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SR-021908-8ACity Of °I~y v®~I,VI' ~\~p®~ Santa Monica City Council Meeting: February , 2008 Agenda Item: ~" ~ To: Mayor and City Council From: Carol Swindell, Director of Finance Subject: Mid-Year 2007-08 Budget Recommended Action Staff recommends that City Council: 1) appropriate Fiscal Year 2007-08 budget changes and adjust revenue budgets as detailed in Exhibit A2; 2) adopt a Resolution establishing classification and salary rates for various positions detailed in Exhibit B1; 3) approve the position and classification changes detailed in Exhibit B2; and 4) hold a public hearing and approve a second Amendment to the FY 2007-08 Community Development Block Grant (CDBG) and Home Investment Partnership Act (HOME) program One-Year Action Plan detailed in Exhibit C. Executive Summary This report provides a status update of the FY2007-08 budget and proposes revisions to the revenue and expenditure budget based on departmental reviews of their budgets at the mid-point of the year. The recommended budget actions increase city-wide revenues by $2.7 million including a net General Fund increase of $0.4 million, an increase in Big Blue Bus funding from the Los Angeles County Metropolitan Transportation Authority of $1.9 million and all other fund adjustments of $0.4 million. Appropriation requests at mid-year total $6.8 million city-wide with $2.0 million funded from funds previously set-aside for employee medical trust/insurance premium contributions and a contribution to the Education Foundation. Increase to the General Fund budget is $2.2 million which includes $1.1 million for employee medical contributions. Non-General Fund appropriations total $4.6 million with $1.2 million for police vehicle replacements, $0.26 million for alternative fuel vehicles from South Coast Air Quality Management District funds, $0.9 million for employee medical trust/insurance premium contributions, $0.7 million for Big Blue Bus contributions to the Self Insurance program, $0.5 million for commercial refuse containers, $0.25 million for litigation expenditures in the Airport Fund, $0.37 million from Redevelopment Funds for a Commercial Corridor study and $0.4 million for miscellaneous grant projects. All other appropriations in various funds total less than $0.1 million. After all staff recommended Mid-Year actions, there remains $5.8 million in available resources that can be appropriated for one-time projects or carried over to next fiscal year for consideration during the adoption of the FY2008-09 budget. In these uncertain economic times, staff recommends that Council not appropriate the funds at this time, but carry them over and consider use as part of the FY2008-09 budget. Discussion Budget Review At the budget mid-point, staff identifies any one-time funds available for appropriation based on audited results from the prior year, reviews revenue receipts to date, recommends revenue budget changes and proposes adjustments in the budget expenditure projections, as necessary. General Fund Status Update Following the closing of the fiscal year and audit of financial records, the actual ending fund balance was $9.4 million higher than anticipated. Adjustments through December 2007 decreased the available fund balance to $7.2 million. The proposed mid-year actions will reduce the available fund balance by another $1.5 million, leaving a fund balance of $5.8 million. 2 Available Funds Budget Actions (Details described below) (in millions) Additional available funds from FY2006-07 Planned use of Fund Balance in FY2007-08 Less Council actions to date in FY2007-08 Plus balance sheet transfers from designations Available funds as of December 2007 Proposed Mid-Year Actions Plus additional Mid-Year revenues Less proposed Mid-Year expenditures Plus balance sheet transfers from designations Loan to Airport Fund Less unavailable Fund Balance Available Funds $9.4 ($1.2) (1.7) 0.7 $7.2 $0.4 (2.2) 1.1 (0.3) (0.4) $5.8 Unavailable Fund Balance consists of increases in the 10% designation for Operating Contingency Current FY2007-08 General Fund revenues are up over the Adopted Budget by $0.4 million. Decreases in six major revenue accounts were more than offset by increases in eleven other accounts. Details of these changes are shown on page 5. Mid-Year Budget appropriations recommended at this time include $2.2 million, with $1.1 million from funds previously set aside for employee benefit and Education Foundation purposes. If these changes are adopted, available General Fund balance will be $5.8 million. Council has several options for allocating the additional $5.8 million in available funds, including: • Leave the full $5.8 million in fund balance and decide how to appropriate these funds in context with other priorities as part of the FY2008-09 budget adoption in June. Designate the funds for one-time CIP projects. These funds could be applied to unfunded or under-funded capital projects, to accelerate projects scheduled in future years or fund new priority projects. However, this process is also part of the FY2008-09 budget development. 