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Council Meeting February 25, 1997 Santa Momca, Cahfornia
TO Mayor and City Council
Chairperson and Housmg Authority Members
Chairperson and Parking Authonty Members
FROM CIty Staff
SUBJECT RecommendatIon to Conduct FY1996-97 MId-Year Budget RevIew and
Adopt AssocIated Budget and Fee Changes
Introduction
This report provides a mid-year review of the 1996-97 budget, recommends technical,
personnel and fee changes and reports on progress on work objectives
Backaround
The mId-year budget revIew IS an opportUnity to assess the status of the adopted budget
and make necessary course corrections In addition to revIewing projected revenues and
expendrtures after SIX months of operations, staff evaluates progress on collaborative and
departmental objectives RevIsions to the adopted budget are recommended based on
thiS analysIs and the availability of the latest InformatIon and data
DISCUSSion
A summary review of all funds IS at ExhIbIt A. There WIll be no slgmficant change In any
fund balance as a result of the actions proposed In thIS report The Impact on the General
Fund balance of the recommended budget changes, prevIously adopted budget changes
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FEB 2 5 1997
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and the projected transfer of $3 8 mIllion to augment the set-asIde for constructIon of the
Pubhc Safety FacIlity IS shown below
$ 147 - Audited beginning Fund Balance for FY1996-97
1333 - FY1996-97 Estimated Actual Revenue
( 124 4) - FY1996-97 Revised Expenditure Budget*
( 49) - FY1996-97 Revised Net Balance Sheet Transfers**
( :,3 8) - Projected Transfer to Public Safety FacIlity Construction Reserve
$ 149 - Projected Ending Fund Balance for FY1996-97
* Reflects adopted budget for FY1996-97, Council approved changes through
12/31/96, changes recommended by thiS report, less reappropnated capital which
IS financed from other designated reserves
** Reflects adopted budget for FY1996-97 and changes recommended In thiS report
Details of the previously approved budget actions and the mid-year analysIs of revenues
are contained In Exhibit B
As IS the City'S practice, an analysIs Will be prepared at the end of the fiscal year to IdentIfy
changes in any of the fund balances as well as any final expenditure savmgs or budget
reVISIons that are necessary
Operating Budget Review - Recommended budget transactions are outlined In Exhibits
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C, D and E Revenue adjustments will more accurately reflect grant funds the City wIll
receive dunng the fiscal year These revenue changes are necessary so that
corresponding expenditures can be InitIated
In addItion to proposed techmcal adjustments, a number of sIgnificant expenditure budget
changes are recommended
. A proposed $125,000 loan from the General Fund to the Pier Fund to replace
$75,000 of underreahzed lease revenue and to make a $50,000 loan to the PRe for
enhanced Pier marketing and facIlity planmng
. ServIce Improvements by the Big Blue Bus will be faCIlitated by the addition of 15
motor coach operators and assocIated support staff Those Improvements are
outlined In a separate Item to be considered on thiS agenda
. Budget changes are also proposed to strengthen mternal servIces to support
Important City InitIatives ThiS report recommends the additIon of 4 staff positIons
In Personnel and Information Systems, to better support the organization's use of
technology and to speed the recruitment and selection of qualified staff
Departmental Program Performance Review - Staff also revIewed departmental
program performance and collaborative objectives With the exception of work objectives
listed at Exhibit F, all collaborative and departmental work: objectives and performance
measures are on target
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Capital Improvement Projects (CIP) Review - A CIP Status report as of
December 31, 1996 accompanies this staff report It presents Information on project
ImplementatIon, financial status, management responsibility and changes In the scope or
cost of project work authonzed All projects authonzed In the FY 1996-97 revised budget
are listed, as well as those projects from pnor years which were not completed by June 30,
1996
Personnel Actions - Included at Exhibit G IS a resolutIon revIsing salaries for vanous
posItIons These salary changes result from an analysIs of similar posItions In comparable
CItIes and Internal equity factors The cost of these changes Will be absorbed In the
eXisting budget
Also at Exhibit G IS a listing of new positions and reclassifications which have been
revIewed and approved by the CIty Manager, Personnel Director and Personnel Board as
well as reclassifications which have already been approved by Council but which only need
to be Incorporated Into the FY 1996-97 City budget at thIS tIme No appropnatlon change
IS reqUired to Implement any of these changes
Purchases Required to be Reported to Council Pursuant to Ordinance #1743 - City
procurement procedures require competItIve biddIng, but also authorize the City Manager
to secure necessary resources on an expedited basIs If an emergency anses, or If It IS In
the mterest of pubhc health and safety If the City Manager exercises thiS authonty, It must
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be reported to the Council Applicable purchases since July 1, 1996 are listed at Exhibit I
Fee Increase for Adult Rides on Carousel - Approval of the resolution at ExhIbIt J wIll
Implement the recommendatIon of the PRC to Increase the fee for adult carousel ndes from
$ 50 to $1 00 This fee has not changed since 1986, and the Increase will enable the
Carousel to be self-supporting The $1 00 fee would stili be slgmficantly below adult ndes
fees for all other carousels In the general area No budget actIon IS necessary because
the Increased fee was anticIpated when the FY 1996-97 budget was adopted
Recommendations
It IS recommended that the CIty CouncIl, Housing Authonty, and Parkmg Authority approve
the resolutions at Exhibit H which recommend the revenue and expenditure budget
changes noted In thiS report and the attached exhibIts Staff also recommends that the
City CounCil adopt the changes In lob claSsIfications and approve the salary resolution
contamed In ExhIbIt G, and approve the fee Increase resolution at ExhibIt J.
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Prepared By Susan McCarthy, Assistant City Manager
Mike Dennis, Director of Finance
Karen Bancroft, Director of Personnel
Ralph Bursey, City Treasurer/Revenue Manager
DavId Carr, AssIstant CIty Treasurer
John Karclc, Budget Manager
Joan Akins, Administrative Services Officer
Katie lIchtlg, Semor Management Analyst
EXHIBIT
A- FY 1996-97 Revenue and ExpendIture AnalysIs by Fund
B- FY 1996-97 RevIsions to Adopted Revenue and Expenditure Budget
(7/1/96-12/31/96) and FY 1996-97 Mid-Year Revenue AnalysIs
C- Proposed Changes to FY 1996-97 Revenue Budget
D- Summary of Proposed FY 1996-97 Appropnatlon Increases/(Reductlons)
E- Summary of FY 1996-97 Transfers ReqUiring City CounCil Approval (No
Net Budget Impact)
F- Exception Report on Work Objectives
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G- Resolution Containing Recommended Salary Changes for Certain
PosItions, and a Listing of PosItion ReclasSifications and Previously
Approved ReclaSSifications Requiring CounCil Approval for Incorporatlon
Into the Budget .-""
H- e .B~dget Resolutlon0
I - listing of Procurements ReqUired to be Reported Pursuant to Ordinance
#1743
J - A Rassk;tion of the CIty Cetm~!! ')f The City of Santa MOnica Revlsln~ The
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