SR-112508-8A~~r
~;tYOf City Council Report
Santa Monica
City Council Meeting: November 25, 2008
Agenda Item: ffi'
To: Mayor andCity.Council
Chairperson and Redevelopment Agency Members
Chairperson and Parking Authority Members
From: Carol Swindell, Director of Finance
Subject: FY2007-08 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 2007-08:
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 a5 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
expehditures. The FY2007-08 fiscal year ended on June 30, 2008 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.
The city-wide revised operating budget for FY2007-08 is $418.6 million, an additional
net appropriation in the amount of $64.2 million is requested bringing the final revised
operating budget to $482.8 million. Of the $64.2 million in increased budget authority,
$61.1 million is appropriated for ohe-time. events, including the Charnock settlement
($56.7 million) and aone-time transfer to the Self Insurance Fund ($4.4 million).
Council is asked to authorize the City Manager to make General Fund budget
adjustments between departments and major account groups to maintain compliance
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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 Departmental Performance Review (Attachment C)
• Year-End Capital Improvements Program Status (Attachment D)
Discussion
Background
Each year Council, the Housing Authority, the Redevelopment Agency and the 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 ahy 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:
• General Fund - A reduction of $26,300 to transfer bike valet services to the
Miscellaneous Grants Fund and an increase of $140,376 for computer purchases
and replacement. Additionally, $4,403,292 is transferred to the Self Insurance
Fund in order to restore fund balances to previous levels.
• Special Revenue Fund - An increase of $665,165 reflects an accounting
adjustment to move Prop 42 Traffic Congestion Relief projects from the Gas Tax
Fund (the net effect is zero since Prop 42 funding previously received is also
transferred from the Gas Tax fund).
• Charnock Fund - An increase of $56,670,944 related to settlement of ongoing
litigation.
Beach Fund - An increase of $3,973 related to seasonal staffing and additional
fuel costs.
• Earthquake Recovery Redevelopment Fund - An increase of $1,468,852 for
greater than anticipated Tax Increment pass-through payments.
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• Miscellaneous Grants Fund - An increase of $337,242 to reflect various grant
expenditures not previously budgeted and to move the bike valet services from
the General Fund.
• Water Fund - An increase of $23,000 in appropriations for the Computer
Replacement Program for purchases and replacement costs.
• Wastewater Fund - An increase of $4,250 in appropriations for the Computer
Replacement Program for purchases and replacement costs.
• Solid Waste Fund - An increase of $445,127 for personnel costs associated with
Commercial Collections implementation, increased fuel costs, and an increased
share for Environmental Programs.
• Givic Auditorium Fund - An increase of $4,250 in appropriations for the
Computer Replacement Program for purchases and replacement costs.
• Airport Fund - An increase of $2;000 in appropriations for the Computer
Replacement Program for purchases and replacement costs.
• Cemetery Fund - An increase of $20,000 in appropriations for the Computer
Replacement Program for purchases and replacement costs.
• Gas Tax Fund - A decrease of $665,165 to move Traffic Congestion Relief
projects to the Special Revenue Fund.
• SCAOMD AB 2766 Fund - An increase of $346,000 to purchase AQMD eligible
vehicle purchases through the Vehicle Management Fund.
• Vehicle Maintenance Fund - An increase of $7;607 for increased fuel costs.
• .Information.. Technology Replacement & Services Fund - An increase of
$163,126 for purchases of computer equipment.
• Comprehensive Self Insurance and Workers Compensation Funds - Ah increase
of $147,596 due to increased settlement costs in the previous fiscal year.
Total requested appropriations city-wide are $64,161,467. All transactions are identified
by department and division within a fund in Attachment A.
It is anticipated that after completion of the audit the ending General Fund Balance will
have an unreserved and undesignated fund balance of $5.2 million. Of this remaining
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fund balance, approximately $4 million is recognized in unbudgeted revenues.
Specifically, additional property taxes of $2.2 million are a result of a one-time change in
accounting for the RDA tax pass through to the General Fund, as these funds were not
expected to be received (or recorded) until FY 2008-2009. Business license taxes
added an additional $0.4 million and other revenues were $1.4 million, including
approximately $0.9 million recognized as revenue related to the City's prepayment to
CaIPERS and a $0.3 million reimbursement to the General Fund for employee paid
insurance premiums. In addition to the effect of these revenues on undesignated fund
balance, certain Capital Improvement Projects (CIP) were closed out as part of year-
end cleanup for completed projects. These. designated CIPs included funds -for the
Public Safety Facility (PSF) and the. Airport Park Expansion. Staff will discuss potential
uses of undesignated fund balances at an upcoming study session. The 10% set-aside
of $25.3 million for operating contingencies has been reflected in a designation on the
Balance Sheet.
Staff will make any other recommendations for General Fund appropriations in the staff
report revising FY2008-09 budget and personnel changes, also scheduled for action on
November 25, 2008.
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Budaet/Financial Impacts
The requested FY2007-08 budget actions adjust the revised budgets to actual
expenditures in the various City funds.
Prepared by:
Chuck McBride, Assistant Director of Finance
Approved:. Forwarded to Council:
~ ~ ~ ` ~.
,,.Carol Swindell . L ont Ev
Director of Finance i Manager
Attachments:
A: Proposed FY2007-08 Budget Appropriations
B: FY2007-08 Budget Changes with No Fund Appropriation Increases
C: The Year-End Departmental Pertormance Review
D: Year-End Capital Improvements Program Status
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Additional attachments
available at City Clerk's
Office.