3 • Use the one time funds to enhance reserve levels. Staff will recommend changes to reserves as part of the upcoming FY2008-09 budget process. • Appropriate the funds for other Council priorities. Given the continuing pessimistic economic outlook for the nation, and the City's most recent five year forecast showing a potential structural deficit beginning in FY2009-10, staff recommends that any Council appropriation of available funds be for one-time expenditures. General Fund Mid-Year Recommendations Exhibit A2 details proposed budget actions for FY2007-08 to adjust accounts to reflect the status at the mid point in the fiscal year. Below are summaries of proposed revenue, expenditure and balance sheet actions. Revenue Adjustments -General Fund At Mid-Year, staff reviewed current year revenues and identified budget revisions based on actual revenue receipts to date. This year, approximately $0.4 in additional General Fund revenue is available. Revenue accounts recommended for adjustment are identified below: 4 FY2007-08 General Fund Revenue Adjustments (in millions) Revenue Decreases $ Change % Change Utility Users Tax (758,000) (2.4%) Sales and Use Tax (1,300,600) (3.9%) Other Local Taxes (Vehicle License Tax) (137,000) (21.5%) Building Permits (687,800) (30.8%) Planning Check Fees (859,000) (41.5%) Zoning Approval /Variance Fees (349,900) (44.2%) (4,092,300) Revenue Increases Property Taxes 472,900 1.5% Business License Taxes 1,004,000 4.4% Transient Occupancy Tax 1,720,000 5.1% Real Property Transfer Tax 404,000 8.8% Parking Facilities Tax 210,000 2.8% Rentals 300,000 16.5% Residential Building Report Fees 22,500 15.5% Parking Permits 100,000 11.1% Document Imaging Fees 98,500 68.4% SB 90 Reimbursement 12,150 37.8% Interest Income 100,000 1.7% 4,444,050 Net Revenue Increase 351,750 0.1% Expenditure Adjustments -General Fund A review of department budget through the first half of the fiscal year has identified areas where additional appropriations are required totaling $2.2 million. The proposed appropriations are identified below: 5 Proposed Expenditure Adjustments Department Description Amount City Manager's Office Non-Smoking Campaign $ 150,000 Transfer of budget authority to Community & Cultural (100,000) Services for Homeless Initiative programs Records & Election November 2006 Election Charges from the County of Los 12,150 Services Angeles funded from State Mandates Reimbursement City Attorney's Office Personnel changes and one-time compensation 74,714 adjustments Human Resources Personnel changes (27,984) One-time funding for Succession Planning, administrative 50,000 manuals and Recruitment Brochure development Information Systems Funds to modify the Human Resources web site based on 25,000 recommendation from the Succession Planning workgroup Community Maintenance Funds for additional graffiti removal 48,750 Funds to offset a reduction in Prop A funding 58,000 Planning & Community Contract Personnel for Building and Safety 539,200 Development Personnel changes to implement a Long Range Planning 10,572 Division Police Personnel changes 12,349 Community & Cultural Personnel changes 25,142 Services Education Foundation appropriation per prior Council action 80,000 Funds transferred from the City Manager's Office for 100,000 Homeless Initiatives Program Funding for Pico Youth and Family Center tenant 31,000 improvements and relocation costs Environmental & Public Personnel changes 3,094 Works Management 6 Department Description Amount Non-Departmental To appropriate funds to fully fund SMMUSD agreement 38,879 CIP Various General Fund Departments Other Funds 2,000 1, 078,753 TOTAL $ 2,211,619 Revenue and expenditures changes for other funds are summarized in Exhibit Al and detailed in Exhibit A2. Other Funds -Revenues Other fund revenue adjustments include a reduction in Miscellaneous Grant Fund revenues of $407,227 to reflect timing changes in reimbursement of grant expenditures offset by some additional grant awards; increase in Water Fund revenues of $300,000 based on review of year-to-date actual receipts, increase of $500,000 in the Wastewater Fund to reflect reimbursement from the City of Los Angeles for the Moss Avenue Pumping Station capital project, increase in Big Blue Bus Prop A Discretionary funding of $1,948,814 to reflect final funding actions of the LACMTA and a $2,000 increase to the Information Technology internal service fund for contribution toward the purchase of additional computers. Other Funds Expenditures Proposed appropriations at Mid-Year in all non-General Fund funds total $4.6 million. Included in the request is $1,163,694 appropriation from the fund balance of the Vehicle Maintenance Fund for the purchase of new police vehicles, $700,000 from the Big Blue Bus Fund for bus self-insurance funding, $250,000 in the Airport Fund for anticipated litigation expense funded from the General Fund, and $366,500 in Miscellaneous Grants appropriations for grants received for the 100t" Anniversary Pier celebration, a "pilot collection program" and allocation of Prop A local return funds. The Earthquake 7 Computer Replacement Program Funds from balance sheet reserve to fund the one-time contribution to the Miscellaneous Employees Medical Trust. This contribution is used to cover out of pocket employee premium costs, per the June 1, 2005 MOU between the coalition an the City. Recovery Fund requests appropriation of $400,000 to develop a Commercial Corridor Strategy following identification through the Land Use and Circulation Element process of priorities. The Solid Waste Management Fund requests appropriation of $500,000 for purchase of refuse containers for commercial operations, $56,273 is appropriated in the Special Revenue Source Fund reflecting a funding change for the Cloverfield Soundwall capital project and $264,000 is appropriated from the AOMD Fund for purchase of alternative fuel vehicles. Various funds (Beach, Water, Solid Waste, Pier, Wastewater, Civic