City Council Meeting: June 12, 2007
Agenda Item: 8-A
To: Mayor and
City Council
Chairperson and Housing Authority Members
Chairperson and Redevelopment Agency Members
Chairperson and Parking
Authority Members
From:
Subject: Adoption of the Fiscal Year 2007-08
Budget, Approval of Personnel Changes, Approval of Resolutions Adjusting and
Establishing Various Rates and Fees, Approval of Resolutions Establishing the
City's Gann Appropriations Limit for FY2007-08, Adopt the Final Proposed FY2007-10
Community Development Plan, Authorize the City Manager to Negotiate and Execute
Contracts and Lease Agreements with Human Service and Cultural Arts Grantees,
Authorize the City Manager to Execute a Modification to the Contract with
Community Partners, and Hold a Public Hearing and Approve an Amendment
to the FY2007-08 One-year Action Plan for the Community Development Block Grant
and HOME Funds.
Recommended
Actions
This report recommends that the City Council:
1. approve the resolution of the City of Santa Monica establishing new classification and adopting salary rates for various listed positions at Attachment C1 and approve the Position and Classification Changes at Attachment C2;
2. approve a resolution of the City of Santa Monica establishing
user fees for social service, recreational and community programs, classes and services
of the Department of Community and Cultural Services at Attachment D1;
3. approve a resolution of the City of
4. approve a resolution of the City of Santa Monica
setting the amount of rental to be charged for the use of Santa Monica
Municipal Airport property for hangar and light aircraft cover spaces,
tie-downs, aircraft parking, and overnight vehicle parking at Attachment D3;
5.
approve a resolution of the City of
6.
approve the
resolution of the City Council of the
City of
7. approve a change to the Bayside District expenditure
for FY2007-08 to include the $80,000 authorized by City Council on April 24,
2007 from a loan to ongoing support;
8. approve the Final
Proposed FY2007-10 Community Development (CD) Plan at Attachment G1 and the FY2007-08
Cultural Arts Grants Program at Attachment G2;
9. authorize the City
Manager to negotiate and execute grant contracts for grantees of the Community
Development Grant Program and Cultural Arts Organization Support Grant Program,
as shown in Attachments G1 and G2;
10. authorize the
City Manager to negotiate and execute lease agreements with social service
organizations using City facilities to provide social services under the
Community Development Plan, as shown in Attachment G1;
11. authorize the City Manager to execute a modification
to Contract No. 8583 (CCS) with Community Partners to extend the current term
of the contract through October 31, 2007 for the City’s Chronic Homeless
Program;
12. authorize the City Manager to negotiate and execute
the necessary Program Agreements regarding Crest Program, Middle School Program
and Playground Partnership, with the Santa Monica Malibu Unified School
District providing City and community access to school facilities, pursuant to
the City/District Master Facilities Use Agreement; and
13. hold a Public
Hearing and approve the Amendment to the FY2007-08 One-Year Action Plan for
Community Development Block Grant and HOME funds at Attachments G3.
This report recommends that the City Council, Housing Authority, Redevelopment Agency and Parking Authority:
1. approve the Resolution of the City Council of the
City of
2. approve the Resolution of the Housing Authority of
the City of
3. approve the Resolution of the Redevelopment Agency of
the City of Santa Monica Adopting its Budget for Fiscal Year 2007-08 at
Attachment E3, as amended by Attachment A to this report; and
4.
approve the
Resolution of the Parking Authority of the City of
Executive
Summary
This report presents information
and requests actions necessary to adopt the City of
Changes to the City’s Proposed Budget for FY2007-08 for all funds include an increase of $2.3 million in revenues primarily due to $1.9 million in grant revenues for the Big Blue Bus along with fee increases in Fire and Airport for $0.2 million and additional grant funding in Community & Cultural Services for $0.2 million. On the expenditure side, appropriations are increased by $2.2 million including increases in grant expenditure (Community Development Block Grant and Miscellaneous Grants) of $1.2 million, $0.9 from the Special Revenue Fund for the Traffic Signal Upgrade project approved by Council on May 8, 2007 and $0.1 in increases in various funds for employee classification and compensation adjustments.
