to whether that will
be a continuing revenue source.
11
CHART 1
REVENUE GROWTH: IN CONSTANT DOLLARS
In Million $
7.0 -
6.0 -
5.0 -
• - ALL REVENUE
4.0 -
3.0 -
• \ � � .
GENERAL FUND
2.0 -
80-1 81-2 82-3 83-4 84-5 85-6 86-7 87-8 88-9 89-90 90-1 YEARS
CHART 2
REVENUE GROWTH: INCLUDING INFLATION
In Million $
ALL REVENUE
8.0 -
7.0
6.0 - GENERAL FUND
_ /
•
5.0 -
•
4.0 -
•
•
3.0 -
•
• � • i
•
• • —
2.0 -
80-1 81-2 82-3 83-4 84-5 85-6 86-7 87-8 88-9 89-90 90-1 YEARS
12
. Population, as noted earlier, highly influences revenues in
both the General Fund and the Highway and Transportation
Fund. As the City is built out, a leveling in revenues can
be expected as is projected in 1990-91. This leveling is
compounded by reductions in development revenue that will
occur as the City is built out.
. Real Economic Growth tends to impact primarily 'Sales Tax and
Business License Tax Revenues. Real (non-inflationary)
growth in business activity is not expected to exceed an
average 3.5% per year. Actual declines have been exper-
ienced recently in Cigarette tax revenue, and to some extent
in Highway Users taxes reflecting decreased consumption in
each area.
Revenues From The Eastview Area Annexation Will Be Essentially Constant Over
The Ten Year Period
The Revenues Forecast for the Eastview Area Annexation are detailed in Appendix
C and will come to the City when annexation is implemented. Revenues to the
City from the Eastview Area are primarily influenced by the current population
of the area; little or no additional devel opment_can be expected. The annexa-
tion will not likely generate additional revenue in the Federal Revenue Sharing
Fund, Environmental Excise Tax Fund, nor Quimby Act revenue in the Parks and
Recreation Fund. Since the Federal Revenue Sharing Act was adopted with a
constant appropriation and population is only one of many factors in the allo-
cation formula, no additional Revenue Sharing revenue is projected. Environ-
mental Excise Tax and Quimby Act revenue is not projected since no development
is expected in the annexation area.
13
Significant amounts of General Fund Revenue and Highway Users Tax Revenue can
be expected, primarily due to a significant sale tax base in the Eastview area,
and the additional population the area will bring to the City' s population
base. As noted earlier, the population base for distributing State per capita
subvention revenue will be based upon three times the number of registered
voters or 12,501. This will decrease to the actual population of approximately
6,671 when the 1990 Federal Census is conducted and is projected to decrease
total Eastview Area Revenues by approximately 18% in that year.
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Section B: Expenditures
Overall Expenditure Trends Reflect Increases In Recurring Maintenance Costs In
The General Fund, And Highway And Transportation Fund; And A High Level Of
Construction Planned For The Parks And Recreation Fund And Capital Improvements
Fund
Throughout the ten year study period, a large volume of construction activity
has been planned for the Parks and Recreation Fund to implement the Parks
Master Plan, and implementation of Civic Center Master Plan is reflected as
construction expenditures in the Capital Improvements Fund. The General Fund
is, in turn, impactedrimarily in added costs to operate and maintain the
parks constructed. Growth trends are graphically illustrated by the following
charts which reflect both constant dollar trends (Chart 3) and expenditure
trends including inflation (Chart 4) .
Annual, Recurring Costs Are Reflected In The General Fund, Highway And Trans-
Portation Fund, and Transfers To The Equipment Replacement Fund
The General Fund represents nearly one-half of the City's ongoing operations
and maintenance costs. Additional maintenance costs are shown in the Highway
and Transportation Fund which represents the other half of annual , recurring
costs. Projected expenditures for the Highway and Transportation Fund include
that level estimated by the Public Works Director as necessaryto preserve or
maintain existing highways and structures, including_reconstruction projects.
The General Fund expenditure projections generally reflect a continuation of
current levels of service with the exception of costs associated with parks
development and minor increases reflective of population increases. Changes
in annual , recurring expenditures (General Fund and Highway and Transportation
Fund) are indicated by the following table which shows the various expenditure
categories as a percent of total annual recurring expenditures.
15
CHART 3
EXPENDITURE TREND: IN CONSTANT DOLLARS
In Million $
6.0 -
5.0 -
4.0 -
3.0 - • `•____� . • GENERAL FUND
• + x x • HIGHWAY & TRANS.
2.0 • CAPITAL IMPROVEMENT FUND
FUND
•
1.0 - •/ - - - - • - - -• - - - • - • -
• -
0.0 - •
— • • ` . PARKS AND REC.
FUND
•
I I
80-1 81-2 82-3 83-4 84-5 85-6 86-7 87-8 88-9 89-90 90-1 YEARS
CHART 4
EXPENDITURE TREND: INCLUDING INFLATION
In Million $
7.0 -
GENERAL FUND
6.0 -
• HIGHWAY & TRANS.
FUND
5.0 -
4.0 -
xx
3.0 -
2.0 - ,` _ CAPITAL IMPROVEMENTS FUND
- -'
1.0 - f �-- - -•- - •-- - -•--- - - ,.j
PARKS AND REC. FL
80-1 81-2 82-3 83-4 84-5 85-6 86-7 87-8 88-9 39-90 90-1 YEARS
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TABLE 3
ANNUAL, RECURRING EXPENDITURE CATEGORIES
AS A PERCENT OF TOTAL EXPENDITURES
(In Constant Dollars)
Expenditure Category 1981-82% 1985-86% 1990-91%
City Council 0.2% 0.2% 0.2%
City Manager 1.5 1.4 1.4
City Attorney 2.7 2.6 2.5
Public Works 2.2 2.3 2.3
Parks and Recreation 6.8 9.9 11.7
Environmental Services 3.0 2.9 2.8
Community Services 1.3 1.3 1.2
Administrative Services 2.7 3.1 2.6
Non-Departmental 9.4 11.2 13.5
Public Safety 17.1 17.6 17.7
Regulatory, Inspection 0.6 0.6 0.6
Subtotal General Fund 47.7 53.3 56.7
Highway & Transportation Fund 52.0 46.6 43.3
Equipment Replacement Fund 0.3 0.2 0.2
TOTAL, Recurring 100.0% 100.0% 100.0%
Operations And Maintenance Costs Resulting From Parks Development Are The Major
Reason For Increases In Annual , Recurring Expenditures
Table 3 demonstrates that Parks and Recreation and Non-Departmental expendi-
tures will comprise an increasing portion of total recurring expenditures while
all others will remain essentially the same or require smaller portions of
total recurring expenditures by 1990-91. Increases in Parks and Recreation,
and Non-Departmental expenses are directly related to operation and maintenance
of Parks developed through the Parks and Recreation Fund. Non-Departmental
1
costs includes water and electricity costs associated with parks and employee
overhead costs relative to employees added for parks maintenance and opera-
tions.
17
Relative growth trends in annual recurring expenditures are further demonstra-
ted by Chart 5 below.
CHART 5
ANNUAL, RECURRING EXPENDITURE TRENDS
(In Constant Dollars)
In Million $
4.5
I
A
LL OTHERS
3
-
3.0 -
► 2.5 -
2.0 -
1.5 -
1.0 - NON-DEPARTMENTAL
0. 5 - •� �� _ _ r„ _ __._ - _ _
PARKS AND RECREATI
00 -
x
80-1 81-2 82-3 83-4 84-5 85-6 86-7 87-8 88-9 89-90 90-1 YEARS
Non-Recurring Expenditures Are Reflected In The Parks And Recreation Fund And
The Capital Improvements And Acquisition Fund
Implementation of the Parks Master Plan and Civic Center Master Plan will
result in a significant level of expenditure over the next ten years in both
the Parks and Recreation Fund and the Capital Improvements and Acquisition
Fund. These are detailed in Appendices B and D of this report. No non-recur-
ring capital expenses are projected to occur as a result of the Eastview Area
Annexation.
18
Expenditures In The Parks And Recreation Fund Are Scheduled According To Avail-
able Special Revenue Sources And Are Largely Dependent Upon Development In The
City
Priorities for implementation of the City' s Park Master Plan have been estab-
lished by the City and were used as the basis for projecting parks development
expenditures in accordance with forecasts of specified revenues which have, by
current City policy, been allocated to parks development and acquisition.
These revenues include:
Quimby Act Development Fees
Environmental Excise Tax
Federal Revenue Sharing
All but Federal Revenue Sharing are directly related to development. ' Develop.
ment related revenues constitute an average of approximately 75 percent of
revenue available for parks development. Assuming the availability of these
revenues as indicated in the revenue forecast, park development expenditure
priorities were projected as follows in Table 4.
