HomeMy WebLinkAboutLafco budgetMoghannam, Kathleen
From: Broderson, Jill
Sent: Friday, March 29, 2013 10:09 AM
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Kathleen (Moghannam}; Wheeler, Aprii; cquigley@loapud.com
Cc: Lucas, Steve; Betts, Steve; Stover, Joy; Broderson, Jill
Subject: Butte LAFCO Proposed Budget for FY 2013114
Attachments: Notice of Public Mearing for Member Agencies {4~-2013}.pdf; Butke LAFCO Agenda
(4-4-2013).pdf; Butte LAFCO Proposed Budget for FY 2013-14 (Agenda Item No. 3.1).pdf
Pursuant to California Government Code X56381, Butte tAFCO will hold a public hearing at its regularly scheduled
meeting on Thursday, April 4, 201.3 in order to consider the Proposed Budget for FY 2013/14 {Agenda Item 3.1}, as
recommended by the LAFCO Budget Committee. Should you have any questions or comments, please feel free to
contact either Stephen Lucas, Executive Officer or myself by dialing 538-7784.
Jill Broderson
Management Analyst
Butte Local Agency Formation Commission
9453 Downer Street, Suite C
Oroville, CA 95965
m (530) 538-3825 ^- 8 (530} 538-2847
® jbraderson@buttecounty.net ~ www.buttelafco.orp
edema
MAR 2 9 2013
OCt0Y1Ll.E, CJ11.11:OR~A
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BUTTE LOCAL AGENCY FORMATION COMMISSION
NOTICE OF' PUBLIC HEARING
Notice is hereby given by the Local Agency Formation Commission that a public hearing will be
held on April 4, 2013 at 9:00 a.m. in the Butte County Board of Supervisors Room, 25 County
Center Drive, Oroville, California, regarding the following:
ITEM TO BE CONSIDERED PURSUANT TO THE PROVISIONS
OF GOVERNMENT CODE SECTION 56381, et. seq.
The Local Agency Formation Commission will review the Proposed Budget for FY 2413-2014 as
forwarded by the Budget Commission with a recommendation to approve said budget.
The above-mentioned proposed budget is on file and available for public viewing at the office of
the Local Agency Formation Commission, 1453 Downer Street, Suite C, Oroville, California, or
information can be obtained by calling (530) 538-7784, Monday through Friday between 8:00
a.m. and 4:00 p.m.
BUTTE LOCAL AGENCY FORMATION COMMISSION
BUTTE LOCAL AGENCY FORMATION COMMISSION
1453 DOWNER STREET, SUITE C, OROVILLE, CALIFORNIA 95965
TELEPHONE {530) 538-7784 FAX (530} 538-2847
REGULAR MEETING NOTICE OF THE COMMISSION
Location: Bute County Board of Supervisors Chambers,
25 County Center Drive, Oroville, California
DatelTime: Thursday, April 4, 2013 - 9:00 a.m.
AGENDA
ALL ITEMS ARE OPEN FOR PUBLIC COMMENT
1. CALL TO ORDER
1.1 Roll Calf
1.2 Employment Agreement for Executive Officer
The Commission conducted a personnel evaluation of the Executive Officer and
has approved a three year extension of the employment contract, which at the request of
the employee, does not increase compensation, waives an annual cost of living
adjustment, and acknowledges a continuation of a 10% voluntary furlough. ACTION
REQUE5TED: Approve extension of employment agreement and authorize Chair to sign.
2. CONSENT AGENDA
2.1 Approval ofi the Minutes of March 7, 2013.
3. NOTICED PUBLIC HEARINGS --
3.1 Review and Consideration of Proposed Budget far FY 2013114
The Budget Committee will present its recommendations and the Proposed
Budget for FY 2013114. ACTION REQUESTED: 1} Receive comments from the public
and affected agencies; 2) Provide direction to staff of any recommended changes to the
Proposed Budget; 3} Adopt the Proposed Budget and transmit to affected agencies; and
4} Continue item to the May 2, 2013 meeting for final adoption.
4. REGULAR AGENDA
4.1 Items Removed from the Consent Agenda (!f any)
4.2 13-10 -City of Chico -Extension of Services -1109 Stewart Avenue
Proposed is an extension of City of Chico sanitary sewer service outside of its
jurisdictional boundaries, to a single parcel for both an existing structure and new
development proposed on the parcel. The subject territory is identified as Assessor's
Parcel Number 043-242-052 {1109 Stewart Avenue), Chico, CA. ACTION
REQUESTED: Adopt Resolution No. 16 2012113 approving the extension of sanitary
sewer services.