Auditorium, Airport, Cemetery, Big Blue Bus, Vehicle Management, and Worker Compensation) appropriate the one-time contribution to the Miscellaneous Employees Medical Trust. Personnel Actions Exhibit B1 is a resolution establishing new position classification and adopting salary rates for various classifications. The Mid-Year recommendation adds 1.0 FTE city-wide in the Human Resources Department. All position changes such as reclassification, compensation adjustments or addition/deletion increase the FY2007-08 budget by $101,987. The ongoing cost into FY2008-09 of these changes is calculated at $139,092. FY2007-08 Amended One-Year Action Plan for Community Development Block Grant jCDBG) and HOME Funds On June 12, 2007, Council held a public hearing and approved the FY2007-08 Amended One-Year Action Plan for federal CDBG and HOME funds. The One-Year Action Plan is designed to meet the community needs identified in the Consolidated Plan (FY2005-10) adopted by City Council and submitted to the Department of Housing and Urban Development in June 2005 and program these federal entitlement funds. The Amendment to the Plan adopted in June is necessary in order to reallocate CDBG entitlement funds to new projects and to amend funding for existing projects. The Amendment is shown as Exhibit C of this report. 8 Financial Impacts & Budget Actions The budget impact of adoption of the mid-year changes detailed in Exhibit A2 is summarized in Exhibit Al of this report. Prepared by: Janet Shelton, Budget Manager Approved: Forwarded to Council: Carol Swindell u P Director of Finance C Attachments: Exhibit A1: Summary of FY2007-08 Revenue and Expenditure Budget Changes Exhibit A2: Proposed FY2007-08 Mid-Year Revenue, Expenditure and Balance Sheet Changes Exhibit B1: Resolution Establishing New Classification and Adopting Salary Rates for Certain Positions Exhibit B2: Position and Classification Changes Exhibit C: Second Amendment to the FY2007-08 One Year Action Plan 9 Summary of FY 2007-08 Revenue and Expenditure Budget Changes EXHIBIT Al Revenues Expe nditures Adopted Revised Proposed Revised Adopted Net Capital Approved Revised Budget Proposed Revised as of Budget Changes Budget as of Reappropriation Revisions As of 11130/07 '. Changes Budget 7/1/07 17/30/2007 2112/08 2/12/08 7/1/07 From PY Revenues 7N/07 -11130/07 ', 2/12108 2112/08 General 1 245,822,397 245,873,897 351,750 246,225,647 246,080,522 53,857,655 1,775,140 301,713,317 2,211,619 303,924,936 Special Revenue Source 4 1,908,333 1,908,333 0 1,908,333 1,942,000 6,422,362 277,000 8,641,362 56,273 8,697,635 Charnock 5 14,450,000 14,450,000 0 14,450,000 4,636,813 9,669,846 0 14,506,659 '. 0 14,506,659 Clean Beaches & Ocean Pr 6 2,340,000 2,340,000 0 2,340,000 283,000 0 283,000 0 283,000 Beach Recreation 11 6,050,685 6,050,685 0 6,050,685 6,706,128 1,703,931 0 8,410,059 ' 15,661 8,425,720 Housing Authority 12 15,155,500 15,155,500 0 15,155,500 15,417,500 0 15,417,500 '. 0 15,417,500 Disaster Relief 13 7,224,000 7,224,000 0 7,224,000 140,526 10,462,943 0 10,623,469 0 10,623,469 TORCA 14 340,000 340,000 0 340,000 519,259 5,856,325 1,084,852 7,460,436 '. 0 7,460,436 Redevelopment" 15-18 60,516,649 63,565,649 0 63,565,649 59,657,949 68,548,502 3,097,411 131,303,862 400,000 131,703,862 CDBG 19 2,739,970 2,739,970 0 2,739,970 4,364,793 1,294,468 (555,320) 5,103,941 ', 0 5,103,941 Miscellaneous Grants 20 8,571,496 9,268,121 (407,227) 8,860,894 4,384,958 24,693,407 2,890,432 31,968,797 '.. 366,500 32,335,297 Asset Seizure 21 0 0 0 0 0 72,928 50,000 122,928 0 122,928 COPS 22 182,000 182,000 0 182,000 0 38,525 176,633 215,158 0 215,158 Annenberg Grants Fund 24 14,400,000 14,400,000 0 14,400,000 0 24,339,075 0 24,339,075 0 24,339,075 Water 25 14,879,577 14,879,577 300,000 15,179,577 17,333,349 5,645,489 46,876 23,025,714 55,059 23,080,773 Solid Waste Management 27 18,278,380 18,273,375 0 18,273,375 17,687,531 1,233,496 13,166 18,934,193 622,797 19,556,990 Pier 30 3,207,900 3,207,900 0 3,207,900 3,469,215 6,576,671 0 10,045,886 32,042 10,077,928 Wastewater 31 13,332,169 13,332,169 500,000 13,832,169 17,528,247 9,179,011 566,512 27,293,770 40,660 27,334,430 Civic Auditorium 32 2,639,000 2,639,000 0 2,639,000 3,488,367 1,131,899 136,645 4,756,911 31,714 4,788,625 Airport/ Special Aviation 33, 52 4,498,098 4,498,098 0 4,498,098 3,906,576 2,046,436 88,015 6,041,027 263,949 6,304,976 Stormwater Management 34 1,596,632 1,596,632 0 1,596,632 2,051,778 736,273 0 2,788,051 0 2,788,051 Cemetery 37 818,328 818,328 0 818,328 1,438,737 201,506 317,504 1,957,747 8,790 1,966,537 Big Blue Bus 41 64,206,437 64,823,364 1,948,814 66,772,178 48,547,637 94,292,424 16,336,982 159,177,043 1,230,034 160,407,077 Gas Tax 43 1,780,400 1,780,400 0 1,780,400 1,689,700 1,600,000 665,165 3,954,865 264,000 4,218,865 SCAQMD AB2766. 44 122,000 262,000 0 262,000 2,300 3,156 140,000 145,456 0 145,456 Parks and Rec Facilities 53 38,300 38,300 0 38,300 171,000 23,985 0 194,985 0 194,985 Vehicle Management 54 11,181,010 11,321,010 0 11,321,010 8,041,459 6,902,082 6,607 14,950,148 1,190,726 16,140,874 Info Tech Repl/Svcs 55 1,692,409 1,730,601 2,000 1,732,601 1,800,804 946,105 47,063 2,793,972 1,600 2,795,572 Self-Insurance Funds"" 56-59 15,222,100 15,222,100 0 15,222,100 14,552,294 58,851 14,611,145 15,227 14,626,372 Parking Authority 77 366,131 366,131 0 366,131 (868,910) 6,241,855 0 5,352,945 '. 