r"~"j Meeting Date: 6/17/14 City Council Agenda Report City Council TO: FROM: Administrative Services Director ( )
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1 ~~ r"~"j City Council Agenda Report Meeting Date: 6/17/14 TO: City Council FROM: Administrative Services Director ( ) RE: FY Proposed Annual Budgets REPORT IN BRIEF: The Council will be presented with a summary of the FY Proposed Annual Budget for the City of Chico arid Successor Agency to the Chico Redevelopment Agency, and the Ten Year Capital Improvement Program. Recommendation The Administrative Services Director requests the adoption of Resolution of the Council of the City of Chico regarding the FY Proposed and Final Budget for the City of Chico, the Chico Public Financing Authority and the City of Chico Parking Authority (attached as Exhibit A). FISCAL IMPACT: The FY Proposed Budget includes two separate Budget Messages for the City (Exhibit B) and the Successor Agency to the Chico Redevelopment Agency (Exhibit C). These memos outline the major highlights, fiscal challenges and programs for the ensuing fiscal year for each entity. Reviewed by: Approved by: Chris Constantin, Administrative Services Director MarJ<OI"me, Interim City Manager DISTRIBUTION: City Clerk (3) ATTACHMENTS: Exhibit A- Resolution of the City of Chico Exhibit B - City of Chico Budget Message Exhibit C - Successor Agency to the Chico Redevelopment Agency Budget Message
2 Attachment A RESOLUTION NO RESOLUTION OF THE COUNCIL OF THE CITY OF CHICO ADOPTING THE PROPOSED AND FINAL BUDGET FOR THE CITY OF CHICO, THE CHICO PUBLIC FINANCING AUTHORITY AND THE CITY OF CHICO PARKING AUTHORITY WHEREAS, the City Manager of the City of Chico has prepared and presented.to th City Council the Proposed Budget (hereinafter "Proposed Budget") which includes th budget requests of each office, department, board or commission of the City, as weli a requests for funding assistance submitted by community organizations; and WHEREAS, the Proposed Budget also includes the proposed budgets for th Chico Public Financing Authority and the City of Chico Parking Authority; and WHEREAS, the Proposed Budget sets forth all Development Impact Fees on deposi which are unexpended or uncommitted; and WHEREAS, the Proposed Budget sets forth the Appropriations Limit required b California Government Code 791 0;.and WHEREAS, the Proposed Budget, as well as the Appropriations Limit, are on file an available for inspection in the Office of the City Clerk; and WHEREAS, the Proposed Budget and all parts thereof will be considered by the Cit Council on June 17, 2014, at which time the City Council may adopt the Proposed Budget along with any modifications that the Council directs thereto, as the Final Budget of the Cit of Chico, as well as the Chico Public Financing Authority, and the City of Chico Parkin Authority: NOW, THEREFORE, be it resolved by the Council of the City of Chico that the 2014-i Proposed Budget for the City of Chico, including the proposed budgets for the Chico Publi Financing Authority and the City of Chico Parking Authority, as amended by the City Council a its meeting of June 17, 2014, be and is hereby adopted as the Proposed and Final Budget of the City of Chico as required by Section 1103 of the Charter of the City of Chico. 28 Page 1 of 2
3 Attachment A The foregoing resolution was adopted by the City Council of the City of Chico at its 2 meeting held on June 17, 2014, by the following vote: AYES: NOES: ABSENT: DISQUALIFIED: ATIEST: Deborah R. Presson, City Clerk APPROVED AS TO FORM AND CONTENT: Page 2 of 2
4 Attachment B CITY or CHICO IN< IB7Z OFFICE OF THE CITY MANAGER 4 11 Main Street (530) P.O. Box 3420 Fa-.:: (530) Chico, CA DATE: May 23, 2014 TO: FROM: SUBJECT: Honorable Mayor and Members of the City Council Brian S. Nakamura, City Manager Adoption of the FY Proposed Annual Budget Honorable Mayor and Members ofthe Council: It gives me great pleasure to submit to the City Council the FY Proposed Annual Budget. This document represents what likely will be the most significant policy document adopted by the City Council on an annual basis, primarily because it allocates the City's scarce and limited financial resources towards essential services and programs identified by the City Council, through citizen input, and is essential in preserving and enhancing the City of Chico as a great place to live, work, educate and recreate. There are things people rarely think about -- smooth streets to drive on, a streetlight to find their way through the dark, a nice sidewalk for their children to walk on, and a bike trail just down the road. These are just a few of the essential services we in Chico City Hall provide to our 88,000 residents and employees who work in our City. Chico was built on the ambitions of residents, business leaders, and partners. Every day, we strive toward fulfilling the promises of city hood that began in Fiscal responsibility is an essential component of our City' s success, without which our services would crumble. That is why