City Council

LODI CITY COUNCIL AGENDA Carnegie Forum Shirtsleeve Session 305 West Pine Street, Lodi Date: May 4, 2021 Time: 7:00 a.m. Streaming Link: https://www.facebook.com/CityofLodi/ https://zoom.us/j/93455719476?pwd=NDdhc1E4OEZyYWV3d2pD Y1U5SjVZZz09 SPECIAL NOTICE Effective immediately and while social distancing measures are imposed, Council chambers will be closed to the public during meetings of the Lodi City Council. The following alternatives are available to members of the public to watch Council meetings and provide comments on agenda and non-agenda items before and during the meetings. Viewing: Members of the public may view and listen to the open session of the meeting at https://www.facebook.com/CityofLodi/; or Please click the link below to join the meeting: https://zoom.us/j/93455719476?pwd=NDdhc1E4OEZyYWV3d2pDY1U5SjVZZz09 Passcode: 583605 Or iPhone one-tap : US: +16699009128,,97500264844# Or Telephone: Dial: US +1 669 900 9128 Webinar ID: 934 5571 9476 Public Comment: Members of the public can send written comments to the City Council prior to the meeting by emailing councilcomments@lodi.gov. These emails will be provided to the members of the City Council and will become part of the official record of the meeting. Members of the public who wish to verbally address the City Council during the meeting should email those comments to councilcomments@lodi.gov. Comments must be received before the Mayor or Chair announces that the time for public comment is closed. The Assistant City Clerk will read three minutes of each email into the public record. IMPORTANT: Identify the Agenda Item Number or Oral Communications in the subject line of your email. Example: Public Comment for Agenda Item Number C-17. Members of the public may also participate via Zoom at the following link: https://zoom.us/j/93455719476?pwd=NDdhc1E4OEZyYWV3d2pDY1U5SjVZZz09 Pursuant to the Americans with Disabilities Act (ADA) and Executive Order N-29-20, if you need special assistance to provide public comment in this meeting, please contact the Office of the City Clerk at (209) 333-6702 or cityclerk@lodi.gov at least 48 hours prior to the meeting in order for the City to make reasonable alternative arrangements for you to communicate your comments. If you need special assistance in this meeting for purposes other than providing public comment, please contact the Office of the City Clerk at (209) 333-6702 or cityclerk@lodi.gov at least 48 hours prior to the meeting to enable the City to make reasonable arrangements to ensure accessibility to this meeting (28 CFR 35.160 (b) (1)). SPECIAL TELECONFERENCE NOTICE Pursuant to Executive Order N-29-20: The Brown Act, Government Code Section 54953, contains special requirements that apply when members of a legislative body participate in a public meeting by telephone. Certain of these requirements have been suspended by Paragraph 3 of Executive Order N-29-20, executed by the Governor of California on March 17, 2020, to mitigate the spread of Coronavirus (COVID-19). In particular, the Executive Order suspends that provision of the Brown Act that requires noticing, posting of agendas, and public access to each location where a member will be participating telephonically, as well as provisions that require physical presence of members of the legislative body or the public for purposes of a quorum or to hold a meeting. Executive Order N-29-20 allows an agency to conduct a teleconference meeting that provides members of the public telephonic or other electronic participation in place of making a physical location for the public to observe the meeting and provide public comment, consistent with other provisions of the Brown Act. \\cvcfilv01\administration$\Administration\CLERK\Agenda\COUNCIL\2021\05-04-21agnSS.docx 4/28/2021 2:21 PM  CITY COUNCIL SHIRTSLEEVE AGENDA MAY4, 2021 PAGE TWO For information regarding this Agenda please contact: Jennifer Cusmir City Clerk Telephone: (209) 333-6702 Informal Informational Meeting A. Roll Call by City Clerk B. Topic(s) B-1 Receive Presentation Regarding Fiscal Year 2021/22 General Fund and Measure L Budget and Five-Year General Fund and Measure L Forecast (FIN) C. Comments by Public on Non-Agenda Items D. Adjournment Pursuant to Section 54954.2(a) of the Government Code of the State of California, this agenda was posted at least 72 hours in