Included in the changes above and presented for City Council review and
approval are identified changes to
compensation and position classifications for FY2007-08 (Attachments C1 and C2)
and changes to existing fees and charges, with resolutions for their implementation
(Attachments D1-D4), establishment of the FY2007-08 GANN limit (Attachments F1
and F2), and actions necessary to implement the City’s Community Development
Program including holding a Public Hearing to amend the Action Plan for
FY2007-08 (Attachment G3). The budget
reflects a set-aside of $529,779 for the
Discussion
Background
The City Charter requires that the City Council adopt an annual budget,
following a public hearing, on or before June 30 for the ensuing fiscal
year. The budget to be adopted is
presented to City Council by the City Manager at least 35 days prior to the
start of the fiscal year in the form of a Proposed Budget.
During the City Council budget workshops on May 22, 23, and 24, Council
heard presentations on the Proposed Budget by the City Manager and each
department. Based on the information
presented, Council members asked questions and made comments regarding the
Proposed Budget. In response to the questions
asked, departments are responding in a separate Information Item that will be
sent to Council and posted on the web site.
Proposed Budget Revisions – General Fund and Capital
Project Fund
In addition to responding to questions, modifications to the Proposed
Budget are needed in response to new information and identified omissions. The Proposed Budget General Fund and Capital
Projects Fund, which is funded by the General Fund, changes are as follows:
1. FY2007-08
General Fund and Capital Projects Fund Revenue Revisions from Proposed Budget
On May 22, 2007, City Council approved the
False Alarm Fee as proposed by the Fire Department. The revenues from this fee were not reflected
in the Proposed Budget. $28,800 is added
to reflect the Council action.
2. FY2007-08
General Fund and Capital Projects Fund Expenditure Revisions from Proposed
Budget
Expenditures changes from the Proposed
FY2007-08 General Fund and Capital Project Fund budgets of $245,793,597 reduce the amount by $24,303 for a total budget of $245,463,178.
Changes that do not impact the Undesignated /
Unreserved Fund Balance in the General Fund, include appropriation of $250,000
to fund modifications to accommodate feeding programs at the
Changes that impact the fund balance include a
correction to the FY2007-08 Council Contingency amount to reflect an increase
of CPI ($2,500) and an increase in the Cultural Arts Program ($60,000) to
support Jazz on the Lawn and activities to implement the Creative Capital Plan.
3. FY2007-08
General Fund and Capital Project Fund Balance Sheet Revisions from Proposed
Budget
Balance sheet changes reflect an additional
$529,779 is set-aside as a designation for the SMMUSD Facilities Use Agreement off-set
by a $250,000 in funds released from the Environmental Mitigation designation
for accommodation of the feeding program.
The impact of the changes to the General Fund balance is as follows:
GENERAL FUND and CAPITAL PROJECTS FUND
|
|
Initial Proposed FY 2007/08 Budget |
|
Recommended
Budget
Changes |
|
Final Proposed FY 2007/08 Budget |
|||
|
7/1/07 Estimated
Actual Fund Balance |
$ |
23,900,000
|
|
$ |
192,976 |
|
$ |
24,092,976 |
|
Plus Revenues |
|
245,793,597 |
|
|
28,800 |
|
|
245,822,397 |
|
Less Expenditures |
|
(245,487,481) |
|
|
24,303 |
|
|
(245,463,178) |
|
Balance Sheet
Changes |
|
(1,139,025) |
|
|
(279,779) |
|
|
(1,418,804) |
|
6/30/08 Budgeted
Fund Balance |
$ |
23,067,091 |
|
$ |
(33,700) |
|
$ |
23,033,389 |
The original Proposed Budget provided approximately $306,000 in
unallocated General Fund revenue. With
the changes identified, correction for funds not available for use and
adjustments to the Unreserved / Undesignated Fund Balance funds available for
allocation are $347,300.
Available
Funds
Proposed Budget $ 306,000
Proposed Budget Changes (
33,700)
Interest Income 75,000
Available Funds
$ 347,300
Proposed Budget Revisions – Non-General Funds
1. FY2007-08
Non-General Fund Revenue Revisions from Proposed Budget
Other funds reflecting revenue changes include
an increase of $122,290 for increased fees at the Airport and $2,135,395 in
additional grant funds: Community Development Block Grants ($140,685), Homeless
Grant carryover ($44,810) and Big Blue Bus TDA funds ($1,949,900).
