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Home My WebLink About2001-11-27 - AGENDA REPORTS - MID YEAR BUDGET REVIEW (2)CITY OF SANTA CLARITA AGENDA REPORT UNFINISHED BUSINESS City Manager Approval: Item to be presented by: George Caravalho DATE: November 27, 2001 SUBJECT: 2001-2002 MID -YEAR BUDGET REVIEW, EMPLOYEE COMPENSATION, AND LOAN TO THE REDEVELOPMENT AGENCY DEPARTMENT: City Manager RECOMMENDED ACTION City Council receive report and comment regarding Fiscal Year 2001-02 mid -year budget adjustments, and direct staff to return December 11 for final approval. BACKGROUND Each year at this time, City staff takes the opportunity to evaluate the adopted budget and evaluate the economic outlook for the remainder of the year. It is critical to perform the mid -year review of the budgetary and financial position to ensure that any deviations from the initial budget projections are addressed in a manner which is proactive rather than reactive. It is also at this time that staff reviews its priorities and requests appropriations for activities that have become a priority, but are currently not funded. As you know, the State's economy has experienced a slowdown. Current estimates are the State is anticipating a $12-14 billion deficit. While we have not yet experienced any direct impact of the slower economy, it is highly likely our revenues will be impacted in the coming year. At the time the Fiscal Year 2001-02 budget was adopted, the ending General Fund balance was estimated to be $106,000. After the year-end process, the ending General Fund balance for Fiscal Year 2001-02 was increased by $1,278,000. This increase is due to expenditure savings and higher than anticipated revenues. Attachment A provides a fund balance analysis for the General Fund and some detail of the proposed mid -year revenues and expenditures. Staff is proposing that General Fund revenues be adjusted upward by $1,156,000. The increase includes adjustments to property tax and vehicle in -lieu fees, based upon recent estimates from the County and State. There is also an increase in developer -related revenues, based upon a change in the fee structure that was adopted earlier this year and became effective October 1, 2001. Agenda Item 2001-2002 MID -YEAR BUDGET ADJUSTMENT AND RESOLUTIONS November 27, 2001 — Page 2 After reviewing all programs, staff is proposing to increase General Fund expenditures by $1,489,613. This increase in expenditures includes a transfer from fund balance of $500,000 to the Facilities Replacement fund to replenish the funds used to help purchase the 38 -acre parkland. It is also recommended the $1.5 million open space reserve funds be transferred into the Facilities Replacement fund. Staff is also requesting an increase in attorney costs in the amount of $793,000. Two hundred and fifty thousand ($250,000) is for TMC and is being requested from the TMC/Elsmere reserve account. The remaining $543,000 is for Porta Bella legal costs and to help fund rising attorney costs in the self-insurance fund related to the Gillespie & Jones cases. It is being requested that a loan from the City to the Redevelopment Agency, in the amount of $150,000, be approved to help fund the increase in expenditures that will be used to fund the Newhall Facade Improvement Program. The current loan to the Redevelopment Agency does not provide sufficient funding to accomplish the goals directed by the Council/Agency. Approval of this loan brings the total loan from the City of Santa Clarita to $3,395,000. This is also the time when City Council considers providing a cost -of -living adjustment to City employee salaries. Discussions are currently ongoing between the Human Resources Department, City Council, and the employees. A recommendation will be brought before City Council at the next Council Meeting. ALTERNATIVE ACTION Other action as determined by the City Council. FISCAL IMPACT For all funds, the revenues are projected to increase by $11,121,722, and expenditures are proposed to increase by $4,380,431. If approved, the