0 5,352,945 533,559,901 536,287,140 2,695,337 540,982,477 484,953,532 343,940,355 27,239,534 856,133,421 6,806,651 862,940,072 'Includes Downtown, Ocean Park, Earthquake Recovery, and Low/Moderate Income Housing Redevelo pment Funds. ', "" Includes Self Insurance Comprehensive Fund, Bus Fund, Automobile Fund and Wo rkers Comp Fund. PROPOSED CHANGES TO FY2007-08 REVENUE AND EXPENDITURE BUDGET EXHIBIT A2 I. REVENUE ADJUSTMENTS Fund DepartmentlDivision/Project Amount Explanation of Change General (01) Finance /Administration $ (758,000) Utility Users Tax -decrease budget to reflect Southern California Edison rate reduction & lower cable revenue partially offset by higher natural gas and telecommunication revenues. General (01) Finance /Administration $ (1,300,600) Sales & Use Tax -decrease budget by 3.9% to reflect flattening of sales in a slowing economy. General (01) Finance /Administration $ 472,900 Property Taxes -increase budget to reflect higher than anticipated unsecured aircraft taxes and delinquent taxes and penalties offset by lower Public Safety Augmentation funds from the State. General (01) Finance !Administration $ 1,004,000 Business License Tax -increase budget to reflect higher revenues from professional services & retail business categories and additional enforcement actions by City. General (01) Finance /Administration $ 1,720,000 Transient Occupancy Tax -increase budget to reflect higher average room rates than anticipated and continued high occupancy levels. General (01) Finance /Administration $ 404,000 Real Property Transfer Tax - increase budget by 8.8% to reflect unanticipated transfers of several large commercial properties partially offset by sharp decrease in number of transfers city-wide. General (01) Finance /Administration $ (137,000) Other Local Taxes -decrease budget to reflect lower vehicle license fee revenues. General (01) Finance /Administration $ 210,000 Parking Facilities Tax -increase budget by 1.8% to reflect actual receipts year-to-date. 1 PROPOSED CHANGES TO FY2007-08 REVENUE AND EXPENDITURE BUDGET I. REVENUE ADJUSTMENTS (continued) Fund Department/DivisionlProiect General(01) General(01) General(01) Finance /Administration Finance /Administration Planning and Community Development/ Various General (01) General(01) Fund Total Housing and Economic Development/ Administration and Redevelopment EXHIBIT A2 Amount Explanation of Chanpe 12,150 State SB90 Claims -increase budget to reflect cost reimbursement from the State for charges from Los Angeles County for the processing of absentee ballots for the November 2006 election. In prior elections, County was directly reimbursed from the State for these costs. 100,000 Interest Revenue -increase budget to reflect actual year-to-date interest income. $ (1,675,700) Various Accounts -Changes reflect six months of year-to date revenue receipts. Budget decreases in Building Permits ($687,800) and Plan Check Fees ($859,000) reflecting less than anticipated condominium activity, and Zoning Approval /Variance Fees ($349,900) reflecting decreased development activity. Offsetting are increases in Residential Building Report Fees ($22,500), Document Imaging Fees ($98,500) and Structure Parking Permits ($100,000). 300,000 Rental Revenue -increase budget to reflect actual year-to-date receipts. $ 351,750 Miscellaneous Grants (20) Environmental and Public Works $ (240,000) TEA 21 -Palisades Bluff Improvement Management/ Civil Engineering project delayed until summer 2008. and Architecture Reimbursement anticipated in FY2008- 09. Miscellaneous Grants (20) Environmental and Public Works $ (350,000) HBRR -funding application still Management/ Civil Engineering pending Caltrans approval. and Architecture Reimbursement anticipated in FY2008- 09 after approval. PROPOSED CHANGES TO FY2007-08 REVENUE AND EXPENDITURE BUDGET I. REVENUE ADJUSTMENTS (continued) Fund EXHIBIT A2 DepartmentlDivision/Project Amount Explanation of Change Miscellaneous Grants (20) Environmental and Public Works $ 56,273 Management/ Civil Engineering and Architecture Miscellaneous Grants (20) Environmental and Public Works $ 26,500 Management/ Environmental Programs Miscellaneous Grants (20) Housing and Economic Development/ Pier Environmental and Public Works $ 500.000 Management/ Wastewater 100,000 Miscellaneous Grants (20) Fund Total $ (407,227) Water (25) Environmental and Public Works $ 100,000 Water Meter Installation Fee - Management/ Water increase budget to reflect higher construction activity. Water (25) Environmental and Public Works $ 200,000 Water Capital Facilities Fee - Management/ Water increase budget to reflect higher construction activity. Water (25) Fund Total $ 300,000 Wastewater (31) Big Blue Bus Information Technology Replacement and Services (55) LACMTA -reflects an adjustment to a previously closed project (Cloverfield Soundwall) due to negotiations with the MTA. Environmental Protection Agency - reflects award of a new multi-year grant for a pilot collection program. National Park Service - grantaward for the Santa Monica Pier's 100th Anniversary. City of Los Angeles Sewer Repair Reimbursement -increase budget to reflect higher reimbursement from the City of Los Angeles for capital improvements to the Moss Avenue Pumping Station. Big Blue Bus/ Transit Programs 1.948.814 Proposition A Discretionary and Services Subsidy -increase budget to reflect additional Prop A 40% Discretionary funds approved in the final funding marks ($974,194) and one-time Prop A sales tax funds ($974,620). Information Technology $ 2.000 Various Accounts -increase budget Replacement and Services/ for the purchase of computer Various equipment and depreciation. PROPOSED CHANGES TO FY2007-08 REVENUE AND EXPENDITURE BUDGET EXHIBIT A2 II. EXPENDITURE