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FIN CMD sd/f \frnance\budget\obbudrev\9899\ffnalchg\sradopt 99
Council Meeting June 23. 1998 Santa Monica, California
TO Mayor and City Council
Chairperson and Housmg Authonty Members
Chairperson and Redevelopment Agency Members
Chairperson and Parking Authonty Members
FROM CIty Staff
SUBJECT Adoption of the FY 1998-99 Budget
INTRODUCTION
The purposes of this report are to recommend for City Council approval
1) revISions at Exhibits A and B to the City Manager's Proposed Budget for FY 1998-99-
2) various position changes and compensation changes for FY 1998-99 at Exhibit C.
3) a program adjustment concernmg the reallocation of $682.680 of CDBG MERL funds to
Implement the two year program extension recently approved by the Federal Department of
Housing and Urban Development,
4) authorization for the CIty Manager to negotiate and execute agreements with the Santa
Monlca-Mallbu Unified School District for services related to the Implementation of CREST, and
5) adoption of resolutIons of the CIty CouncIl, the HousIng Authorrty, the Redevelopment Agency.
and the Parking Authority at Exhibit D approving FY 1998-99 budgets Including. where
necessary. reappropnatlon of funds for continuing capital projects. and reappropnatlon of the
Disaster Relief Fund Into FY 1998-99 from FY 1997-98
RECOMMENDED ACTIONS
1) RevIsions to the Proposed Budget
Exhibits A and B present reVISions to revenues and expendItures. respectively, as presented
In the Proposed Budget for FY 1998-99 These reVISions reflect techmcal
adJustments/corrections. and changes necessitated by more complete Information The
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JUN 2 3 81
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recommendations contamed In Exhibit B also Include budget reVISions which have no net
additional cost. but which will provide the staffIng needed to provide services at Virginia Avenue
Park for longer hours and the staffmg needed for continuation of the pilot animal control
program at Joslyn Park Readjustment of appropnatlons In other parts of the FY 1998-99
Proposed City Budget have allowed these additions to be made without a request for additional
funding A new CREST Program component named the "Playground Access Option" IS also
bemg proposed. to provide a more comprehensive selection of safe afterschool activities for
Santa MonIca children The annual cost of that program addition IS estimated to be $110.741,
which Includes a net expenditure budget Increase of $70.155 and a net revenue reduction of
540,586
The collaborative nature of the CREST Program results In an arrangement with the Santa
Momca-Mahbu Unified School District (SMMUSD) to proVide specifIed services In order to
Implement the CREST Program The City Will reimburse SMMUSD for the costs of
administration. registration and enrollment for City-run chlldcare options, PhYSical Activities
Specialists staffmg (jointly funded by the City and SMMUSD) for the City-run sports option,
specific program supplies and expenses costs. and fee SubSidies and scholarships. as noted
In the budget Information report which accompames thiS staff report To formalize thiS
arrangement. City staff recommends authorization of the City Manager to negotiate and
execute agreements with SMMUSD. In the amount of $236,894 for FY 1997-98 and $297,564
for FY 1998-99, for the provIsion of CREST Program-related services
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The Impact of all changes detailed at Exhibits A and B on the FY 1998-99 General Fund
balance IS summarized as follows
Initial Proposed Recommended Final Proposed
FY 1998-99 Budget Changes FY 1998-99 Budget
6/30/98 Estimated
Actual Fund Balance $ 14.500,000 $ -0- $ 14,500.000
Plus Revenues 151.762,086 (40.586) 151.721.500
Less ExpendItures 144,347.594 1.150,275 145,497.869
Balance Sheet
Changes (5.257.738) 761,661 (4.496.077)
6/30/99 Budgeted
Fund Balance $ 16.656.754 $(429.200) $16.227,554
The Impact of changes for all other funds IS also set forth In the attached Exhibits A and B
2) Personnel Changes
As part of the budget process. reclassification and compensation change requests were
reviewed by the Personnel Department In accordance with eXisting Administrative Instructions
Recommended reclassifications and salary changes Will be Incorporated Into the FY 1998-99