projected ending General Fund balance at June 30, 2002 is $1,050,462. ATTACHMENTS Attachment A — General Fund — Fund Balance Analysis Attachment B — All Funds - Mid -Year Expenditure Adjustment Summary Detail of Expenditure Adjustments (Available in City Clerk's reading file.) Detail of Revenue Adjustments (Available in City Clerk's reading file.) GAC:DS:hds council\my01-02 CITY OF SANTA CLARITA General Fund - Statement of Fund Balance Proposed Midyear Budget Adjustments Fiscal Year 2001-02 2001-02 2001-02 Actual Midyear Budaet Adiustmen RESOURCES Revenues Property Tax 6,138,000 6,300,000 Sales Tax 20,400,000 20,400,000 Other Taxes/Revenue 8,637,260 8,667,250 St Motor Vehicle in Lieu 7,430,110 8,000,000 Development Revenues 5,063,475 5,250,000 Parks Rec. 2,241,845 2,348,340 Subtotal Revenues 49,910,690 50,965,590 Transfers & Reimbursements Transfers In 3,766,360 3,867,460 Overhead Reimbursements 999,155 999,155 Other Financing Sources TOTAL RESOURCES EXPENDITURES Current Operating: City Manager 4,730,888 4,996,883 Administrative Services 4,944,323 4,988,823 Planning & Building Services 5,646,407 5,858,352 Transportation & Engin. Svcs. 4,376,620 4,376,620 Field Services 5,099,086 5,151,231 Public Safety 11,158,773 11,234,928 Parks & Recreation 11,573,737 11,795,887 Debt Service: Debt Service 1,822,835 1,822,835 Capital Projects: j 29,367,917 29,364,640 Attachment A Page 1 fundbalmdyrdan - agendaxls CITY OF SANTA CLARITA General Fund - Statement of Fund Balance Proposed Midyear Budget Adjustments Fiscal Year 2001-02 2001-02 2001-02 Actual Midyear Budaet Adiustmen Transfers Out (to Self Insurance) 125,000 465,000 Transfers Out (to Gas Tax) 250,000 250,000 Transfers Out (to Stormwater - GIS) 249,155 249,155 Transfers Out (Other) 42,420 2,053,420 Prop A Exchange Total Expenditures 79,387,160 82,607,773 FUND BALANCE RESERVES: Attachment A Page 2 fundbalmdyrdan - agenda.xls Summary of Proposed Mid -year Adjustments FY 2001-02 Operating Capital Total Distribution by Fund Revenue Expenditures Expenditures Net General Fund 1,156,000 1,467,890 (3,277) (308,613) CDBG - 34,646 246,000 (280,646) Gas Tax 107,350 6,075 - 101,275 Prop C 431,405 - 13,023 418,382 Prop A 364,270 (2,395) 366,665 Bridge & Thoroughfare Funds 1,925,992 178,924 1,747,068 Landscape Maintenance District (299,395) 30,000 - (329,395) Miscellaneous Grants (14,425) 295,775 (10,982) (299,218) Storm Water Fund 17,075 170,945 (153,870) Transit 4,616,115 119,000 2,284,704 2,212,411 Redevelopment Agency 102,135 150,000 (47,865) Facilities Replacement 2,000,000 - 2,000,000 Other Funds 715,200 491,100 (1,090,804) 1,314,904 11,121,722 2,765,431 1,615,193 6,741,098 Attachment B Page 1 City of Santa Clarita Detail of Expenditure Adjustment Requests for All Funds Midyear 2001-02 I PBS Legal Services 140,000 Porta Bella Legal Expenses - SCLLC vs SC and PERK vs SC (development areement Transit Legal Services 50,000 Porta Bella Legal - Metrolink eminent domain Risk M mt - Attorney Service 340,000 Gillespie & Jones Stormwater - Attorney Services 13,000 NPDES & SUSMP TMC Opposition 250,000 Additional funding for legal services, legislative advocacy and environmental consulting for TMC opposition. Funds to be taken from the TMC/Elsmere Reserve TMC/Elsmere Reserve 250,000 To fund additional TMC Legal Costs Professional services 11,700 Additional, unbudgeted costs due to Union negotiation process Contractual Services 25,000 For Temp covering vacant HR Tech Salaries 25,000 To Fund Temporary Human Resources Position Membership & Dues 4,295 City Manager's membership to the League of California Cities has increased due to new services. Tom city managers utnce 558,995 Page 1 Senior Center (30) Adjust budget from fiscal year 99-01 roll over to align budget with consolidated plan. Single Mothers Outreach (1,284) Adjust budget from fiscal year 99-01 roll over to align bud et with consolidated plan. Housing Rehab Program 35,960 Approved in the CDBG Annual Plan but not put into the 2001-2002 Budget. Funds can be drawn from the balance remaining in the Treasury