SR-111307-8B~J
~;tYof City Council Report
Santa Monica
City Council Meeting: November 13, 2007
Agenda Item: ~ "-'~
To: Mayor and City Council
Chairperson and Redevelopment Agency Members
Chairperson and Parking Authority Members
From: Carol Swindell, Director of Finance
Subject: FY2006-07 Year-End Appropriations and Budget Adjustments and
Transmittal of Capital Improvement Program and Year-End Departmental
Performance Review Status Reports
Recommended Action
Staff recommended budget actions for Year-End 2006-07:
1. City Council authorize the City Manager to make budget expenditure adjustments
between departments and major account groups within funds; and
2. City Council, Redevelopment Agency and Parking Authority approve year-end
budget appropriations to departments as shown in Exhibit A.
Executive Summary
The actions requested of Council, the Redevelopment Agency and Parking Authority in
this report are requested at year-end in various City funds to match budgets with actual
expenditures. The FY2006-07 fiscal year ended on June 30, 2007 and is currently being
audited by the independent CPA firm Mayer Hoffman McCann. The final
Comprehensive Annual Financial Report is scheduled to be issued in December.
1
The city-wide revised operating budget for FY2006-07 is $390.7 million, an additional
net appropriation in the amount of $7.3 million is requested bringing the final revised
operating budget to $398.0 million. Capital budget adjustments reduce the city-wide
CIP's by $630,000 primarily due to a transfer of $1.0 million in CIP budget in the Big
Blue Bus to their operating budget.
The General Fund ended the year with an overall operating expenditure budget savings
of $3.6 million when comparing actual expenditures and commitments to Revised
Budget for FY2006-07. Since the General Fund expenditures did not exceed revised
budget no additional appropriations are required. Council is asked to authorize the City
Manager to make General Fund budget adjustments between departments and major
account groups to maintain compliance with the legal level of budget control. Proposed
budget adjustments are identified in Attachment B.
Included as attachments to this report for general information are:
^ The Year-End Budget Report FY2006-07 is included in Attachment C which is
new this year and is intended to summarize both the financial and programmatic
achievements of the City for last fiscal year in auser-friendly format.
^ The Year-End Departmental Performance Review (Attachment D)
Year-End Capital Improvements Program Status (Attachment E)
2
Discussion
Background
Each year Council, Housing Authority, Redevelopment Agency and Parking Authority
adopt and revise budgets throughout the fiscal year, as needed. For most budget
actions, there are sufficient funds appropriated within a fund to cover any under-
budgeted account groups within particular departments. The staff report recommends
that City Council authorize the City Manager to make changes between departments
and account groups. All recommended actions are listed in Attachment B.
Additional appropriations are requested as follows:
• Charnock Fund - $2,698,194 for legal expenditures, regulatory fees and interest
expense
• Earthquake Recovery Redevelopment Project - $2,144,152 for higher pass-
through payments to other agencies due to receipt of greater tax revenue
• Community Development Block Grant Fund - $60,621 for additional eligible
CDBG projects
• Miscellaneous Grants Fund - $293,813 to reflect various grant expenditures not
previously budgeted and interest earnings on grant funds eligible for expenditure
• Solid Waste Management Fund - $278,389 for overtime expenses
• Pier Fund - $102,705 Harbor Guard overtime expenses and contractual custodial
services
• Cemetery Fund - $231,608 for overtime and temporary employee expenses, plus
higher supplies and expenses.
3
• Big Blue Bus Fund - $162,894 for higher bus repair and maintenance costs and
adjust for reduced reimbursement from Local Return funds.
• Gas Tax Fund - $25,556 to increase Proposition 42 funds for street resurfacing
projects
• SCAQMD AB2766 Fund - $258,026 to provide grant funds for low emission
vehicles and additional audit fees
• Information Technology Replacement & Services Fund $85,541 for purchases of
computer equipment
• Automobile Self-Insurance Fund - $209,722 for claims payments
• Parking Authority - $94,044 for restroom attendant programs in the downtown
parking structures.
Total requested appropriations city-wide are: $6,645,225 ($7,276,128 increase to the
operating budgets and a $630,903 decrease to the capital budgets). All transactions
are identified by department and division within a fund in Attachment A.
