City of Fillmore 2011/12 Midyear Report March 27, 2012

1. City of Fillmore 2011/12 Midyear Report March 27, 2012

2. City of Fillmore 2011/12 Midyear Report General Fund Comparison of Sources and Uses FY 2009 through 2012

3. City of Fillmore 2011/12 Midyear Report Budget Adoption and Review June 28, 2011 – City of Fillmore/Fillmore RDA Adopted Budgets FY11/12 January 31, 2012 – Fillmore RDA eliminated and City became Successor Agency March 27, 2012 – 2011/12 Midyear Budget Review June, 2012 – City of Fillmore will Adjust 2011/12 and Adopt 2012/13 Budget

4. City of Fillmore 2011/12 Midyear Report Two major fund groups in the report City Operating Funds General Special Revenue Enterprise Debt Service Capital Improvements

5. City of Fillmore 2011/12 Midyear Report Includes estimates for 2012/13 for all funds (See Attachment 7) Certain assumptions are made to derive the projections The 2012/13 Recommended Budget will refine the numbers

6. City of Fillmore 2011/12 Midyear Report Report starts with balances derived from audited numbers (Attachment 1) Converts balances into “available balances” by reviewing balance sheet accounts Balance does NOT reflect General Purpose Reserve of $899,784

7. City of Fillmore 2011/12 Midyear Report General Fund Revenue Adjustments Attachment 2 Net decrease ($1,122,047)

8. City of Fillmore 2011/12 Midyear Report General Fund Expenditure Adjustments (Attachment 3) Net decrease ($221,773) City Council – Travel ($3,000) City Clerk – Salaries & Benefits ($15,000) Police Services SRO $658 County Basic Contract ($54,224) Other Program Costs ($2,450) Special Events ($10,500) Fire Protection: Paramedic Stipend ($5,503) Uniforms ($1,200) Ventura Co Fire Dispatch ($1,656) Planning - Salaries & Benefits ($17,350) Continued

9. City of Fillmore 2011/12 Midyear Report General Fund Expenditure Adjustments Continued Cable TV/Com Promotion – Salaries & Benefits ($9,312) Economic Development Salaries & Benefits - $9,798 Contract Services - $1,500 Anti-graffiti - $3,400 Film Commission - $4,000 Bldg/Safety Salaries & Benefits ($13,578) Plans Review Consultant ($45,000) Bldg Permit Program ($6,000) Parks Maintenance – Building Maint and Utility Savings ($23,000) Total General Fund Expend. Adjust. ($221,773)

10. City of Fillmore 2011/12 Midyear Report The Amended Budget showed a Revenue over Expenditure loss of $53,995. With the recommended amendments, the net loss is at ($954,269). This table only describes the difference between Revenue and Expenditures; it does not reflect the cumulative effect when considering beginning balance. General Fund Summary

11. City of Fillmore 2011/12 Midyear Report General Fund 2011/12 Revenue/Expenditure Gap $954,269, includes transfers of $1.8 M In 2012/13, no transfers from RDA, $288,000 Sales Tax, and State repayment of $439,000 (one time money) Expenditures include transfer of $96,864 - Fire Engine Lease & Sheriff’s Contract expected to increase 2%, leaving a gap of $1.5 M Bottom Line – The General Fund does not have sufficient revenue to support basic public safety services

12. City of Fillmore 2011/12 Midyear Report The simple math of it:

13. City of Fillmore 2011/12 Midyear Report2011/12 General Fund Revenue + Transfers In = $5.0 Million

14. City of Fillmore 2011/12 Midyear Report 2011/12 General Fund Expenditures + Transfers In = $6.0 Million

15. City of Fillmore 2011/12 Midyear Report ADD OTHER FUNDS THAT RELY ON GENERAL FUND

16. City of Fillmore 2011/12 Midyear Report CITY OPERATING FUNDS REVENUE & TRANSFER IN ADJUSTMENTS

17. City of Fillmore 2011/12 Midyear Report CITY OPERATING FUNDS EXPENDITURE & TRANSFER OUT ADJUSTMENTS

18. City of Fillmore 2011/12 Midyear Report • Utility Billing Collections • As of 3/1/2012 • Total Outstanding $743k • Inactive Accounts (241k) – 32% • Active over 90 days (84k) – 11%