5. PUBLIC COMMENT ON ITEMS NOT ON THE AGENDA (!f any)
6. REPORTS AND COMMUNICATION
. Bufte Local Agency Formation Commission .April 4, 2013 Agenda .Page 1 .
6.1 Executive Officer's Report
6.2 Correspondence: None
7. ADMINISTRATION. The Commission will discuss and provide direction to the Executive Officer
on administrative matters relating to the operation of the Commission.
8. ADJOURNMENT Adjourn to Thursday, May 2, 2013 in the Board of Supervisors Chambers.
TD THOSE WIiO PARTICIPATE !N LAFCO PROCEEDINGS: Califomla Govemmenf Code Section 84308 requires you to
disclose campaign contributions to LAFCt) Commissioners if they amount to $250 or more and were made within the last
twelve months. Please announce your applicable campaign contributions when you speak.
* Any disabled person needing specie! accommodation to participate In the Commission proceeding is requested to
contact LAFGo staff at (530) 538-7784 prior to meeting and arrangements will be made to accommodate you.
* Any person may address the Commission during the "Aubllc Comment" Please see the rules regarding Aubllc
comments below.
' Copfes of Agenda documents relative to an Agenda item maybe obtained from the Clerk of the Commission at a cost of
$.'l0 per page.
RULES APPLYING TO PUBLlG COMMENTS
1. Members of the public wishing to address the Commission upon any subJect within the jurisdiction of Suite
LAFCO may do so upon receivFng recognition from the Chair at the appropriate time.
2. Comment on items not on the agenda should be made at the time indicated for "Aubllc Comment" on the agenda.
The Commission may not act on any matter so raised and will have to put off action until a meeting of which the
matter can be put on the agenda.
3. Comment on specific agenda Items may be made during the discussion of that agenda Item, upon recognition by
the Chair.
4. After receiving recognition, please stand and state your name and address before making your presentation, sa
that the Clerk may take down this information.
5. All documents fo be presented fo the Commission will be given fo the Clerk of the Commission (original and
eleven copies) prior fo Call of Order of meeting. Such documents will be distributed to the Commission and
made available for Aubllc inspection.
This agenda was mailed to those requesting notice and posted T2 hours in advance of the meeting at the following
locations: Butte County Administration Building & LAFCo front entrance.
.Butte Local Agency Formation Commission .April 4, 2013 Agenda .Page 2 .
Agenda item 3.1
MEMORANDUM
T0: Local Agency Formation Commission
FROM: LAFCO Budget Committee (Chair Leverenz, Connelly, Duncan, Fichter & Steel)
SUBJECT: Agenda Item 3.1 -Review and Consideration of Proposed Budget for
Fiscal Year 2a13I14
DATE: March 2S, 2013 for the Meeting of April 4, 2013
Pursuant to Government Code Section §56381, please find attached the Proposed Budget for
Fiscal Year 2013114 as recommended by the Budget Committee.
Summary
On February 28, 2013, the Budget Committee met to review and discuss the Preliminary Budget
for FY 2013114. The Committee thoroughly considered the broad spectrum ofi fundamental
responsibilities that LAFCO, as a regulatory body of the state, is expected to address beyond
the specific processing of individual applications. With this perspective in mind, the Committee
reviewed the current year budget projections {revenues, expenditures and fund balances) and
the preliminary budget numbers for FY 2013114.
In addition to reviewing budget line items, the Committee's review was influenced by the
following factors:
1. The Commission's recognition of the ever increasing roles that LAFCO's have in:
Assisting local agencies in the understanding of governance options;
• Addressing local government functions and service delivery capabilities;
• Identifying gaps in the provision ofi services throughout their Counties; and
• Addressing an increasing number of legislative mandates to consider
disadvantaged populations and seek improved options and opportunities for
cooperation between agencies to include consolidations and mergers.
2. The Commission's continued desire to maintain a small, but consistent core staff of
experienced individuals who provide superior service levels and local agency
assistance;
3. The Commission's understanding that difficult economic conditions are improving yet
local agency budgets are likely to remain financially tight;
4. The Commission through its staff has implemented cost saving measures, including
employee furloughs, for the past five (5) budget cycles allowing it to successfully
maintain FY 2006107 member agency assessments through FY 2012113; while each
year, consistently advising member agencies of the potential necessity to incrementally
increase assessments; and
5. The Commission's fundamental interest in balancing its desired capability to meet
statutory requirements (mandates) with the ability of contributing agencies to provide
adequate levels of funding.
