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Home My WebLink About1992-02-11 - AGENDA REPORTS - MID YEAR BUDGET ADJUSTMENT (2)r CONSENT CALENDAR AGENDA REPORT I City Manager Approval Item to be presented by. George Caravalho DATE: February 11, 1991 SUBJECT: Mid Year Budget Adjustment DEPARTMENT: City Manager BACKGROUND Each year at this time, the City of Santa Clarita takes the opportunity to assess its budgetary condition. This year, given the present condition of the national and State economy, it is critical to continually monitor the City's budgetary and financial position. At this time, everyone is aware that the current recession has lingered far longer than economists projected. It is now thought that the recovery period, especially for the State of California, will continue to lag into the winter of 1992. A few of the most prominent areas cited for this continued lag are the weakness in the real estate market, as well as in employment, and retail sales throughout the State. Specifically, sales of existing homes, thought to springboard following the Gulf War, have not occurred. Permits for residential construction remain half of normal throughout the State,.reflecting the lack of buyer demand and the inability of developers to secure financing. Non residential construction permit valuations have fallen sharply. Vacancy rates have increased to 20Z in California and employment fell by 25,000 jobs.in November. With these conditions occurring throughout the State, Santa Clarita has now begun to feel the impact of this recession. Due to the weakening taxable sales, Santa Clarita's sales tax receipts have fallen off from those originally projected for this period. Projected on a yearly basis, it is assumed that total sales tax receipts for fiscal year end 1991-92 will reach $11.0 million, rather than the $12.2 estimated at budget preparation. This assumption is based on sales tax receipts to date as well as State and national projections of poor holiday sales. The economy has also had an impact on the.City's Motor Vehicle in Lieu fees. With car sales throughout the State weakening, registration fees have also declined. Furthermore, it is anticipated that the State will again cut subvention revenues to finance their budget shortfall. It is anticipated that Motor Vehicle in Lieu revenue will decrease $557,000 from the $5,561,000 initially budgeted. Additional revenues impacted by the State's present financial condition are Fines and Forfeitures and Cigarette tax. It is -anticipated that therewillbe a $270,000 and a $130,000 reduction in these revenue sources respectively. While a decrease is projected in those revenue sources indicated, the total impact is lessened by projected increases in the following revenue sources: Adopted.w Agenda Item: Page 2 Property Tax $100,000 Transient Occupancy Tax 130,000 Business License 50,000 Real Estate Transfer 175,000 Interest Income 140,000 Other 255.000 Total Increases.$850,000 The net impact of the anticipated reductions as well as increases to revenues is $1,395,000 of General Fund monies. In order to address this projected net revenue shortfall, and continue to present and maintain a balanced budget, it is recommended that the City Council make a corresponding decrease in appropriations this fiscal year. Presently, the Contingency Fund contains $963,000 for unforeseen expenditures. In addition, $1,500,000 has been budgeted for payment to the County for services required at incorporation. By utilizing $700,000 of the Contingency Fund, as well as $600,000 of the County appropriation, the revenue shortfall will be counteracted. The Contingency Fund will contain $263,000 to complete this fiscal year.. In addition, the $600.000 originally budgeted for the County will be re -budgeted for 1992-93. RECOMMENDATION That the City Council: I. Adjust the revenues referenced in Attachment A. 2. Adjust the Contingency Account and County appropriation to balance the 1991-92 operating budget. 