19. City of Fillmore 2011/12 Midyear Report Changes Adopted 2011/12 Budget compared to Midyear General Fund Beginning Balance included Theatre negative balance. The Theatre is a RDA asset and not a General Fund obligation A prior period adjustment for a liability amount that was not due increased the beginning balance Beginning Balance is $518,436

20. City of Fillmore 2011/12 Midyear Report

21. City of Fillmore 2011/12 Midyear Report CAPITAL IMPROVEMENT PROJECTS Funds 443 through 490

22. City of Fillmore 2011/12 Midyear Report Capital Projects Revenue & Transfer In Adjust.:

23. City of Fillmore 2011/12 Midyear Report Capital Projects Expenditure & Transfer Out Adjust:

24. City of Fillmore 2011/12 Midyear Report CAPITAL IMPROVEMENTS AMENDED BUDGET (see Attachment 4) Funds 443 through 490

25. City of Fillmore 2011/12 Midyear Report Fillmore Redevelopment Agency The RDA eliminated January 31, 2012 All assets and liabilities transferred to the Successor Agency February 1, 2012 The information provided for the Agency is for information only, no formal action can be taken regarding the Agency’s budget, assets or liabilities The Redevelopment Agency Low/Mod Housing function eliminated and City became Successor Agency for Housing Estimated balance RDA Housing Fund - $2.3 M

26. City of Fillmore 2011/12 Midyear Report Fillmore Redevelopment Agency – Information Only

27. City of Fillmore 2011/12 Midyear Report SUCCESSOR AGENCY TO THE FILLMORE REDEVELOPMENT AGENCY The City of Fillmore became Successor Agency February 1, 2012. The Successor Agency provides staff support to the seven member Oversight Board The Oversight Board decides the disposition of assets & payment of obligations

28. City of Fillmore 2011/12 Midyear Report SUCCESSOR AGENCY TO THE FILLMORE REDEVELOPMENT AGENCY County of Ventura payments June and January based on the Recognized Obligation Payment Schedule (ROPS) Minimum Administrative costs allowed is $250,000

29. City of Fillmore 2011/12 Midyear Report SUCCESSOR AGENCY TO THE FILLMORE REDEVELOPMENT AGENCY What to expect in the future 2013 Successor Agency balloon payment of $885,000 final principal payment 2006 Tax Allocation Bond Anticipation Notes Town Theatre estimated deficit - $391,251 for 2012 $2.4 M is due Housing Fund for the SERAF payment Legislation is pending regarding this repayment

30. City of Fillmore 2011/12 Midyear Report SUCCESSOR AGENCY TO THE FILLMORE REDEVELOPMENT AGENCY There are many bills being sponsored in the legislature to clear up some of the unresolved issues regarding the elimination of the Redevelopment Agencies It will probably be 2015 before the City realizes any gain in property tax revenue due to the elimination of the RDA

31. City of Fillmore 2011/12 Midyear Report Successor Agency to the Fillmore RDA

32. City of Fillmore 2011/12 Midyear Report CONCLUSIONS Budget refined as develop 2012-2013 Budget Major areas of concern are: The Economy The State of California’s Budget Woes Resolution of Sales Tax Issues Decisions need to be made to balance 2012 budget Actions needed midyear to balance 2013 budget

33. City of Fillmore 2011/12 Midyear Report Recommended Action: Council perform review and provide direction to balance midyear budget and 2013 budget. Adopt Resolution 12-3330 and Authorize the City Manager to make recommended budget adjustments