TABLE 4
PARKS DEVELOPMENT PROJECTION
Projects Scheduled By City Priority and Available Funds
(In Constant Dollars)
Year Funds Available Project Development
1981-82 Reserve Balance School Site Payment $ 131,000
(from '80-81) $ 28,160 Hesse, Phase I (95% of
Annual Revenue 785,483 project) 922,643
House Sale 240,000 Total: 1981-82 $1,053,643
Total : 1981-82 $1,053,643
19
TABLE 4 - Continued
PARKS DEVELOPMENT PROJECTION
Projects Scheduled By City Priority and Available Funds
(In Constant Dollars)
1982-83 Annual Revenue $ 785,511 School Site Payment $ 124,800
1980 St. Park Bond 144,750 Hesse, Phase I (balance) 77,357
Total : 1983-83 $ 930,261 Hesse, Phase II (100% 364,810
Hesse, Phase III (31%) 363,294
Total: 1982-83 $ 930,261
1983-84 Annual Revenue $ 785,509 School Site Payment $ 118,600
Total : 1983-84 $ 785,509 Hesse, Phase III (89%) 666,909
Total: 1983-84 $ 785,509
1984-85 Annual Revenue $ 785,483 School Site Payment $ 112,400
Total: 1984-85 $ 785,483 Hesse, Phase III (balance) 124,371
Pt. Vicente, Phase II (52%) 548,712
Total: 1984-85 $ 785,483
1985-86 Annual Revenue $ 785,483 School Site Payment $ 106,200
Total : 1985-86 $ 785,483LaderacLi1,PPhaseTI 100%� 540,000
Pt. Vicente, Phase VI (29%) 130,995
Total: 1985-86 $ 785,483
1986-87 Annual Revenue $ 785,483 Pt. Vicente, Phase VI (bal .) $ 319,005
Total : 1986-87 $ 785,483 Abalone Cove Beach 50,000
Trail System 25,000
Pt. Vicente, Phase III (55%) 391,478
Total: 1986-87 $ 785,483
1987-88 Annual Revenue $ 785,483 Pt. Vicente, Phase III (bal ) $ 317,522
Total : 1987-88 $ 785,483 Pt. Vicente, Phase IV (34%) 467,961
Total: 1987-88 $ 785,483
1988-89 Annual Revenue $ 785,483 Pt. Vicente, Phase IV (92%) $ 785,483
Total : 1988-89 $ 785,483 Total: 1988-89 $ 785,483
1989-90 Annual Revenue $ 785,483 Pt. Vicente, Phase IV (bal .) $ 111,566
Total : 1989-90 $ 785,483 Pt. Vicente, Phase V (100%) 613,000
Portugese Bend (4%) 60,927
Total: 1989-90 $ 785,493
1990-91 Annual Revenue $ 196,000 Portugese Bend (18%) $ 196,000
Total : 1990-91 $ 196,000 Total : 1990-91 $ 196,000
20
r i
Capital Improvement And Acquisition Fund Expenditures Reflect Implementation
Of The Civic Center Master Plan
Implementation of the several phases of the Civic Center Master Plan have been
scheduled in accordance with the assumptions in Volume I of this report. These
are detailed in Appendix B and are summarized in the following table.
TABLE 5
CIVIC CENTER MASTER PLAN EXPENDITURE PROJECTION
(In Constant Dollars)
Year Master Plan Phase Amount
1981-82 Phase I (2) $1,747,475
1982-83 Phase I (2) 1,747,475
1983-84 Phase II 22,550
1984-85 Phase III 167,750
1985-86 Phase IV (2) 583,500
1986-87 Phase IV (1) 583,500
1987-88 Phase V (%) 591,675
1988-89 Phase V (%) 591,675
1989-90 Phase VI ' 220,400
1990-91 0
TOTAL $6,256,000
21
CHAPTER III
ANALYSIS AND CONCLUSIONS
Funding Resources Are Compared To Projected Expenditures By Fund To Determine
Deficiencies Or Surpluses
Utilizing the revenue forecasts and expenditure projections detailed in the
appendices and discussed previously in Chapter II, an. analysis was prepared
for each fund comparing funding resources (revenue, transfers from other
funds, and reserves) with projected expenditures. Table 6 presents a summary
of each fund for the ten year study period.
22
TABLE 6
REVENUE VS. EXPENDITURE FORECAST BY FUND
(In Constant Dollars)
1981-82 1982-83 1983-84 1984-85 1985-86 1986-87 1987-88 1988-89 1989-90 1910-91
CURRENT CITY BOUNDARIES
GENERAL FUND .a,TS'487o.
' Revenue $2,560,048 2,557,631 2,618,759 2,639,103 2,664,553 2,720,652 2,784,204 2,844,236 2,906,245 2,952,338
Expenditures .Z V 3a /Q a 2,389,002 2,510,656 2,556,233 2,638,604 _2,756 640 2,837,297 2,910 344 2,929,513 3,019,982 3,087, 82
Surplus/(deficit) 171,046 46,975 62,526 499 (92,087) (116,645) (126,140) (85,277) (113,737) (135,614)
HIGHWAY AND TRANSPORTATION FUND
Revenue 454,748 460,748 466,746 472,746 478,745 484,744 490,743 496,742 502,741 502,741
Grants _ 968,600 397,000 372,500 260,000 260,000 260,000 260,000 260,000 260,000 _26_0,000
Total Resources 1,423,348 857,748 839,246 732,746 738,745 744,744 750,743 756,742 762,741 762,741.
Expenditures: Maintenance 1,045,833 1,045,833 1,045,833 1,045,833 857,941 829,853 803,103 803,103 803,103 803,103
('1 Construction 1,557,000 1,078,500 1,172,500 1,552,800 1,552,800 1,552,800 1,557_,800 1552,800 1,552_,G00 14552„fl00
Surplus/(deficit) (1,179,485) (1,266,585) (1,379,087) (1,865,887) (1,671,996) (1,637,909) (1,605,160) (1,599,161) (1,593,162) (1,593,162)
PARKS AND RECREATION FUND
Revenue 650,760 555,510 410,760 410,760 410,760 410,760 410,760 410,760 410,760 -
ro Transfers from other funds 402_,883 374,751 374,749 374,723 374,723 374,723 374,723 374,723 374,723 196,000
co
Total Resources 1,053,643 930,2.61 785,509 785,483 785,483 785,483 785,483 785,483 785,483 196,000
Expenditures 1,053,643 930,261 785,509 785,483 785,483 785,483 785 483 785x483 785.,I83 196,000
Surplus/(deficit) - - - - - - - -
CAPITAL IMPROVEMENT FUND
Transfers from other funds - - - - - - - - - -
Reserves 1,347,2.10 _ - - - - - - - - -
Total Resources 1,347,210 - - - - - - - -
Expenditures 1.,747,475 1,747 475 22,550 167 750 583,500 583,500 591,675, 591,675 __22(1009 - _____
Surplus/deficit) (400,265) (1,747,475) (22,550) (167,750) (583,500) (583,500) (591,675) (591,675) (220,400) -
Among The Four Major Expenditure Funds, Only The Parks And Recreation Fund Is
Projected To Have Sufficient Funding
In analyzing the information presented in Table 6 as well as the detailed in-
formation developed in the appendices, certain conclusions and findings become
apparent and are discussed, by fund as follows:
General Fund
As noted in the preceding chapter, the principal increase in
General Fund expenditures occurs as a result of operations and__
maintenance costs related to parks development. If park .a
operations and maintenance costs are not included in_ General <,
Fund expenditures, the General Fund would, in fact have grow-
ing annual surpluses rather than deficits. This is demon-
strated as follows:
TABLE 7
GENERAL FUND WITHOUT PARKS MAINTENANCE & OPERATION •
(In Constant Dollars)
1981-82 1986-87 1990-91
Revenue $2,560,048 $2,720,652 $2,952,338
Expenditures (less Park
Maint. & Oper.) 2,465,2442 523,801 2,694,386
Net Surplus/(deficit) $ 94,804 $ 196,851 $ 257,952
Highway and Transportation Fund
The Highway and Transportation Fund has historically been
funded primarily by the Highway Users Tax and County Aid.
These revenues have been supplemented by State or Federal
grants and, occasionally by transfers from the General Fund.
24 ��\
Table 6 demonstrates that these historical funding sources
will not be sufficient to provide a level of expenditure
necessary to maintain highways and related transportation
structures. This problem is compounded by inflation since
Highway Users Taxes and County Aid do not increase proportion-
ate to inflation (remain essentially constant) while costs of
maintenance increases at or above inflationary rates. The
expenditure projections for the General Fund assume no trans-
fer of available revenue to the Highway and Transportation
Fund, and only after transfers to the Equipment Replacement
Fund. Unfortunately, the General Fund does not have avail-
able revenues to transfer after 1984-85 in constant dollars,
and not after 1981-82 when inflation is considered. As noted
earlier, the General Fund would have additional revenue avail-
able for transfer if added parks maintenance and operation
costs were not born by the General Fund.
Parks and Recreation Fund
Sufficient revenues will be generated from Quimby Act park
fees the Environmental Excise Tax and Federal Revenue Sharing
to finance_park_development throughout the ten year period if
the City continues to allocate all of these revenues to the
Parks and Recreation Fund. As shown in Chapter II, Section B
of this report (Table 4) , essentially all of the current Park
Master Plan priorities can be accomplished within the ten
year study period. The only exception is development of Por-
tugese Bend which would have to be developed over a longer
period, primarily since it is of lowest priority and would
begin after the City is build out and development related
25
revenues are no longer received. It should be noted that
approximate of the revenue to the Parks and Recreation
Fund is related to development, therefore, implementation of
the Parks Master Plan is laregly dependent upon continued
development in the City and renewal of Federal Revenue Sharing l I
in three years.
Capital Improvement and Acquisition Fund
All projected expenditures in the Capital Improvement and
Acquisition Fund are related to implementation of the Civic
Center Master Plan. The only funding resource available is
the current reserves in that fund amounting to approximately
$1,347,210. This is insufficient to finance even the first
phase of development envisioned by the Master Plan. The
Capital Improvement and Acquisition Fund has no specific
funding source and has historically relied on transfers from
the General Fund. As noted earlier, there will not be suffi-
cient surpluses in the General Fund for transfer to this
fund. Therefore, the City faces alternatives of raising new,
additional revenue to finance the Civic Center , alt rnatives
are discussed in the following chapter) , or reducing the
scope to match currently +a i'1 ablg resources_ of a prnximately
$1,347,210 in reserves. A reduced scope may be appropriate
if the City is to continue to provide services on a primarily
contractual basis.
26
The Two Areas Of Recurring And Non-Recurring Financial Needs Should Be Consi-
dered
The preceding analysis leads to a conclusion that the City has two principal
areas of financing requirements. First, annual recurring operation and mainte-
nance requirements are represented--by--the-General--Fund, Highway and Transporta-
tion Fund and Equipment Replacement Fund. These funds should be viewed to-
gether when considering the financing of ongoing operational and maintenance
requirements of the City. Second, non-recurring requirements are primarily
represented by the Parks and Recreation Fund and the Capital Improvement and
Acquisition Fund. As noted earlier, sufficient revenues are projected to
finance construction in the Parks and Recreation Fund, but there will not be
sufficient revenue for implementation of the Civic Center Master Plan.
With respect to ongoing operation and maintenance requirements, the primary
influences are absorption in the General Fund of operation and maintenance
costs of newly developed parks, and providing for ongoi nq maintenance and
reconstruction needs in the Highway and Transportation Fund where revenues
specific to that fund are insufficient, particularly considering inflation.
