HomeMy Public PortalAboutBIB - FY 2013-14 - finalFISCAL YEAR 2013-14 CITY BUDGET-IN-BRIEF
CITY OF TEMPLE CITY | 9701 LAS TUNAS DR., TEMPLE CITY, CA 91780 | (626) 285-2171
May 16, 2013
Honorable Council of the City of Temple City
Esteemed Community Members:
Imagining the ideal Temple City of tomorrow,
much of the progress we shall see will largely
depend on actions we take today in securing
our community’s long-term financial health and
prosperity.
With that in mind, I present you this year’s
Budget-in-Brief for the Fiscal Year (FY) 2013-
14 City Budget. The following report provides
a concise overview of the City’s financial
position and planning efforts, as well as
a brief analysis of key budget initiatives,
anticipated revenues and expenditures, and
overall economic trends.
BUDGETING APPROACH
Considering the tough economic challenges
brought about by the recent recession, public
agencies nationwide have been confronted
with painful funding cuts, reduced revenues,
rising costs, etc. Fortunately, Temple City has
been in a stable position. With our unique
FY 2013-14 BUDGETOVERVIEW
EFFECTIVE
July 1, 2013 – June 30,
2014
CITY BUDGET
$33,289,865
NOTABLE TRENDS
Local revenues are flat-
lining, though property
taxes continue to rise.
KEY INITIATIVES
Continue zero-based
budgeting to maximize
operational efficiency,
elevate service levels.
Strengthen economic base
through focused planning
efforts and strategic
investment.
Continue fostering citizen
engagement in government.
flexibility as a contract city, combined with a tradition of prudent
financial planning and a strengthened emphasis on strategic investment,
we have been able to adapt and even thrive. Looking ahead, continuing
to implement the same strategies that have worked will allow us to
maintain and grow toward a strong and sustainable financial future.
When we first experienced revenue decline a few years ago, what
pulled us through was a strong commitment to maximizing available
resources. We were focused not just on cutting costs, but doing so
thoughtfully so as to minimize impacts to in-demand public services.
Indeed, instituting zero-based budgeting—wherein we annually review
program performance to prioritize spending—allowed us to consolidate
operations, elevate levels of service while also realizing cost savings.
In conjunction with streamlining operations, our commitment to high-
performance at City Hall also resulted in an ambitious grant-writing
strategy, leveraging available funds to capture additional resources.
While many public entities felt the sting of the recession in the form of
major budget slashes and program cuts, our staff stepped up efforts to
pursue grant resources.
Efforts have since yielded $5.1 million dollars in external funding which
has not only backfilled lost revenue, but funded full-fledged endeavors
like the $20.7 million Rosemead Boulevard Safety Enhancement and
Beautification Project—more than 90 percent of which is paid for by
grant and non-General Fund resources.
Grants received to date include Safe Routes to School and Community Development Block Grant for pedestrian
improvements; Caltrans BTA funds for bike facilities; CalRecycle Recycled Asphalt Concrete Program to repave Rosemead
Boulevard; Highway Safety Improvement Program for new Las Tunas Drive traffic signals; as well as a tree-planting grant
from Supervisor Michael Antonovich.
REVENUESANDEXPENDITURES
With the City’s fortunate success in capturing external resources during
recent years, this year’s revenues is seeing a dip, resulting largely from
the absence of secured grants. However, with the City having applied
for more than $8 million in grant funding for the Las Tunas Drive Project,
these numbers may change by July. And as we await notification
on these awards, we are reminded that one-time grant funds do not
provide a dependable source of revenue—but allow the City to leverage
resources to complete impactful special projects.
Even as our financial standing stabilizes, we intend to integrate this
practice as part of standard budget procedures, toward ensuring that
the City utilizes revenues in a manner that will yield the highest return
possible.
FY 2013-14: SECURING LOCAL REVENUES
In putting together this financial plan, decisions were driven largely by
their potential to grow and improve our community. Included budget
initiatives address a broad spectrum of issues from street maintenance
and economic vitality, to recreation and communications—all working
in harmony to nurture a more well-rounded and complete Temple City.
The City’s revenues consist of the General Fund (GF),
comprised of local taxes —such as property and sales;
and special funds, made up of external resources like
transportation dollars and State gas taxes.
