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SR-10-27-2015-8B City Council Housing Authority Redevelopment Successor Agency Report City Council Regular Meeting: October 27, 2015 Agenda Item: 8.B 1 of 12 To: Housing Authority, Redevelopment Successor Agency, Mayor and City Council From: Gigi Decavalles-Hughes, Director, Finance Department, Budget Division Donna Peter, Director, Martin Pastucha, Director Subject: FY 2014-15 Year-End Budget Changes; and FY 2015-16 Budget, Position and Compensation Changes Recommended Action Staff recommends that the City Council, Housing Authority and Successor Agency to the Santa Monica Redevelopment Agency: 1. Approve changes to the Fiscal Year 2014-15 Revised Budget as detailed in Attachment A; and 2. Approve changes to the Fiscal Year 2015-16 Adopted Budget and FY 2016-17 Budget Plan as detailed in Attachment B. Staff also recommends that the City Council: 1. Review the City’s year-end financial status; 2. Adopt a Resolution establishing classification and salary rates for various positions detailed in Attachment C; and 3. Approve the position and classification changes detailed in Attachment D. Executive Summary The General Fund ended FY 2014-15 with revenues $8.7 million greater than estimated actuals, and operating expenditures $6.5 million below budget, for a net $15.2 million positive impact compared to budget. These reflect unaudited year -end results. Staff recommends that surplus funds, the majority of which are one-time, be allocated to expenditure control savings accounts, shovel-ready projects advancing the City’s Strategic Initiatives, and one-time capital project contingencies. Staff also recommends various changes to the FY 2014-15 Revised Budget to reflect significant events and to adjust Capital Improvement Program budgets. Non-General funds ended the year with operating expenditures $18.1 million below budget, and revenues $5.5 million greater than estimated actuals, for a $23.6 million positive impact compared to budget. These funds will be used to build reserves, fund ongoing operations, and support future capital projects. 2 of 12 Staff recommends $24.4 million in total expenditure adjustments for FY 2014-15, $22.9 million in the General Fund and $1.5 million in other funds. In the General Fund, the changes are related to the Redevelopment Agency settlement payment, a Utility Users Tax settlement, legal expenses related to airport litigation, and adjustments to the computer equipment replacement program. In all cases, the changes are appropriating funds previously set aside in the fund balance for these purposes, or funds transferred among departments and funds. In other funds, the changes are related to adjustments for projects funded with Community Development Block Grant, Miscellaneous Grants, Asset Seizure and Water funds. Staff also recommends $10.8 million in expenditure adjustments in FY 2015-16, $9.3 million in the General Fund, and $1.5 million in other funds. These changes dedicate resources to correspond to Council’s Strategic Initiatives, make staffing and classification-related adjustments and allocate expenditure control budget amounts. Background On June 24, 2014 (Attachment E), Council adopted the FY 2014 -15 Budget as the second year of the FY 2013-15 Biennial Budget; and adopted the first year and approved the second year of the FY 2014-16 Biennial Capital Improvement Program Budget. On October 28, 2014 (Attachment F) and January 27, 2015 (Attachment G), Council approved certain revisions to the FY 2014-15 Revised Budget that adjusted revenues, expenditures and staffing. Changes included in this staff report present the final modifications to FY 2014-15. On June 23, 2015 (Attachment H), Council adopted the FY 2015-16 Budget and approved the FY 2016-17 Budget Plan as part of the City’s biennial budget process. Council also adopted the second year of the FY 2014-16 Capital Improvement Program budget. Proposed staffing changes, expenditure control savings allocations and appropriation of one-time General Fund savings to advance the City’s Strategic Initiatives are the first modifications to this budget. Discussion The year-end report provides Council with an overview of the City’s financial performance as compared to budget, and aligns budgets with significant operational shifts whose impacts were not known until the last half of FY 2014-15. The information gathered during staff’s review of year-end budget