If the three funds are viewed together that involve ongoing operation and
maintenance requirements, the cumulative effects for the ten year period are
presented in constant dollars in Table 8 and including inflation factors in
Table 9.
27
TABLE 8
SUMMARY OF OPERATIONAL RESOURCES AND REQUIREMENTS
(In Constant Dollars)
1981-82 1982-83 1983-84 1984-85 1985-86 1986-87 1987-88 1988-89 1989-90 1990-91
Total General Fund Revenue $2,560,048 2,557,631. 2,618,759 2,639,103 2,664,553 2,720,652 2,784,204 2,844,236 2,906,2.45 2,952,338
Less: General Fund Expenditures 2,376,272 2,497,926 2,543,503 2,625,874 2,743,910 2,824,567 2,897,614 2 916.783 3,007,15? 3,075,52
Balance: Surplus/(deficit) 183,776 59,705 75,256 13,229 (79,357) (103,915) (113,410) (72,547) (101,007) (122,914)
Less: Transfer to Equip. Repl. Fund 12730 12,730 12,730 ]2,730 12,730. 1?.1730 12,730 12,730 12730 12,730
Balance: Surplus/(deficit) 171,046 46,975 62,526 499 (92,087) (116,645) (126,140) (85,277) (113,137) (135,644)
Less: Highway fund Deficit 1,179,485 1,266,585 1,379,187 1,865,887 1 671996 1,637,909 1,605,160 1 599,161 1,593,162 1,593067
Balance: Surplus/(deficit) $(1,008,439) 11,219,610) 11,316,561) 11,865,388) (1,764,083) (1,754,554) (1,731,300) (1,684,438) (1,706,899) (1,728,806)
Additional Resources:
co
Reserve for Revenue Decline $ 500,000 - - - - - - - - -
Balance: Surplus/(deficit) (508,439) (1,219,610) (1,316,561) (1,865,388) (1,764,083) (1,754,554) (1,731,300) (1,684,438) (1,706,899) (1,728,806)
Annexation Revenue Surplus 277,644 310,906 316,271 336,550 342,909 364,316 _ 371,836 394,337 403,038 _212,1191
Net Balance: Surplus/(deficit) $ (230,7952 (908,704) (1,000,290) 11,528,838) (1,421,174) (1,390,238) (1,359_„464) 11,290,1011 11003,861) 11,515,815J.
TABLE 9
SUMMARY OF OPERATIONAL RESOURCES AND REQUIREMENTS
(In Inflation Dollars)
1981-82 1982-83 1983-84 1984-85 1985-86 1986-87 1987-88 1988-89 1989-90 1990-91
Total General Fund Revenue $2,734,231 2,946,293 3,252,093 3,540,303 3,838,007 4,211,999 4,633,048 5,090,841 5,594,595 6,117,106
Less: General Fund Expenditures 2,588779 2,975,988 3,289,173 3,699,760 4,173,649 4 638310 2,117,167 5582 352 6 211,851 L861,148
Balance: Surplus/(deficit) 145,452 (29,695) (37,080) (159,457) (335,642) (426,311) (504,119) (491,511) (619,256) (751,342)
Less: Transfer to Equip. Repl.
Fund _ 13,876 15,12.5 16,486 17,969 19,407 70,959 22,636 24,447 26,402 _ 28,515
Balance: Surplus/(deficit) 131,576 (44,820) (53,566) (177,426) (335,049) (447,270) (526,755) (515,958) (645,658) (779,857)
Less: highway Fund Deficit 1,321,499 1,624,919 1,994,015 282,864 2,795,183 3,005,748 3232,964 3 52802 31840,589 4,188,056
Balance: Surplus/(deficit) $(1,189 924 11,669,799) (2,047,581) J_2,999,290) (3,130,232) (3,453 0182 (3,759,719 (4,44,81) (4,486 2171 (4.067,9131
Additional Resources:
1) Reserve for Revenue Decline $ 500,000 __-
Balance: Surplus/(deficit) (689,923) (1,669,799) (2,047,581) (2,999,290) (3,130,232) (3,453,018) (3,759,719) (4,044,781) (4,486,247) (4,967,913)
Annexation Revenue Surplus 3(16367 354,859 378138 423,495 455,314 512,791 556 392 630,779 688,230 _ 417,652.
Net Bal.: Surplus/(deficit) $_5313,55 11,314940) ( ,669,443) (2,575,795) (2,674,918) (2,940,7271 13,203,327 (3,414,002 (3,798,0171 11,550 2611
The Eastview Area Annexation Will Provide Additional Revenue To The City
As noted in Tables 8 and 9, an important additional funding resource for the
City will result from annexation of the Eastview Area. Revenue derived from
the Eastview Area is projected to exceed costs to serve the area throughout the
ten year study period. This revenue surplus can be used throughout the City
to help offset ongoing operational and maintenance requirements. Utilizing
the detailed data contained in Appendices C and D, Table 10 was prepared to
summarize the financial impact of the Eastview Area Annexation.
30
TABLE 10
SUMMARY OF EASTVIEW AREA REVENUE AND EXPENDITURES
1981_82 1982183 1983-84 1984-85 1985-86 1986-87 1987-88 1988-89 1989-90 1990-91_
IN CONSTANT DOLLARS
Projected Revenue $ 989,970 1,002,032 1,014,597 1,027,676 1,041,235 1,055,442 1,070,162 1,085,463 1,101,364 901,117
Projected Expenditures _ 712,326 691,126 _ 69,326 6911126 698,326 _691 126 _ 698,326 691,126 698,376 _.691,126
Surplus/(deficit) $ 277 644 310,906 31.6 271 136,550 342 9U9 364,316 371,836 394,137 403 038 212,991
IN INFLATIONARY DOLLARS
Projected Revenue $1,062,087 1,155,166 1,758,702 1,373,660 1,491,272 1,62.0,904 1,764,126 1,92.2,151 2,096,315 1,923,767
Projected Expenditures 755,720 800,307 880, 64 950,T65 1,035,958 1,108,113 1,207,734 1,291,372 1708 085 1505,615
Surplus/(deficit) $ 306067 _ 354,859 378,138 423,495 455,314 _517_,791 556,392. J630,779 „688 230 _417,652
CHAPTER IV
FINANCING ALTERNATIVES
The City Should Consider Alternative Approaches To Financing Ongoing Operations
And Maintenance, And Capital Improvements
Chapter III demonstrates that the City has two basic areas which require an
examination of alternative financing, (1) ongoing operations and maintenance
costs which would require a recurring revenue source (particularly parks opera-
tion and maintenance, and Highway and Transportation maintenance) , and (2)
financing of non-recurring capital improvement costs, particularly the proposed
Civic Center Master Plan. This chapter presents alternative approaches to
financing these two areas which imply different sets of considerations and
approaches.
RECURRING FUNDING SOURCES
Propositions 13 And 4 Have Placed Significant Limitations On Recurring Revenue
Alternatives
The passage of Proposition 13 (now Article XIIIA of the State Constitution) and
Proposition 4 (now Article XIIIB of the State Constitution) place important
limitations on the City's ability to develop new revenue sources. Generally,
Proposition 13 prohibits the City from levying a property tax and limits growth
in existing property tax revenue to the City which is levied by the County.
Proposition 13 places a further limitation by requiring that any "special tax"
(generally defined as a new tax, including increases in current taxes) receive
approval by two-thirds of City voters. Fees, charges or assessments have not
been interpreted as "special taxes" and can therefore provide a more readily
implemented revenue source.
32
Proposition 4 places further limits in that all revenue derived from "proceeds
of taxes" cannot exceed the base year (1978-79) limit as adjusted by (1) the
percent increase in population (projected to average 1.6% for the City) and (2)
either the percent change in the United States Consumer Price Index or the
percent change in State per capita income, whichever is less (projected at an
overall average of 8.4% in this study). As with Proposition 13, fees, charges
and special assessments are not subject to the limitations of Proposition 4.
Taking into consideration the impact of Propositions 13 and 4 as well as other
statutory provisions, the following discussion of alternative additional fund-
ing sources is presented:
. Increase In Existing Taxes
The City is essentially foreclosed from this alternative.
As noted in Chapter II, most current revenues which generate
significant amounts of revenue (nearly 90% of current City
revenue) have tax -rates set by State law, and would require
legislation and/or two-thirds voter approval . Revenue from
these sources can be increased indirectly by increasing the
base upon which the taxes are collected, most notably re-
tail sales, and new property construction.
. New Taxes
As previously discussed, Proposition 13 prohibits implement-
ing a new tax ("special tax") without a two-thirds approval
of the voters. Further, if a new tax were to cause the City
to exceed the Proposition 4 limit on taxes, not only would
it require a two-thirds vote, but such a tax would also be
33
limited to four years authorization without another vote of
approval . While it is possible to adopt a new tax (except
on the value of property) under these conditions, it is not
probable and could be of limited long term value.
. Fees and Charges
Neither of the Propositions prohibits a City from levying
fees or charges based on recovering costs from users of ser
vices. The only limitation is that of Proposition 4 which
effectively provides that any amount of revenue from fees
or charges which exceeds the "cost reasonably born" in pro-
viding
ro-
viding the service must be considered a tax for purposes of
the tax limit. Practically, the City has a viable source
of revenue in charging users or beneficiaries for a number
of municipal services. The City has already established
fees which cover some or all costs in certain service areas.
However, there may be current fees and charges that do not
cover costs (including applicable indirect and overhead
costs), and there may be additional service areas for which
the City may wish to establish fees and charges. To that
extent, additional ongoing revenues from fees and charges
are available for use by the City. It should be noted that
such revenues can vary with user demand for services.
. Special Assessments Districts
As with user fees and charges, special assessment districts
may be established for a number of purposes specified by
State Legislation. Generally, these districts are estab-
lished within boundaries that define an area of benefit.