account. Taxes/Licenses/Fees 5,000 The number of users accessing the Internet has grown to approximately 250. The City currently only has 150 Internet monitoring licenses. The cost to add an additional 100 licenses is approximately $5,000. An alternative option is to replace the existing system with a new and improved system with up to 500 licenses for the same cost. Technology Services would like to upgrade to the news stem. This is an ongoing budget request. Taxes/Licenses/Fees 5,000 Over the past few years, the number of users accessing the Network and the GroupWise e-mail system has increased by 77. This increase is due to new positions as well as temporary employees being added to the Network. As new positions are added to the City the cost of these ongoing licenses and maintenance are not included as an ongoing budget item for Technology services. This year's software licenses audit revealed the deficiency in licenses and the additional expenditure of approximately $5,000. This is an ongoing bud et request. Special Supplies 3,000 Increase is for new monitors that were approved but not added to the budget Equipment 28,500 Increase is for new computers that were approved butnot added tothe budget Special Supplies 3,000 Increase is for new phone money that was approved but not added to the ]get. Page 1 City of Santa Clarita Detail of Expenditure Adjustment Requests for All Funds Midyear 2001-02 Total Admin Services inspection Services 71,945 Plan check and inspection services: Need is for 507 hours of inspection services x $45 per/hour ($22,815). Also, 279 hours of consulting services from Wildan for inspection services x $70 per hour ($19,530). And 280 hours of data maintenance hours x $45 per/hour ($12,600). Revenues generated are expected of offset expenditures Total Planning and Building Services oiai i ransporcation a engineering 119,000 SLIMMENHWANN Electric Utility 50,000 Based upon expenditures for the first quarter of FY 01-02 staff estimates that expenditures for the Equipment 27,700 remaining portion of the current fiscal year will Contractual Services 19,995 exceed the budget by approximately $40,000 to Contractual Services 50,000 $50,000 . Sufficient anticipated revenues for FY Contractual Services 50,000 01/02 as well as adequate SCLD fund balance are Maintenance of Bridgeport assessment 23,000 available to fund this request. Contractual Services 69,000 In FY 00/01, the Hart School District operated two high school buses to provide service to students. Pursuant to the MOU renewed between the City and the District in 2000, the City agreed to compensate Street Sweeping 134,945 the District for the operation of these two buses. Due to the delay in receiving invoices for these reimbursements from the District and an oversight on staff's part to encumber funds for this need, payment has not been remitted to the District for these services. At this time adequate funds do not exist in the current budget to make this payment owed to the district. oiai i ransporcation a engineering 119,000 vaai nein oervices 254,090 Page 2 Contractual Services 48,450 Maintenance of four new parks and Phase II of Central Park Equipment 27,700 Vehicle for Field Services Supervisor Contractual Services 19,995 One Part-time Temp employee for 6 months Contractual Services 50,000 Correct fundinq for the Urban Forestry Grant. Contractual Services 50,000 IMoved from General Fund Maintenance of Bridgeport assessment 23,000 This is a special assessment on the property owners for the maintenance of specific drainage structures not maintained by L.A. County per a development agreement with NLF. This will be an annual expenditure offset bv revenues Street Sweeping 134,945 Additional Funds required as previously reported to Council, for street sweeping services. Additional costs are a result of annexations, new developments, state highway relinquishments and new NPDES regulations imposed upon the City. Funds are available in the Storm Water Utilitv Fund. vaai nein oervices 254,090 Page 2 City of Santa Clarita Detail of Expenditure