City Council Meeting: November
25, 2008
Agenda Item: 8-B
To: Mayor and City Council
Chairperson and Redevelopment Agency Members
From: Carol Swindell, Director of
Finance
Subject: Adoption of FY2008-09 Budget,
Personnel Changes, a Resolution Establishing Various New Classifications and Salary
Rates, and a Resolution Adopting a new Fee Schedule
Recommended
Action
Staff recommends that
City Council and the Redevelopment Agency:
1. Approve FY2008-09 budget changes as shown in Attachment A
Staff recommends that
City Council:
1. Adopt
a resolution revising salaries for various positions
in Attachment B; and
2. Approve personnel changes in Attachment C; and
3. Approve a resolution of the City of
Executive
Summary
Since the adoption of the
FY2008-09 Budget in June, some budget adjustments are necessary in both
revenues and expenditures. Included in
these changes are additional revenues and associated appropriations stemming
from a recent fee study conducted by the Planning and Community Development
Department in conjunction with the Finance Department. These amendments also include the transition
of the Utility Billing function from Public Works to the Finance Department. Additional changes include increased revenues
for tax increment receipts in the four redevelopment funds and adjustments in
grant funding from agencies including the National Park Service,
This report also requests
approval of personnel salary revisions based on classification and compensation
studies.
Discussion
Background
On June 17, 2008, the City Council adopted the FY2008-09
budget. Subsequent to that time,
additional information has become available that requires adjustments to the
adopted budget.
Revenue Increases:
$8,772,203
General Fund revenues were adjusted upward by $753,680 due to
increased revenues of $453,000 from the revised fee structure for Planning and Community
Development (see Attachment D1) and to reflect reimbursements of $300,680 for
Utility Billing services that will now be provided by the Finance Department
(General Fund).
The Special Revenue Fund was adjusted by $15,000 to reflect
projected increased revenues for the Commemoration and Tribute Program.
Adjustments made to the Redevelopment Funds (Low/ Moderate Income
Housing, Downtown, Earthquake Recovery and Ocean Park) totaled $7,737,000 to
reflect the latest assessed property value information received from Los
Angeles County.
Adjustments due to grant receipts include:
·
$100,000 from the National Park Service for Preserve America, a
cultural mapping project
·
$12,842 from
·
$73,655 from the California State Library for various programs,
including digitalization of local newspapers
·
$145,590 from the State for Citizens’ Option for Public Safety
(COPS)
Water
Fund revenues were reduced by $170,105 to reflect the transfer of Utility
Billing services to the Finance Department and Big Blue Bus revenues were
increased $58,551 to reflect adjustments for funding from MTA and Proposition
C.
Expenditure Increases:
$13,306,168
Grant Expenditures: The following grants require adjustments to the
adopted FY2008-09 budget are to properly reflect additional grant projects or
grant adjustments:
·
$100,000 for the Preserve America grants
·
$1,565,484 in Proposition A grants (MTA)
·
$79,200 in Proposition C grants
·
$73,655 in California State Library grants
·
$12,842 in Meals on Wheels grants
Special Restricted Funds: Based on ending fund balances at the end
of FY2007-08, additional appropriations can be made to projects in FY2008-09:
·
$657,155 to appropriate additional available housing funds (TORCA)
·
$3,934,712 appropriated in the Low/Moderate Income Housing Fund
·
$2,658,000 appropriated in the Earthquake Recovery Redevelopment
Fund for additional pass-throughs
FY2007-08 Reappropriations and Other Adjustments: Projects not complete at the end of the year
and carryover Council Contingency funds require appropriations from available
fund balance at the end of FY2007-08.
