1. City of Rialto Midyear Changes Budget-Fiscal Year 2008/2009
Council Presentation – Feb 24, 2009

2. Overview of documents Staff report
Resolutions & Exhibits – City, RUA & RDA
Summary by Fund
December Interim Financial Report
Staff report provides provide information on key changes being recommended
Resolutions and exhibits include the detail line items being adjusted
Summary by Fund provides information on the resources available, the impact of the budget and midyear adjustments and then show the ending available resources
December Interim – financial report of revenues and expenditures for six months ended December 31, It does not include the midyear transactions.

3. State Budget Impacts State budget – finally approved
RDA takeaway of $1.3 million still in it
Reimbursement of Mandated costs being differed
Local Public safety programs will no longer be funded by General Fund but through the increase in Vehicle License Fee
Prop 42 – fully funded at base level
State budget approved last week
Rialto – did not count on mandated costs due to instability of State budget
Public Safety – restricted funds – not in GF
Prop 42 – transportation funds – restricted funds – not in GF – At time midyear was prepared, funding from the State was on hold. It appears that the City will get some funding.
State budget approved after this report was completed and filed with the Clerk.

4. Federal Impacts – Federal Stimulus Package
Approximately $750-billion Economic Stimulus Package
Estimated $26 billion into California
($9.2 billion expected directly to the state treasury,
mostly for education and healthcare, in the next 18 months)
Purpose – To bring work and jobs immediately -
Intended to create or save jobs across the country
To focus on “shovel ready” projects
(building the highways, bridges, transit and rail systems,
and renewable energy sources)
City benefit
CDBG, HOME housing program, transportation, & Public Safety/Homeland Security
City benefit – distribution methods still unknown or similar to process currently followed (CDBG, JAG)
These programs do not fund General Fund activities but are vital in helping with the infrastructure of the City or with providing Public Safety supplemental funds for equipment and technology needed

5. Midyear Adjustments – General Fund
Strategies to balance the budget
Frozen most vacant positions
Departments reduced spending
Benefit of one time revenues
Result – Balanced budget for FY09
Reserves established for FY10 budget stabilization
(includes recently approved PRO)
Decrease for frozen positions & MOU adjustments ($1.6)
30 positions temporarily frozen (20 in GF)
Still some positions being recruited – 7
Vacant but in Recruitment                                               7
            Asst Eng – Public Works           1
            Police Officer                             2
            Dispatcher                                 1
            Office Assts                              2
Firefighter                                  1
Additional positions that were to be filled were-    4 part time Parking Officers (these were being offset with revenue)
Total Position (does not include part time)                   460   
            All departments Vacancies                                 37
            All department – frozen positions                        30
Of Frozen positions
                        General Fund                                         20
                        Other Funds                                          10

6. Midyear Adjustments – General Fund
Reduction in on going revenues $1,574,138
(economic impacts)
Offset by reduction in expenditures $1,641,101
(vacant positions, department cuts, Fire budget incr)
Increase from One time revenue sources $2,109,840
(Caltrans/freeway property transaction)
Offset by increases for one time expenditures/reserves $2,100,910
Revenues – net increase $ 535,702
On going revenues reduced to reflect current trends
UUT, sales tax, VLF, CAP
One time source increase – exchange of properties with Caltrans
In May of agenda item Caltrans properties settlement agreement freeway project
Total value of the exchanged parcels was at $4.8mil
The disposal of asset created a gain for the City of $1.6 for Gen Fund
And RDA received $1.7m on this transaction
Expenditures – net decrease $459,809
Decrease for frozen positions & MOU adjustments ($1.6)
Increase for overtime & Staffing Augmentation for Fire - $ 825 k
Departmental reductions & trend adjustments- with a net $813k
All departments made great efforts in reducing expenditures with over one and quarter million in reductions ($1.25m)

7. Midyear Adjustments – Other Funds
Revenues –
Major decreases in impact fees, building permits, investment income
(i.e. Engineering and Development Services $1,537,131)
Increases in Property Taxes
Expenditures –
Major decreases – Capital projects based on new revenues
Departmental adjustments based on trends
Major adjustments based on trends in development related revenues
Meeting with HDL on Monday regarding property taxes. Still benefiting from assessed values from Projections for upcoming years will show a decrease as properties are sold for lower values and assessments are challenged
Additional comments on Dev Svcs…economy tanked faster than expected. Staff has been moved to other departments to fill needs

8. Looking Forward to FY10 GF Challenges in FY10
Revenue losses due to economy (5%)
Projected increases in expenditures (5%)
Until on going revenues improve:
Continue with frozen vacancies
Departmental reductions
Utilize reserves established in FY09

9. Looking forward
Maximize Federal Stimulus package infrastructure $$ for our local community
Continue capital projects with special revenues & grants
Pursue revenue options to protect progress of the past and momentum into the future
The Federal Stimulus Package as well as the New State Budget will most definitely have impacts on our budget and spending.
What we know so far is of the billions of dollars in the Stimulus package
California might see approximately $26 billion
Of those dollars about 13 billion might make it down to Cities;
The target for these funds are projects that are ready to go
To stimulate the job market and get Americans back to work.

10. Recommendation
Approve the budget resolutions amending the Fiscal Year 2008/2009 budget for the City of Rialto, Rialto Utility Authority and the Rialto Redevelopment Agency.