Adjustment Requests for All Funds Midyear 2001-02 i otat Parks a Recreation 497,925 RDA 150,000 I IThe Newhall Fagade Improvement program has received several requests from local businesses for fagade improvements. Without these additional funds these improvements are not nossihle. Page 3 Services 35,155 Temporary Admin Analyst Services 25,000 Contract inspectors are needed on several high profile Capital Improvement Projects ervices 7CowboyPoetry 30,000 Added maintenance in White's Canyon Medians. (Offset by Revenue 2,350 Replacement of spinal injury backboards, EX ups and foldingchairs Aquatics 3,500 Re lacement of Parkas and Swimsuits ry 1,000 Increased printing due to two additional shows at IMelody Ranch and the Cowboy Fashion Show Cowboy Poetry 5,000 Increase needed due to the addition of the Cowboy Fashion Show and expansion of City Merchandise Cowboy Poetry 2,875 Rental of the Canyon theater for the Cowboy Fashion Show Cowboy Poetry 30,425 Increase needed due to the expansion of the festival venues, including Friday Night Dance, Children's Performer Area, Cowboy fashion Show, Cowboy Casino, and the two additional ticketed performances at Melody Ranch. Items include additional shuttle buses, electricians, sound equipment, additional portable restrooms, generators, lights and performer fees Excursions 1,645 Increase due to the expansion of the Rose Parade and an extra Dodger night scheduled in this FY Contract Classes 93,000 JAdjustment to bring account closer to revenue Adult sports 15,000 Increase needed due to an addition of youth sports cam s. Offset by Revenues Youth Sports 7,200 rease need due to conversion of independent tractors (game officials) under 18 to temporary 5ployees JTPA Grant (164,425) Workforce Investment Act allocations approved by the Antelope Valley Workforce Development Consortium are lower than originally anticipated. hanges are required due to revenue adjustment Welfare to Work 100,000 Addition needed for Welfare to Work program - all expenditures will be offset by revenues COPS 310,200 Allocate expenditures for Citizens option for Public Safety i otat Parks a Recreation 497,925 RDA 150,000 I IThe Newhall Fagade Improvement program has received several requests from local businesses for fagade improvements. Without these additional funds these improvements are not nossihle. Page 3 City of Santa Clarita Detail of Expenditure Adjustment Requests for All Funds Midyear 2001-02 i otai other items 1,034,330 Grand Total 2,765,431 Page 4 CLEEP Expenditures 76,155 Appropriate funds for first payment of LA Regional Crime Information System (LARCIS). CLEEP Funds were received in the Prior Year for this item. Transfers Out 101,100 Close out Fund 451 Transfer Out 6,075 Increase Transfer to Stormwater fund for street sweeping Transfer Out 11,000 Increase Transfer to Stormwater fund for street swee in Transfer Out 340,000Increase Transfers to Self Insurance Fund to cover Transfer Out 1,500,000 Transfer to Facilities Fund to replace money spent on purchase of 38 Acres Open Space Reserve (1,500,000) ITo replenish funds taken from the Facilities Re lacement Fund to purchase the 38 Acres Transfer Out 500,000 Transfer to Facilities Fund to replace money sent i otai other items 1,034,330 Grand Total 2,765,431 Page 4 Detail of CIP Adjustments Mid -Year FY 2001-02 C0017001 Traffic Signal Conversion 108,259 To correct funding to actual available from FY 00-01 F1003001 City Hall Space Improvements 1,683 To correct funding to actual available from FY 00-01 F1007001 Remodel City Hall Chambers 1,692 To correct funding to actual available from FY 00-01 F3007001 Sorts Complex Bldg. #1 24,699 To correct funding to actual available from FY 00-01 F3009001 S.C. Aquatics Center 30,733 To correct funding to actual available from FY 00-01 F4001001 Central Park Office Bldg. 300 To correct funding to actual available from FY 00-01 P4003001 Pam lico Park Development 413 To correct funding to actual available from FY 00-01 S3004001 IVP - Cla borne to Magic Mtn 348 To correct funding to actual available