34
Those within the defined boundaries are assessed annual fees
that are based on the cost and benefit received as esta-
blished through a study. Typically, one or more areas or
zones of benefit are established for proportioning costs,
most often on a per parcel or household basis. Such assess-
ments are set on a fixed amount basis and are typically re-
vised annually based on costs of services provided. Such
assessments may be used only for the purposes defined by
the district and provisions of State law which authorize
such districts. Special assessment district practices and
procedures vary greatly but most commonly they may be esta-
blished by a City Council after providing notice to affected
property owners and providing an opportunity for a public
hearing. Some require approval by vote of those in the
district. Some examples of areas for which assessment dis-
tricts may be established include:
,,/' - Park Maintenance (Landscape and Lighting Act
of 1972)
- Street Lighting (Landscape and Lighting Act
of 1972)
- Fire Service (authorized by Government Code
Section 53970, and requires voter approval)
- Police (authorized by Government Code Section
53970, and requires voter approval )
35
. Private Homeowners' Associations
Some operation and maintenance areas typically associated
with government can be owned and operated by private home-
owners' associations . This is most often done with park
areas that are owned and maintained privately.
A Special Assessment District For Landscape Maintenance Offers The City A Good
Opportunity To Meet Recurring Financing Needs
As noted previously in this report, if parks operation and maintenance costs
are excluded, the General Fund would have a surplus of revenue, which could be
applied to highway maintenance or other ongoing operations and maintenance
requirements. One or more special assessment districts may be established
under authority of the Landscape and Maintenance Act of 1972 which would
effectively remove park, and perhaps other landscape maintenance costs from the
General Fund. In this way, those benefiting from park improvements would pro-
vide for their maintenance under the special assessment district and thereby
relieve the General Fund of this added cost. Together with increased applica-
tion of user fees and charges, such special districts can focus General fund
resources on more generalized services such as public safety, regulatory and
inspection services, general government, and operation and maintenance costs
which cannot be associated with special benefit districts.
NON-RECURRING/CAPITAL FUNDING SOURCES
The Civic Center Master Plan Would Require Additional Funding
The information provided in Chapter III indicates that the City has sufficient
revenues allocated to the Parks and Recreation Fund to construct essentially
36
all current priorities of the Parks Master Plan over the next ten years. How-
ever, the one non-recurring capital cost without sufficient funding is the
Civic Center Master Plan.
As currently envisioned, full implementation of the several phases of the Civic
Center Master Plan will require considerably more funding than is currently
available in the Capital Improvements and Acquisitions Fund reserves. Further,
because of demands on General Fund revenues for ongoing operation and mainte-
nance requirements, future transfers of revenue from the General Fund to fin-
ance the Civic Center Master plan cannot be anticipated. Therefore, unless the
scope of the Civic Center is reduced to match reserves currently available
(approximately $1,347,210) , additional funding will be required.
Additional Financing Alternatives Are Available For Capital Improvements
As with recurring revenue sources, Proposition 13 has limited the alternatives
for financing capital improvements such as the Civic Center Master Plan. One
of the most frequently used and least expensive means of long term financing
for capital improvements has been general obligation bonds which are secured
by property tax. By prohibiting cities from levying a property tax, Proposi-
tion 13 has eliminated this important historical funding source. However,
other means of funding capital improvements are available and are discussed as
follows:
. Pay-As-You-Go
The City has used this method to finance park construction,
by dedicating revenues from Federal Revenue Sharing, Quimby
Act park fees and the Environmental Excise Tax to the Parks
and Recreation fund. However, as discussed previously under
37
recurring revenue sources, the City has a very limited
ability to enact new or increased revenues sufficient to
finance the Civic Center Master Plan, and existing revenue
sources are not even sufficient for ongoing operations and
maintenance. Therefore, the City has little or no oppor-
tunity for pay-as-you-go financing.
. Grant Funding
Some special grant funding has been utilized by cities to
supplement capital improvement costs, including economic
development grants or special grants for energy efficient
projects. Under current economic conditions and Federal
budget policies, grant funding is very doubtful .
. Revenue Bonds
Basic authority for this funding source is the Revenue Bond
Act of 1941 (Government Code Section 54.300, et. seq.) which
provides for a majority vote, and specifies that revenue
bonds are a means of financing an enterprise that is " . ..a
revenue-producing improvement, building, system, plant,
works, facilities, or undertaking used for. .." a number of
specified purposes, none of which would be directly appli-
cable to a civic center. However, the revenue bond techni-
que is also incorporated into some of the other financing
alternatives discussed subsequently.
. Lease-Purchase
This method of financing typically entails the formation of
a private non-profit corporation for the sole purpose of
38
constructing the needed facility (civic center). Once
formed, the private non-profit corporation issues bonds and
supervises construction of the facility. The bonds are
secured by an agreement between the non-profit corporation
and the City which provides that the City will make annual
lease payments sufficient to cover the annual principal,
interest, and related costs of the non-profit corporation.
The agreement further provides that when the bonds have been
retired, title to the facility would vest with the City.
Non-profit corporation status of the separate entity is
important to avoid the activity being subject to federal and
state taxes as well as property taxes. This is a viable
alternative assuming the City will have sufficient revenue
to pay annual lease payments.
. Joint-Powers Or Joint Agency Financing
This technique is similar to lease-purchase financing, ex-
cept that a non-profit corporation is not utilized as the
agency to construct and finance the facility. Instead, a
contractual agreement with another governmental agency
(federal government, state government, county, city, school
or special district) establishes a separate, third agency
under authority of the Joint Exercise of Powers Act, which
may issue revenue bonds which are secured by annual lease
payments. An ordinance approving the issuance of revenue
bonds must be approved by each agency and the respective
ordinances are subject to local referendum. An advantage
of the joint agency approach is that interest cost on the
bond funds is typically less.
39
. Assessment Bonds
Similar to maintenance assessment districts, special assess-
ment districts can be formed for the purpose of construct-
ing certain public improvements by selling bonds which are
secured by annual assessments on property within the defined
assessment district. Special assessments are utilized for
improvements that directly benefit property, e.g. , streets,
curbs, gutters, water, sewers, and drainage. While this may
provide a beneficial means of financing, many of the City's
capital improvements needs (particularly in the Highway and
Transportation Fund and perhaps the Parks and Recreation
Fund) it would not seem effective for the Civic Center.
However, should this financing method be applied to other
areas, revenue might be released for application to Civic
Center construction.
40
APPENDIX A
CURRENT CITY BOUNDARIES
REVENUE FORECAST
•
A-1
•
REVENUE FORECAST: CURRENT CITY BOUNDARIES
IN CONSTANT (1980) DOLLARS
Base Year Forecast Years
Revenue Category 1980-81 1981-82 1982-83 1983-84 1984-85 1985-86 1986-87 1987-88 1988-89 1989-90 1990-91
General Fund AnnualRecurring_
Motor Vehicle In-Lieu Fees $ 954,330 714,188 673,103 683,986 694,868 705,750 716,633 727,515 738,398 749,280 749,280
Interest 300,000 243,000 196,830 159,432 129,140 102,312 104,430 106,832 109,096 111,42.3 113,156
Sales and Use Tax 281,310 384,961 450,046 516,998 535,092 553,821 573,204 598,668 619,620 641,308 663,754
Property Tax 270,540 284,067 298,270 313,184 328,843 345,285 362,549 380,677 399,710 419,696 440,681.