performance will inform the upcoming financial status update, to be presented to Council in January 2016, as well as the 3 of 12 exception-based budget process that will be completed in June 2016. Fiscal Year 2014-15 Budget Year-End Status The City ended the year with greater revenues and lower expenditures than budgeted. General Fund revenues were $8.7 million, or 2.5%, greater than the FY 2014-15 estimated actual amount. Approximately $1.5 million of the increase is anticipated to be on-going, including a greater than anticipated revenue increase in property taxes, sales taxes, licenses/permits and fines, offset by a lower than anticipated increase in transient occupancy tax and utility user tax revenue. The remaining $7.2 million of the increase is from one-time sources that will be used to support one -time costs. These include greater than anticipated revenues in charges for services, documentary transfer tax and reimbursements from other government agencies. Including the adjustments in this report, General Fund net expenditure savings were $3.7 million, or 1.1%, below budget. This amount includes $6.5 million from operating expenditure savings, offset primarily by the appropriation of one -third of savings back to the departments as part of the expenditure control budgeting program. Over 79% of Department savings was due to approximately 105 vacant positions throughout the year. Remaining supplies and expenses savings indicate conservative spending on on - going operations. On May 27, 2015, staff presented Council with the General Fund Financial Status Update that showed positive balances until FY 2019-20, at which point a deficit of $1.9 million is projected. The next financial status update, which will be presented to Council in January 2016, will inform the Council and community of the City’s current and projected fiscal status as the City enters the FY 2016-17 exception based budget preparation process. FY 2014-15 year-end results are better than projected, but are primarily one-time in nature and therefore would not impact future year projections in any meaningful way. Staff recommends that the $15.2 million in FY 2014-15 General Fund savings be appropriated for expenditure control budgeting, Strategic Initiatives, and set aside for Capital Improvement Program (CIP) contingency. 4 of 12 Including adjustments recommended in this staff report, other funds ended the fiscal year with expenditures $18.1 million or 8.3%, below budget. Savings in other funds were due to approximately 38 vacant positions throughout the year, Liquid Natural Gas (LNG) fuel savings, timing of grant expenditures, facility and vehicle maintenance savings, and an accounting adjustment related to pension reporting, partially offset by higher than anticipated costs for temporary employees and overtime. As projected, the Housing Authority Fund required a General Fund opera ting subsidy. Funds historically requiring General Fund support, including the Pier, Cemetery, Airport, and Beach Funds, ended the year with a positive balance. Non-General Fund one-time operating expenditure savings of $18.1 million will contribute towards enterprise and internal service reserves and support future capital projects. Fiscal Year 2014-15 Operating and Capital Budget Changes Recommended changes include $24.4 million in adjustments: a $22.9 million increase in the General Fund and a $1.5 million increase in other funds. In the General Fund, these operating budget adjustments reflect appropriations of $0.8 million for a Utility Users Tax (UUT) settlement payment related to refunds of excess collections of the City’s UUT by AT&T, $0.25 million for legal expenses related to airport litigation, and $21.6 million reflecting the final payment to the Los Angeles County Auditor Controller per the stipulated judgment with the State Department of Finance and the State Controller’s Office on October 28, 2013 regarding the dissolution of the City’s Redevelopment Agency. The funds to cover these payments had previously been set - aside for these purposes. Also included in FY 2014-15 are transfers of $229,000 from many department budgets to fund the long-term replacement program for computer equipment. In other funds, operating budget adjustments reflect $1.5 million for grant - funded projects. Fiscal Year 2015-16 Operating and Capital Budget Changes Recommended changes include a net $10.8 million in adjustments: a net $9.3 million