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Home My WebLink About2008-12-09 - AGENDA REPORTS - FY 2008 2009 MID-YEAR BUDGET (2)Agenda Item: cCJC%2PA 2— CITY CITY OF SANTA CLARITA JOINT CITY COUNCIL / REDEVELOPMENT AGENCY AGENDA REPORT City Manager Approval: NEW BUSINESS Item to be presented by: Darren Hernandez DATE: December 9, 2008 SUBJECT: FISCAL YEAR 2008-2009 MID -YEAR BUDGET ADJUSTMENTS DEPARTMENT: Administrative Services RECOMMENDED ACTION City Council: Authorize adjustments to fiscal year 2008-09 budgeted expenditures, revenues, and capital projects in the amount specified in Attachment A, and adopt a Resolution providing for Compensation of the Employees of the City. Redevelopment Agency: Authorize adjustments to fiscal year 2008-09 budgeted expenditures and revenues in the amounts specified in Attachment A. BACKGROUND As the organization approaches the middle of the fiscal year, City staff evaluates the adopted budget, revenue projections, and the economic conditions for the remainder of the fiscal year. It is standard procedure to perform a mid -year review of the City's budgetary and financial position to ensure any deviations from the initial budget projections are proactively addressed. Staff also reviews requests for appropriations to address new priorities which are unfunded or underfunded. Recommended mid -year revenue adjustments total $32,535,645. By fund, the revenue adjustments are as follows: General Fund - $ 3,123,125 Gas Tax Fund $ 3,222,753 AdOpl o So Oc-- to (o Traffic Safety Fund - $ 712,685 Various Grant Funds $ 4,137,077 Various Transit Funds $11,650,854 Eastside Bridge & Thoroughfare District - $ 1,038,000 Via Princessa Bridge & Thoroughfare District $ 12,780 Valencia Bridge & Thoroughfare District $17,170,899 Developer Fee Fund $ 917,878 Special Districts - $ 261,124 Debt Service Funds $ 710,738 Redevelopment Agency -.$ 152,400 Total Proposed Revenue Adjustments $32,535,645 In the General Fund, recommended revenue adjustments include decreases of $1,579,314 in Sales Tax; $303,651 in Property Tax; $169,391 in Property Tax in Lieu of Vehicle License Fees; $417,605 in Vehicle License Fee; $331,588 in Real Property Transfer Tax; $75,730 in Development Revenues; $35,000 in Franchise Fees; $85,700 in Recreation Fees; and $556,734 in Transfers In. Increases in the General Fund totaling $431,588 include revenue adjustments for various grant reimbursements and an increase in False Alarm Fees. Whereas the initial projections for the revenues were projected estimates, the revised amounts are based on actual data which is currently available. Recommended revenue adjustments related to the Gas Tax Fund include an appropriation of $2,633,691, in Prop 1B funds and $750,799 for Highway User Tax funds that the State had suspended in the prior year and has since resumed. Also recommended is a reduction of $161,737 in Proposition 42 funds as a result of revised estimates from the State. A decrease is recommended in the Traffic Safety Fund in the amount of $712,685, due to the County's recent adjustment to the apportionment formula which reduces the amount disbursed to cities. The recommended revenue adjustments related to Various Grant Funds include increases for a federal grant in the amount of $1,019,753 for construction of the Santa Clara River Commuter Trail; HBRR funds amounting to $1,745,520 for the following three projects: 1) Sierra Highway over the Railroad Bridge, 2) Bouquet over Santa Clara River Bridge Widening, and 3) the Bridge Preventive Maintenance Program; and other grant funds totaling $300,025 for the Bouquet Canyon Creek Restoration, the River Plant Removal project, and the Safe Routes to School improvements. Also included is a federal grant for $480,000 for the Golden Valley Road Bridge over the Santa Clara River. Recommended Transit Funds revenue adjustments include Proposition C grant allocations in the amount of $4,387,761 for the I-5/Magic Mountain Interchange improvement project, 'the Sierra Highway over the Railroad Bridge improvements, and the Signal Synchronization Gap Closure project. Also included are proposed revisions to various grants related to bus procurements and Route 8, a fuel rebate from the Internal Revenue Service, and increases to farebox revenue projections based on increased ridership. A combined increase of $16,145,679 is recommended in the Bridge and Thoroughfare Districts. The most significant increase is in the Valencia Bridge and Thoroughfare District to reflect the reimbursement to the City by Newhall Land and Farming related to the I-5/Magic Mountain Interchange improvement project. Recommended