No additional appropriations are required for the General Fund as there was a total fund
budget savings of $3.6 million. It is anticipated that after completion of the audit the
ending General Fund Balance will have an unreserved and undesignated fund balance
of $9.4 million due to budget savings and higher than anticipated one-time revenues.
The 10% set-aside of $24.6 million for emergencies has been reflected in a designation
on the Balance Sheet.
4
Staff will be recommending a small General Fund appropriation ($100,000) in the staff
report adopting FY2007-08 budget and personnel changes, also scheduled for action on
November 13, 2007, and that any other commitments of these funds be held for
consideration at mid-year.
Budget/Financial Impacts
The requested FY2006-07 budget actions adjust the revised budgets to actual
expenditures in the various City funds.
Prepared by: Janet Shelton, Budget Manager
Attachments:
A: Proposed FY2006-07 Budget Appropriations
B: FY2006-07 Budget Changes With No Fund Appropriation Increases
C: Year-End Budget Report FY2007-08
D: The Year-End Departmental Performance Review
E: Year-End Capital Improvements Program Status
Approved:
Forwarded to Council:
~~~~~
Carol Swindell
Director, Finance
~fnont Ewell
Manager
5
PROPOSED FY2006-07
BUDGET APPROPRIATIONS
ATTACHMENT A
Fund Department/Division/Project `Amount Reason
Charnock (05) Environmental and Public Works
Management/ Water
$2.698.194 To appropriate funds above the
budget for legal expenditure,
regulatory fees and interest
expenditure
Earthquake Recovery Non Departmental/ All Other
Redevelopment (17) Transactions
Community Non-departmental/ Interfund
Development Block Transactions
Grant (19)
Miscellaneous Grants Police/ Office of Special
(20) Enforcement
Miscellaneous Grants Fire/Administration
(20)
Miscellaneous Grants Community and Cultural
(20) Services/ Open Space
Management
Miscellaneous Grants Non-departmental/ Interfund
(20) Transactions
Miscellaneous Grants Public Safety Capital
(20) Improvement/ Local Law
Enforcement Bldck Grant
Miscellaneous Grants Public Safety Capital
(20) Improvement/ 2005 Technology
Initiative
Total Miscellaneous Grants (20)
Solid Waste Environmental and Public Works
Management (27) Management/ Solid Waste
Management
52.144.152 To appropriate funds for greater than
anticipated Tax Increment pass
through payments
60 621 To appropriate additional funds for
CDBG eligible projects.
$22,000 To appropriate Click It or Ticket It
grant funds for seatbelt enforcement
on the Memorial Day weekend
$112,590 To appropriate UASI 05 funds for
homeland security related projects.
Funds had been anticipated in prior
year
$2,796 To appropriate additional Proposition
A funds for beach maintenance
$150,000 To reflect Prop C Local Return
reimbursement to the Big Blue Bus
fund for eligible projects
$4,100 To appropriate LLEBG funds for law
enforcement capital projects
$2,327 To appropriate interest earnings for
the 2005 Technology Initiative
project
$293,813
$278,389 To appropriate funds for personnel
costs above the budget primarily due
to overtime deployment
Pier (30) Police/ Harbor Unit $32,566 To appropriate funds above the
budget for personnel costs
PROPOSED FY2006-07
BUDGET APPROPRIATIONS
ATTACHMENT A
Fund Department/DivsionlProject Amount ' `Reason
Pier (30) Resource Management/
Economic Development
Total Pier (30):
$70,139 To appropriate funds above the
budget for greater than anticipated
contracted custodial services at the
pier
$102,705
Cemetery (37) Environmental and Public Works $231,608 To appropriate funds above the
Management/ Cemetery budget for personnel costs
($84,248), and supplies and
expenses ($147,360) for cemetery
operations
Big Blue Bus (41) Big Blue Bus/ Transit $1,000,000 To transfer preventive maintenance
Maintenance from capital to operating
Big Blue Bus (41) Big Blue Bus/ Transit $135,179 To appropriate funds above the
Maintenance budget for bus repair and
maintenance costs
Big Blue Bus (41) Non-departmental/ Interfund $27,715 To reflect Prop C Local Return
Transactions reimbursement from the
Miscellaneous Grants fund for
various projects (-$150,000) and to
adjust the reimbursement from the
Miscellaneous Grants fund for
various Prop A projects (+$177,715).