increase in the General Fund and a $1.5 million increase in other funds. The budget 5 of 12 changes reflect resources to advance the City’s Strategic Initiatives, personnel changes, adjustments to ensure that departments are contributing to the Computer Equipment Replacement Program, additional drought response needs, and expenditure control allocations. Strategic Initiatives At its special meeting on August 23, 2015, Council identified the City’s top priority Strategic Initiatives for the next 3 to 5 years:  Establishing a new model for mobility;  Maintaining an inclusive and diverse community;  Securing local control of the City land occupied by the Santa Monica Airport;  Taking a leadership role in regional efforts to address homelessness; and  Continuing the partnership supporting education and from Cradle to Career and beyond. Staff recommends appropriating $5.1 million (includes a 5% contingency and resources to support the development of performance metrics) of one-time General Fund savings for projects that can be implemented in the near term. Longer-term planning and budgeting to support implementation of the Strategic Initiatives will be undertaken. Staff is in the process of inventorying and prioritizing existing work eff orts that fall within each strategic initiative and developing SMART metrics, and staff will present the Council with more information about prioritized work efforts and metrics for each Strategic Initiative in 2016. Future budgets may be adjusted to reflect the effort necessary to advance each Strategic Initiative. The projects are listed below: Establishing a new model for mobility  Bike racks and pedestrian amenities ($300,000): Purchase and install bike racks, corrals and amenities including 3 bike corrals located in commercial activity areas, up to 300 bike racks located citywide, a high-visibility bike feedback signage/counter, bike striping and sharrow visibility improvements, update ADA ramps and other pedestrian amenities.  Downtown crosswalk scrambles ($200,000): Install pedestrian scramble traffic signal modifications at 11 Downtown intersections, including: 2nd Street at Wilshire Boulevard, Arizona Avenue, Santa Monica Boulevard, Broadway and 6 of 12 Colorado Avenue; 3rd Street at Wilshire Boulevard; and 4th Street at Wilshire Boulevard, Arizona Avenue, Santa Monica Boulevard, Broadway and Colorado Avenue. Work would include new striping, signage, pedestrian indicators, and traffic signal timing plans.  BBB Fare Reduction Program ($575,000): The arrival of light rail service has inspired the Evolution of Blue, BBB’s service integration plan for first-last mile connectivity to the Expo Light Rail Line. In BBB’s continuing efforts to attract more residents of the City and the Westside to try transit, BBB proposes a Fare Incentive Program. The program is very basic: Buy One - Get One Free. The Buy One - Get One Free Program incentivizes a customer to purchase any BBB Day Pass, 7-Day Pass, 13- Ride Pass or 30-Day Pass, and receive the equivalent value for free during the first 90 days of light rail service. Customers would need a TAP card to load the value when purchasing the pass. The program also helps BBB migrate more customers to pass fare media, and away from paying the cash fare. Cash fare payments slow down the boarding process and increase stop dwell time.  Expo Light Rail outreach ($500,000): The Office of Communications (OOC) has identified the following seven core categories for communication and has established inter-departmental working teams for each: 1) Public Safety, 2) Traffic/Circulation, 3) First/Last Mile Connections, 4) Maintenance, 5) Maintenance Yard/Buffer Park, 6) Commuters/Riders, and 7) Launch/Opening. These teams would work with the OOC to implement a coordinated and timed approach to marketing and communication based on these seven categories. Funds would be used to hire a marketing firm to perform branding and marketing services regarding Expo with development of collateral materials in support of the City’s communication efforts.  