·
Council Contingency - $107,860
·
Community & Cultural Services appropriations of $139,234
carried over from the prior year for the Homeless Management Information System
and the Anti-Panhandling Campaign
·
An appropriation of $250,000 for LAFD Regional Dispatch payment
carried over from the prior year
·
An appropriation of $1,670,545 is included to reimburse the 415
PCH capital improvement project to reimburse mitigation of hazardous materials
and soil contamination
Personnel Changes
Included as Attachment B is a resolution revising and establishing
salaries for various positions. These
salary changes are based on salary surveys of similar positions in comparable
factors, taking into account internal alignment factors and maintaining at
least a 10% differential between a management or supervisory position and the
salary of the highest paid subordinate position. Attachment C is a list of position and
classification changes which have been reviewed and approved by the City
Manager, Human Resources Director and Personnel Board.
Actions which result in increases to individual General Fund
department budgets totaling $161,624 will be transferred from funds already
appropriated in the FY2008-09 Non-Departmental budget. Increases in other funds budget will be
absorbed at this time and re-evaluated at mid-year for additional funding, if
needed.
Planning and Community
Development Fee Study
A fee study was conducted to ascertain the current level of costs
being recaptured in Building and Safety, Planning, and Transportation
Management. This fee study assessed a
new structure that is designed to provide increased service to the Community
and included an additional four personnel in the Building and Safety Division
and one Environmental Planner in the City Planning/Development Review Division
in the Planning and Community Development Department to attain this
objective. Staff is cognizant of the
uncertainties presented by the current economic environment, however, and will
be vigilant to ensure that the proposed positions are phased in only when the
revenue impacts of the new fee schedule are recognized and validated. The new fee structure is estimated to
increase revenues by $453,000 in the remainder of the first year, or $1.1
million on an annual basis, while the cost of the new positions is estimated at
$247,348 for the last six months of this fiscal year, or $494,686 per
annum. The new fees will result in full
cost recovery with the exception of certain fees which Council desires to be
subsidized at levels below full cost absorption, i.e. landmark, solar, seismic retrofit
and single trade permits in residential.
The Building and Safety Division currently recovers approximately
83 percent of its costs and the proposed fee structure will increase fee
revenues by $220,000 in the remainder of the current fiscal year. The Division has shown measured success in
reducing wait times, streamlining plan check turnaround and improving response
to next day inspection requests.
Additional fees are requested to further improve efficiency, timelines
and quality in the Building Permit Review and Inspection process. These fees will fund the following:
1.
Two additional Building Inspectors will provide the capacity
necessary to perform next-day inspections.
2.
Two Permit Specialists will provide administrative support and
greater customer service in order to reduce wait time at the counter and manage
all of the building records.
3.
Implementation of the long awaited “paperless plan review system”
(electronic submittal of documents).
This will reduce plan check review time, reduce customer trips to City
Hall, and better manage the distribution and coordination of plans in the
Building Division, in addition to reducing the amount of paper required to
provide review by all Departments.
The Planning and Community Development has conducted extensive
outreach to stakeholders, including contractors, engineers, architects, and the
Santa Monica Chamber of Commerce.
Support for the proposed increased service levels has been considerable
and stakeholders have therefore, expressed an acceptance of the associated fees
in exchange for the commitment of improved service.
The Planning Division anticipates an increase in revenues of
$100,000 in the remaining months of the fiscal year after increasing cost
recovery from the current level of approximately 78 percent. In an effort to improve service levels and
provide higher quality coordination for the EIR process, the Planning fee
structure includes the addition of an Environmental Planner. This position will address the long
turnaround times for environmental analysis and will further afford the
Division the ability to conduct certain types of environmental analysis
internally, such as Class 32 studies and Negative Declarations.
Finally, the fee study found that Transportation Management fees
are recovering only 77 percent of costs, and the proposed fee structure will
increase revenues in this Division by $133,000 in the first year with no
increase in staffing.
Attachment D1 contains the new Master Fee Schedule.
Budget/Financial Impact
The requested FY2008-09 budget actions will amend the adopted
budget for various City funds as shown below:
Prepared
by:
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Approved: |
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Forwarded to Council: |
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Carol Swindell Director
of Finance |
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P. City
Manager |