Franchise Taxes 186,110 189,312 192,423 195,534 198,645 201,756 2.04,867 207,978 211,089 214,200 214,200
Building and Safety Fees 143,560 155,000 155,000 155,000 155,000 155,000 155,000 155,000 155,000 155,000 155,000
Property Transfer Tax 123,950 125,837 127,905 129,973 132,041 134,108 136,176 138,244 140,312 142,380 142,380
Cigarette Tax 113,350 109,496 105,773 102,177 98,703 95,347 92,105 88,974 85,948 83,026 80,203
Business License Tax 78,650 81,403 84,252 87,201 90,253 93,412 96,681 100,065 103,567 107,192 110,944
Fines, Forfeitures & Penalties 92,900 91,000 91,000 91,000 91,000 91,000 91,000 91,000 91,000 91,000 91,000
Financial Aid to Local Agencies - 75,724 76,969 78,214 79,458 80,702 81,947 83,191 /84,436 85,680 85,680
Other, Miscellaneous 106,060 106,060 l0_060 106,0610 106,060 106,060 106,060 106,)60 _- 106,060 106,060 106,060
Subtotal: Recurring Gen. Fund 2,649,760 2560,048 2,557,631 2 618,759 2,639,103 2 664,553 2,220 652 2,784,204 2,844,236 2,906,2.45 2,95.2,338
Subtotal: Non-recurring Gen. 152,050
Special Funds, Recurring:
ry Highway and Transportation Fund:
Highway Users Taxes 494,2.60 339,683 345,088 350,492 355,897 361,302 366,706 372,111 377,515 382,920 382,920
County Aid & Other Grants 905,280 1,038,600 467,000 442,500 330,000 330,000 330,000 330,000 330,000 330,000 330,000
Interest 105000 __ 45,065 45,660 46,254 46049 47,443 48,038 ___48,632 49,227 __49,821 _ 49,821
Subtotal: Highway & Trans. 1,504,540 1,423348 857,748 839,2.46 732,746 738,745 744,744 _750,743 756,742 762,741 762,741
Federal Revenue Sharing Fund:
Federal Revenue Sharing Grant 195,800 196,000 196 000 196,000 _1961,000 196,000 _196,000 196000 196,000 196,000 __196,000
Subtotal: Fed. Rev. Sharing 195,800 196000 196,000 196000 196000 196,000 196,000 196;,000 196,000 196,000 _ 196,,000
Special Funds, Non-Recurring:
Environmental Excise Tax Fund:
Environmental Excise Tax _ 80,730 178,723 178,751 178,749 178,723 178,723 178,723 178,723 1783723 _178,723
Subtotal: Environ. Tax Fund 80,730 178,723 178,751 178,749 178723 178,723 178,723 178,723 178,723 1.78_,72.3
Parks and Recreation Fund:
Quimby Act Revenue 60,000 410,760 410,760 410,760 410,760 410,760 410,760 410,760 410,760 410,760 -
Grant, and Land Sale 1,439,670 240,000 144,750
Subtotal: Parks & Rec. Fund 1,499070 650.760 555,510 4101760 410760 410,760 410,760 410,760 410,760 41.0,760 __ _ _
TOTAL: Annual, Recurring 4,350,100 4,179,396 3,611,379 3,645,005 3,567,849 3,599,298 3,661,396 3,730,947 3,796,978 3,860,986 3,911,079
fOTAI.: Non-Recurring 1,732.,450 ___6111.0P3 _734,261 589,509 5891483 589,483 589083 _589,483 5890P 589083
GRAND FOTAI.: ALL REVENUE $6,082,550 4,768,879 4,345,640 4,234,514 4,157,332 41188,781 4 250,879 4,320,430 4,386,461 4,454,469 3,911,079
REVENUE FORECAST: CURRENT CITY BOUNDARIES
INCLUDING INFLATION ASSUMPTIONS
Base Year Forecast Years
Revenue Categooi 1980-81 1981-82 1982-83 1983-84 1984-85 1985-86 1986-87 1987-88 1988-89 1.989-90 1.990-91
General Fund Annual Recurring
Motor Vehicle In-Lieu Fees $ 954,330 773,952 799,876 886,037 981,151 1,076,428 1,180,5% 1,294,357 1,418,849 1,554,840 1,679,160
Interest 300,000 270,000 243,000 218,700 196,830 171,242 188,366 207,203 2.27 923 2F0,715 275,786
Sales and Use Tax 281,310 410,150 516,379 639,794 719,768 802,541 894, 833 1,005,792 1,121,459 1,250,426 1,394,22.6
Property Tax 270,540 292,183 318,479 348,735 383,608 425,805 472,643 524,634 582,344 646,402 717,505
Franchise Taxes 186,110 206,387 228,644 253,427 280,440 307,777 337,428 369,875 405,622 444,360 480,060
Building and Safety Fees 142,560 155,000 168,950 184,156 200,730 216,788 234,131 252,861 273,090 294,937 318,532
Property Transfer Tax 123,950 139,571 157,334 177,514 200,203 22.5,888 2.54,678 287,091 323,256 364,140 404,040
Cigarette Tax 113,350 109,496 105,773 102,177 98,703 95,347 92,105 88,974 85,948 83,02.6 80,203
Business License Tax 78,650 88,481 99,541 111,984 12.5,982 140,470 156,624 174,636 194,719 217,11? 242,079
Fines, Forfeitures & Penalties 92,900 91,000 91,000 91,000 91,000 91,000 91,000 91,000 91,000 91,000 91,000
Financial Aid to Local Agencies - 82,406 91,307 101,218 112,176 123,032 134,971 148,031 162,2.49 177,660 191,940
Other, Miscellaneous 106,960 115,605 126,010 137,351 149,712 161,689 174,624 188,594 203,682 219,977 237,575
Subtotal: Recurring Gen. Fund 2,649,760 2,734,231 2,946293 1_252 093 3,540,303 3,838,007 9211,999 4,633,048 5,090 0841 5594,595 6,112,10.6_
Subtotal: Non-recurring Gen. 152,050
n Special Funds, Recurring:
L^' Highway and Transportation Fund:
Highway Users Taxes 494,260 339,683 345,088 350,492 355,897 361,302 366,706 372,111 377,515 382,920 302,920
County Aid & Other Grants 905,280 1,125,774 502,730 476,025 437,011 466,372 498,082 532,328 569,315 609,260 652,401
Interest 105,000 45065 45,660 46,254 46,849 47,443 48,038 48,..92 49,227 49,821 _ 49,821
Subtotal: Highway & Trans. 1,504,540 1,510,522 893,478 872,771 839_,_757 875,117 912,82.6 953,971 996,057 1,042,001 1,085,142_
Federal Revenue Sharing Fund:
Federal Revenue Sharing Grant 195,800 _196,000 196,000 196,000 196,000 196,000 196,000 196,900 196_000 196,000 _ 196,000
Subtotal: Fed. Rev. Sharing 195,800 196,000 196,000 196,000 196,000 196,000 196,000 196000 _ 196,000 __196,000 196,000
Sj ec i al Funds,_Non-Recurring:
Environmental Excise Tax Fund:
Environmental Excise Tax 80730 178,723 194,837 212,398 231,514 250x035 270,038 291,641 314,972 _340,170
Subtotal: Environ. Tax Fund _ 80,730 178,723 194,837 212,398 231.,514 250,035 270,038 291,641 314,972 340070
Parks and Recreation Fund:
Quimby Act Revenue 60,000 455,944 506,099 561,767 623,562. 692,154 768,293 857,8(13 946,612 1,050,738 -
Grants and Land Sale 1/139,670 2.40,000 _ 144750
Subtotal: Parks & Rec. Fund 1,499,670 695,944 650,649 561,767 62.3,562 692 054 768 293 852,803 946,612 1,050,738
TOTAL: Annual, Recurring 4,350,100 4,440,753 4,035,771 4,320,864 4,576,060 4,909,124 5,320,825 5,782,119 6,282,898 6,832,596 7,393,748
10TAL: Non-Recurring 1.,732,450 634,667 845686 774,165 855,076 942,189 1,038,331 1,144,444 1,261,584 1,390,908
GRAND TOTAL: ALL REVENUE $6,082,550 5,075,420 4,881,457 5,095029 5,431.,136 5,851,313 6,359056 6,926,563 7,544,482 8,273,504 7,393,248
i
APPENDIX B
' CURRENT CITY BOUNDARIES
EXPENDITURE PROJECTIONS
B-1
EXPENDITURE PROJECTIONS: CURRENT CITY BOUNDARIES
IN CONSTANT (1980) DOLLARS -
Base Year Projection Years
Expenditure Category 1980-81 1981-82 1982-83 1983-84 1984-85 1985-86 1986-87 1987-88 1988-89 1989-90 1990-9.1_
General Fund Annual, Recurring_
General Government:
City Council $ 9,290 9,290 9,290 9,290 9,290 9,290 9,290 9,290 9,290 9,290 9,2.90
City Manager 74,420 74,420 74,420 74,420 74,420 74,420 74,420 74,420 74,420 74,420 74,420
City Attorney 134,400 134,400 134,400 134,400 134,400 134,400 134,400 134,400 134,400 134,400 134,400
Public Works 108,720 110,460 112,227 114,023 115,847 117,700 119,584 121,497 123,441 12.5,416 125,416
Parks and Recreation 244,210 339,014 413,407 413,407 448,407 512,706 557,706 591,906 591,906 637,806 637,806
Environmental Services 151,930 151,930 151,930 151,930 151,930 151,930 151,930 151,930 151,930 151,930 151,930
Camnunity Services 63,290 63,723 64,076 64,430 64,784 65,138 65,492 65,845 66,199 66,553 66,553
Administrative Services 119,470 135,720 119,470 135,720 143,840 160,090 143,840 160,090 143,840 160,090 143,840
Non Departmental 544,760 470,056 518,802 533,130 557,150 579,168 615,363 622 004 641,216 653,075 _ 737,325
Subtotal: General Government 1,450 490 1,489,013 1,598,02.2. 1,630,750 1,700,068 1,804,842 1,872,025 1,931,382 1,936,642 2,012,980 2,080,980
Public Safety: -
Sheriff 837,120 847,995 860,584 873,376 886,372 899,575 912,990 926,620 940,468 954,537 954,537
Other 7,150 7,204 7,2.60 7,317 7,374 7,433 7,492 7,552 7,613 7,675 __ 7675
co Subtotal: Public Safety 844,270 855,199 867,844 880,693 893,746 907,008 920,482 934,172 948081 962212 962,2.12
N Regulatory, Inspection & Misc.: - -- ---"
Building and Safety 6,530 6,530 6,530 6,530 6,530 6,530 6,530 6,530 6,530 6,530 6,530
Engineering 22,030 22,030 22,030 22,030 22,030 22,030 22,030 22,030 22,030 22,030 22,030
Animal Services - 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500
District Attorney 800 800 800 800 800 800 800 800 800 800 800
Health 200 200 200 200 200 , 200 200 200 200 200 200
Subtotal: Regulatory 29,560 32,060 32,060 32,060 32,060 32,060 32,060 32,060 32,060 32,060 32 060
Transfers to Other Funds: - - -
Capital improvement/Acq. 500,000 - - - - -
Equipment Replacement 12,730 12,730 12,730 12,730 12,730 12,730 12,730 12,730 12,730 12,730 12,730
Highway and Transportation 15,000 - - - - - - - _ - -
Subtotal: Transfers 527730 183,776 59,705 75,256 13,229 12,730 12_,730 _ 12,730 _ 12,730 . 12,730 12,730
Encumbered Reserves (Prior Year) 96,360 - _ - - - - - _ -
TOTAL: GENERAL FUND $2,948,410 22389,002 2,510,656 2,556,233 L638 2,756,640 2,837,297 2,910,344. 2,92.9 513 32019,982 3 087,982
EXPENDITUJE PROJECTIONS: CURRENT CITY BOUNDARIES
IN CONSTANT (1980) DOLLARS
Base Year Projection Years
Expenditure Category 1980-81 1981-82 1982-83 1983-84 1984-85 1985-86 1986-87 1987-88 1988-89 19139-90 .1990191
Highway and Transportation Fund:
Engineering $ 15,500 15,500 15,500 15,500 15,500 15,500 15,500 15,500 15,500 15,500 15,500
Maintenance 563,030 1,030,333 1,030,333 1,030,333 1,030,333 842,441 814,353 787,603 787,603 787,603 787,603
Construction Projects 1,485,160 1,557,000 1,078,500 1,172,500 1,552,800 1,552,800 1,552,800 1,552,800 1,552,800 1,552,800 1,552,800
Encumbered Reserves (Prior Yr) 241,740 - - - - - _ - - - -
TOTAL: HIGHWAY & TRANS. FUND $$2305 430 2i 602,833 2,124,333 2,218,333 2598,633 2,410,741 2,382,653 2355,903 7355,903 ?.,355,903 2,355,903
Parks and Recreation Fund:
Capital Improvements $1,895,630 922,643 805,461 666,909 673,083 679,283 785,483 785,483 785,483 785,483 196,000
Capital Acquisitions 138,000 131,000 124,800 118,600 112,400 106,200 - - -Encumbered Reserve Reserve (Prior Yr) 987,950 - ; ` -__- _ _-_--. ________
TOTAL: PARKS & REC. FUND $3021,580 1,.053,643 930,261 785,509 785,483 785,483 785,483 785,483 785,483 785,183 19x,000
Capital Improvements & Acq. Fund:
Improvements $ 200,000 1,747,475 1,747,475 22,550 167,750 583,500 583,500 591,675 591,675 220,400 -
co Acquisitions - - - - - - - - - - -
r Encumbered Reserves (Prior Yr) 241,420 - -
-
Lo
TOTAL: CAPITAI. IMPROVE. FUND $_ 441,420 1,747,475 1,747 475 _ 22,550 167,750 583 500 583,500 591,675 591,675 __220,.400 =,,-,,,,,.