2. FY2007-08
Non-General Fund Expenditure Revisions from Proposed Budget
Expenditures changes in other funds include additional appropriations for funding of employee compensation and classification position changes in the Beach Fund ($27,144), Water Fund ($9,464), Solid Waste Management Fund ($6,777), Wastewater Fund ($10,718) and Worker Compensation Self-Insurance Fund ($6,960). Non-personnel changes in other funds include: increase in the Special Projects Fund for additional appropriation for the Traffic Signal Upgrade Capital Project ($900,000), increase in the Beach Fund Supply & Expense budget ($25,000), increases in CDBG grant ($697,852), and Miscellaneous Grants ($513,830) reimbursements.
Proposed Budget Revisions – FY2008-09 Budget Plan
Administrative changes to the FY2008-09 Budget Plan are presented in Attachment B. They reflect the second year impacts of changes made to the FY2007-08 Proposed Budget, additional technical budget adjustments and changes to better reflect the priorities and needs expressed by Council and the community during the budget process as they impact FY2008-09. Included in these changes is the increase in the Bayside District funding to reflect $200,000 in ongoing support.
Personnel Changes
As part of the budget process, proposed classification and compensation changes were reviewed by the Human Resources Department. Resulting classification and salary changes will be incorporated into the FY2007-08 Budget upon Council adoption of the resolution and approval of the adjustments at Attachments C1 and C2.
Adjusting and Establishing Various Fees
Community & Cultural Services
The Department of Community and Cultural
Services offers a wide variety of programs and activities for seniors, adults,
young children, youth and teens. City staff is proposing the following
fee changes:
· Increase fees in the CREST after school program in order to be consistent with School Board rates for services for before and after school care, which increased by 5% in February 1, 2007.
· Cost of living adjustment to the Lawn Bowling Club hourly fee.
· Deleting the $10 fee for Hotel reservations for tennis courts.
· Including an existing Ball Machine Fee of $10 / Hour.
·
New
hourly staffing fee for
·
New Adult
Soccer League Team fees for activities taking place at
· Reduction in non-resident fees at The Cove Skatepark to better correspond with park use.
The Community and Cultural Services Department also establishes fees for the use of community and recreational facilities. Attachment D2 proposes modifications to the existing fees including:
· Cost of living adjustments to the Park Building and Ken Edwards Center rental rates.
· Sports facility rates are also adjusted for cost for living increases plus existing rates consolidation in this resolution for outdoor basketball courts, sand volley ball courts and half gym usage of Memorial Gym.
· Deletion of Commercial Filming hourly rates, while the daily rate is maintained.
Airport
The Airport provides a variety of aircraft lease space including hangars, light aircraft covers and tie-downs plus overnight and monthly automobile parking. Based on an independent appraisal of rates and charges at other comparable airports, these lease rates are increased by resolution shown at Attachment D3.
The
· Funeral Service – Gravesite
· Funeral Service – Mausoleum
· Re-filing of Disposition (Burial) Permits
· Administrative Services
· Use of Facilities
These rates are established or modified by resolution at Attachment D4.
Budget Resolutions
Approving the resolutions at Attachment E1 - E4, will: a) adopt the FY2007-08 Budget revenue at the account level, operating expenditure appropriations at the Salaries and Wages and Supplies and Expenses (including Capital Outlay) major expenditure categories within a fund for each department, and capital improvements within a fund; b) re-appropriate funds from FY2006-07 into FY2007-08 for: continuing capital projects (not to exceed $59,846,287) and the Disaster Relief Fund (not to exceed $10,761,166), and c) authorize staff to roll over appropriations for multi-year operating grants not completed at the end of the fiscal year, unspent donations dedicated to programs, and the encumbrances for goods and services purchased by FY2006-07 year-end but not delivered or provided until FY2007-08.
GANN Appropriations Limit
State law places limits on the amount of Santa Monica’s General Fund appropriations that can be made without voter approval based on growth in Santa Monica (population and non-residential assessed valuation). This restriction was placed in effect in November 1979 with the approval of Proposition 4, commonly known as the (Paul) Gann Initiative.
The City’s Gann Appropriations Limit for FY2007-08 is $672,203,138. A comparison of the City's FY2007-08 Gann Appropriations Limit and FY2007-08 appropriations and tax proceeds subject to limitation as set forth in the City's Proposed FY2007-08 Budget is as follows:
Proposed Gann-related Spending for FY2007-08
|
|
Total |
|
Gann Limit Appropriations Subject to Limitation |
$672,203,138 133,534,008 |
|
Net Under/(Over) |
$538,669,130 |
Proposed Gann-related Tax Proceeds Spending
for FY2007-08
|
|
Total |
|
Gann Limit Revenues Subject to Limitation |
$672,203,138 152,266,865 |
|
Net Under/(Over) |
$519,936,273 |
FY2007-08 appropriations subject to limitation are $538,669,130 less than the City’s Gann Appropriations Limit. In terms of receipt of tax proceeds, the City is $519,936,273 under the Gann Limit. A resolution to establish the City's FY2007-08 Gann Appropriations Limit at $672,203,138 is at Attachment F1.