Enhancements to the Existing Electric Vehicle (EV) Infrastructure ($150,000): Funds would be utilized to increase the number of EV Charging locations in the city to include locations in the multi-family and commercial areas of the city. These locations would be identified after presentation of EV Infrastructure Recommendation Report is to the City Council in first quarter 2016. Maintaining an inclusive and diverse community  Community engagement regarding maintaining inclusiveness and diversity b y restoring the availability of affordable housing in Santa Monica ($350,000): The proposed initiative would enable the Council, community members and staff to better understand (1) community desires and expectations regarding affordable housing and community inclusiveness, (2) best practices and innovative approaches to preserving and creating affordable housing, and (3) information regarding existing affordable housing in Santa Monica. The initiative would include (1) an overhaul of the City’s housing website to include more information in a more user-friendly format, (2) community forums featuring nationally recognized experts on housing, and (3) citizen surveys regarding housing in Santa Monica. 7 of 12  Apartment owner incentive programs for accepting Section 8 vouchers ($250,000): The programs would include enhanced communications and outreach, participation incentives, and loss mitigation assurances to encourage greater participation in the Section 8 program by apartment building owners.  CityNet Digital Inclusion Program: Fiber to the Home Pilot ($175,000): The City is in the process of piloting a Digital Inclusion Program for Fiber to the Home. The project would provide fiber optic services to 10 Santa Monica Community Corporation affordable housing properties to address the digital divide for low income housing residents. The pilot would provide data to develop an operational model for a citywide residential broadband service. Securing local control of the City land occupied by the Santa Monica Airport  Improvements to Airport Avenue Pedestrian Walkway ($500,000): Funds would be used to enhance the mobility for pedestrian utilizing Airport Ave. between Bundy Drive to 23rd Street. Currently there is not a completed pedestrian pathway along Airport Ave. that extends between the 23rd Street and Bundy Drive. These funds would be used to create and enhance the pedestrian walkway that would extend along this segment and provide connectivity along the length of Airport Ave. consistent with input received in th e Airport Visioning Process.  Senior Advisor to the City Manager on Airport Affairs (Year 1: $184,202; Year 2: $195,324): A limited-term, two year, position to support the City’s efforts to secure local land use control over the Santa Monica Airport. The p osition would work in the City Manager’s Office to analyze and address high -profile health, safety, environmental, economic and security issues. The job involve s coordinating public policy analysis, research, coalition building, media relations and outreach. Taking a leadership role in regional efforts to address homelessness  Multi-Disciplinary Street Team ($600,000): Modelled after successful Integrated Mobile Health Teams (IMHT), this is a one year pilot providing for one multi- disciplinary team (i.e. physician, nurse practitioner, clinical social worker, peer advocate) to engage homeless individuals in open spaces (parks, beach) and public facilities (i.e. libraries). The team would provide field-based health and behavioral health treatment and linkages to resources in collaboration with local non-profits and area health providers. Accurate measurement and documentation of outcomes would position the City to seek future funding from the County as part of a regional approach to address homelessness.  Homeless Prevention for Seniors ($75,000): Based upon recent studies, it is estimated that up to 650 of the over 13,000 Santa Monicans over the age of 65 could be at risk of losing their housing due to hoarding and other behavioral conditions exacerbated by aging. In August, the City launched the Senior Housing Task Force, with representatives from SMPD, SMFD, Code Enforcement, Building & Safety, Human Services, LA County DMH, LAFLA and 8 of 12 WISE & Healthy Aging, with the goal of improving housing conditions for seniors and preventing evictions. To date, the task force has identified 14 vulnerable seniors for priority services, including those who are high users of Fire and Police services. The funding would be used to prevent homelessness by providing cleaning/de-hoarding of units, and increased training for community partners such as WISE & Healthy Aging, St. Joseph Center, and Chrysalis Enterprise to address these complicated situations. Continuing the partnership supporting education and from Cradle to Career and beyond  Broadband Improvements at Libraries ($175,000): This project replaces obsolete 10-year-old network switching equipment in all libraries. Existing equipment is limited to speeds of 100 megabits per second and needs to be replaced with gigabit devices to support the delivery of modern internet services to the public. The new equipment would address the increase in public demand for internet bandwidth through Wi-Fi and public access terminals. The project also supports the City Council's strategic initiative for maintaining an inclusive and diverse community.  