Total Big Blue Bus (41)
SCAOMD AB 2766 (44) Non-departmental/ All Other
Transactions
$1,162,894
$26 To appropriate funds above the
budget for greater than anticipated
audit fees.
Self-insurance, Non-Departmentall Automobile
Automobile
209 722 To appropriate funds for claims
payments
Parking Authority Planning and Community 94 004 To appropriate funds for the
Development/ Parking Authority restroom attendant program at
downtown parking structures #3 and
#4
TOTAL OPERATING BUDGET APPROPRIATIONS ' ' $7.276;128
PROPOSED FY2006-07
BUDGET APPROPRIATIONS
ATTACHMENTA
Fund DeparEment/Division/Project Amount ! Reason
CAPITAL BUDGET APPROPRIATIONS
Big Blue Bus (41) Big Blue Bus/ Capital -
Preventive Maintenance
($1.000.0001 To transfer budget funds to
operating budget for bus repair and
maintenance costs
Gas Tax (43) Streets, traffic Control & Parking
Capital Improvement/ Traffic
Congestion Relief
SCAQMD AB 2766 (44) General Government Capital
Improvement/ Vehicle
Replacement Program
Information General Government Capital
Technology Improvement/ Computer
Replacement and Replacement Program
Services 155)
25 556 To increase Proposition 42 funds for
street resurfacing projects
258 00 To transfer AQMD Carl Moyers grant
($48,000) and Mobile Source
Review Committee grant ($210,000)
to the Vehicle Management fund for
purchases of heavy duty low
emission vehicles
85 541 To appropriate funds for purchases
of computer equipment
TOTAL CAPITAL BUDGET APPROPRIATIONS ($630,903)
ATTACHMENT B
FY2006-07 BUDGET CHANGES
WITH NO FUND APPROPRIATION INCREASES
Supplies 8
Expenses
Salaries & (including
Fund Department Waaes CapitalOutlayl
General City Manager $0 ($102,050)
Net
Change
($102,050)
Department Supplies and Expenses savings ($102,050) are transferred to other General
Fund departments for greater than anticipated personnel, program and support services
expenditures.
General Finance
General
General
General
($351,625) $796,809 $445,184
Department Salaries and Wages savings ($351,625) and General Fund Supplies and
Expenses savings ($445,184) are transferred to Department Supplies and Expenses for
parking citation processing fees which were increased in proportion to the number of
citations processed.
City Attorney ($60,742) $194,277 $133,535
Department Salaries and Wages savings ($60,742) and General Fund Supplies and
Expenses savings ($133,535) are transferred to Department Supplies and Expenses for
greater than anticipated outside counsel costs.
Planning and Community Development $0 ($481,168) ($481,168)
Department Supplies and Expenses savings are transferred to other General Fund
departments for greater than anticipated program or support services expenditures.
Police $1,613,400 $274,585 $1,887,985
General Fund Salaries and Wages savings ($1,613,400) and Supplies and Expenses
savings ($274,585) are transferred to the Department for unfunded overtime details and
greater than anticipated fuel costs.
General Fire $349,000 ($46,973) $302,027
Department Supplies and Expenses savings ($46,973) and General Fund Salaries and
Wages savings ($302,027) are transferred to Salaries and Wages for greater than
anticipated personnel costs.
ATTACHMENT B
FY2006-07 BUDGET CHANGES
WITH NO FUND APPROPRIATION INCREASES
Fund
General
Department
Community and Cultural Services
Supplies &
Expenses
Salaries & (including
Wages CapitalOutlayl
Net
Chance
General
General
General
($500,516) ($1,787,047)
($2,287,563)
Department Salaries and Wages savings ($500,516) and Supplies and Expenses savings
($1,787,047) are transferred to other General Fund departments for greater than anticipated
personnel, program and support services expenditures.
Environmental and Public Works ($193,388) $193,388 $0
Management
Department Salaries and Wages savings are transferred to Supplies and Expenses for
facility and street maintenance supplies and materials.
Resource Management ($8,562) $8,562 $0
Department Salaries and Wages savings are transferred to Supplies and Expenses for legal
expenditures.