_-
Equipment Replacement Fund:
Replacements and Reserves $ 2,000 12,730 12,730 12 730 18730 12,730 12,730 12,730 1.2x730 _ 12,730 _12,730
TOTAL: EQUIP. REPLACE. FUND $ 2 000 12,730 12,730 12,730 _ 12,730 _ 12,730 _ 12,730 12,730 12,730 12,730 ---12,730
Revenue Sharing Fund:
Transfers to Other Funds $ 200 000 196:000 -196,000 196,000 196 000 196 000 196 ow 196,000 __196,000 _196,000 _ 196,000
TOTAL: REVENUE SHARING FUND $-200,000 196,000 196,000 1961,000 196 000 196,000 __196,000 196,000 _ 196L000 196,000 _-19(,000
Environmental Excise Tax Fund:
Transfers to Parks & Rec. Fund $_ 70000 178 723 178,751 178,749 178,723 178,723 -178,723 178,_ 723 -1.78,723 __178,723 ___ -
TOTAL: ENVIRONMENTAL FUND $- 70,000 178,723 178,751 _178,149 -178,723 178 723 178 723 178,723 -178,123 178,723
EXPENDITURE PROJECTIONS: CURRENT CITY BOUNDARIES
INCLUDING INFLATION ASSUMPTIONS
Base Year Projection Years
Expenditure Category 1980-81 1981-82 1982-83 1983-84 1984-85 1985-86 1986-87 1987-88 1988-89 1989-90 1990-91
General Fund Annual, Recurring_
General Government:
City Council $ 9,290 10,126 11,037 12,031 13,114 14,163 15,296 16,520 17,841 19,269 20,810
City Manager 74,420 81,118 88,418 96,376 105,050 113,454 122,530 132,333 142,919 154,353 166,701
City Attorney 134,400 146,496 159,681 174,052 189,717 204,894 221,285 238,988 258,107 278,756 301,056
Public Works 108,720 120,244 132,990 147,087 162,678 178,295 195,411 214,171 234,731 257,265 277,846
Parks and Recreation 244,210 369,525 503,050 535,374 632,962 781,625 918,251 1,052,518 1,136,720 1,322,858 1,428,687
Environmental Services 151,930 165,604 180,508 196,754 214,462 231,619 250,148 270,160 291,773 315,114 340,324
Cc*nnrnity Services 63,290 69,376 76,164 83,396 91,498 99.136 107,631 117,030 126,972 137,912 149,112
Administrative Services 119,470 147,935 141,94? 175,761 203,042 244,058 236,828 284,670 276,236 332,039 322,2072
Non Departmental 544,760 512,361 615,502 690,418 786,463 882,946 1,013,176 1,106:039 1,231,418 1,354,528 1,651,610
Subtotal: General Government 1,450,490 12622_,785 1,909,292 2111,249 2,398,986 2,750,190 3,080562 1,432 429 3,716,717 4„172,094 4658,348
Public Safety:
Sheriff 837,120 923,198 1,019,991 1,126,948 1,245,138 1,363,291 1,492,675 1,634,362 1,789,521 1,959,436 2,116,193
Other 7,150 7,850 8,615 9,457 10,382 11,294 12,288 13369 14,546 15,828 17,095
Do Subtotal: Public Safety 844,270 931,048 1,028,606 1,136,405 1,255,520 1,374,585 1,504,963 1,647,731 1,804,067 1.975_ 264 2,133,2.88
Regulatory, Inspection & Misc.:
•
Building and Safety 6,530 7,118 7,758 8,457 9,217 9,954 10,751 11,611 12,540 13,543 14,62.6
Engineering 22,030 24,013 26,174 28,529 31,097 33,585 36,272 39,173 42,307 45,692 49,347
Animal Services - 2,725 2,970 3,238 3,529 3,811 4,116 4,446 4,801 5,185 5,600
District Attorney 800 872 950 1,036 1,129 1,219 1,317 1,422 1,536 1,659 1,792
Health 200 218 238 259 282 305 329 355 384 _ 414 447
Subtotal: Regulatory 29,560 34,946 38,090 41,519 45,254 48,874 52,785 57007 61,568 66,493 _ 71,812
Transfers to Other Funds:
Capital Improvement/Acq. 500,000 - - - - - - - - - -
Equipment Replacement 12,730 13,876 15,125 16,486 17,969 19,407 20,959 22,636 24,447 26,402 2.8,515
Highway and Transportation 15,000 - - - -_ - - - - - -
Subtotal: Transfers 527 730 145,452 15,125 _ 16,486 _17,969 19,407 20,959 22,636 24,447 _ 26,402 _ 28515
Encumbered Reserves (Prior Year) _ 96,360 -
__ - _ - _ - - - - - __-
TOTAL: GENERAL FUND $2,948,410 2,602,655 2,991,113 3,305,659 3,717,729 4,193,056 4,659,269 5,159,803 5,606,799 6,240,253 6,891,963
EXPENDITURE PROJECTIONS: CURRENT CITY BOUNDARIES
INCLUDING INFLATION ASSUMPTIONS -
Base Year Projection Years
Expenditure Category 1980-81 1981-82 1982-83 1983-84 1984-85 1985-86 1986-87 1987-88 1988-89 1989-90 1990-91
Highway and Transportation Fund:
Engineering $ 15,500 16,895 18,416 20,073 21,880 23,630 25,521 2.7,563 29,768 32,149 34,721
Maintenance 563,030 1,117,996 1,218,615 1,328,291 1,447,837 1,279,414 1,336,416 1,397,304 1,513,051 1,629,815 1,760,201.
Construction Projects 1,485,160 1,697,130 1,281,366 1,518,422 2,191,904 2,367,250 2,556,637 2,761,168 2,982,061 3,220,626 3,478,276
Encumbered Reserves (Prior Yr) 241,740 - - - - - - - - - -
TOTAL: HIGHWAY & TRANS. FUND $2305,430 2,832,021 2,518,397 2 866,786 3,661,671 3,670,300 3918,574 4,186,035 4,524,880 4,882,590 5_,273,198
Parks arid Recreation Fund:
Capital Improvements $1,895,630 939,667 916,886 851,565 938,676 1,031,989 1,234,331 1,340,444 1,457,584 1,586,908 196,000
Capital Acquisitions 138,000 131,000 124,800 118,600 112,400 106,200 - - - - -
Encumbered Reserve (Prior Yr) 987,950 - - - - - - - - - -
TOTAL: PARKS & REC. FUND $3,021,580 1,070,667 1,041 686 970,165 1 051,076 11138,189 1,234,331 1,340,444 1,457,584 1,586,908 __196,000
Capital Improvements & Acq. Fund:
W Improvements $ 200,000 1,904,748 2,076,175 29,138 236,793 897,787 978,588 1,081,605 1,178,949 478,685 -
r Acquisitions - - - - - - - - - - -
(Ti Encumbered Reserves (Prior Yr) 241,420 - - - - - - - - - -
TOTAL: CAPITAL IMPROVE. FUND $ 441 420 1,904,748 2,076,175 29,138 236,793 897,787 978_,_5R8 1,081,605 1,178,949 _ 478,685
Equipment Replacement Fund:
Replacements and Reserves $ 2,000 13 876 15,125 16,486 17,969 19,407 20,959 22,636 _ 24,447 __ 26002 __28_015
TOTAL: EQUIP. REPLACE. FUND $____ 2,000 13,876 15,125 16,486 17,969 19,407 20,959 22_,636 24,447 26,402 2.8,515
Revenue Sharing Fund:
Transfers to Other Funds $_200 000 196,000 196,000 196,000 196,000 196,000 196000 _ 196,000 196,000 ___196,9_00 _196,,000
TOTAL: REVENUE SHARING FUND $ 200,000 196,000 196,000 196000 196L000 196,000 196,000 _ 196,000 _196,000 . 196,000 196,.000
Environmental Excise Tax Fund:
Transfers to Parks & Rec. Fund $ 70 000 178 723 1.94,837 212,398 231,514 250,035 __2.70,0.38 291,641 _314072 __340,.70 _____7___
TOIAL: ENVIRONMENTAL FUND $ _ _70,000 178,723 194,837 212,398 - 231,514 2.50,035 _270,038 _ _291,641 314,972 _340,170 __ - _
APPENDIX C
EASTVIEW AREA ANNEXATION
REVENUE FORECAST
C-1
REVENUE FORECAST: EASTVIEW AREA ANNEXATION
IN CONSTANT (1980) DOLLARS
Base Year Forecast Years
Revenue.Categoo 1980-81 1981-82 1982-83 1983-84 1984-85 1985-86 1986-87 1981-881988-89 1989-90 1290-91
General Fund-AnnualRRecurring:
Motor Vehicle In-Lieu Fees $258,771 258,771 258,771 258,771 2.58,771 2.58,771 2.58,771 258,771 258,771 2.58,771 138,090
interest 32,568 33,013 33,477 33,961 34,464 34,987 35,532 36,098 36,686 37,298 31,916
Sales and Us? Tax 274,024 283,615 293,541 303,815 314,449 325,455 336,845 348,635 360,837 373,467 386,538
Property Tax - - - - - - - - - - -
Franchise Taxes 63,755 63,755 63,755 63,755 63,755 63,755 63,755 63,755 63,755 63,755 34,022
Building and Safety Fees 26,088 26,088 26,088 26,088 26,088 26,088 26,088 26,088 26,088 26,088 26,088
Property Transfer Tax 222,615 22,615 22,615 22,615 22,615 22,615 22,615 22,615 22,615 22,615 22,615
Cigarette Tax 33,223 32,093 31,002 29,948 28,930 27,946 26,996 26,078 25,19? 24,335 23,508
Business License Tax 76,291 78,961 81,724 84,585 87,545 90,609 93,781 97,063 100,460 103,976 107,615
Fines, Forfeitures & Penalties 14,528 14,528 14,528 14,528 14,528 14,528 14,528 14,528 14,528 14,528 14,528
Financial Aid to Local Agencies 25,502 25,502 25,502 25,502 25,502 25,502 25,502 75,502 25,502 25,502 25,502
Other, Miscellaneous _19,409 19,109 19,409 19,409 19,409 19,409 19,409 19,409 _1,409 -_19,409 19,409
Subtotal: Recurring Gen Fund 846,774 858,150 870,412 882,977 896,056 909,665 923,822 938,542 953,843 969,744 829,831
Special Funds, Recurrinmc:
Highway & Transportation Fund:
N) Highway Users Taxes 99,501 110,758 110,758 110,758 110,758 110,758 110,758 110,758 110,758 110,758 59,105
County Aid 7,819 7,819 7,819 7,819 7,819 7,819 7,819 7,819 7,819 7,819 7,819
Interest 11,805 13 043 13,043 13,043 13,043 - 13,043 13,043 13,043 13,043 13,043 736?