Main Library Multipurpose Room upgrades ($70,000): Convert from analog to digital, replace the projector and screen, add videoconferencing capability, upgrade the control system to allow any device to connect, install new mixers and microphones with the re-use of portions of the existing system and replacing the rack with a locking door so renters cannot make untraceable modifications.  Virginia Avenue Park Physical Improvements ($120,000): Funding would be used for capital improvements at the VAP Teen Center, including technology enhancements and upgrades to the facility. The Teen Center has not received any significant upgrades since it re-opened in 2005.  Santa Monica Cradle to Career (SMC2C) Community Engagement Enhancements ($205,000): With our institutional partners at the SMMUSD and SMC, strengthen a broad based coalition to engage residents in learning and advancing the goals of SMC2C initiatives; improve outcomes in the areas of education, cognitive development, and mental and behavioral health for children, teens and families in Santa Monica. This work will leverage the grassroots advocacy of the initiative and add to the past few years of coalition building among partners.  Professional Development and Capacity Building for Youth Resource Teams (YRT 2.0) ($25,000): As part of the Human Services Grants Program, YRT 2.0 has been scaled to include children birth to 5 and middle school youth. An expert in the field of community-based initiatives and systems alignment would be hired to ensure that teams working with each of these age groups are aligning metrics and shared outcomes and project assessment tools across age groups. 9 of 12 Council’s selected five top strategic goals would need the support of a talented, motivated and well-trained staff. By re-programming $300,000 in one-time General Fund savings to the training funds of the Santa Monica Institute (SMI), the Human Resources Department would be able to expand the number of cour ses and offer a wider range of training and development opportunities to larger groups of staff. Examples of the new and expanded training that would be offered are workshops on interacting effectively with the mentally ill; identifying key generation gaps, exploring how different generations view critical issues and examining each generation’s distinct perspective and needs; training the trainers; and additional topics suggested by staff. Personnel Changes This report includes staffing adjustments to reflect ongoing operational changes, and the results of classification and compensation studies. A Salary Resolution detailing new classifications and salary rates is reflected in Attachment C. Staffing adjustments are detailed in Attachment D. These changes result in a 2.0 Full Time Equivalent (FTE) employee increase in the General Fund – 1.0 FTE Senior Advisor to the City Manager on Airport Affairs (limited term) and 1.0 FTE Water Resources Specialist (limited term). The Senior Advisor to the City Manager on Airport Affairs position would support the City’s efforts to secure local land use control over the Santa Monica Airport. The Water Resources Specialist position would issue and process citations, including appeals and applications to water school, to those water customers who exceed their water use allowances, which begin this December. Together, position changes result in a net increase of $180,474 in FY 2015-16 for nine months of staffing – a decrease of $36,106 in the Big Blue Bus Fund and an increase of $216,580 in the General Fund, of which $81,548 will be reimbursed by the Water Fund. Edison Language Academy Joint Use Improvements Staff recommends an expenditure appropriation to transfer funds of $356,200 to the Santa Monica-Malibu Unified School District (SMMUSD) for costs associated with construction of playground facilities at the Edison Language Academy. These funds