APPROPRIATIONS Fund Department/Division/Project Amount Explanation of Change General (01) City Manager Department/ $ (100,000) To transfer Homeless Initiative funding Administration for Community Education Anti- panhandling and Alternative Giving Campaign to Community and Cultural Services Department. General (01) City Manager Department/ $ 150,000 To appropriate one-time funds for an Community and Government information campaign on the City's anti Relations smoking laws. General (01) Records and Election Services/ $ 12,150 To appropriate additional costs Elections charged by Los Angeles County for processing absentee ballots for the November 2006 election. New law requires City request SB 90 reimbursement directly from State. General (01) City Attorney/ City Attorney $ 74,714 To appropriate funds for salary adjustments and position changes. General (01) Human Resources/ $ 13,691 To appropriate salary and wages Administrative Services and budgets for addition of 1.0 FTE Labor Relations position and reclassification of administrative staff positions. General (01) Human Resources/ Employment $ (41,675) Reflects on-going salary savings from Services underfilling to Analyst positions with Specialist positions. General (01) Human Resources/ $ 50,000 To appropriate one-time funds for Organizational Development & Succession Plan and administrative Benefits manuals ($40,000) and creation of recruitment brochure template ($10,000). General (01) Information Systems/ Software $ 25,000 To appropriate funds to modify the Systems Human Resources website. General (01) Community Maintenance/ $ 48,750 To appropriate additional funding for Facilities Management graffiti removal. General (01) Community Maintenance/ Park $ 58,000 Technical adjustment to reverse the Operations salary savings associated with Prop A funded projects in FY2006-07. 4 PROPOSED CHANGES TO FY2007-08 EXHIBIT A2 REVENUE AND EXPENDITURE BUDGET II. EXPENDITURE APPROPRIATIONS (continued) Fund Department/Division/Project Amount Explanation of Change General (01) Planning and Community $ 10,572 To appropriate salary & wage budgets Development/ City Planning for position modifications required to create along-term planning group. To delete 1.0 FTE Urban Designer position and 1.0 FTE Senior Planner position and add 1.0 FTE Planning Manager position and 1.0 FTE Principal Urban Designer position. General (01) Planning and Community $ 539,200 To appropriate salaries & wage budget Development/ Building and for temporary contract personnel. Safety General (01) Police/ Office of Operations $ 6,402 To appropriate salaries & wage budgets reflect position changes (delete 1.0 FTE Park Ranger Supervisor and 1.0 FTE Park Ranger, add 1.0 FTE Police Services Management Supervisor and 1.0 FTE Lead Park Ranger). General (01) Police/ Office of Criminal $ 5,947 To appropriate salaries & wage Investigations budgets to reflect position changes (delete 1.0 FTE Identification Technician position, add 1.0 FTE Forensic Specialist position). PROPOSED CHANGES TO FY2007-08 REVENUE AND EXPENDITURE BUDGET II. EXPENDITURE APPROPRIATIONS (continued) Fund General(01) General (01) General (01) General(01) General (01) Departure ntlDiv isio n/P roi ect Community and Cultural Services/ Human Services Environmental and Public Works $ Management) Civil Engineering and Architecture Non-Departmental/ All Other Transactions General Government Capital Improvement! Computer Replacement Program Various Departments/ Various Divisions EXHIBIT A2 Amount Explanation of Change 236,142 To appropriate salaries & wages budgets to reflect position changes (delete 0.75 FTE Community Services Program Specialist, add 1.0 FTE Community Services Program Coordinator). Appropriate one-time funds for tenant improvements and relocation costs for Pico Youth and Family Center ($31,000), funds from General Fund Designation for Education Foundation ($80,000) and transfer funding for Community Education Anti-panhandling and Alternative Giving Campaign from City Manager's Office ($100,000) to Community & Cultural Services. 3,094 To appropriate funds for personnel changes delete 1.0 FTE Associate Project Manager and add 1.0 FTE Project Manager. 38,879 To correct budget to reflect SMMUSD payment agreement 2,000 To appropriate funds for the purchase of computer equipment. $ 1,078,753 To appropriate funds for aone-time contribution to the Misc. Employees Medical Trust per the MOU Agreement of 6/01/05. General (01) Fund Total $ 2,211,619 Special Revenue Source Streets, Traffic Control and $ 56.273 To appropriate additional local funding (04) Parking Capital Improvement/ for the Clovertield Soundwall capital Clovertield Soundwall project. Beach Recreation (11) Community Maintenance/ Beach S 15.661 To appropriate funds for aone-time Maintenance contribution to the Misc. Employees Medical Trust per the MOU Agreement of 6/01 /05. PROPOSED CHANGES TO FY2007-08 EXHIBIT A2 REVENUE AND EXPENDITURE BUDGET II. EXPENDITURE APPROPRIATIONS (continued) Fund DepartmentlDivision/Project Amount Explanation of Chance Earthquake Recovery Community and Economic S 400.000 To appropriate funds for first study Redevelopment (17) Development Capital towards improvement of Santa Monica ImprovemenU Commercial Commercial Corridor as identified by Corridor Strategy LUCE. Miscellaneous Grants (20) Miscellaneous Grants (20) Miscellaneous Grants (20) Environmental and Public Works $ ManagemenU Environmental Programs Housing and Economic DevelopmenU Pier Streets, Traffic Control and Parking Capital ImprovemenU Lincoln Blvd Corridor Planning