Budget upon Council adoption of the resolution and approval of the listed reclassifications at
Exhibit C Exhibit C also Identifies those position changes which are part of the expenditure
budget changes (Included In Exhibit B) for the Virginia Avenue Park service hours expansion
(1 4 FTE additional positions). the continuation of the Joslyn Park animal control program (2 5
FTE additional posItions). and Implementation of the CREST Program Playground Access
Option (4 0 FTE additional positions)
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3) Program Ad~ustment
On February 27. 1998. the Department of Housing and Urban Development (HUD) granted the
City of Santa MOnica a two-year extension for the expenditure of the CDBG earthquake
disaster (MERL) supplemental funds To operate the MERL Program over thiS period, It IS
necessary to reallocate $682.680 In previously committed loan funds which are not needed
anymore to the CDBG MERL Administration Account The funds were for projects that have
since been withdrawn or canceled, or they represent the balance of funds remaining on
completed projects
4) Budget Resolutions
By adoptlng the resolutions at Exhibit D the CouncIl will a) adopt the FY 1998-99 Budget
revenue at the account level. operating expenditure appropriations at the major account group
level within a fund for each department. and capital Improvements at the program category
level within a fund, and b) reappropnate funds for continuing capital projects and the Disaster
Relief Fund Into FY 1998-99 from FY 1997-98
RECOMMENDATIONS
It IS recommended that the City Council adopt the resolution at Exhibit C revIsing various salary
rates and approving the position changes listed. approve the program adjustment set forth above,
authorize the City Manager to negotiate and execute the preViously descnbed agreements with the
Santa MOnica - Mallbu Unified School District for the prOVIsion of CREST services, and that the City
CouncIl. HOUSing AuthOrity. Redevelopment Agency and Parking Authonty approve the resolutions
at Exhibit D adopting the Proposed FY 1998-99 Budget as amended by Exhibits A and B to thiS
staff re po rt
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Exhibits A - RevIsions to FY 1998-99 Proposed Revenue Estimates
B - ReVISIons to the Proposed FY 1998-99 Budget Appropnatlons
C - Salary Change Resolution and List of Position Changes
D - Budget Adoption Resolutions
Prepared by Susan McCarthy, Assistant City Manager
Katie Llchtlg, Senior Management Analyst
Mike Dennis. Fmance Director
Karen Bancroft. Director of Personnel
Ralph Bursey, Revenue ManagerfTreasurer
David Carr, ASSistant Revenue Manager
John Karclc, Budget Manager
Karen Feinberg. Senior Administrative Analyst
Glgl Decavalles-Hughes. Senior Administrative Analyst
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EXHIBIT A
EXHIBIT A
REVISIONS TO THE PROPOSED FY 1998-99
REVENUE ESTIMATES
Revised
Proposed Proposed
fund/Account Budaet Bud~~t Net Chana~ Explanation of Ch.an~e
General!CREST $347,178 $306,592 ($40,586) To reflect reVIsIOns to the CREST
afterschool program resulting
from addrt:lon ofthe "Playground
Access Option"
Miscellaneous Grants! $125,330 $124,960 ($370) To adjust estimate to actual grant
Sr Nutntlon Grant 3C award from Los Angeles County
MIscellaneous Grantsl $57,504 $57,335 ($169) To adjust estimate to actual grant
NutntlOn Income 3C award from Los Angeles County
Vehicle Management! $2,919,287 $2,922,287 $3,000 To reflect mamtenance costs for
Maintenance the addrt:lon of one vehicle In the
Parks & sports DIVIsion ($1,500)
and to correct onglnal revenue
estimate ($1,500)
Vehicle Management! $4,157,210 $4,198,710 $41,500 To reflect purchase cost
Replacement (IncludlOg depreciation) for the
addition of one vehicle In the
Parks & Sports DIVIsion
Computer $1,141,591 $1.147,489 $5,898 To reflect additional computer
Replacement! eqUipment In the Information
Computer - Systems and HOUSing DIVISions
Replacement
All Other - Total $29L309, 909 $297,309,909 ~ $0
Grand Total - Gross $306,058,009 $306,067,282 $9,273
Less ($22,012,575) ($22,062,973) ($50,398) To reflect purchase and
ReImbursements and maintenance costs for the
Transfers addll:lon of one vehicle In the
Parks & DIVIsion (-$43,000), to
correct the ongmal revenue
estimate for Vehicle Mamtenance
costs (-$1,500), and addll:lonal
computer equipment tn the
Information Systems and