Current Year (FY 2012!13) Budget and Estimated Savings
Expenditure Categories Budget Estimated
(6-34-2013} Estimated Savings
(6-3d-2013}
Salaries & Wa es and Benefits 490,900 436,667 54,223
Services & Su lies 131,246 131,203 43
Coun Su ort Services 39,824 39,768 56
A ro riations 40,000 10,000 30,000
Total Estimated Ex enditure Savin s for FY 2012113 84,322
The majority of the estimated savings results from staff participation in a voluntary furlough
program that equals a 10-15% reduction in pay depending on position and is committed to fund
future employee compensation. This program was initially implemented in FY 2008109 as a
flexible way to reduce personnel costs while allowing the agency to reasonably react to
fluctuations in work load. To offset employee costs, the reported savings of $54,223 has been
included within the proposed FY 2013114 Budget. Since implementation, the voluntary furlough
program has resulted in an approximate savings of $216,000.
Other unspent expenditures ar realized savings remain within the overall uncommitted fund
balance.
Budget Committee Proposal for FY 2013114 Budget
Funding Sources
The Proposed FY 2013114 Budget totals $671,826 which reflects a decrease of approximately
4% from the prior years' budget. Sources include:
• Fund Balance, $93,986 of which approximately $52,223 is from furlough, accaunting for
14%.
• Interest, $7,000 accounting for 1%.
Member Agency Assessments, $485,840 accounting for 72%. While the Commission has
maintained member agency assessments since FY 2006107, it has diligently advised
member agencies each year during the budget process and through adopted resolutions,
that in order to achieve state mandated responsibilities consistent with GC 56381, the
potential need to incrementally increase agency assessments would inevitably be required
to meet the Commission's expectations. To this end, the Budget Committee has
recommended a modest 10% increase FY 2013114, which equates to a 1.67% annual
increase dating back six years.
• Filing Fees, $35,000 accounting far 5%.
• MSRISOI Trust Fund Transfer, $50,000 accounting for 7%.
Expenditures
The Committee acknowledged that there were no substantial changes in expenditures from the
current fiscal year budget with the exception of the necessity to replace the existing server and
to purchase software updates and licenses at an estimated expense of $11,000 which occurs
approximately every five years. The proposed budget also recognizes incremental increases in
employee costs related to a single merit increase and associated benefits. Notwithstanding
one time expenditures, the overall base expenditures for operations has decreased by
approximately 4%.
Recommendations
In order to accomplish a balanced budget, the Committee unanimously recommends and
supports the following actions:
Utilize $93,986 from Fund Balance; $50,000 from the Municipal Sen+ice Reviewl5phere
of Influence Maintenance Fund; and
2. Authorize the continuation of a voluntary furlough program to be executed at the
discretion of the Executive Officer based on application activity and projected revenues
for Fiscal Year 2013114. This measure allows the Executive Officer to have greater
flexibility in reacting to market conditions and changes in projected budget revenue
shortfalls throughout the budget year and would allow employee cost savings to be
utilized for future year employee compensation; and
3. Accept employee's voluntary elimination of a estimated 2% cost of living adjustment
{COLA) to the adopted 2008 Salary Plan and incentive Pay provisions of the Personal
Policies for Fiscal Year 2013114 (~tth year of employee uvaiver of COLA); and
4. Place language in the budget resolution that continues to advise member agencies of
the potential need to incrementally increase agency contribution rates in order to achieve
the state mandated responsibilities consistent with GC56381.
Comments Received
The 2012113 FY Proposed Budget was circulated to all member agencies on March 28, 2013 for
review and comment. As of the writing of this report, staff has received no comments or
inquiries.
ACTIONS RECOMMENDED AND REQUESTED BY BUDGET COMMITTEE:
1. Receive comments from the public and affected agencies on the Proposed Budget for
Fiscal Year 2013114; and
2. Authorize the continuation of a furlough program to be executed at the discretion of the
Executive Officer based on application activity and projected revenues for Fiscal Year
2013114; and
3. Accept employee's voluntary elimination of cost of living adjustments (COLA) to the
adapted 2008 Salary Plan and Incentive Pay provisions of the Personal Policies for
Fiscal Year 2013114; and
4. Place language in the budget resolution that continues to advise member agencies of
the potential need to incrementally increase agency contribution rates in order to achieve
the state mandated responsibilities consistent with GC56381; and
5. Adopt the Proposed Budget for Fiscal Year 2013114 for transmittal to affected agencies
and continue item to the May 2, 2013 meeting for final adoption.