were collected by the City as part of the Lantana East and Lantana South Development 10 of 12 Agreements originally executed in September 2004 and later amended in February 2008. Drought Response – Water Demand Mitigation Fees On March 25, 2014, Council adopted a resolution clarifying the appropriate uses of Water Demand Mitigation Fees. The fee is collected for new development projects, substantial remodels, and plumbing alteration projects to offset the increase in water demand in compliance with the Mitigation Fee Act. The fee generates approximately $300,000 annually and the revenue collected can only be used for water effic iency improvements at public facilities. As funds are collected, they are set aside pending allocation to appropriate projects within five years. To meet both the City’s Stage 2 Water Supply Shortage 20% reduction in water use and the State’s mandated reduction, staff recommends appropriating Water Demand Mitigation funds for installations of water-efficient plumbing, landscaping and irrigation improvements at public facilities as follows:  Public Landscape Irrigation Controller Replacements - $330,000. Replacement of outdated irrigation controllers with smart irrigation controllers at 39 locations including City parks and sports fields. Smart irrigation controllers provide wireless communication capability to make irrigation adjustments and allow for data gathering, analysis and reporting to achieve water savings.  Public Landscape Turf and Irrigation Improvements - $700,000. Various landscape and irrigation improvements at 51 public sites, including removal of turf and installation of decomposed granite and/or mulch and drip irrigation systems to reduce water use.  Water Efficiency Supplies - $50,000. Appropriation for plumbing fixture retrofits of toilets, showers and faucets in 28 public facilities and purchase of 1,000 reusable tree watering bags. Airport Building Facility Refurbishments The Airport acquired new buildings on the north side of the Airport in July 2015; with those acquisitions came additional building refurbishment needs. As part of the FY 2014-16 Biennial CIP budget, Council approved a FY 2015-16 budget of $949,000 for 3000 Airport Avenue Building Repairs. Staff recommends deferring the project to a 11 of 12 future year and instead using the existing budget to replace the roof on the newly acquired building at 2772 & 2800 Donald Douglas Loop North, and to address painting and leak repair needs at various buildings, which are more urgent. The building repairs originally envisioned at 3000 Airport Avenue will be addressed in the next biennial CIP budget cycle. Expenditure Control Budgeting On February 8, 2011, Council authorized staff to implement expenditure control budgeting, a cost-saving strategy that provides an incentive for departments to save budget appropriations. This process continues to yield benefits as General Fund departments saved a total of $6.5 million in FY 2014-15 operating expenses. One-third of the savings, or $2.5 million, will go back to departments to spend on activities furthering each department’s mission. Next Steps As the final step in the close of FY 2014-15, Council will receive the Comprehensive Annual Financial Report later this fiscal year. Staff will consider impacts of year -end results and any other significant budget adjustments with its regular six month financial status update to Council in January 2016. Financial Impacts and Budget Actions The budget changes recommended for FY 2014 -15 result in a $24.4 million, or 3.8%, net increase over the FY 2014-15 Revised Budget. Detail for these changes is in Attachment A. Recommended FY 2015-16 expenditure changes result in a $10.8 million or 1.9% increase over the expenditure budget. Recommended FY 2016-17 changes result in a $0.3 million expenditure increase from the FY 2016-17 Budget Plan. Detail for FY 2015-16 and FY 2016-17 changes is in Attachment B. Prepared By: Susan Lai, Budget Manager Approved Forwarded to Council 12 of 12 Attachments: A. FY 2014-15 Budget Adjustments B. FY 2015-17 Budget Adjustments C. Salary Resolution D. Position and Classification Changes E. June 24, 2014 Staff Report (web link) F. October 28, 2014 Staff Report (web link) G. January 27, 2015 Staff Report (web link) H. June 23, 2015 Staff Report (web link) ATTACHMENT A Fund/Department Description FY 2014-15 Increase / (Decrease) Public Works Reflects adjustment to account for