HOUSing DIVISions (-$5,898)
Grand Total - Net $284,045,434 $284,004,309 ($41,125)
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EXHIBIT B
EXHIBIT B
REVISIONS TO THE PROPOSED FY 1998.99
BUDGET APPROPRIATIONS
Revised
Proposed Proposed
Fund/DeptJ(Dlv or Pro!) BudRet Budqet Net ChanRe Explanation of Chanqe
General/Clty Managerl $3,146,050 $3,150,644 54,594 To add funding needed for the
(Information Systems) addition of 1 0 FTE permanent
Network & Systems Officer
position (offset by the deletion of
1 0 FTE permanent Technical
Services SupeNlsor positron) and
for the addition of 1 0 FTE
Software & Support Services
Officer positron (offset by the
deletion of 1 0 FTE permanent
Systems Development SupeNlsor
pOSItion)
General/Clty Attorney $3,995,358 $3,991.139 ($4,219) To delete funding for Citizens
Option for PubliC Safety program
expenditures Grant funds from
the County's Drstrlct Attorney's
Office have not been approved for
this purpose In FY 98/99
General/Pollce $32,442,002 $32.413.141 ($28,861) To reflect the transfer of fundmg
to the Non-Departmental Section
of the budget for employee
benefits associated With the
addition of 2 0 FTE permanent
Animal Control Officer positrons
and 0 5 FTE permanent Staff
Assistant I pOSition for
contrnuatlon of the Joslyn Park
pilot animal control program
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EXHIBIT B
REVISIONS TO THE PROPOSED FY 1998-99
BUDGET APPROPRIATIONS
Revised
Proposed Proposed
FundfDept/{Dlv or Prol) Budqet BudRet Net Chanqe Explanation of Chanqe
General/Community & $17,104,976 $17,092.949 ($12,027) Transfer funds from Parks &
Cultural Services Sports DIvIsion operating budget
to the General Fund's Fleet
Vehicle Replacement (CIP)
budget to purchase vehicle
(-$41.500), and to the General
Fund Non-Departmental account
to pay for vehicle mamtenance
(-$1.500), to decrease
Community & Semor Programs
DIvISion operating budget to
match actual Senior Nutrition
Grant award received from Los
Angeles County (-$539). to add
1 4 FTE permanent positions to
the Human Services DIvIsion for
the mcreased coverage at
Virginia Avenue Park ($O) and
transfer funds for frrnge benefits
for these positions to the Non-
Departmentala~ums
(-527,212), and to add 0 5 FTE
permanent position and 3 5 FTE
as-needed positions and related
expenditures for Implementation
of the CREST Program
Playground Access Option
($58,724)
General/General $1,448,393 $1,489,893 $41 ,500 To purchase a vehicle for the
Government Capital Parks & Sports DIvIsion ($38,200,
lmprovements/(Fleet plus $3.300 for depreclatlon)
Vehicle Replacement
Program)
GenerallNOIl- $9,079,597 S9,095,772 $16,175 To Increase Employee Retirement
Departmental/Employee funds associated With additIOn of
Retirement 1 9 FTE permanent and 3 5 FTE
as-needed posltlons for Virginia
Avenue Park and the CREST
Program In Community & Cultural
Services Department ($9,078)
and for the addition of 2 5 FTE
permanent pOSItions for the
Animal Control Program In the
Pollee Department (57,097)
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EXHIBIT B
REVISIONS TO THE PROPOSED FY 1998.99
BUDGET APPROPRIATIONS
Revised
Proposed Proposed
Fund/Deptl{Dlv or Prol) Budqet Bud~et Net Chan~e Explanation of Chan~e
General/ $27.152.580 $27,280.839 $128.259 For vehicle mamtenance for the
Non-Departmental/ new Parks & Sports DIvISion
(Other Costs) vehicle ($1,500), for funds for a
legislative advocate for the Santa
Monica Section 8 Rental
Assistance program ($25,000),
for Incremental benefit cost
Increases associated with
position changes In the City
Manager's Office/Information
Systems DIvIsion ($430). for
benefit cost Increases associated
with the addition of 1 9 FTE
permanent and 3 5 FTE as-
needed positions for Virginia
Avenue Park and the CREST
Program m the CommunIty &
Cultural Services Department
($29,565), for benefit cost
Increases associated with the
addition of 25 FTE permanent
positions for the Animal Control
Program In the Polrce Department
($21 ,764), and for research and
advocacy related to mitIgating the
effects of LAX expansion on
Santa Monrca (S50,000)
General/Planning & $7,004,007 $7,061,454 S57.447 To fund the Increased cost of the
Community contract for the downtown parkmg
Development structures' Attendant Parkrng
program In the Transportation
Management DIVIsion ($53,633),
and to add funds for staff training
In the BUilding and Safety
DIVISion ($3,814)