advance of the scheduled meeting at a public place freely accessible to the public 24 hours a day. ______________________________ Jennifer Cusmir City Clerk All staff reports or other written documentation relating to each item of business referred to on the agenda are on file in the Office of the City Clerk, located at 221 W. Pine Street, Lodi, and are available for public inspection. If requested, the agenda shall be made available in appropriate alternative formats to persons with a disability, as required by Section 202 of the Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12132), and the federal rules and regulations adopted in implementation thereof. To make a request for disability-related modification or accommodation contact the City Clerk’s Office as soon as possible and at least 72 hours prior to the meeting date. Language interpreter requests must be received at least 72 hours in advance of the meeting to help ensure availability. Contact Jennifer Cusmir at (209) 333-6702. Solicitudes de interpretación de idiomas deben ser recibidas por lo menos con 72 horas de anticipación a la reunión para ayudar a asegurar la disponibilidad. Llame a Jennifer Cusmir (209) 333-6702.  AGENDA ITEM B-01 CITY OF LODI COUNCIL COMMUNICATION TM AGENDA TITLE: Receive Presentation Regarding Fiscal Year 2021/22 General Fund and Measure L Budget and Five-Year General Fund and Measure L Forecast MEETING DATE: May 4, 2021 PREPARED BY: Deputy City Manager RECOMMENDED ACTION: Receive presentation regarding Fiscal Year 2021/22 General Fund and Measure L budget and the five-year General Fund and Measure L forecast. BACKGROUND INFORMATION: Staff has planned a series of presentations to provide the City Council and public an opportunity to review and comment on basic assumptions within the FY 2021/22 budget to be proposed to Council later this month. The draft budget will be released and made available for public review online once the draft is finalized. This session is designed to provide information on the general economic conditions facing City staff and Council in allocating resources to most effectively deliver services, with particular focus on the General Fund and Measure L. Included in the presentation will be a discussion of Fiscal Year 2021/22 General Fund and Measure L expenditures and the General Fund and Measure L five-year forecast. The forecast is a critical planning tool for staff and Council to use to anticipate future resource or service level adjustments. The forecast presented will include a baseline scenario that keeps normal operations with no change in service levels. Future Council presentations will focus on other aspects of the City budget beyond the General Fund and Measure L. The first opportunity for the City Council to adopt the Fiscal Year 2021/22 budget will be at its regular meeting on June 2, 2021. FISCAL IMPACT: There is no impact from this informational presentation. FUNDING AVAILABLE: The draft General Fund and Measure L budgets for Fiscal Year 2021/22 is projected at $67,074,130 for both revenues and expenditures. _______________________________ Andrew Keys Deputy City Manager APPROVED: __________________________________ Stephen Schwabauer, City Manager Fiscal Year 2021/22 Budget General Fund Presented by Andrew Keys, Deputy City Manager  Overview • General Fund Assumptions/Revenues/Expenses Key Inputs Five Year Forecast 2  General Fund Assumptions • Revenue recovery from Covid-19 impacts • Sales Tax estimates 9.1% more than mid-year • Business License Tax 55.7% more than mid-year • Transient Occupancy Tax 32.2% more than mid-year • Expenditures restored for full service delivery • Net increase of 6 positions • Restoration of PARS contribution as required in fiscal policies  General Fund Revenues $67,074,130 Budget FY Revenue 2021/22 Tax Revenues $ 48,649,540 Revenue from Others $ 7,095,320 Operating Transfers In $ 6,478,410 Investments & Property Revenue $ 1,777,140 Charges for Services $ 1,716,540 Fines & Forfeitures $ 843,100 Other Revenue $ 450,580 Licenses & Permits $ 63,500 Total $ 67,074,130  General Fund Expenditures $67,074,130 Budget FY General Fund Expenses by Department 2021/22 Police $ 27,157,950 Fire $ 16,392,350 Non-Departmental $ 11,695,720 Internal Services $ 4,943,050 Public Works $ 3,175,320 City Manager $ 810,290 City Attorney $ 706,690 City Clerk $ 704,500 