Study Miscellaneous Grants (20) Streets, Traffic Control and Parking Capital ImprovemenU Bicycle Informational Map Miscellaneous Grants (20) Streets, Traffic Control and Parking Capital ImprovemenU Bicycle Technology Demonstration Project 20,000 To appropriate Prop C local return funds for bicycle informational. map. 70,000 To appropriate Prop C local return funds for bicycle technology demonstration project. Miscellaneous Grants (20) Fund Total $ 366.500 Water (25) Environmental and Public Works $ 55.059 To appropriate funds for cone-time ManagemenU Water contribution to the Misc. Employees Medical Trust per the MOU Agreement of 6101 /05. Solid Waste Management Environmental and Public Works $ 122,797 To appropriate funds for personnel (27) ManagemenU Solid Waste reclassification ($4,100) and aone- Management time contribution to the Misc. Employees Medical Trust per the MOU Agreement of 6/01/05 ($118,697). 26,500 Reflects award of a new multi-year grant for a pilot collection program from the Environmental Protection Agency. 100,000 .Granting the Pier Restoration Corp (PRC) for the grant award from the National Park Service on the celebration of SM Pier's 100th Anniversary. $ 150,000 To appropriate Prop C local return funds for Lincoln Boulevard corridor planning study. PROPOSED CHANGES TO FY2007-08 REVENUE AND EXPENDITURE BUDGET II. EXPENDITURE APPROPRIATIONS (continued) Fund Solid Waste Management (27) Departure ntlD iv is i onlP roi ect General Government Capital Improvement/ Containers - Commercial Collections Solid Waste Management (27) Fund Total Pier (30) Community Maintenance/ Pier Maintenance Pier (30) Police/ Harbor Unit EXHIBIT A2 Amount Explanation of Change 500,000 To appropriate funds for purchase of containers and bins for start-up of city- wide commercial collection services. $ 622.797 17,477 To appropriate funds for cone-time contribution to the Misc. Employees Medical Trust per the MOU Agreement of 6/01/05. 14,565 To appropriate funds for aone-time contribution to the Misc. Employees Medical Trust per the MOU Agreement of 6/01 /05. Pier (30) Fund Total $ 32.042__ Wastewater (31) Environmental and Public Works $ 40.660 To appropriate funds for aone-time Management/ Various contribution to the Misc. Employees Medical Trust per the MOU Agreement of 6/01 /05. Civic Auditorium (32) Community and Cultural $ 31.714 To appropriate funds for aone-time Services/ Civic Auditorium contribution to the Misc. Employees Medical Trust per the MOU Agreement of 6101 /05. Airport (33) City Manager/ Airport $ 259,7(14 To appropriate funds for legal expenses ($250,000) and fora one- time contribution to the Misc. Employees Medical Trust per the MOU Agreement of 6/01/05 ($9,764). Airport (33) Community Maintenance/ Airport $ 4,185 To appropriate funds for aone-time Maintenance contribution to the Misc. Employees Medical Trust per the MOU Agreement of 6/01/05. Airport (33) Fund Total $ 263.949 PROPOSED CHANGES TO FY2007-08 REVENUE AND EXPENDITURE BUDGET II. EXPENDITURE APPROPRIATIONS (continued) Fund Department/Division/Project Cemetery (37) Environmental and Public Works Management/ Cemetery Big Blue Bus (41) Big Blue Bus (41) Big Blue Bus/ Transit Services EXHIBIT A2 Amount Explanation of Change $ 8.790 To appropriate funds for cone-time contribution to the Misc. Employees Medical Trust per the MOU Agreement of 6/01 /05. $ 700,000 To appropriate funds for bus self- insurance. Big Blue Bus/ Various $ 530,034 To appropriate funds for cone-time contribution to the Misc. Employees Medical Trust per the MOU Agreement of 6/01/05. Big Blue Bus (41) Fund Total SCAOMD AB2766 (44) General Government Capital Improvement/ Vehicle Replacement Program $ 1,230,034 $ 264,000 To appropriate funds for purchase of alternative fuel vehicles. Vehicle Management (54) Community Maintenance/ Fleet $ 27,032 To appropriate funds for aone-time Management contribution to the Misc. Employees Medical Trust per the MOU Agreement of 6/01/05. Vehicle Management (54) General Government Capital Improvement! Vehicle Replacement Program Vehicle Management (54) Fund Total Information Technology Replacement and Services (55) General Government Capital Improvement/ Computer Replacement Program $ 1,163,694 To appropriate funds for police vehicle replacement. $ 1,190,726 $ 1.600 To appropriate funds for the purchase of computer equipment. Workers Compensation Finance/ Risk Management $ 15.227 To appropriate funds for aone-time (59) contribution to the Misc. Employees Medical Trust per the MOU Agreement of 6/01105. 9 PROPOSED CHANGES TO FY2007-08 EXHIBIT A2 REVENUE AND EXPENDITURE BUDGET III. BALANCE SHEET TRANSFERS Fund Department/Division/Project Amount Explanation of Change General Fund (01) Loan to Airport Fund (250,000) Loan to the Airport Fund for litigation expenses. General Fund (01) General Fund (01) Beach Recreation (11) Earthquake Recovery Redevelopment (17) Water (25) Solid Waste Management (27) Pier (30) Wastewater (31) Civic Auditorium (32) Balance Sheet Transfer 1,078,753 To release the Misc. Employees medical trust reserve for out-of-pocket medical expenses. Balance Sheet Transfer 80,000 To release Education Foundation designation for payment in FY2007-08. Balance Sheet Transfer 15,661 To release the Misc. Employees medical trust reserve for out-of-pocket medical expenses. Balance Sheet Transfer (6,500,000) Loan to the Wastewater Fund for 10% retainage on sewer-related earthquake projects. Loan to be repaid in FY2009/10 upon reimbursement from FEMA. Balance Sheet Transfer 55,059 To release the Misc. Employees medical trust reserve for out-of-pocket medical expenses. Balance Sheet Transfer 118,697 To release the Misc. Employees medical trust reserve for out-of-pocket medical expenses. Balance Sheet Transfer 32,042 To release the Misc. Employees medical trust reserve for out-of-pocket medical expenses. Balance Sheet Transfer 6,540,660 To release the Misc. Employees medical trust reserve for out-of-pocket medical expenses ($40,660) and record a loan from the Earthquake Recovery Redevelopment Fund for 10%retainage on sewer-related earthquake projects ($6,500,000). Loan to be repaid by FY2009/10. Balance Sheet Transfer 31,714 To release the Misc. Employees medical trust reserve for out-of-pocket medical expenses. 