Subtotal: Highway & Trans. 119,125 131,620 131,620 131,620 131,620 131,620 131 620 131,620 - 131,620 131,67.0 74,286
Federal Revenue Sharing Fund:
Federal Revenue Sharing Grant - -_ - _ - _ - - - - _
Subtotal: Fed. Rev. Sharing _ 7 - _ --_--_ - _ - - - --
Special .Funds-Non-Recurring:
Environmental Excise Tax Fund:
Environmental Excise Tax - - - - - - - - _ - _
Subtotal: Environ. Tax Fund ,-- - - - --__- -__ _-- -----_ __ ---_ ---
Parks and Recreation Fund: - - - ----- -------- -- -
Quimby Act Revenue - - - - _ _ - - _ -
Grants -- -- - - - - _- ---- --- -- --_-
Subtotal: Parks & Rec. Fund --- - - - - --- _--_ -- ----_--
-
TOTAL: Annual Recurring 965,899 989,970 1,002,032 1,014,597 1,027,676 1,041,285 1,055,442 1,070,162 1,085,463 1,101,364 904,117
IOTAI.: Non-Recurring - - - - - - - - _ -GRAND TOTAL:TOTAL: AL..L REVENUE $965,899 989,970 1,002,032 1,014,597 1,027,676 1,041,285 1,055,442 1,070,162 1L085,463 1,101,364 904,.117
REVENUE FORECAST: EASTVIEW AREA ANNEXATION
INCLUDING INFLATION ASSUMPTIONS
Base Year Forecast Years
Revenue Category 1980-81 1981-82 1982-83 1983-84 1984-85 1985-86 1986-87 1987-88 1988-89 19.99-90 1990-91
General Fund Annual, Recurring_
Motor Vehicle In-Lieu Fees $258,771 282,023 307,400 335,027 365,154 394,407 425,909 460,037 496,790 536,543 309,201
Interest 32,568 35,787 39,367 43,349 47,771 52,294 57,280 62,789 68,867 75,565 71,115
Sales and Use Tax 274,024 308,277 346,812 390,163 438,933 489,411 545,693 608,448 678,419 756,437 843,428
s s s - s ,
Property Tax - - - - -
Franchise Taxes 63,755 69,506 75,756 82,632 90,007 97,258 105,008 113,384 122,510 132,261 142,886
Building and Safety Fees 26,088 28,436 30,995 33,785 36,825 39,771 42,953 46,389 50,100 54,108 58,437
Property Transfer Tax 2.2,615 25,083 27,818 30,887 34,289 38,091 42,294 46,964 52,101 57,838 64,175
Cigarette Tax 33,22.3 32,093 31,002 29,948 28,930 27,946 26,996 26,078 25,192 24,335 23,508
Business License Tax 76,291 85,827 96,556 108,625 12.2,203 137,479 154,664 173,997 195,746 220,215 247,741
Fines, Forfeitures and Penalties 14,528 14,528 14,528 14,52.8 14,528 14,528 14,528 14,528 14,528 14,528 14,528
Financial Aid to Local Agencies 25,502 27,752 30,252 33,003 36,003 38,878 42,003 45,379 49,004 52,879 30,486
Other, Miscellaneous 19,409 21,155 23,060 - 25,135 27,397 2.9,589 31,956 34,513 37,274 40,256 43,476
Subtotal: Recurring Gen. Fund 846 774 930,467 1,023,546 1,127,082 1,242,040 1,359,652 1,489,284 1 632,506 1 790 531 1„964_,695 1 84E5_981
Special Funds„ilecurring:
c-) Highway and Transportation Fund:
w Highway Users Taxes 99,501 110,758 110,758 110,758 110,758 110,758 110,758 110,758 110,758 110,758 59,105
County Aid 7,819 7,819 7,819 7,819 7,819 7,819 7,819 7,819 7,819 7,819 7,819
Interest 11,805 13,043 13,043 13,043 13,043 13,043 13,043 1 6043 13,043 - 13,043 7,362
Subtotal: Highway & Trans. 119,12.5 131,620 131,620 131,620 131,62.0 131,620 131,620 -131,620 1_31,62.0 -131,620 74286_
Federal Revenue Sharing Fund:
Federal Revenue Sharing Grant - - - - - - _ - - - -
Subtotal: Fed. Rev. Sharing - --_ - -
Special_FunrJs,_ Non_Recurring: - -- ---_-- ------- ------_---
Environmental Excise Tax Fund:
Environmental Excise Tax - -_- -
_-__- _ - - - - - -
Subtotal: Environ. Tax Fund - - - - - - -- ---- - -- -- - - - -
Parks and Recreation Fund: ---- - - - -- - - -- - ---- ---------
Quimby Act Revenue - _ - - - - _
--- - - - --- - - - -
Grants - - - - _- - -- ---
Subtotal: Parks & Rec. Fund - - _ -._.-..- ----.-_-.--
TOTAL: Annual Recurring 965,899 1,062,087 1,155,166 1,258,702 1,373,660 1,491,272 1,620,904 1,764,126 1,922,151 2,096,315 1,923,267
TOTAL: Non-Recurring - - _ - - - - - _
GRAND TOTAL: Al.t. REVENUE 1;965,899 1,062,087 1,155 l66 1,2.58,702 1,373,660 1,191,272 1,620,904 1,764,126 1,_922 151 2.,096,315 1,923,267
APPENDIX D
EASTVIEW AREA ANNEXATION
EXPENDITURE PROJECTION
D-1
EXPENDITURE PROJECTIONS: EASTVIEW AREA ANNEXATION
IN CONSTANT (1980) DOLLARS
Base Year Projection Years .
E p enditure Catelgmx 1980-81 1981-82 1982-83 1983-84 1984-85 1985-86 1986-87 1987-88 1988-89 1989190 1990-91
General fund Annual,_Recurring:
General Government:
City Council $ - . - - - - - - - - - -
City Manager - - - - - - - - - - -
City Attorney 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000
Public Works 10,400 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,01)1)
Parks and Recreation 15,754 13,394 13,394 13,394 13,394 13,394 13,394 13,394 13,394 13,394 13,394
Environment Services 26,180 40,180 26,180 26,180 26,180 26,180 26,180 26,180 26,180 76,180 26,180
Community Services 3,797 3,797 3,797 3,797 3,797 3,797 3,797 3,797 3,797 3,791 3,797
Administrative Services 27,800 30,000 22,800 30,000 22,800 30,000 22,800 30,000 22,800 30,000 72,000
Non Departmental 70,819 70,819 70L819 70,819 70,819 70L819 70,819 70,819 70,819 _.70,819 _70,819
Subtotal: General Government 159- 750 176 190 15 90 162 190 154,990 162„_190 154 990 162,190 154,990 167,1!10 154,990
Public Safety: --- - - - -- - --- - - -- --
Sher•iff 377,115 377,115 377,115 377,115 377,115 377,115 377,115 377,115 377,115 377,115 377,115
Other _2L500 2,500 __ 2,500 -2,500 2,500 _2500 __2 900 __2,500 -2,500 _2,500 _2,500
Subtotal: Public Safety 379615 379,615 379,615 379,615 379,615 379615 379,615 379,615 379,615 37.9,615 379,615
1 Regulatory, Inspection R Misc.:
ea Building and Safety 1,175 1,175 1,175 1,175 1,175 1,175 1,175 1,175 1,175 1,175 1.,115
Engineering 3,965 3,965 3,965 3,965 3,965 3,965 3,965 3,965 3,965 3,965 3,965
Animal Services 450 450 450 450 450 450 450 450 450 450 450
District Attorney 144 144 144 144 144 144 144 144 144 144 144
Health 36 36 36 36 36 36 361 _ _
36 36 _____.36 36
Subtotal: Regulatory _ 5,770 _ 5,770 51770 _5,770 5,770 _5,770 5 770 __5,770 _5,770 5,1/0 5,770
Transfers to Other Funds:
Equipment. Replacement 2,291 2,2.91 2,291 2,291 2,291 2,291 2,291 7,291 2,291 2,791 7,791
Highway and Transportation - 16,840 16010 16,840 _16,840 16,840 _-16840 16,840 16,840 16,840 _16,840
Subtotal: Transfers - 2,291 19,131 19,131 19,131 19,131 19,131 _ 19131 _19,131 _1.9,131 _19,111 1.9,131_
Encumbered Reserves (Prior Yr) •
TOTAL: GENERAL- 611110 $547,426 580,706 559,506 566,706 559,506 5661706 559506 566,706 559,506 566,106 559,506
Less: Transfers 2.,291 19,131 19,131 19,131 19,131 19,131 19,131 19,131 19,131 19,131 19,131
NET GENERAL FUND $545,135 561,575 540,375 547,575 540,375 547,575 540,375 54:7_,575 540075 54715.75 540,315
EXPENDITURE PROJECTIONS: EASTVIEW AREA ANNEXATION
IN CONSTANT (1980) DOLLARS
Base Year Projection Years --------_______.______--_._.__
Exfenditure Categor,Y 1980-81 1981-82 1982-83 1983-84 1984-85 1985-86 1986-87 1987-88 1988-89 1989-90 199091
Highway and Transportation Fund: _"-- ---- ----- ----_..__ _-.._ _
Engineering $ 1,600 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300
Maintenance 84,860 123,160 123,160 123,160 123,160 123,160 123,160 123,160 12.3,160 123,160 173,160
Maint./Construction Projects 26,400 24,000 24,000 24,000 24,000 24,000 24,000 24,000 24,000 74,000 24,000
Encumbered Reserves (Prior Yr) -_, _ - _ - _ _ -
TOTAL: HIGHWAY & TRANS. FUND $112,860 148,460 1481160 148,460 148,460 148,460 148,460 148,60 148,460 148,460 148,460
Parks and Recreation Fund:
Capital Improvements $ _ _ _ _ _
Capital Acquisitions - - - - - - - - - - -
Encumbered Reserves (Prior Yr) __- __ - - _ _ _ _ _ _
TOTAL: PARKS & REC. FUND $ - - - - - - - - - - - -
Capital Improvements & Acq. Fund: ---- --- - --------- -------
Improvements $ _ _ _ _ _ _ _ _
Acquisitions - - - _- -
Iv Encumbered Reserves (Prior Yr) - - - - - - - - -
co
TOTAL: CAPITAL IMP. FUND $ - - - - - _ - - - -------- --------
Equipment Replacement Fund: ,---- -
Replacements and Reserves $- 2 291 2,291 2291 2,291 2,291 2 291 ___?,291 2 29 2,291 ___?,,291 2,291
TOTAL: EQUIP. REPLACE. FUND $__ 7,291 =2,291 2,291 2,291 2,291 2,291 2,291 2,291 2,791 7. 791 -2791.