Economic Development $ 528,490 Library (from Measure L) $ 217,400 Parks, Rec & Cultural Srvs (from Measure L) $ 742,370 Total $ 67,074,130  General Fund Key Inputs • Net increase of 6 full-time positions Job Title Department +/- Legal Secretary City Attorney +1 Management Analyst Internal Services +1 Sr. Customer Service Rep Internal Services +1 Utility Billing Specialist Internal Services -1 Network Administrator Internal Services +1 Code Enforcement Officer Police +1 Police Records Clerk Police +1 Asst/Assoc Civil Engineer Public Works +1 Customer Service Rep IS - Revenue +1 Net Increase +6 • Restored transfer for Capital Outlay projects - $435,000  General Fund Key Inputs • Increased base operational support to Library and Parks, Recreation and Cultural Services • Library: $113,920 funded by Measure L • PRCS: $342,370 funded by Measure L • Restored transfer to Parks Capital Fund • $400,000 funded by Measure L • Restored transfers to Police and Fire Vehicle Replacement Fund • Police: $476,000 • Fire: $750,000  General Fund Key Inputs • Restored Police and Fire Transfer to Equipment Replacement • Police: $291,000 • Fire: $93,000 • Restored transfer to Information Systems Replacement Fund • New Network Refresh Replacement Program: $388,000 • New Staff Desktop Replacement Program: $94,530  Measure L • Revenues: $7,757,500 • Expenditures: $7,757,500 FY 2020/21 FY 2021/22 Measure L Funded Positions Budget Budget Cost: Police Officers* 20 20 $2,940,130 Firefighters 8 8 $1,062,270 Librarian 1 1 $97,820 Street Maintenance Wrk III 0.2 0.2 $3,070 Total Full-Time 29.2 29.2 $4,103,290 Public Safety Overtime $2,043,210 Part-Time Community Service Officers (2) $72,150 Supplies, Materials, Training $682,560 Library Operations $113,920 Parks, Recreation & Cultural Srvs Operations $342,370 Parks Capital $400,000 Measure L Total $7,757,500 * In FY 2020/21 adopted budget, 6 Police Officer Positions were unfunded due to Covid-19 uncertainties; 2 positions were in Measure L. Funding for those positions was restored FY 2020/21 mid-year adoption Vehicle Replacement Fund IT Network Infrastructure Replacement Fund  5 Year Forecast - Assumptions • FY 2021 budget as recommended is projected forward • Includes substantial catchup contributions to PRCS capital, network infrastructure, and new positions • Labor contracts expire at the end of FY 2021/22 or during FY 2022/23 • No assumptions for future contracts are included • Assumes 100% full employment (no vaccancies) 5 Year Forecast - Assumptions Revenue Category FY 21/22 B FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 Property Taxes - Secured 7.3% 3.7% 3.7% 3.7% 3.7% 3.7% Sales & Use Taxes 7.7% 3.5% 3.5% 3.5% 3.5% 3.5% Transient Occupancy Tax 32.2% 15.0% 10.0% 5.0% 5.0% 5.0% Business License Tax 55.7% 10.0% 10.0% 3.5% 3.5% 3.5% Other Taxes 19.8% 3.0% 3.0% 3.0% 3.0% 3.0% EU Pilot 0.8% 0.5% 0.5% 0.5% 0.5% 0.5% Property Tax in Lieu VLF 10.0% 3.7% 3.7% 3.7% 3.7% 3.7% Transfers In 3.5% 1.2% 1.2% 1.2% 1.2% 1.2% Property Taxes - CFD 29.4% 10% 10% 10% 10% 10% Measure L 11.7% 2.0% 2.0% 2.0% 2.0% 2.0% Other Revenues [1] -53.1% 2.0% 2.0% 2.0% 2.0% 2.0% Expense Category FY 21/22 B FY 22/23 FY 23/24 FY 24/25 Salaries [2] 11.4% 3.0% 2.0% 2.0% 2.0% 2.0% PERS Normal Cost -0.2% 2.0% 2.0% 2.0% 2.0% 2.0% PERS UAL 3.9% 7.5% 7.5% 5.0% 5.0% 5.0% Other Benefits 9.1% 2.5% 2.5% 2.5% 2.5% 2.5% Operations [1] -20.9% 2.0% 2.0% 2.0% 2.0% 2.0% Debt [3] -8.7% -0.4% 0.0% -0.2% 0.1% -9.5% Transfers [4] 47.2% 0.5% 0.5% 0.5% 0.5% 0.5% [1] These line items include the FEMA reimbursements and costs, including the Great Plates Delivered program. [2] Includes all positions added in the FY 21/22 budget remain funded. [3] Does not factor in refunding opportunity for Fiscal year 2021/22. [4] Measure L includes a large transfer to the PRCS fund for capital as opposed to directly paying for the expenses. New IT Network replacement fund increases transfers. 5 Year Forecast - Revenue 5 Year Forecast - Expenses 5 Year Forecast – Fund Balance  5 Year Forecast – Risks/Opportunities Risks • COVID • Is there a lingering impact to residents behavior? • Will it come back this summer/fall? • Labor Negotiations • CalPERS UAL or other assumptions changes • Pace of Development • Additional service needs/demands from the public Opportunities • Economic recovery • Revenue enhancement • Debt refinancing 16 Questions? 18