TOTAL REVENUES $15,927,920
GENERAL FUND $11,607,600
SPECIAL FUND $ 4,269,320
OTHER $ 51,000
GENERAL FUND
OTHER SOURCES
PROPERTY TAXES
SALES TAXES
OTHER TAXES
INTERGOVERNMENTAL
FINES, FEES, CHARGES
INVESTMENTS
Highlights of notable budget initiatives are
detailed below by category: Community
Planning, Community Services and
Community Engagement.
In anticipating upcoming fiscal
conditions—especially with outside
funding sources varying by year, and
returns from our investment portfolio
declining due to low interest rates—the
key to our future prosperity is developing
a solid tax base by leveraging resources.
Though property values in Temple City
continue to rise, sales tax revenues are
seeing negligible increases and essentially
leveling off.
Economic development projects are
therefore becoming increasingly important
for sustaining a competitive economic
standing and strengthening our future
LEVERAGING RESOURCES
To spend or not to spend —that is the question
at the heart of many financial decisions. With
interest rates being low, the City is instead
investing in high-yield endeavors and capital
improvement projects that will pay in grant
awards and long-term economic vitality. Using
$1.39 million in local revenues, the Rosemead
Boulevard Project put together a more than
$20.7 budget—plus future revenue growth.
That same amount in the bank would only
have yielded $35,000 over five years.
INVESTMENT
YIELD
BANK
ROSEMEAD BLVD
PROJECT
TOTAL EXPENDITURES $33,289,865
GENERAL FUND $11,977,090
GENERAL FUND RESERVE $ 3,700,000
RESERVES AND GRANTS $17,982,265
EXPENDITURES BY DEPARTMENT
MANAGEMENT SERVICES
ADMINISTRATIVE SERVICES
COMMUNITY DEVELOPMENT
PUBLIC SAFETY
MAINTENANCE
PARKS AND RECREATION
For FY 2013-14, a significant portion of expenditures is for the Rosemead Boulevard Project, which uses special revenues accumulated over the past several years —including received grants and transportation funds .
financial prospects. As such, this year’s budget
includes one-time General Fund Reserve (GFR)
expenditures totaling about $3.7 million to
carry out such initiatives as the Las Tunas Drive
downtown revitalization project, Civic Center
Master Plan, General Plan Update and Las
Tunas Drive/Rosemead Boulevard Specific
Plan.
While some may express concern over
the GFR outlays, these investments are in
accord with our fiscal planning objectives of
maximizing available resources and fostering
long-term growth. Thanks in part to a tradition
of financial prudency, our community’s been
able to accumulate significant reserves that last
year was at 200 percent of our total operating
budget, when most cities are maintaining
a five to 25 percent level. And after this
year’s anticipated one-time appropriations,
our $17.5 million GFR will still be at 150
percent—meaning that even if we had zero
revenues, we’d still be able to sustain existing
levels of service for a year and a half.
Furthermore with interest rates currently low,
the choice between options is clear: keep
money in the bank on 0.5 percent yield, or
invest on initiatives that secure our community’s
future prospects. The planning initiatives
included in this year’s budget will not only
modernize local infrastructure, but also bring
GENERALFUNDRESERVE
Thanks to a combination of
financial prudency and favorable
interest rates in previous years,
the City was able to accumulate
a significant General Fund
Reserve (GFR) that last year
was at 200 percent of the total
operating budget, while most
cities maintain about a 5 to 25
percent level.
With interest rates currently low,
the City has taken a strategic
approach, investing money on
high-yield endeavors , such as
capital improvement projects
like the Rosemead Boulevard
and Las Tunas Drive streetscape
improvement plans.
This year, the City is expected to
appropriate about $3.7 million in
GFR money for planning initiatives
that invest in the community’s
future financial stability and
economic vitality.
After the one-time outlays, the GFR
will be at about $17.5 million —
still 150 percent of the operation
budget. Emergency reserves of
$4.5 million remain in tact.
our economy in alignment with the regional market, making Temple City
a more pleasant and desirable place to live, work and play; while also
naturally bolstering local sales and property tax revenues.
Ultimately, managing expenditures and investing in high-yield projects
will ensure the health of the City’s local revenues, enable our community
to remain competitive in the regional economy, and provide resources
that will allow us to sustain and improve public services.
