Item CC/HA/PA/RA-1

Council Meeting: October 12, 1999 Santa Monica, California

 

 

TO: Mayor and City Council

Chairperson and Housing Authority Members

Chairperson and Redevelopment Agency Members

Chairperson and Parking Authority Members

FROM: City Staff

SUBJECT: Recommendation to adopt Fiscal Year 1998-99 and Fiscal Year 1999-00 budget changes and adopt a Resolution establishing various new classifications and salary rates

Introduction

This report recommends for Council action necessary year-end budget changes for FY 1998-99, and those additional changes necessary to implement the FY 1999-00 budget. This report also transmits to the Council for information a list of emergency purchases made under provisions of the City's municipal code, and the FY 1998-99 Year-End Departmental Performance Review and the Capital Improvements Program Status Report.

FY 1998-99 Revisions to the Adopted Revenue and Expenditure Budgets

Details of revenue and expenditure budget changes that occurred since January 1, 1999 are listed at Exhibit A.

FY 1998-99 Budget Changes

The only significant changes to the FY 1998-99 Revised Budget are in the Wastewater Fund for Hyperion settlement payments, in the Earthquake Recovery Redevelopment Project Fund for mandatory pass-through payments to other government agencies (which were a result of greater than anticipated tax increment revenues), and in the Workers= Compensation Fund for greater than anticipated benefit claim payouts. All other proposed changes are for relatively minor budget adjustments as described in Exhibit B. Other year-end budget changes, having no net impact on the budget, are necessary to ensure that departmental budgets are balanced to the major account group appropriation level within a department by fund. The reason for each recommended year-end budget change is indicated at Exhibit B.

Year-End Departmental Performance Review

The FY 1998-99 Year-End Departmental Performance Review, which indicates progress towards accomplishing all objectives and performance indicators, is hereby transmitted as a separate document for information.

Final FY 1998-99 Capital Improvements Program Status Report

Every six months, staff provides the City Council with a Capital Improvements Program Status Report. This report explains the program and financial status of each active City capital project. The status report for June 30, 1999 is hereby submitted as a separate document for information.

FY 1999-00 Budget Changes

Rather than wait until the FY 1999-00 Mid-Year Budget Review, various FY 1999-00 budget changes, detailed at Exhibit C, are now recommended. These changes are necessary to reflect information not available when the City's budget was adopted in June, 1999, and to make technical changes and corrections necessary for implementation of the FY 1999-00 Adopted Budget. These changes are consistent with the goals and objectives outlined in the 1999-00 adopted budget and include one-time support for the purchase of a permanent home for WISE and an increase in funding and staffing to improve custodial service and strengthen the plan check function.

Pending Allocations to Capital Improvement Programs

Approximately $3M in savings can be dedicated to unmet capital improvement needs. Underfunded projects which advance specifically stated Council objectives include crosswalk improvements at $1.45M, Parking Lot 9 improvements at $110K, Neilson Way permanent improvements at $650K, Municipal Pool underestimates at $350K and Virginia Avenue Park expansion at $1.75M. In addition, the original CIP recommendations left unfunded a number of meritorious projects including $240K for animal shelter repair and renovation, Ken Edwards Center repairs at $75K, Senior Center renovation at $750K and any augmentation of the land acquisition/improvements set-aside.

Budget/Financial Impact

The FY 1998-99 budget changes detailed at Exhibit B recognize actual expenditures incurred and will not significantly change estimated fund balance projections for June 30, 1999 as presented in the Adopted City Budget for FY 1999-00. Actual fund balances will be reported in conjunction with submission of the City's Comprehensive Annual Financial Report for FY 1998-99 in December, 1999.

The FY 1999-00 General Fund budget changes detailed at Exhibit C result in the projected General Fund 6/30/00 balance as shown below:

 

  

Adopted FY 1999-00 Budget

 

  

Changes

Revised
FY 1999-00 Budget

6/30/99 Estimated Actual Fund Balance, Including Year-End Savings

$16,000,000

 

$3,558,175

 

$19,558,175

 
 

Plus Revenues

 

  

164,593,887

 

  

0

 

  

164,593,887

 
 

Less Expenditures

 

  

190,737,569

 

  

865,254

 

  

191,602,823

 
 

Less Pending Allocations into Capital Improvements Program

 

  

0

 

  

3,058,175

 

  

3,058,175

 

Balance Sheet Transfers

 

26,458,446

 

0

 

26,458,446

 

 

6/30/00 Budgeted Fund Balance

 

  

$16,314,764

 

  

$(365,254)

 

  

$15,949,510

 

 

 

All other budget changes detailed at Exhibit C do not significantly change the projected June 30, 2000 fund balances as presented in the Adopted City Budget for FY 1999-00.

Personnel Actions

Included at Exhibit D is a resolution revising salaries for various positions. These salary changes result from an analysis of similar positions in comparable cities and internal equity factors. The cost of these changes will be absorbed in the existing budget.

Also at Exhibit D is a listing of position changes which have been reviewed and approved by the City Manager, Personnel Director and Personnel Board. No appropriation change is required to implement any of these changes.

Emergency Purchases

City procurement procedures require competitive bidding, but also authorize the City Manager to secure necessary resources on an expedited basis if an emergency arises, or if it is in the interest of public health and safety. If the City Manager exercises this emergency authority, it must be reported to the Council. All emergency purchases to be reported at this time are set forth at Exhibit E.

Recommendations

It is recommended that: a) the City Council, Housing Authority, Redevelopment Agency and Parking Authority approve the budget changes detailed in Exhibits B and C; and b) the City Council adopt Exhibit D establishing various new classifications and adopting various new salary rates.

 

 

 

Prepared by:

Susan McCarthy, Assistant City Manager

Mike Dennis, Director of Finance

Karen Bancroft, Director of Personnel

Ralph Bursey, Revenue Manager/Treasurer

Joan Akins, Administrative Services Officer

David Carr, Assistant Treasurer Katie Lichtig, Assistant to the City Manager

Karen Feinberg, Principal Budget Analyst

Gigi Decavalles-Hughes, Principal Budget Analyst

 

Attachments:

Exhibit A1
Exhibit A2
Exhibit A3
Previously Approved Revisions to FY 1998-99 Revenue and Expenditure Budgets for the Period 1/1/99 - 6/30/99, and Explanations of Previously Approved Changes

Exhibit B1
Exhibit B2
Summary of Proposed FY 1998-99 Revenue and Expenditure Budget Changes; and Summary of Proposed (No Net Budget Impact) FY 1998-99 Budget Changes Requiring City Council Approval

Exhibit C
Summary of Proposed FY 1999-00 Revenue and Expenditure Budget Changes

Exhibit D1
Exhibit D2
Resolution Revising Salaries for Various Positions; and a Listing of Position Changes

Exhibit E
Listing of Procurements Reported Pursuant to Ordinance #1743