3. Adopt Resolution 92-32 to reflect the mid year adjustment. ATTACHMENTS Revenue Summary Contingency Status Resolution 92-32 RESOLUTION NO. 92-32 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA.ADJUSTING THE ANNUAL BUDGET FOR FISCAL YEAR 1991-92 AND MAKING APPROPRIATIONS FOR THE AMOUNTS NOW SPECIFIED WHEREAS, a proposed annual budget for the City of Santa Clarita for the fiscal year commencing July 1, 1991, and ending June 30, 1992, was submitted to the City Council and is on file in the City Clerk's Office, and WHEREAS, proceedings for adoption of said budget were duly taken, and WHEREAS, due to an anticipated shortfall in revenues, the City Council has made certain revisions, corrections, and modifications to said adopted budget, and WHEREAS, the City Manager has caused the proposed .budget document to be corrected to reflect the changes ordered by the City Council specifying a $1,395,000 reduction in General Fund revenues and a corresponding reduction in previously adopted appropriations, NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA CLARITA DOES RESOLVE AS FOLLOWS: SECTION 1. This Resolution and the adjustment outlined are adopted as the Revised Annual Budget for the City of Santa Clarita for Fiscal Year commencing July 1, 1991, and ending June 30, 1992. SECTION 2. There is hereby appropriated to each account set forth in said budget, attached hereto and made a part hereof, the sum shown for such account in the adjustment, and the City Manager is authorized and empowered to expend such sum for the purpose of such account but no expenditure by any office or department for any item within an account will exceed the amount budgeted .therefore without prior approval of the City Manager. APPROVED AND ADOPTED this ATTEST: City Clerk of February, 1992. Mayor STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) as. CITY OF SANTA CLARITA ) I HEREBY CERTIFY that the foregoing Resolution was adopted by the City Council of the City of Santa Clarita, at a regular meeting thereof, held on the _ day of 1992, by ,the following vote of the Council AYES: COUNCIL14EMBERS NOES: COUNCILMEMBERS ABSENT: COUNCILMEMBERS City Clerk SPW 2461 REPRESENTATION OF 1991-92 CONTINGENCY ACCOUNT * Soledad Cyn at S.0 Bridge account will reimburse contingency with proceeds of bonds. REMAINING DEPARTMENT DATE ITEM AMOUNT TO ACCOUNT CONTINGENCY $1,500,000 Public Works 6/26 Pride Week 20,000 01-6600-101 $1,480,000 City Manager 6/25 Water Study 60,000 01-4100-230 $1,420,000 City Council 6/26 Film Liaison 30,000 01-4000-232 $1,390,000 Comm. Dev. 10/8 Soledad Cyn 350,000 25- *$1,040,000 Road Parks Admin. 11/12 Gang 77,000 01-9000-227 963,000 Prevention Mid Year 1/28 Offset 700,000 Various 263,000 Adjustment Revenue TOTAL CONTINGENCY REMAINING 1/28/92 $ 263,000 * Soledad Cyn at S.0 Bridge account will reimburse contingency with proceeds of bonds. CITY Of SANTA CLARITA REVENUE REVIEW AS 01 12/31/91 IY91-92 IY90-91 Increase E191-92 1 of Budget Estisated Tit 'Variance Erol Acct.No' Account Hale ..................................................... YTD Total YTD Total (Decrease) Budget Received Revenues 91.92 Budget 4 fix GENERAL YUND ............. .... -....... ............. ----------- -------•---•-- ••--••-------- 01-3000 Property Tax 2,066,087 1,345,341 120,746 3,801,435 54.351 3,900,926 99,491 01-3100 Sales and Use lax 41991,742 5,214,680 1222,9381 12,204,362 40.901 11,000,000 11,204,36:; 01-3110 T.O.T. 201,354 166,239 35, IIS 416,927 48.291 538,984 122,051 01-3120 franchises 163,484 148,942 14,542 1,866,500 8,761 1,765,081 1101,419! 01-3130 Business License 38,921 19,541 19,380 49,009 79.421 100,097 51,088 01-3140 Real Property Transfer Taz 200,955 86,695 114,263 181,193 110.911 353,800 172,607 SUB=TOTAL 7,662,546 6,981,438 681,108 18,519,426 41.381 17,658,888 1860,5381 LICENSES & PERMITS 01-3200 Subdivision Maps/Isprov. 