CLEARLAKE, Calif. – A workshop for discussion of the draft 2014-15 fiscal year budget for the city of Clearlake was held last Thursday at City Hall.
City staff received direction amending the proposal for tentative presentation to the Clearlake City Council this Thursday, June 12.
Directions included those that eliminate cost-free health care coverage of council member dependents; limiting health care coverage to council members only results in a $53,285 annual savings.
City Manager Joan Phillipe said all department heads were involved in the development of the draft budget. She said staff has been working to evolve the format of the budget so that it is easier to understand.
Phillipe said realistically the document is a “preliminary” budget based on projections and that the “final” budget is essentially adopted at the time of mid-year budget review.
City staff may have an amended proposal prepared in time for the council's consideration at its next regular meeting this week. If not, Phillipe said, it likely will be presented during the first regular meeting in July.
In addition, Phillipe said there will be another workshop, which may or may not occur before budget adoption, for the purpose of discussing goals and objectives and conducting a review of policies.
Financial Consultant Bruce Budman provided the council, and the four members of the public in attendance, with a synopsis of the draft proposal highlighting revenue and expenditures percentages, additions and changes and strategies for balancing the budget.
He also addressed outstanding issues such as those concerning contracted services that are currently being addressed.
According to Budman, 36 percent of the city's general fund revenues are garnered through sales taxes, while 30 percent comes from “other taxes.”
Property taxes represent 19 percent of general fund revenues. He said there is a projected increase of $166,600 in sales taxes over the prior year budget.
Other revenues were identified by Budman as follows: franchise fees, 8 percent; licenses and permits, 4 percent; and interest and rents, fines and forfeitures and other agencies each garner 1 percent. No revenues are collected through the current services or other revenues categories.
Addressing the absence of revenue through current services, Phillipe said the city is in the process of hiring a permanent finance director and that updating the city's fee schedule will be among the first tasks the director will address.
Salaries and benefits consume 74 percent of expenditures from the general fund, Budman said. Materials and supplies account for 21 percent. Debt service, at 3 percent, and transfers out and capital outlay, each at 1 percent, round out expenditure categories.
Budman also provided a review of expenses by department: animal control (3 percent), city engineer (1 percent), building and development review (3 percent), planning (1 percent), non-departmental (6 percent), building maintenance (2 percent), senior/community center (3 percent), elected officials (2 percent), city manager (4 percent), city attorney (1 percent), city clerk (3 percent), finance (6 percent), code enforcement (1 percent), streets and public works (3 percent) and parks (3 percent).
The remaining 59 percent of departmental expenditures is within the police department budget.
Budman said the budget complies with mandates of Measure P, which requires 63 percent of the general fund be allocated to the police department. He clarified the 59 percent discussed at the workshop represents proposed expenditures, not revenues.
He said Measure P costs are balanced to revenues. “We are going to spend what we have there but not more,” he said.
Budman said use of police grant funds in the amount of $100,000 for personnel costs assisted in balancing the budget, as did a planned vacancy in the department. Police Chief Craig Clausen said the position, which vacant represents a budget savings of $60,529, has not been filled in some time. Additionally, Budman noted a history of turnover within the department.
Clausen said there currently is a viable candidate for the job; however, he said he was waiting a hire decision depending upon outcome of budget discussions.
Vice Mayor Gina Fortino Dickson asked if it would be more cost-effective to make the hire in effort to reduce the amount of overtime being expended.
Clausen said hiring of the candidate would not immediately put another officer on the streets with consideration of training time. He said the officer would not likely be able to work alone until about October.
In addition, he said the majority of the overtime expense relates to recent restructuring of the courts, which has move criminal cases to Lakeport courtrooms.
He said when officers are required to testify, they are not available for service in the city, which therefore must be provided by another officer. Clausen said discussions with the court system to address the impacts to local jurisdictions are now underway.
“For example,” he said, “There were six officers who had to be in court today, none of whom testified and will have to go back tomorrow. It's problematic and it hurts our overtime.”
Budman said the draft budget addresses increases in pension and employee medical rates. It funds the risk management reserve at $150,000 and projects a contingency reserve of $211,095. It also sets up a new capital projects fund for bonds.
Budman said the first year repayment of a loan from the general fund to the redevelopment agency (now the successor agency) of nearly $1.7 million is budgeted as is a first year repayment of an overpayment from the general fund to the agency.
To help simplify the document, Budman said the economic development and building development fund was combined with the general fund.
“Having it separate caused confusion in the past,” he said. “Auditors didn't like. It made sense to combine it.”
Ongoing capital projects identified in the draft include the Redbud boat launch project and Highway Safety Improvement Program (HSIP) bike trail and striping project.
Also included is the Olympic Drive/Old Highway 53 project, which Public Works Director Doug Herren said is funded through gas tax and includes carryover funds.
Council members were unanimous in eliminating cost-free health coverage for dependents and limiting coverage to council members only.
The coverage will be in line with that provided to city management, which provides coverage without share-of-cost. Coverage for dependents will be available at the expense of the council member.
Outstanding issues include contracting services for city attorney and animal control services.
Phillipe said interviews for a new attorney were conducted and the city is in the process of making a selection.
She said discussions concerning animal control services are currently directed at determining what will be the next step in the process.
Email Denise Rockenstein at
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