BUDGET HIGHLIGHTS
The FY 2013-14 City Budget addresses a comprehensive set of issues
geared toward fostering a complete and well-rounded community. To
learn more about any of the following initiatives, call City Hall at (626)
285-2171, or email info@templecity.us.
Community Planning
Toward establishing a sustainable future for Temple City, the following
planning initiatives—some mandated by State law—are aimed at
updating infrastructure and modernizing our local economy to meet
community and market needs for the next generation and beyond. With
the recommendations of specific projects and programs from these
planning exercises, the City will also become eligible for a variety of new
funding opportunities.
General Plan Update
The General Plan sets a long-term vision
for the growth and development of the
community. While it is recommended for
jurisdictions to update their plans every 10
years to reflect community changes and
new laws—such as environmental and
transportation regulations—Temple City’s last
plan was completed in 1987.
Housing Element
Per State mandate, the City must update its
Housing Element every five years to identify
the community’s existing and projected
housing needs, as well as develop policies
and programs to address any shortfalls.
Five-Year Strategic Plan
With the many planning initiatives recently
completed and underway, the Strategic
Plan works with the public to determine
community priorities and establish a plan for
implementation.
Las Tunas/Rosemead Specific Plan
As a main sales tax-generating hub in
the City, the future of the properties in the
vicinity of the Las Tunas Drive/Rosemead
Boulevard intersection, is critical for our
local economy. This specific plan will set
guidelines for new development in alignment
with market trends and needs —including the
introduction of mixed-use design concepts
that will further strengthen the economic
potential of the area.
Civic Center Master Plan
A joint collaboration with adjacent property
owners, Los Angeles County and Temple
City Unified School District, will rejuvenate
the Civic Center area into a potential
private-public partnership (P3) project,
including a new City Hall, new library,
additional open spaces, and possibly even
revenue-generating rental office units.
Library Needs Assessment
This study surveys the community to identify
whether library needs are being met by
the County facility. Results will help inform
decisions made in regards to the upcoming
Civic Center Master Plan.
Parks and Open Space Master Plan
This in-progress plan identifies opportunities
for new parks facilities and programs to
meet the evolving needs of our growing
population and changing demographics.
Community Services
Continuing with our commitment to both streamlining and elevating
operations, this year’s budget includes the addition of new amenities,
a focus on cost-saving preventative maintenance and reevaluation of
existing contracts to ensure a high level of service to the community.
Pavement Management Plan (PMP)
The PMP takes a systematic approach to
roadway, curb and gutter, and sidewalk
maintenance that focuses on preventative
care, which not only promotes better system
performance, but also yields long-term cost-
savings.
Fixed-Route Transit
As part of ongoing efforts to elevate
service, the City has conducted a feasibility
and planning study to determine demand
for a potential community shuttle program.
Service Contracts
With the City’s agreement for public safety
services coming up for renewal, staff is
reevaluating the contract with the Los
Angeles Sheriff’s Department to ensure
quality service delivery.
Staff Support
With new planning initiatives and a new
core communications function, two new
full-time staff positions have been added
this year to provide additional staff and
customer service support in the Community
Development Department and the
Management Services Department.
Community Engagement
In exercising government transparency and responding to community
demand for civic engagement, the City in 2012 established the
Communications Office, adding public information as a core
community service.
Communications Program
With the Communications Office, the
City launched several brand-new tools
and programs to keep the community
informed, engaged and educated on
City projects. Such include the award-
winning Connect Magazine, social
media platforms, a website redesign and
a media release function.
Citizen’s Academy
For aspiring next-generation City
leaders and interested community
members, Citizen’s Academy provides
opportunities to learn about government
functions and procedures.
Complete Neighborhoods Initiative
Toward building community and
local pride, this initiative takes a
celebratory approach by encouraging
open dialogue between City Hall
and residents in inviting settings like
neighborhood block parties and
townhall meetings.
I hope this Budget-in-Brief has been an informative overview of
the FY 2013-14 Budget. With the coming year’s heavy focus on
community planning initiatives, I look forward to meeting and
collaborating with you to reimagine a new, brighter and more
modernized Temple City of tomorrow.
Sincerely,
Jose E. Pulido
City Manager
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