from FY 00-01 F3010001 Property Purchase 374,008 Move Funds for grading of 12 acres S3008001 Golden Valley Road Phase III 374,008 Appropriation of funds derived from the 12 -acre property purchase to support the construction of Golden Valley Road Phase III. T1007001 McBean Transfer Station 100,000 Increase budget to reflect reimbursement of CIAC tax paid by the City. (This item is offset by revenue) F2002103 Rail Station Parking Expansion (1,413,000) Correct Funding Source for this project M0020103 2001-02 Overlay Program (600,000) Budget adjustment to reflect revised availability of STPL Funding. S2040104 West Newhall 108 46,000 Appropriation of funds to provide for the close out the project, S3013104 Scherzinger Lane 200,000 Project was approved in the CDBG Annual Plan but not put into the 2001-2002 Bud et. S3005109 Cross Valley Connector 475,000 Correct Funding from Fund 212 F0003205 Transit Maintenance Facility 2,567 To correct funding to actual available from FY 00-01 83002205 Whites Canyon Beautification 5,000 To correct funding to actual available from FY 00-01 T0014205 Pedestrian Access to Bus Stops 5,456 To correct funding to actual available from FY 00-01 F0003206 Transit Maintenance Facility 3,058 To correct funding to actual available from FY 00-01 F2002206 Rail Station Parking Expansion 1,143 To correct funding to actual available from FY 00-01 S2001206 Jan Heidt Metro Link Station 4,310 To correct funding to actual available from FY 00-01 P0010210 River Park Program 82,804 To correct funding to actual available from FY 00-01 S1001212 Cross Valley Connector 475,000 Correct Funding Source to Fund 109 P0005213 Acquisition of Open Space 1,000,000 Amount was incorrectly Budgeted S1035301 B USC River Bride Widening 820,113 To correct funding to actual available from FY 00-01 C3001302 Golden Valley @ Sierra Signal 1,027 To correct funding to actual available from FY 00-01 C3002302 Golden Valley Road Interim Traffic SOI (1,200,000) To correct duplicate B&T Funds that were appropriated durin the budget process. S3008302 Golden Valley Road Phase III 272,018 $272,018.34 represents project savings made available in FY 2000/01 from the Golden Valley Road Phase I Project (S3016302) that were not appropriated during the FY 2001/02 budget process. Appropriation of these funds into FY 2001/02 will provide additional funding to support Golden Valley Road Phase III. S3008302 Golden Valley Road Phase III 1,925,992 Appropriation of funds derived from the 12 -acre property purchase to support the construction of Golden Valley Road Phase III. S4002453 Haskell Bride Widening 10,982 To correct funding to actual available from FY 00-01 S2036457 Placeritos Sewer Install 5,000 To correct funding to actual available from FY 00-01 F0003801 Transit Maintenance Facility 960,139 To correct funding to actual available from FY 00-01 Page 5 Detail of CIP Adjustments Mid -Year FY 2001-02 F2002801 Rail Station Parking Expansion 1,413,000 Correct Funding from Fund 103 T0014801 Pedestrian Access to Bus Stops 93,250 Budget ad'ustment to correct fund appropriation. T1007801 McBean Transfer Station 4,815 To correct funding to actual available from FY 00-01 501-2367 Santa Clarita Facilities Foundation 2,000,000 As part of the Golden Valley Road Phase III Project Exp. Acct the City is making a loan to the Santa Clarita Facilities Foundation to cover shared costs associated with this project. The establishment of this account will allow City staff to track all Foundation related expenditures. Total Capital Projects 1,615,193 Page 6 City of Santa Clarita Revenue Budget Adjustments Mid -Year 2001-02 Fund Account Description Adjustment 001 4011 Property Tax 162,000 001 4025 Business License 11,800 001 4111 Tentative Maps (1,215) 001 4114 Conditional Use Permit 7,480 001 4115 Temp. Use Permits 2,055 001 4116 Oak Tree Permits 5,010 001 4117 Hillside Review 1,900 001 4118 Variance App. Fee 6,975 001 4119 Adjustments 745 001 4120 Minor Use Permits 1,005 001 4121 Home Occ. Permits (2,690) 001 4212 Electrical Permits 14,595 001 4213 