217,814 217,329 485 454,218 47.951 454,218 0 01-3205 Street Vacation 1,100 0 1,100 0 0.001 1,100 1,100 01.3210 Highway Encroachsent 51,910 235,903 (183,993) 493,037 10,531 100,100 (392,9371 01-3215 Parade Perms 575 75 S00 0 0.001 1,100 1,100 01-3222 Ispraveseat and Upgrades 0 0 0 0 0.001 0 0 01-3230 Certificates of Cespliance 11860 494 1,366 2,180 85.321 2,900 720 01-3250 Building & Safety Persits 961,059 676,648 284,411 1,357,000 70.821 1,400,000 43,000 01-3265 Conditional Use Persits 52,520 36,470 16,050 107,555 48.831 105,040 (2,515) 01-3280 Oak free Persits 1,059 609 450 2,500 42,361 1,980 (5201 SUB -TOTAL 1,287,897 1,167,528 120,369 2,416,490 53,301 2,066;438 1350,0521 PINES, YORIEITURES & PENALTIES 01-3350 Drug forfeitures & Seizures 0 80,659 (80,659) 20,000 0.001 0 (20,000) SUB -TOTAL 0 80,659 (80,659) 20,000 0.001 0 (20,000) USE Of HONEY & PROPERTY 01-3400 Interest Iacose 570,164 830,740 (260,576) 1,000,000 57,021 1,822,111 922,111 01-3410 Reatal/City Hall Space 120 33,514 (33,394) 463,772 0.031 402,519 (61,252) SUB -TOTAL 570,284 864,254 (293,970) 1,463,771 38.961 2,224,630 760,859 REVENUE PROM OTHER AGENCIES 01-3500 State Motor Vehicle In-Lica 2,552,130 2,561,270 (9,140) 5,561,908 45,891 5,004,817 (557,0911 01-3510 frailer Coach in -Lieu 0 0 0 0 0.001 0 0 01.3520 Cigarette Tax 63,213 143,353 (80,140) 273,779 23.091 108,373 (165,4061 01-3530 Off -Highway license tax 1,343 1,407 (64) 2,941 45.661 2,680 (261) SUB -TOTAL 2,616,686 2,706,030 (89,344) 5,838,628 44,821 5,115,870 (722,758) CONTRACTOR CONTRIBUTIONS 01.3604 Contr.-Traffic Signals 0 0 0 0 0.001 0 O SUB -TOTAL 0 0 0 0 0.001 0 0 0 CHARGES ?OR CURRENT SERVICES 0 01-3710 Variance Application fees 1,300 3,855 (2,555) 10,375 12,531 0 (10,375) 01-3712 Zone Change fees 13,443 30,305 (16,862) 124,850 10.771 27,000 (97,850) 01-3713 Pre -Zone Change fees 0 3,230 (3,230) 47,500 0,001 0 (47,500) 01.3715 Sale of Maps & Publications 12,310 5,203 7,107 12,279 100.251 23,586 11,307 01-3720 Industrial Waste Inspection 34,127 0 34,127 41,300 82.631 41,300 0 01-3730 Plat Plan Pees 18,270 12,890 5,380 62,600 29.191 33,000 (29,600) 01-3735 Lot Line Adjustsent 480 2,610 (2,130) 6,161 7,791 1,000 (5,160) 01-3756 Landscape/Irrigation Plan Ck 1,155 0 1,155 0 0,001 2,000 2,000 _, , Acet.NO, Account Nast 01-3760 Parks 6 Rec. Use Fees 31.3110 Initial Studies 01-3771 Invironsental Ispact Report 01-3772 Archite.chtural Design Review 01-3775 Appeal Tees 01.3111 Oevelopsent Agreeseats 01-3790 Mobile Hose Registration Tee (Decrease) SOB -TOTAL CITY OF SANTA CLAIM 879,780 RIVINUI RIVIIW Risk Managesent Claiss Reish AS OF 12/31/91 01.3820 FY91-92 F790-91 Increase PTD Total YTD Total (Decrease) ----------- 361,520 ------------- ........... 331,346 27,174 25,680 19,690 5,990 0 (2,933) 2,933 800 0 800 2,790 (620) 3,410 13,788 0 13,788 60 0 60 488,723 411,576 77,147 TOTAL GINBRAL FORD RIVINUIS 12,638,316 12,215,380 1791.92 1 of Budget Istisated US Varian.e frac Budget Received Revenues 91-92 Budget 4 Y1S 761,075 OTHIR AIVBNUIS 879,780 118,105 01-3810 Risk Managesent Claiss Reish 0 0 01.3820 Miscellaneous Revenues 6,768 2,530 01-3821 Anniversary Tickets 0 0 01-3823 Teen Advisory Cassittee 3,254 388 01-3350 ?no on Wheels Donations 0 0 01.3852 Donations -Special Iveots 2,158 977 1,333,125 SUB -TOTAL 12,180 3,895 TOTAL GINBRAL FORD RIVINUIS 12,638,316 12,215,380 1791.92 1 of Budget Istisated US Varian.e frac Budget Received Revenues 91-92 Budget 4 Y1S 761,075 47.901 879,780 118,105 117,220 14.491 54,000 X133, 21', 0 0.001 0 0 0 0.001 Boo 330 3,720 75.001 4,600 BPO 62,046 22.221 27,000 (35,0461 24,000 0.25t 24,000 .0 1,333,125 36.661 1,118,066 1215,0591 0 0.001 0 0 4,238 7,000 96.691 8,400 1,430 0 0 0.001 0 0 2,866 0 0.001 8,800 3,200 0 0 0.001 ' 0 0 1,181 0 0.001 2,300 2,300 8,285 7,000 174.001 19,500 12,500 0 422,936 29,598,440 42.701 28,203,392 (11395,048)