unbudgeted legal expenses related to airport litigation 251.2$ TOTAL PUBLIC WORKS EXPENDITURE ADJUSTMENTS 251.2$ Non Departmental Reflects Redevelopment Agency settlement payment issued in FY 2014‐15 21,564.6$ Reflects Utility Users Tax (UUT) settlement payment 828.7 TOTAL NON-DEPARTMENTAL EXPENDITURE ADJUSTMENTS 22,393.3$ Capital Improvement Program Reflects contributions to the Computer Equipment Replacement Program for computer equipment purchases 228.8 TOTAL CAPITAL IMPROVEMENT PROGRAM EXPENDITURE ADJUSTMENTS 228.8$ 22,873.3$ Use of Reserves Use of reserves for payment to Los Angeles County Auditor Controller per the stipulated judgement with the State (21,564.6)$ FY 2014-15 Year-End Savings Use of year-end savings for contributions to the Computer Equipment Replacement Program for computer equipment purchases (228.8)$ Use of Reserves Use of reserves for other legal expenses related to airport litigation (251.2) Use of reserves for Utility Users Tax (UUT) settlement payment (828.7) (22,873.3)$ -$ BEACH (11) Community and Cultural Services Reflects contributions to the Computer Equipment Replacement Program for computer equipment purchases (1.6)$ Capital Improvement Program Reflects contributions to the Computer Equipment Replacement Program for computer equipment purchases 1.6$ -$ COMMUNITY DEVELOPMENT BLOCK PROGRAM (19) Community and Cultural Services Reflects appropriation of unspent funds for the Residential and Rehabilitation Program 569.1$ 569.1$ MISCELLANEOUS GRANTS (20) FUND Capital Improvement Program Reflects adjustment to account for grant reimbursements received for the Water Efficiency Program, ATMS Phase 3, and HUD Bergamot Transit Village capital projects 185.6$ TOTAL MISCELLANEOUS GRANTS ADJUSTMENTS 185.6$ REVISIONS TO FY 2014-15 EXPENDITURE BUDGET APPROPRIATIONS EXPENDITURE BUDGET ADJUSTMENTS ($ IN THOUSANDS) GENERAL FUND (01) TOTAL GENERAL FUND EXPENDITURE ADJUSTMENTS GENERAL FUND - EXPENDITURE OFFSETS - USE OF RESERVES TOTAL GENERAL FUND USE OF RESERVES TOTAL GENERAL FUND EXPENDITURE ADJUSTMENTS, NET OF EXPENDITURE OFFSETS (USE OF RESERVES) NON-GENERAL FUNDS TOTAL BEACH FUND EXPENDITURE ADJUSTMENTS TOTAL CDBG EXPENDITURE ADJUSTMENTS 1 of 3 ATTACHMENT A Fund/Department Description FY 2014-15 Increase / (Decrease) REVISIONS TO FY 2014-15 EXPENDITURE BUDGET APPROPRIATIONS ASSET SEIZURE (21) FUND Police Reflects appropriation of funds based on FY 2014-15 expenditures of federal and state asset forfeiture equitable sharing program funds 722.2$ 722.2$ WATER (25) FUND Public Works Reflects contributions to the Computer Equipment Replacement Program for computer equipment purchases (2.9)$ Capital Improvement Program Reflects adjustment for grant reimbursements received for the Water Master Plan capital project 35.6$ Reflects contributions to the Computer Equipment Replacement Program for computer equipment purchases 2.9$ 35.6$ WASTEWATER (31) FUND Public Works Reflects contributions to the Computer Equipment Replacement Program for computer equipment purchases (4.4)$ Capital Improvement Program Reflects contributions to the Computer Equipment Replacement Program for computer equipment purchases 4.4$ -$ AIRPORT (33) FUND Public Works Reflects contributions to the Computer Equipment Replacement Program for computer equipment purchases (0.5)$ Capital Improvement Program Reflects contributions to the Computer Equipment Replacement Program for computer equipment purchases 0.5$ -$ VEHICLE MANGEMENT (54) FUND Public Works Reflects contributions to the Computer Equipment Replacement Program for computer equipment purchases (0.1)$ Capital Improvement Program Reflects contributions to the Computer Equipment Replacement Program for computer equipment purchases 0.1$ -$ SELF-INSURANCE, COMPREHENSIVE (56) FUND Non-Departmental Reflects contributions to the Computer Equipment Replacement Program for computer equipment purchases (0.2)$ (0.2)$ SELF-INSURANCE, BUS (57) FUND Non-Departmental Reflects contributions to the Computer Equipment Replacement Program for computer equipment purchases (0.2)$ (0.2)$ TOTAL WASTEWATER FUND EXPENDITURE ADJUSTMENTS TOTAL AIRPORT FUND EXPENDITURE ADJUSTMENTS TOTAL VEHICLE MANAGEMENT FUND EXPENDITURE ADJUSTMENTS TOTAL SELF-INSURANCE, COMPREHENSIVE FUND EXPENDITURE ADJUSTMENTS TOTAL SELF-INSURANCE, BUS FUND EXPENDITURE ADJUSTMENTS TOTAL WATER FUND EXPENDITURE ADJUSTMENTS TOTAL ASSET SEIZURE EXPENDITURE ADJUSTMENTS 2 of 3 ATTACHMENT A Fund/Department Description