Community &
Cultural Services - Human Services &
Cultural Arts Programs
Community
Development and Cultural Arts Grants
Every three years the Community and Cultural Services Department solicits funding requests from local social service and arts organizations for programs benefiting the community. Funding requests are evaluated based on Council Adopted funding rationale and budget priorities along with identified needs from recent evaluations of human service programs and identified needs and priorities identified through the Community Voices 2006. Program awards made in the first year are increased by a cost-of-living factor in the next two years.
Attachments G1 and G2 show the grant amounts by agency and program. Broad category amounts include:
In addition, one-time capital grants are proposed totaling $730,000: $320,000 in the Child and Youth Services category, $330,000 in the Homeless Services category, and $80,000 in the Coordinated Marketing category.
Community
Partners Contract Extension
On April 25,
2006, the Council authorized the City Manager to negotiate and execute a
professional services agreement with Community Partners for the expansion for
the City’s Chronic Homeless Program.
Community Partners supports a case management team and administers the operating
budget for the team through funds provided by the City. The term of the agreement expires on June 30,
2007; however, the work for the City will not be completed until October 31,
2007 when the team will transition to
FY2007-08
Amended One-Year Action Plan for Community Development Block Grant (CDBG) and
HOME Funds
On May 8, 2007, Council held a public hearing and approved the FY2007-08 One-Year Action Plan for federal CDBG and HOME funds. The Action Plan delineates the City’s specific projects and activities for one-year of the City entitlement funds from these federal programs. The One-Year Action Plan is designed to meet the community needs as identified in the Consolidated Plan (FY2005-10), adopted by City Council and submitted to the Department of Housing and Urban Development in June 2005. The amendment to the plan adopted in May is necessary in order to reallocate CDBG entitlement funds to new projects and to amending funding for existing projects. The Amendment is shown at Attachment G3.
Budget/Financial Impact
Adoption
of the Proposed Budget as amended by Attachments A through G3 will establish FY2007-08
budget for the City’s programs and services.
Attachments:
A: Revisions to the Proposed FY2007-08 Revenue
Estimates and Budget Appropriations
B: Administrative Adjustments to the FY2008-09 Budget
Plan
C1: Resolution Revising Salaries for Various Positions
C2: Listing of Position and Classification Changes
D1: Resolution of the City Council of the City of
Santa Monica, California Establishing User Fees for Social Service,
Recreational and Community Programs, Classes and Services of the Department of
Community and Cultural Services
D2: Resolution of the City Council of the City of
Santa Monica Setting the Amount of Fees to be Charged for the Use of Community
and Recreational Facilities Operated by the Community and Cultural Services
Department, for Rental of Civic Auditorium Parking Spaces and for the Use of
Barnard Way Beach Parking Lot
D3: Resolution of the City Council of the City of
Santa Monica Setting the Amount of Rental to be Charged for the Use of Santa
Monica Municipal Airport Property for Hangar and Light Aircraft Cover Spaces,
Tie-Downs, Aircraft Parking and Overnight Vehicle Parking
D4: Resolution of the City Council of the City of
E1: Resolution of City Council Approving its Budget for
Fiscal Year 2007-08
E3: Resolution of the Redevelopment Agency Approving its
Budget for Fiscal Year 2007-08
E4: Resolution of the Parking Authority Approving its
Budget for Fiscal Year 2007-08
F1: Resolution of the City Council of the City of Santa
Monica Establishing the Gann Appropriations Limit for the Fiscal Year 2007-08
F2: City of Santa Monica Calculation of FY2007-08 Gann
Appropriations Limit
G1: FY2007-10 Community Development Plan and Grants
G2: FY2007-08 Cultural Arts Grants
G3: Amendment to the FY2007-08 One-Year Action Plan for
Community Development Block Grant and HOME Funds
Prepared by:
Janet Shelton, Budget
Manager
|
Approved: |
|
Forwarded
to Council: |
|
|
|
|
|
Carol
Swindell, Director of Finance |
|
P. City Manager |