I am proud to present the City' s Proposed Annual Budget for This budget document is a roadmap to guide the City Council and citizens through our City's operations and commitments, which insure a balance of expectations and desires. It is without doubt that FY and FY will likely stand out as Chico' s most trying fi scal times. Those two fiscal years will be etched in the memories of the Council, community and staff forever; to be archived accordingly and never revisited again. The fiscal turmoil truly caused all of us reflect and ponder the future for Chico, not as a tremendously wonderful community for which it is recognized, but as a full-service City, with urban service and program level demands that ensure its premier ranking regional and statewide. With the commitment of a strong and tenacious City Council, supportive and committed staff and engaging conununity, the City is on the road to recovery. Chico is on the path to
5 Attachment B financial recovery with new vigor and vision. New opportunities are in front and ahead of us. Why? Because as the City Council believes and is committed to doing the "right thing" for the "right reasons," putting the needs of the community first and foremost and supporting staff focused on exploring new and innovative ways and opportunities for providing essential services and programs, so Chico will continue to thrive and prosper. Warren G. Bennis stated, "Leaders keep their eyes on the horizon, not just on tlze bottom line. " The Chico City Council are such leaders and in discussing a future vision for the City, identified long-range goals, focused on public safety, preservation and growth of the City's finances, economic development, community development and the environment and technology. It is the leveraging of City resources through effective cornmtmication, cooperation, collaboration and partnering that will attract a wide array of private investments, development projects and educational, recreational and entertainment opportunities. The Chico City Council continues to advocate for civic engagement and transparency, with the goal of making residents feel more connected and empowered; to work with the City to make positive change happen. I, the Budget Team consisting of all Department Directors, and all City staff have a great appreciation for the collaboration and effort that goes into creating this budget. Primary responsibility for ensuring this document gets presented on time and within balance rests with our Administrative Services Director Chris Constantin, Barbara Martin, Frank Fields, Lynn Theissen and Kimberly Graciano. They are supported by a great staff whose efforts help ensure we have a strong, transparent, and accountable fiscal structure. ~ submitted, Brian Nakamura City Manager
6 Attachment C CITY or CHICO INC 1872 SUCCESSOR AGENCY TO THE CHICO REDEVELOPMENT AGENCY F PROPOSED ANNUAL BUDGET MESSAGE TO: City Council DATE: June17,2014 FROM: SUBJECT: City Manager Successor Agency to the Chico Redevelopment Agency FY proposed Annual Budget On June 29, 2011 Assembly Bill No. 1x 26 was enacted, which called for the dissolution of all California redevelopment agencies as of October 1, Also enacted at the same time was AB 1x27, which allowed agencies to continue if they agreed to transfer a certain dollar amount to the State to help balance the State budget. A lawsuit challenging the constitutionality of both bills was filed shortly after they were enacted, and the California Supreme Court imposed a stay pending its decision on the constitutionality of the legislation. On December 29, 2011, the Court struck down the continuation bill, but upheld AB1 x 26, the dissolution bill. In its decision, it extended the dissolution date to February 1, 2012, and extended certain other AB1x 26 deadlines. AB1 x 26 established a Successor Agency for each dissolved redevelopment agency. The purpose of the Successor Agency is to implement the dissolution of the redevelopment agency in compliance with the law, and to provide staff support to an Oversight Board comprised of locally appointed individuals. The City of Chico became the Successor Agency to the former Chico Redevelopment Agency on February 1, 2012, by the operation of law. Subject to the approval of the Oversight Board and the California Department of Finance, the Successor Agency manages redevelopment projects currently underway, makes payments identified on the Recognized Obligation Payment Schedule and disposes of redevelopment assets and properties as directed. The City of Chico assumed most of the housing assets and obligations of the former RDA. For the most part, the work and obligations of the Successor Agency are funded from the former tax increment revenues that are distributed by the Butte County Auditor-Controller. The Oversight Board of the former Redevelopment Agency approved the Successor Agency Administrative budget for FY at its meeting on April 2, Respectfully submitted, ~- Brian Nakamura City Manager
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