10 PROPOSED CHANGES TO FY2007-08 REVENUE AND EXPENDITURE BUDGET EXHIBIT A2 III. BALANCE SHEET TRANSFERS (continued) Fund Department/Division/Project Airport (33) Balance Sheet Transfer Cemetery (37) Balance Sheet Transfer Amount Explanation of Chance 263,949 To release the Misc. Employees medical trust reserve for out-of-pocket medical expenses ($13,949) and record a loan from the General Fund for litigation expenses ($250,000). 8,790 To release the Misc. Employees medical trust reserve for out-of-pocket medical expenses. Big Blue Bus (41) Balance Sheet Transfer Vehicle Management (54) Balance Sheet Transfer Workers' Compensation (59) Balance Sheet Transfer $ 2,801,436 To release the Relocation designation for the construction of the Access Center to be used for the homelessness feeding program ($2,271,402) and to release the Misc. Employees medical trust reserve for out-of-pocket medical expenses ($530,034): $ 27,032 To release the Misc. Employees medical trust reserve for out-of-pocket medical expenses. $ 15,227 To release the Misc. Employees medical trust reserve for out-of-pocket medical expenses. 11 PROPOSED CHANGES TO FY2007-08 REVENUE AND EXPENDITURE BUDGET IV ACCOUNTING ADJUSTMENTS EXHIBIT A2 The following transactions are accounting changes with no net budget impact for the one-time contribution of $900,000 to the Misc. Employees medical trust and $100,000 to the Fire medical trust. Fund Department/Division/Project Amount General (01) City Council/ City Council 5,556 General (01) City Manager/ Various 9,260 General (01) Records and Election Services/ 6,173 Various General(01) Finance/Various 27,778 General (01) City Attorney/ City Attorney 24,691 General (01) Information Systems/ Various 22,223 General (01) Human Resources/ Various 9,877 General (01) Housing and Economic 19,754 Development/ Various General(01) Police/Various 100,618 General(01) Fire/Various 105,555 General (01) Planning and Community 51,234 Development( Various General (01) Environmental and Public Works 32,099 Management/ Various General (01) Community and Cultural 66,048 Services/ Various General (01) Community Maintenance/ 103,086 Various General (01) Library/ Various 40,123 General(01) Non-departmental/All Other (1,000,000) General (01) Non-departmental/ Interfund 375,925 Transactions General Fund Total: $0 Beach (11) Community Maintenance/ Beach 6,790 maintenance Beach (11) Non-departmental/ Interfund (6,790) Transactions Beach Recreation Fund Total: $0 Water (25) Environmental and Public Works 25,926 Management/ Water Water (25) Non-departmental/Interfund (25,926) Transactions Water Fund Total: $0 Solid Waste (27) Environmental and Public Works 39,506 Management/ Solid Waste Management Solid Waste (27) Non-departmental/ Interfund (39,506) Transactions Solid Waste Management Fund Total: $0 12 PROPOSED CHANGES TO FY2007-08 REVENUE AND EXPENDITURE BUDGET IV ACCOUNTING ADJUSTMENTS (continued Fund Degartment/Division/Project Amount Pier (30) Community Maintenance/ Pier 3,704 Maintenance Pier (30) Police/ Harbor Guard 2,469 Pier (30) Non-departmental/Interfund (6,173) Transactions Pier Fund Total: $p Wastewater (31) Environmental and Public Works 11,728 Management/ Wastewater Wastewater (31) Environmental and Public Works 9,877 Management/ Environmental Programs Wastewater(31) Non-departmentalllnterfund (21,605) Transactions Wastewater Fund Total: $0 Civic Auditorium (32) Community and Cultural 16,667 Services/ Civic Auditorium Civic Auditorium (32) Non-departmental/Interfund (16,667) Transactions Civic Auditorium Fund Total: $0 Airport (33) City Manager/ Airport 3,704 Airport (33) Community Maintenance/ Airport 1,852 Maintenance Airport (33) Non-departmental/Interfund (5,556) Transactions Airport Fund Total: $0 Cemetery (37) Environmental and Public Works 3,086 Management/ Cemetery Cemetery (37) Non-departmental/Interfund (3,086) Transactions Cemetery Fund Total: $0 Big Blue Bus (41) Big Blue Bus/Transit Executive 3,086 Big Blue Bus (41) Big Blue Bus/Transit Programs 6,173 Big Blue Bus (41) Big Blue Bus/ Customer 7,407 Relations Big Blue Bus (41) Big Blue Bus/Transit 43,210 Maintenance Big Blue Bus (41) Big Blue. Bus/ Transit Services 170,371 Big Blue Bus (41) Big Blue Bus/ Transit Safety and 617 Security Big Blue Bus (41) Non-departmental/Interfund (230,864) Transactions Big Blue Bus Fund Total: $0 EXHIBIT A2 13 PROPOSED CHANGES TO FY2007-08 REVENUE AND EXPENDITURE BUDGET IV ACCOUNTING ADJUSTMENTS (continued Fund De ga rtm a nt/D iv is ion/P roiect Amount 12,346 (12, 346), $0 7,406 (7,406) $0 Vehicle Management (54) Community Maintenance/ Fleet Management Vehicle Management (54) Non-departmental/Interfund Transactions Vehicle Management Fund Total: Workers' Compensation (59) Finance/ Risk Management Workers' Compensation (59) Non-departmental/ Interfund Transactions Workers' Compensation Fund Total: EXHIBIT A2 14 ATTACHMENT D2 Department City Attorney City Attorney City Attorney Human Resources Human Resources Human Resources Community Maintenance Community Maintenance Planning and Community Development POSITION AND CLASSIFICATION CHANGES Division Delete Add City Attorney 1.0 FTE permanent legal Assistant 1.0 FTE permanent Legal Secretary City Attorney City Attorney Administrative Services/ Employee Relations Administrative Services/ Employee Relations Administrative Services/ Employee Relations Community Facilities Operations Internal Facilities Operations City Planning 1.0 FTE permanent Legal Administrative Staff Assistant 1.0 FTE permanent Staff Assistant I 1.0 FTE permanent Staff Assistant II 1.0 FTE permanent 1.0 FTE permanent Executive Administrative Analyst - Administrative Assistant Human Resources 1.0 FTE permanent Staff 1.0 FTE permanent Assistant III Administrative Staff Assistant -Human Resources 2.0 FTE permanent Custodian I 2.0 FTE permanent Custodian I 1.0 FTE permanent City Planning Receptionist Planning and City Planning 1.0 FTE permanent City Community Planning Records Development Assistant ATTACHMENT D2 Department Planning and Community Development Planning and Community Development Planning and Community Development Planning and Community Development Police Police Police Police Police Police POSITION AND CLASSIFICATION CHANGES Division Delete Add City Planning City Planning City Planning City Planning Administrative Services Administrative Services Operations Operations Operations Special Enforcement 1.0 FTE permanent Principal Planner 1.0 FTE permanent Urban Designer 1.0 FTE permanent Senior Planner 1.0 FTE permanent Fiscal Staff Assistant I I 1.0 FTE permanent Senior Administrative Analyst 1.0 FTE permanent Park Ranger Supervisor 2.0 FTE permanent City Planning Staff Assistant 1.0 FTE permanent Planning Manager 1.0 FTE permanent Principal Urban Designer 1.0 FTE permanent Principal Planner 1.0 FTE permanent Fiscal Staff Assistant III 1.0 FTE permanent Assistant to the Chief of Police 1.0 FTE permanent Police Services Management Supervisor 1.0 FTE permanent Park 1.0 FTE permanent Lead Ranger Park Ranger 6.0 FTE permanent Police Officer 6.0 FTE permanent Police Officer Police Criminal 1.0 FTE permanent 1.0 FTE permanent Investigations Identification Technician Forensic Specialist ATTACHMENT D2 Department Community and Cultural Services Big Blue Bus Environmental and Public Works Management Environmental and Public Works Management Environmental and Public Works Management POSITION AND CLASSIFICATION CHANGES Division Delete Add Human Services 0.75 FTE permanent Community Services Program Specialist 1.0 FTE permanent Community Services Program Coordinator Transit Services Civil Engineering and Architecture 1.0 FTE permanent Transit Operations Supervisor 1.0 FTE permanent Associate Project Manager Civil Engineering 1.0 FTE permanent City and Architecture Architect Solid Waste 1.0 FTE permanent Solid Waste Equipment Operator Environmental and Solid Waste 1.0 FTE permanent Public Works Equipment Operator II Management 1.0 FTE permanent Transit Operations Superintendent 1.0 FTE permanent Project Manager 1.0 FTE permanent Principal Architect 1.0 FTE permanent Equipment Operator I 1.0 FTE permanent Solid Waste Crew Leader EXHIBIT C Amendment to the Program Year 2007 Action Plan Submitted to the U.S. Department of Housing and Urban Development HUMAN SERVICES DIVISION Community and Cultural Services Department HOUSING AND REDEVELOPMENT DIVISION Housing and Economic Development Department 1685 Main Street, Room 212, Santa Monica, California 90401 Telephone (310) 458-8701 FAX (310) 458-3380 TDD (310) 458-8696 Website: smgov.net February 2008 ' CITY OF SANTA MONICA EXHIBIT C AMENDMENT TO THE CITY OF SANTA MONICA'S 2007 ACTION PLAN The One-Year Action Plan is submitted annually to the U.S. Department of Housing and Urban Development (HUD). It delineates the City's specific projects and activities for one-year use of Community Development Block Grant (CDBG) and HOME funds in order to meet the City's overall housing and community development needs as specified in the Consolidated Plan (FY 2005-10) adopted by City Council and submitted to HUD in June 2005. According to Federal regulations, the City "shall amend its approved plan whenever it makes one of the following decisions: 1) to make a change in its allocation priorities or a change in the method of distribution of funds; 2) to carry out an activity, using funds from any program covered by the consolidated plan (including program income), not previously described in the action plan; or 3) to change the purpose, scope, location, or beneficiaries of an activity." A second amendment to the City of Santa Monica's Program Year 2007 Action Plan is necessary in order to reallocate CDBG entitlement funds to new projects and to amend funding for existing projects. In the 2007 Amended Action Plan approved by the Santa Monica City Council on June 12, 2007, $2,308,061 in CDBG entitlement and program income funds were allocated to the Pedestrian Extension to the Downtown Transit Mall project. In order to accommodate HUD expenditure deadlines despite the delay of the Pedestrian Extension project, $495,000 will be reallocated from this project as follows: $400,000 to assist in the construction of affordable rental housing through the Citywide Affordable Trust Fund; and $95,000 to the emergency shelter public service project. Reference Resolution No. 10273 (CCS). Additional attachments available for review at City Clerk's Office.