City Has a $41-Million Budget—and Still $39 Million Socked Away

The delay—caused by heavy winter rains—is costing Laguna Niguel an extra $95,580. This expenditure is in addition to the $41-million budget passed this week.

It's an expense the city can handle—since it has about $39 million in reserves. 

The budget for fiscal year 2011-12 that was approved by the City Council Tuesday night consists of $11.6 million for capital improvements and $29.4 million for the city operating budget.

The city’s operating budget includes salaries, benefits, utilities, rental fees, cell phone use and other items that remain relatively stable. Expenditures for capital improvements vary each year according to needs of the community.

Details of the Annual Capital Improvement Program

The budget will include funding for:

• Neighborhood parks, including $959,040

• Crown Valley Community Park: $801,500

• $108,000

• $10,000

• School field facility improvements: $220,000

• Streets and roads: $9,467,900

• Storm drain improvements: $10,000

Total expenditure: $11,576,440.

General Fund

The city will spend $41 million but still have an estimated general fund reserve of $39.5 million. It will be using $1 million of an operating contingency reserve to cover unanticipated revenue losses, spending increases and budget adjustments. 

During the 2011-12 fiscal year the city will use $206,164 from the roads capital fund for residential street resurfacing. The city will also use $721,000 from the general fund's "capital asset replacement" reserves. 

Notable Changes in the Budget

• Property tax revenue will increase $400,000 from original 2010-11 estimates.

• Sales tax revenue is estimated to increase $700,000 from 2010-11 levels.

• There will be a $93,500 increase in revenue from cell site leases. 

• The city will have a net savings of $301,000 with the termination of the current City Hall lease. 

Losses and Additional Expenditures

• Interest revenue is expected to decrease $507,000 because of lower yields from securities purchased by the city.

• Medical/dental/vision expenses will increase about $79,000.

• The budget will increase by $142,000 to cover increased Sheriff's Department contract costs.

• A part-time accountant will be upgraded to full time in the Finance Department at an additional annual cost of $58,000.

• A full-time maintenance worker will be hired for the new City Hall at an annual cost of $69,500.

On Tuesday the Council Also:

• Approved a two-month contract extension to C.W. Driver to allow completion of  the new City Hall, which now is expected to be Oct. 15 instead of late August.

• Discussed a request from the county to consider funding improvements to the additional one-half acre of unimproved land at the site of , which is under construction. The requested amount was $15,000 for design and up to $400,000 for construction. City Manager Tim Casey said the council approved funding for preliminary conceptual landscape plans for the site but did not commit to funding additional landscape improvements.

• Decided to require E-Verify enrollment for three upcoming park and landscape maintenance contracts that are due to expire Sept. 30. The three contracts are for sports park and facilities, synthetic sports turf and facilities and southern neighborhood parks and facilities. E-Verify is a program that allows employers to ensure that potential employees are legally eligible to work in the United States.