CITY OF CARMEL-BY-THE-SEA DRAFT BUDGET FISCAL YEARS 2011/12 THROUGH 2013/14 & HIGHLIGHTS OF INTERIM CITY ADMINISTRATOR’S BUDGET MESSAGE FOR THE FISCAL YEARS 2011-12 THROUGH 2013-14

ABSTRACT: The CITY OF CARMEL-BY-THE-SEA DRAFT BUDGET FISCAL YEARS 2011/12 THROUGH 2013/14 is embedded. HIGHLIGHTS OF INTERIM CITY ADMINISTRATOR’S BUDGET MESSAGE FOR THE FISCAL YEARS 2011-12 THROUGH 2013-14, CITY OF CARMEL-BY-THE-SEA, in the form of selected excerpts and paraphrased sections, are presented.

DRAFT BUDGET 2011 2014

CITY OF CARMEL-BY-THE-SEA
DRAFT BUDGET FISCAL YEARS 2011/12 THROUGH 2013/14

HIGHLIGHTS OF INTERIM CITY ADMINISTRATOR’S BUDGET MESSAGE FOR THE FISCAL YEARS 2011-12 THROUGH 2013-14, CITY OF CARMEL-BY-THE-SEA

The proposed Operating Budget for 2011-12 is technically balanced. It contains an expenditure plan of $13,074,249 supported by $13,090,408 in revenues resulting in a technical surplus of $16,159. This result will not require the use of General Operating Fund Reserves.

While this budget is technically balanced, there are several uncertainties both on the expenditure and revenue side of the ledger. On the revenue side,..., limited increases are projected for the City’s property tax, sales tax and hostelry tax revenue. There is also uncertainty whether or not the COPS grant to support law enforcement will be funded. The State Police Chief’s Association concludes that it will be funded, but other information sources on this issue are more guarded regarding this funding.

Expenditure Plan includes sections on Fire, Ambulance, Police, Legal Staffing, Commission Requests, Outreach, Marketing and Community Services, Street Repair, Council/Administration, Library, Salary/Expenditure Savings, Capital Outlay (Equipment Purchases). Revenue Plan notes that 2011-12 projected revenues are nearly $900,000 less than the revised 2010-11 revenues due to significant reductions in grant revenue ($450,000), use of General Operating Fund Reserves ($300,000), et cetera.

Compared to the revised 2010-11 budget, it is projected that there will be an increase in property tax revenue from $4,147,055 to $4,200,000. It is estimated that the Transient Occupancy Tax (TOT) will increase from $4,084,000 (2010-2011) to $4,210,000 (2011-12). Sales tax revenue is projected to increase from $1,750,000 (2010-11) to $1,870,000 (2011-12).

TOWARD A BALANCED BUDGET section includes Expenditure Containment, e.g. Shared Services and Contractual Services and Revenue Enhancements, e.g. Phased Paid Parking, Public Safety Assessment, Hostelry Tax, Parking Citation Fees, Norton Court Senior Parking, Parks/Beach Fees, Banner Fees, Emergency Medical Service (EMS) Fee.

PROPOSED CAPITAL IMPROVEMENT BUDGET

...the proposed Capital Improvement Budget will require Capital Reserves to balance the expenditures proposed in the 2011-12 Budget. The proposed Capital Improvement Budget, or CIP, includes projects totaling $831,868 supported by $344,308 in revenues. This results in a deficit of $487,560, which would need to be paid from Carmel’s Capital Reserves. Currently, these Reserves contain a balance of $2,233,274.

Conclusion

It is hoped that the proposed 2011-12 Operating and Capital Budgets, along with the proposed 2012-13 and 2012-2014 budgets, will be useful during Council’s deliberations in determining the City’s fiscal plans for coming years. Staff will be prepared to answer questions about these budgets from the City Council and the public at future budget workshops.


John Goss, Interim City Administrator

ADDENDUM:
“Human Resources Director” is currently vacant.
INTERIM CITY ADMINISTRATOR’S BUDGET MESSAGE FOR THE FISCAL YEARS 2011-12 THROUGH 2013-14, CITY OF CARMEL-BY-THE-SEA

Staffing. This expenditure plan does not contain funding to allow filling current vacant positions, such as the Senior Planner, a Police Officer, Human Resources Director, and Tree Care Specialist.