Non-departmental ($930,500) $1,032;550 $102,050
Department Salaries and Wages ($930,500) and General Fund Supplies and Expenses
budget savings ($102,050) are transferred to Supplies and Expenses to reflect year-end
actual reimbursements from other funds.
Beach Community and Cultural Services $0 ($38,824) ($36,824)
Department Supplies and Expenses savings are transferred to Environmental and Public
Works Management Supplies and Expenses for greater than anticipated vehicle
maintenance and fuel costs.
Environmental and Public Works ($10,928) $47,752 $36,824
Management
Department Salaries and Wages savings ($10,928) and Community and Cultural Services
Supplies and Expenses savings ($36,824) are transferred to Department Supplies and
Expenses for greater than anticipated vehicle maintenance and fuel costs.
ATTACHMENT B
FY2006-07 BUDGET CHANGES
WITH NO FUND APPROPRIATION INCREASES
Supplies &
Expenses
Salaries & (including Net
Fund Department Wages Capital0utlav) Change
Solid Waste Environmental and Public Works $429,990 ($330,590) $99,400
Management Management (EPWM)
Supplies and Expenses savings are transferred to Salaries and Wages for greater than
anticipated personnel costs.
Non-departmental
$0 ($99,400) ($99,400)
Supplies and Expenses budget savings are transferred to EPWM Salaries and Wages for
personnel costs.
Pier Police
$636 ($636) $0
Supplies and Expenses savings are transferred to Salaries and Wages for the use of outside
temporary staff to cover vacant positions.
Resource Management
($451) $451 $0
Salaries and Wages savings are transferred to Supplies and Expenses forjanitorial services.
Wastewater Environmental and Public Works $0 ($572,876) ($572,876)
Management (EPWM)
To transfer Supplies and Expenses budget authority to the Non-departmental Supplies and
Expenses to reflect the year-end actual reimbursements from other funds.
Non-departmental $0 $572,876 $572,876
EPWM Supplies and Expenses budget authority is transferred to the Non-departmental
Supplies and Expenses to reflect the year-end actual reimbursements from other funds.
Airport Resource Management $10,563 ($10,563) $0
Supplies and Expenses savings are transferred to Salaries and Wages for personnel costs.
ATTACHMENT B
FY2006-07 BUDGET CHANGES
WITH NO FUND APPROPRIATION INCREASES
Fund Deaartment
Supplies &
Expenses
Salaries & (including
Wages CapitalOutlav)
Net
Chancre
Big Blue Bus Big Blue Bus ($622,886) $622,888 $0
Salaries and Wages savings are transferred to Supplies and Expenses for bus repairs and
maintenance.
Vehicle Environmental and Public
Management Works Management
($160,599) $160,599 $0
Salaries and Wages savings are transferred to Supplies and Expenses for greater than
anticipated vehicle repair expenses.
Self- Non-departmental/ Workers' ($448) $448 $0
insurance, Compensation
Workers'
Comp
Salaries and Wages savings are transferred to Supplies and Expenses for office supplies
and expenses.
Parking Planning and Community Development/
Authority Parking Authority ($652) $852 $0
Salaries and Wages savings are transferred to Supplies and Expenses for the restroom
attendant program at the downtown parking structures #3 and #4.
Item 8-B
Attachment C
Members of the City Council and Residents of Santa Monica:
FY2006-07 was an exceptional year fox refocusing on our core
services. The focus this year was on enhanced community safety and
security, improved maintenance, increased facility operations, and
improved customer service.
Safety and Security -Commitments to increased security at the
Library was accomplished. An increase in city-wide graffiti abatement
was achieved as well as xestenciling of the beach bike and pedestrian
paths. Security cameras were installed on the Pier and Promenade as
well as lighting upgrades to the Pico Neighborhood streets and alleys
and cleanup of the Palisades bluffs.
Deferred Maintenance -Visual improvements to the grounds at the
Cemetery and renovations of the Downtown Parking Structures only
enforce the City's commitment to maintain its valuable resources.
Enhancements were also made to the aging forest, streets and
sidewalks.
Facility Operations -Two new parks were added to the City park
system: Airport and Euclid Park and ten new community garden plots
have been created. Also, new programs and hours were added at
V boinia Avenue and the "Cove" skate park.