General/General $0 $639,000 $639.000 To proVide resources required to
Government Capital expedite work on capItal
r mprovements/(ProJect Improvement projects
Management)
General/General $527,000 $440,000 ($87,000) To reflect reevaluation of fundrng
Government Capital needs for thiS project
Improvements/(Flber
OptiC TelecommunI-
cations Network)
GenerallRecreatlon and $3,726,530 $4.457,530 $i31.000 To provide fundmg from the Parks
Cultural Capital and Recreation/Open Space
Improvements Master Plan set-aside for the
Beach Improvement Group (BIG)
capital Improvement projects
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EXHIBIT B
REVISIONS TO THE PROPOSED FY 1998-99
BUDGET APPROPRIATIONS
Revised
Proposed Proposed
FundlDept/(Dlv or Prol} Bud~et Bud~et Net Chan~e Explanation of Chan~e
General/Streets, T rafflc $250.000 $406,700 $156,700 To provIde funds for the
Control & Parking Cloverfield Soundwall ($60,000),
Capital Improvements Cloverfield Widening Phase II
($71,500), and Ramp at Route 10
and Cloverfield (525,200)
projects
General/Balance Sheet ($5.257,738) ($4,496,077) $761 ,661 To transfer In $731,000 from the
Transfers Parks and Recreation/Open
Space Master Plan deSignation
for the BIG project, to transfer In
$156,700 from Traffic Mitigation
deferred revenue funds for street
and traffic-related projects, and to
Increase loans to the Pier Fund
for correction of contnbutlon to
the Vehicle Management Fund
(-$839) and for Increased capital
project management
expenditures (-$12,000), and to
the Cemetery Fund for Increased
capital project management
expenditures (-5113,200)
General/Commumty & 5500,000 $0 ($500,000) To transfer funds for the Parking
EconomiC Development Structure Retail Renovation
Capital Improvements/ project from the General Fund to
(Parking Structure Retail the Earthquake Recovery
Renovation) Redevelopment Project Area
Fund
Earthquake Recovery $0 5500,000 $500.000
Redevelopment!
Commumty &
EconomiC Development
Capltallmprovementsl
(Parking Structure Retail
Renovation)
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EXHIBIT B
REVISIONS TO THE PROPOSED FY 1998-99
BUDGET APPROPRIATIONS
Revised
Proposed Proposed
Fund/Dept/(DJV or Prol) Bud!let Bud~et NetChanAe Explanation of ChanAe
General/Resource $3,049.390 $3,518,570 $469.180 Increase appropriatIons for the
Management/(Houslng & Residential Rehabilitation Set-
Redevelopment) ASide Program ($197,800) and
for Earthquake Recovery
Redevelopment Project Area
administration ($271,380) The
Increase In the Residential
Rehabilitation Set-AsIde IS fully
funded by the CDBG Fund
($100,000 IS from the Proposed
FY 1998-99 Capital
Improvements Budget and
$97.800 IS from the CDBG fund
balance) The Increased
Earthquake Recovery Project
Area administration costs are fully
funded by the Earthquake
Recovery Redevelopment (17)
Fund
General/ ($12,329,159) ($12,793,581) ($464.422) To Increase the operating transfer
Non-Departmental/ to the General Fund to reflect the
(Interfund Transactions) following a transfer from the
CDBG Fund for Increased
CDBGI $7,666.521 $7.864,321 $197,800 appropriations for the Residential
Non-Departmentall Rehabilitation Set-Aside Program
(Interfund Transactions) (-$197,800), from the Earthquake
Redevelopment Fund for the
Earthquake Recovery $1,243,273 $1,514,653 $271,380 Increase In administration of thiS
Redevelopme nt! program (-$271,380), for a
N on-Departme ntal/ decrease In the transfer from the
(lnterfund Transactions) Miscellaneous Grants Fund to
match actual Senior Nutrition
Miscellaneous $2,685,877 52,685,338 ($539) Grant award received from Los
Grants/Non- Angeles County ($539), and for a
Departmental/ (Interfund decrease In the transfer from the
Transactions) Citizens' Option for Public Safety
(COPS) Fund ($4,219)
Citizens' Option for $4,219 $0 ($4,219)
Public Safety (COPS)/
N on-Depa rtme ntal/
(Interfund Transactions)
Beach/EnVironmental & $1,474.217 $1,448,204 ($26.013) To reduce Administrative Indirect
Public Works charge due to correction In
Management/(Beach actIVIties charged (-$21 ,741) and
Maintenance) to correct Self Insurance
contributions (-$4,272) In the
Beach Maintenance DIVISion
Beach/Recreatlon and $583.000 $596,800 $13.800 To proVide resources required to
Cultural Capital expedite work on capital
I mprovements/(Varrous Improvement projects
ProJects)
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