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

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, 2008. It does not include the midyear transactions.

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.

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

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

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 2008 agenda item Caltrans properties settlement agreement - 210 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)

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 2007. 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

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

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.

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.