Attachments:
1. Proposed Budget & Narrative for Fiscal Year 2013114
Bute Local Agency Formation Commission
Proposed Budget for FY 2013114 -April 4, 2013
ire tt~ty 21112!13 2013!14
Adopted SpeciaE Total Proposed SpecFaE Iota{
FUNDING SOURCES
1D4001 Pund Balance 97,511 97,511 93,986 - 93,986
101001 Fund Balance, Reserve 50,000 - 50,000 - - -
4436101 Interes! Earned 9,OD6 9,000 7,000 - 7,000
4547970 County Funding 198,753 196,753 238,628 - 218,628
4547971 Cities Funding 198,753 196,753 218,628 - 218,628
4547972 Special Disiricl Funding 44,157 - 44,167 4$,584 - 48,584
4617230 Filing Fees 35,000 15,786 50,786 35,000 - 35,000
4711308 Sphere of Influence Trust Fund Transfers 50,000 - 50,000 50,000 - 50,000
4732523 Miscellaneous Income 3,000 - 3,000
4712531 Reimbursement of P!Y Expenditures
Total Funding Sourcos 686,164 15,786 701,970 673,828 677,826
EXPENDITURES
SalaNes & Wages
511 Salaries & Wages 335,470 - 335,470 338,870 - 338,870
Benefits
518002 PERS Miscellaneous Contribution 38,84^ 38,840 40,294 - 40,29A
538003 ]C3~AA Deferred Compensation E Medicare Tax 25,665 - 25,665 25,924 - 25,924
518D04 NealtYr, Dental & Visicn Insurance 54,450 - 54,450 36,426 - 36,426
518005 Employee Assistance Program 528 - 528 528 - 528
518006 SUI, ETT & SDE 5,224 - 5,224 4,397 - 4,397
5180D7 PERS 8tryoul 23,483 - 23,A83 23,721 - 23,721
518010 Cash Back Payments 6,067 - 6,067 6,067 6,067
518014 Basic Life Ensurance 132 - 132 132 - 132
518024 Long Term Disability Insurance 1,041 - 3,941 1,051 - 1,051
Total Benefits 155,43D - 155,430 138,54D - 138,540
Total Salaries & Wages and Benefits 490,990 490,800 477,470 477,410
Services & Supplies
523201 CommunicaC~ons 2,995 - 2,995 2,999 - 2,900
523203 Communications -Cell Phone Allowance 840 - 840 840 - 840
5262511 Household Expense 750 750 750 - 750
527201 Genera[Insurance-Qulside Purchase 3,816 - 3,816 4,096 - 4,096
528 Compensafson Insurance 2,200 - 2,200 2,000 - 2,000
533 Memberships 3,900 - 3,90D 4,220 - 4,220
535201 Office Expense-Outside Purchase 3,750 - 3,750 3,750 31,0179 14,750
536 Prcfessional & Specialized Services -
Annual Audit Fees 6,600 - 6,600
Legat Counsel Fees 24,000 - 24,000 7,350 - 7,356
GIS Consulting Services 35,000 - 35,009 24,000 - 24,009
E3 Medio MSR Update & SOI Plan 15,786 15,786 15.000 35,OOD
45,600 15,786 61,386 A6,350 - 46,350
537 Publications & Legal Notices 1,900 - 1,900 1,90D - 1,900
538 Rerds & Leases-Bssildings 22,737 - 22,737 23,419 - 23,419
539 Rents & Leases-Eguipmeni 300 - 300 30D - 366
541 Specia4 Departmental Expense 3,622 3,622 3,500 - 3,500
543203 Transportation & TravellOulside Purchase 19,750 19,750 19,75D - 19,750
544263 Utilities - Non•ISF Payments 3,306 3,300 3,300 3,3017
Total Services & Supplies 115,4617 15,786 731,246 117,D75 11,DOD 128,075
County Support Services
554571 Adminislralipn 1,264 - 1,264 -
554572 Procurement Services 8,204 8,204 2,563 - 2,563
558573 Auditor 1,366 - 1,366 3,401 - 3,401
554575 Treasurer -lax Collector 34 - 34 35 - 35
554576 Human Resources 3,762 - 3,762 13,540 - 13,500
554578 Information Systems 6,979 6,979 6,842 - 6,842
554579 Finance Management 2,635 2,D35 - - -
554599 Carry Forward 16,180 16,180 - -
Total County Support Services 39,824 33,824 26,347 26,341
Appropriations
56D CaMingency 30,000 - 30,000 30,000 - 30,000
7970 Reserve 10,OD0 10,000 10.000 10,p90
Total Appropriations 40,400 40,000 49,000 - 40,000
Total Services & Supplies,
Count Su ort Services antl A ra rialions 195,284 15,786 211,070 183,416 11,000 194,416
Total 686,184 15,7$6 701,970 660,826 11,40D 671,826
4%
41 °,5
-3 %
-2°h
-34
0%
-8 %
-q°~
Proposed Budget Narrative €or Fiscal Year 2013-2014
April 4, 2013
Funding Sources:
101001 -Fund Balance Proposed: $93,986
4410101 - lnteresf Proposed: $7,000
___
Interest income is accrued on treasury cash.