Revenue Sharing Fund:
Transfers to Other Funds $ - - _ -_ - _ - - _ -
-
TOTAL: REVENUE SNARING FUND $ - - - _ - - _ - - - -
Environmental Excise Tax Fund:
Transfers to Parks & Rec. Fund $ - - - _ _ - - - -
TOTAL: ENVIRONMENTAL FUND $ - - - _ _ - _ - - -
GRAND TOTAL: ALL FUNDS $660,286 712,326 691 126 698,326 691,126 698,32.6 691,126 698,326 691 126 6198,376, 691,126
EXPENDITURE PROJECTIONS: EASTVIEW AREA ANNEXATION
INCLUDING INFLATION ASSUMPTIONS
Base Year Projection Years
Expenditure Category 1980-81 1981-82 1982-83 1983-84 1984-85 1985-86 1986-87 1987-88 1988-89 1989-90 1990-91
General Fund Annua lRecurring
General Government
City Council $ - - - - - - - - - - -
City Manager - - _ - - - - _ - _ -
City Attorney 10,000 10,900 11,881 12,950 14,116 15,245 16,465 17,782 19,205 20,741 22,400
Public Works 10,400 8,000 8,720 9,505 10,360 11,293 12,196 13,172 14,226 15,364 16,593
Parks and Recreation 15,754 14,599 15,913 17,346 18,907 20,420 22,503 23,817 25,723 27,181 30,003
Environmental Services 26,180 40,180 28,536 31,104 33,904 36,616 39,546 42,709 46,126 49,816 51,801
Cnnnunity Services 3,797 3,823 3,845 3,866 3,887 3,908 3,930 3,951 . 3,972 3,993 3,993
Administrative Services 22,800 30,000 24,852 35,643 29,527 41,959 34,440 48,941 40,171 57.084 46,855
Non Departmental 70,819 77,192 84 140 _91,712 99,967 107,964 116 601 125_929 136,003 146,884 158,634
Subtotal: General Government 159750 184,694 177,887 202126 210,668 237405 245,681 276 301 285,426 321,663 332,279
Public Safety:
- - - - _ _--
Sheriff 377,115 411,055 448,051 488,375 532,329 574,915 620,909 670,581 724,228 787,166 844,739
Other 22,500 2,725 _ 2,970 3 23 3,529 3,811 4,116 4 446 4 801 5,185 _ 5,600
Subtotal: Public Safety 379,615 413,780 451,021 491,613 535L858 578,126 625,_02_5 675,027 _ 729 029 787,351 _8.50,339
c:/ Regulatory, Inspection & Misc.:
.A Building and Safety 1,175 1,280 1,396 1,522 1,659 1,792 1,935 ?,090 2,257 2,438 2,633
Engineering 3,965 4,322 4,711 5,135 5,597 6,045 6,523 7,051 7,615 8,224 8,882
Animal Services 450 491 535 583 635 686 741 800 864 933 1,008
District. Attorney 144 157 171 186 2.03 219 237 256 276 298 377
health 36 39 43 47 51 55 59 64 69 _ 75 81
Subtotal: Regulatory 5,770 6,289 6856 7,473 8,145 8,797 -9 495 _10,261 __ 11,081 _ 11,968 __-_12,976
Transfers to Other Funds:
Equipment Replacement 2,291 2,497 2,722 2,967 3,234 3,493 3,772 4,074 4,400 4,757 5,137
highway and Transportation - _ 16,840 30,201 _44,765 60,640 75,917 92,520 110,451 _129,816 _ 150,731 11.3,319
Subtotal: Transfers _1,291 19,337 37. 923 47732 63874 79,410 96,292_ 11_4,525 _ 134 216 155,48.3 178,451
Encmnbered Reserves (Prior Yr) -
TOTAL: GENERAL FUND $547,426 624,100 668,687 748,944 818,545 901,338 976,193 1,076,114 1,159,752 1,776,165 1,373,995
Less: Transfers 2,291 19,337 -32,923 47,732 63,874 79,410 96,7922 114,525 134,216 155,183 178,451
NEI GENERAL FUND $545035 604,763 635,764 701,217. 754,671 824,928 880,201 961,589 1,025,536 1,170,982 1195544
EXPENDITURE PROJECTIONS: EASTVIEW AREA ANNEXATION
INCLUDING INFLATION ASSUMPTIONS
Base Year - Projection Years __________________________
Expenditure Cate9 1 1980-81 1981-82 1982-83 1983-84 1984-85 1985-86 1986-87 1987-88 1988-89 1989-90 1990-91
Highway and Transportation Fund:
Engineering $ 1,600 1,300 1,417 1,545 1,684 1,819 1,964 2,121 2,291 2,474 2,672
Maintenance 84,860 123,160 134,244 146,326 159,495 171,840 185,249 199,700 215,272 232,055 250,142
Maint./Construction Projects 26,400 24,000 26,160 28,514 31,081 33,878 36,927 40,250 43,873 47,822 52,125
Encinnbered Reserves (Prior Yr) - - - - - _ _ _ _ - _
TOTAL: IIIlIIWAY & TRANS. FUND $112,860 148,460 161 821 176,385 192,260 207,537 224,140 242_,071 2.61,436 _282,351 _304 9__39
Parks and Recreation Fund:
Capital Improvements $ - - - - _ _
- - - -
• Capital Acquisitions - - - - - - - - - - -
Encumbered Reserves (Prior Yr) - - - - - - - - - - -
TOTAL: PARKS & REC. FUND E - - - - - - - - - _ -
Capital Improvements & Acq. Fund:
Improvements $ - - - - _ _ _ _ _ _ _
Acquisitions - - - - - - - - - -
o Encumbered Reserves (Prior Yr) - - - - - - - - - _ -
tn -- - - -- - --_____
TOTAL: CAPITAL IMP. FIIND $ - - - •. - - - - - - - -
Equipment Replacement Fund:
Replacements and Reserves $ 2,291 2L497 2,722 2,967 3,234 3,493 3.772 4:074 4,400 __ 4,752 _ 5L132_
TOTAL: EQUIP. REPLACE FUND 1 2,291 ?_,497 ?.,722 2,967 3,234 3,493 3,772 4,074 4,400 4,752 5,132
Revenue Sharing Fund:
Transfers to Other Funds $ - - - - - - - - - _ -
TOTAL: REVENUE SHARING FUND E - - - - - - - - -
-
Environmental Excise Tax Fund:
Transfers to Parks & Rec. Fund E - - - - - - - - - - -
TOTAL: ENVIRONMENTAL FUND $ - - - - - - - - - - _
GRAND TOTAL: ALL FUNDS $660x286 755,720 800,307 880,564 950,165 1,035,958 1,108,113 1,207,734 .11291,372 1,408,085 1,505,615
APPENDIX E
FULL-TIME EMPLOYEE PROJECTION
E-1
R
FULL-TIME EMPLOYEE PROJECTION
(Current City Boundaries)
Department Base Year Projection Years
— -� T980-8T 1981-82 —X902-83 1983-84 1984-85 X985-86 1i -87 1987-88 1988-89 7989-94---T99T-9i
City Council 0 0 0 0 0 0 0 0 0 0 0
City Manager 3 3 3 3 3 3 3 3 3 3 3
City Attorney* 0 0 0 0 0 0 0 0 0 0 0
Public Works* 0 0 0 0 0 0 0 0 0 0 0
Parks and Recreation 5 6 6 6 6 6 7 7 7 7 7
Environmental Services 7 7 7 7 7 7 7 7 7 7 7
Community Services 3 3 3 3 3 3 3 3 3 3 3
rn Administrative Services 5 5 5 5 7 7 7 7 7 7 7
1
N Public Safety* 0 0 0 0 0 0 0 0 0 0 0
Regulation & Inspection* 0 0 0 0 0 0 0 0 0 0 0
TOTAL 23 24 24 24 26 26 27 27 27 27 27
* Are contract services