Plumbing Permits 21,545 001 4214 Mechanical Permits (19,100) 001 4216 Sewer Permits 2,710 001 4217 Building Permits 69,495 001 4221 Permit Issuance 4,690 001 4251 Final Subdivision Map 27,800 001 4252 Street Vacation (1,500) 001 4253 Certificate of Compliance 1,180 001 4311 Vehicle Code Fees (41,845) 001 4451 Rental Income 17,825 001 5001 Vehicle In -Lieu 569,890 001 5004 Off Hwy (870) 001 5159 Urban Forestry Grant (50,000) 001 6011 General Plan Amendment (2,935) 001 6013 Pre -App Reviews (7,030) 001 6014 Initial Studies (5,440) 001 6015 Development Agreements (7,000) 001 6016 Zone Change Fee 5,845 001 6017 Pre -Zone Change Fee (8,000) 001 6018 Annexations (7,500) 001 6019 Plot Plan Fees (13,955) 001 6020 Appeal Fees 70 001 6102 Building Plan Check 76,445 001 6103 Building Code Enforcement (12,500) 001 6104 Zone Code Enforcement 8,340 001 6105 Planning Final Inspection (14,900) 001 6106 Record Searches (600) 001 6108 Record Maintenance 8,340 001 6110 Temp/Dup Certificate of occupancy 1,285 001 6111 Substandard Prop Appeals (500) 001 6112 Misc. Plan Check 555 001 6113 Construction Act. Report (125) 001 6123 Easement Document Review 1,250 001 6131 Sewer Inspection 34,750 001 6132 Street Inspection (20,000) 001 6133 Storm Drain Inspection (20,000) 001 6134 Traffic Signal Inspection 17,375 Page 1 City of Santa Clarita Revenue Budget Adjustments Mid -Year 2001-02 Fund Account Description Adjustment 001 6142 Street Plan Check 20,850 001 6143 Storm Drain Plan Check (24,000) 001 6144 Traffic Signal Plan Check 13,900 001 6147 Water Plan Check (5,000) 001 6148 Grading Plan Check 6,950 001 6159 Lot Line Adjustments 17,375 001 6164 Grading Soils/Geo Deposit (20,000) 001 6202 False Alarm Charges (7,390) 001 6355 Notary Service (800) 001 6358 Copies - City Clerk 2,000 001 6359 Council Agendas (860) 001 6362 Document Cert. 130 001 6415 Excursions 1,895 001 6425 Adult Sports 15,000 001 6431 Contract Classes 50,000 001 6714 Misc. Revenues 100,000 001 6810 Funding available from 451 101,100 001 64112 Cowboy Poetry ticket Sales 35,500 001 64113 Ticket Sales - Community Partners 100 001 64125 City Merchandise 4,000 Total General Fund 1,156,000 201 5122 2106 201 5123 2107 201 5124 2105 202 4311 204 5111 Traffic Safety TDA Article 8 4,705 66,805 35,840 (150,000) 215,000 205 5132 Prop C Local Return 17,100 205 5133 Transit Service Expansion 3,935 205 5134 Recession Prop C 405,350 205 5135 BSIP Revenues 990 205 5136 Foothill Transit Mitigation 4,030 206 5141 Prop A - Local Return 21,750 206 5142 Prop A - Discretionary 284,120 206 5143 Prop A - Interest Revenue 57,575 206 5144 Specialized Transportation 825 211 5211 Citizen's Opinion for Public safety 310,200 302 6193 Eastside B&T 1,925,992 401 61815 LMD Zone #6 37,000 401 61810 T2 (10,130.00) 401 61811 T3 (9,155.00) 401 61812 T4 (7,080.00) Page 2 City of Santa Clarita Revenue Budget Adjustments Mid -Year 2001-02 Fund Account Description Adjustment 401 61813 T5 (9,940.00) 401 61815 Zone 6 30,250.00 401 61817 T6 (8,365.00) 401 61818 T7 (23,100.00) 401 61819 T9 4,825.00 401 6182 Zone (1,710.00) 401 61820 AWT1 47,565.00 401 61821 T8 (84,130.00) 401 61822 T10 (440.00) 401 61823 T17 (4,090.00) 401 61824 T29 (8,785.00) 401 61825 T30 (270.00) 401 61826 T31 (4,000.00) 401 61827 T42A 32,275.00 401 61828 T42B 43,755.00 401 6183 Zone 3 (3,600.00) 401 61830 Zone8 (1,080.00) 401 61831 Zone 9 (155.00) 401 61832 Zone 10 (205.00) 401 61833 T42C (6,260.00) 401 6184 Zone 4 (360.00) 401 6185 Zone 5 (13,955.00) 401 6186 T23 (97,175.00) 401 6187 T23A (32,620.00) 401 6188 T236 (11,520.00) 401 6189 T46 (156,940.00) 453 5012 Welfare to Work 100,000 453 5055 Workforce Investment (164,425) 453 5116 Department of Forestry Grant 50,000 456 6810 Transfer In 6,075 456 6810 Transfer in 11,000 602 6810 Transfer In 340,000 604 6810 Transfer In 1,500,000 604 6810 Transfer In 500,000 801 5210 Section 9 - Capital (279,845) 801 5214 Misc. Federal Grants 4,502,740 801 6304 Parking Lot Use Fees (20,000) 801 6305 Metrolink Transfers 13,220 801 6714 Misc. Revenues 400,000 901 4013 Tax Increment 102,135 Page 3