Customer Service -The first annual "We Do The Right Thing Right"
celebration was held at Virginia Park. City employees who were caught
by members of the public or their fellow employees were honored fox
their efforts. This was also the year fox "pilot" programs including
beach trash valet, farmer's market bicycle attendant program and the
premier promenade restroom program. All these programs were
successful and will continue into FY2007-08
Sincerely,
P. L.amontEavell
FinanciaCSta6iCtyand Econo G d
The U.S. economy is expected to skirt a recession even with the housing slump and foreclosures,
which is pushing consumes confidence to its lowest level in almost two years.
Santa Monica is fortunate to have a diversified an otner
tax base, which has helped cushion the impact Non lax
31.a r
of past economic downturns. All tax revenues sales ana
use rax
were up m FY2006-07 from the pnor yeas -
otnerraxes ~~i „~~`:i ~y~
„~~~ ,~,:.. 13J^/o
Property Taxes - p4.6m; Sales Tax - $1.4m ; ~r ~,_.
s"z ~
`~ ~i, t
~
Utili
U
- p ty
sers
TOT - $2.7m; business license $2
3m and UUT sari"ess Tax
.
- 51.2m. All other general fund non tax License Tax
s.z i 13.0^^/0
y~
TevenlleS were Up $10.6 m. mOSTly due t0
Property Tax Transient
Occupancy
investment income and charges fox services 13.6^% Tax
. 13s i
Although the revenues were strong in FY2006-07, caution is required. The economy is expected to
slow in FY2007-08, the housing slump will continue until late 2009, interest sates could drop further
and the UUT issue may come to realization.
~Ofe(, 1d,~CLC7S~6 L`S
Implementation of an automated call back system in Building and Safetyhas eliminated the
need fox customers to call in fox an inspection time, thus reducing the number of calls to the
Department.
Enhanced services to the Pico Neighborhood by Solid Waste Managementincluded a
successful Pico Neighborhood clean-up day.
Fleet Managementpresented an Alt Car Expo which offered an excellent source fox
community education while enhancing the city goals.
Introduction of a proactive outreach program by the Airportwas successful in reducing the
number of noise violations, banned aircxafts and number of fines issued.
Circulation of Librarymaterials increased by 24% over the prior year while 2,217 programs
were presented system-wide.
Improvements to the Traffic Operations traffic tracking systems has provided more accurate
data fox traffic signal operations allowing for quicker response time.
~. Information Systems installed seven new Wi-Fi hot zones, created a new ANI radio station
and parking advisory system.
~FisrancialOv
REVENUES
Overall revenues exceeded estimated actual
projections by $53.8 million dollars. The greatest
contributors to the windfall were the General Fund
($6.8m), Charnock Fund ($37.Om), and
Redevelopment Funds ($7.1m). While only five
funds reflected a decrease.
The increase in the Charnock Fund is due to the 2"d
settlement agreement with the oil companies for the
construction of a water remediation and treatment
facility. In all but one case, all the revenue shortfalls
were due to timing of reimbursement on giant
related projects.
OPERATING EXPENDITURES
Overall operating expenses exceeded budget by $4.2
million dollars. The overages were mostly in the
Charnock Fund ($2.7m) and the Self-Insurance
Funds ($6.1m). Only the General Fund reflected any
substantial savings ($3.6m).
The overage in the Chamock Fund was mostly due
to ongoing legal expenses related to both the 2"a
settlement agreement and distribution of original
settlement funds. All other overages were due to
greater than anticipated staffing or operational needs.
The General Fund savings were mostly generated
from the City Manager's Office, Records and Election Services, Human Resources, Planning and
Community Development, Community and Cultural Services, Library, Housing and Economic
Development and Environmental and Public Works Management. These savings were used to
offset overages in the City Attorney's Office, Finance, Police and Fire.
GENERAL FUND BALANCE
The General Fund Unreserved - Undesignated Balance increased by $9.4 million dollars. These one-
time funds axe due to both the excess revenue and the expenditure savings.
Revenues (over estimated actual projection): $6.8m
Expenditure savings (over revised budget): $3.6m
Balance sheet adjustments: S1.Om
Total $9.4m
Additional
attachments
available for review
in City Clerk's
Office