revenue adjustments in the Developer Fee Fund are being budgeted to reflect funds already received for currently budgeted capital projects in the fund. Recommended adjustments in the Special Districts Funds are to correct the revenue budgets to reflect revised projected activity levels based on currently available data. These districts include the Santa Clarita Lighting District and the Stormwater Utility Fund. In the Redevelopment Agency, the total recommended adjustment decreasing revenue by $152,400 is to revise the revenue projection based on the actual amounts to be collected by the Agency. Recommended mid -year expenditure adjustments total $5,514,719. By fund, these Expenditure Adjustments are as follows: General Fund $ 419,150 Gas Tax Fund - $ 27,239 Traffic Safety Fund - $ 712,685 Various Grant Funds - $ 304,897 Various Transit Funds $ 5,928,806 Special Districts $ 884,263 Self -Insurance Fund $ 600,000 Debt Service Funds $ 356,826 Redevelopment Agency - $ 1,608,812 Various Miscellaneous Funds - $ 20,693 Total Proposed Expenditure Adjustments $ 5,514,719 In the General Fund, recommended expenditure adjustments include $34,000 for the Extreme Neighborhood Makeover Block Party Program; $50,000 for the Tour of California; and $50,000 for the financial audit of the waste haulers, which will be completely offset by reimbursement from the waste haulers. The recommended Transit Funds expenditure adjustment include a net increase of $561,928 to fund base transit operations under the new transit operator and an increase of $2,309,886 to correct the funding source for the Newhall Streetscape improvements. Also included are proposed adjustments to Transfers Out as they relate to these increases. The recommended expenditure adjustment includes $350,000 in the Park Dedication Fund (Quimby) for additional bleachers near the swimming pool at the Santa Clarita Sports Complex; $138,548 in Transfers Out of the Library Facilities Fund to continue reimbursement to the General Fund for the construction of the Canyon Country Library; $353,913 in debt service adjustments related to the Open Space Preservation District; and $40,000 for phase one of the Citywide Stormwater Fee Update. ' The recommended expenditure adjustment in the Self -Insurance Fund amounting to $600,000 is to continue the CEMEX opposition efforts. Attachment A details the proposed mid -year expenditure and revenue adjustments. ALTERNATIVE ACTIONS Other action as determined by the City Council/Redevelopment Agency. FISCAL IMPACT Adoption of the mid -year adjustments will increase the estimated revenues for all funds in the amount of $32,535,645 and budgeted expenditures in the amount of $5,514,719. ATTACHMENTS Resolution - Providing for Compensation of the Employees of the City 2008-09 Mid -Year Requests - Attachment A RESOLUTION NO. 08- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, PROVIDING FOR COMPENSATION OF THE EMPLOYEES OF THE CITY WHEREAS, Section 37206 of the Government Code requires the City Council to prescribe the time and method of paying salaries, wages and benefits for employees of the City; and WHEREAS, the City Council has authorized and directed, under provisions of the Municipal Code of the City of Santa Clarita, Section 2.080.060, the City" Manager to prepare a proposed salary plan for all employees of the City. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Santa Clarita as follows: SECTION 1. Salaries adopted for all unrepresented regular, represented regular, and part-time, temporary, and seasonal employees for the 2009 calendar year be increased by 2.0% by the City Council effective the second pay day in January 2009. SECTION 2. The employee benefit program is hereby amended to include the following change for unrepresented and represented employees effective the first pay day in January 2009: Current Benefit Benefit Change Cafeteria Plan $971.96/month Increase to $1,006.26/month SECTION 3. All prior resolutions and parts of resolutions in conflict with this resolution are hereby rescinded. SECTION 4. The City Clerk shall certify to the adoption of this Resolution. PASSED, APPROVED, AND ADOPTED this 9 th day of December, 2008. MAYOR ATTEST: CITY CLERK RESOLUTION NO. 08 - STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES )ss. CITY OF SANTA CLARITA ) I, Sharon L. Dawson, CMC, City Clerk of the City of Santa Clarita, do hereby certify that the foregoing resolution was duly adopted by the City Council of the City of Santa Clarita at a regular meeting thereof, held on the 9th day of December, 2008, by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: 2 CITY CLERK