4547970; 4547971; 4547972 - MemberA enc Fundln Pro osed: $485,840
Allocation and Proportionate Share of Funding Requirement:
County 45% $218,628
Cities 45% $21$,62$
Special Districts 10% $ 48,584
Calculations are prepared by the Butte County Auditor. Individual city shares are based on revenue as
reported in the most recent edition of the Cities Annual Report published by the State Controller.
Individual special district shares are based on revenues as reported in the most recent report of the
"Financial Transactions Concerning Special Districts" published by the State Controller.
4617230 -Filing Fees Proposed: $35,000
Pursuant to the adopted Fee Schedule, application filing fees are charged to applicants for the processing
of applications submitted for sphere of influence amendments, formations of special districts and changes
of organization and reorganization. Application processing fees vary widely depending on the complexity
of the action requested.
4711308 - S here of Influence Trust Fund Transfers Pro osed: $50,DOD
Restricted monies held within the Sphere Trust Fund for the explicit purpose of funding Commission
directed staff level review and maintenance of municipal service reviews and sphere of influence plans
and related actions.
Expenditures:
511 -Salaries & Wages Proposed: $338,870
Salaries reflect base wages pursuant to the adopted Salary Pfan.
518 - Fm to ee Benefits Pro osed: $138,53D
CaIPERS Retirement; ICMA Deferred Compensation & Medicare; State Unemployment insurance,
Employment Training & State Disability Insurance; Health, Dental & Vision; Employee Assistance
Program; Cash Back; and SasiclLong Term Life Insurance.
523 -Communications Proposed: $3,740
Communication expense ($2,995) and cell phone allowance ($840},
526 -Household Ex enses Pro osed: $750
Toiletries, cleaning supplies, #loor the buffing and other household items.
527 - General Insurance Pro osed: $4,096
Property and General Liability coverage, provided through Special District Risk Management Authority.
528 -Workers' Com ensafion Insurance Pro osed: $2,000
Workers' Compensation and Employer's Liability coverage, provided through Special District Risk
Management Authority.
533 - Membershi s Pro osed: $4,220
Memberships to professional organizations, including various publications and subscriptions that support
staff development on current issues affecting the agency's responsibilities.
535 - Office Ex ease Pro osed: $14,750
Offices supplies, server replacement ($5,500) and computer software upgrades, i.e., Microsoft Office
2013 ($2,2D0} & GlS licenses ($5,550}.
536 -Professional & S ecialized Services Pro osed: $46,350
Annual professions! services include legal counsel fees ($24,000); GIS mapping services {$15,000) and
financial audit ($7,350).
537 -Publications & Le a! Nofices Pro osed: $1,900
Publishing of legal notices, as required by LAFCO Policies and State Law.
538 -Rents & Leases - Buildin s Pro osed: $23,419
Pursuant to H.D. Downer Business Center, LLC lease agreement.
539 - Renfs 8 Leases - E ui menf Pro osed: $300
Office security system.
541 -Special De artment Ex ense Proposed: $3,500
Website maintenance; professional development and kraining.
543 -Trans ortafion & Travel Proposed: $19,750
Attendance at conferences, meetings, trainings; CALAFCO participation a nd monthly vehicle allowances.
544 - Ufilifies Pro osed: $3,300
Electricity, natural gas, water, garbage disposal and landscaping.
County Support Services:
554 -Support Services Proposed: $26,34'!
Pursuant to Contractual Services Agreement between Butte County and Butte Local Agency Formation
Commission.
554572: Procurement Services @ $2,563
554573: Auditor @ $3,401
554573: Treasurer -Tax Collector @ $35
554576: Human Resources @ $13,500
554578: Information Systems @ $6,842
Appropriations;
580 - Contin enc Pra osed: $30,000
Unanticipated costs, i.e., budget shortfall coverage, special studies or legal fees.
797 -Reserve Pro osed: $10,000
Isolated funding for accrued leave liabilities and other post employment benefits.
Summary:
Proposed Budget for FY 2093-94
Funding Sources ~~ ~=~
Expenditures:
Salaries & Wages 477,410
Services & Supplies 128,075 °`-
Caunty Support Services 26,341
Appropriations 40,DOD
$s71.s26