FY 2014-15 Increase / (Decrease) REVISIONS TO FY 2014-15 EXPENDITURE BUDGET APPROPRIATIONS SELF-INSURANCE, WORKERS' COMPENSATION (59) FUND Non-Departmental Reflects contributions to the Computer Equipment Replacement Program for computer equipment purchases (0.4)$ Capital Improvement Program Reflects contributions to the Computer Equipment Replacement Program for computer equipment purchases 0.7$ 0.3$ 1,512.4$ TOTAL GENERAL FUND EXPENDITURE ADJUSTMENTS 22,873.3$ TOTAL NON-GENERAL FUND EXPENDITURE ADJUSTMENTS 1,512.4 GRAND TOTAL FY 2014-15 ALL FUNDS EXPENDITURE ADJUSTMENTS 24,385.7$ TOTAL GENERAL FUND USE OF RESERVES (22,873.3)$ (22,873.3)$ TOTAL GENERAL FUND EXPENDITURES, NET OF RESERVES -$ 1,512.4$ GRAND TOTAL FY 2014-15 ALL FUNDS EXPENDITURES, NET OF RESERVES 1,512.4$ TOTAL NON-GENERAL FUND EXPENDITURES, NET OF RESERVES TOTAL SELF-INSURANCE, WORKERS' COMPENSATION FUND EXPENDITURE ADJUSTMENTS TOTAL NON-GENERAL FUND EXPENDITURE ADJUSTMENTS GRAND TOTAL FY 2014-15 ALL FUNDS USE OF RESERVES 3 of 3 ATTACHMENT B Fund/Department Description  FY 2015‐16  Increase /  (Decrease)   FY 2016‐17  Increase /  (Decrease)  CITY MANAGER Reflects reappropriation of unspent one‐time funds related to the water  conservation program 426.6$            ‐$                Reflects contributions to the Computer Equipment Replacement Program for  computer equipment purchases (4.6)                (4.6)                 Reflects addition of 2.0 FTE limited term staff 219.7             305.1            TOTAL CITY MANAGER EXPENDITURE ADJUSTMENTS 641.7$           300.5            RECORDS & ELECTION  SERVICES Reflects contributions to the Computer Equipment Replacement Program for  computer equipment purchases (4.7)$              (4.7)$               TOTAL RECORDS & ELECTION SERVICES EXPENDITURE ADJUSTMENTS (4.7)$             (4.7)               FINANCE Reflects staffing changes 24.8              40.2              Reflects contributions to the Computer Equipment Replacement Program for  computer equipment purchases (1.2)                (1.2)                 TOTAL FINANCE EXPENDITURE ADJUSTMENTS 23.6$            39.0$             CITY ATTORNEY Reflects contributions to the Computer Equipment Replacement Program for  computer equipment purchases (1.5)$              (1.5)$               TOTAL CITY ATTORNEY EXPENDITURE ADJUSTMENTS (1.5)$             (1.5)$              HUMAN RESOURCES Reflects contributions to the Computer Equipment Replacement Program for  computer equipment purchases (0.5)$              (0.5)$               Reflects reappropriation of unspent one‐time funds to expand the Santa Monica  Institute (SMI) training program 300.0$            ‐$                TOTAL HUMAN RESOURCES EXPENDITURE ADJUSTMENTS 299.5$           (0.5)$              INFORMATION SYSTEMS Reflects an adjustment to account for Information Systems staff time spent on  BBB capital projects with technology components (based on updated (342.0)$         (348.8)$          Reflects staffing changes (48.9)             (65.9)             Reflects contributions to the Computer Equipment Replacement Program for  computer equipment purchases (1.4)                (1.4)                 TOTAL INFORMATION SYSTEMS EXPENDITURE ADJUSTMENTS (392.3)$         (416.1)$         PLANNING & COMMUNITY  DEVELOPMENT Reflects reappropriation of unspent one‐time funds related to the LUCE  Monitoring, Special Event Traffic Control, and Speed Survey Update projects 292.1$            ‐$                Reflects contributions to the Computer Equipment Replacement Program for  computer equipment purchases (2.1)                (2.1)                 Reflects staffing changes (0.8)               (2.0)               TOTAL PLANNING & COMMUNITY DEVELOPMENT EXPENDITURE ADJUSTMENTS 289.2$           (4.1)$              POLICE Reflects contributions to the Computer Equipment Replacement Program for  computer equipment purchases (2.2)                (2.2)                 TOTAL POLICE EXPENDITURE ADJUSTMENTS (2.2)$             (2.2)$              REVISIONS TO FY 2015‐16 / FY 2016‐17  EXPENDITURE BUDGET APPROPRIATIONS EXPENDITURE BUDGET ADJUSTMENTS ($ IN THOUSANDS) GENERAL FUND (01) 1 of 5 ATTACHMENT B Fund/Department Description  FY 2015‐16  Increase /  (Decrease)   FY 2016‐17  Increase /  (Decrease)  REVISIONS TO FY 2015‐16 / FY 2016‐17  EXPENDITURE BUDGET APPROPRIATIONS FIRE Reflects reappropriation of unspent one‐time funds related to the fire training  academy and paramedic school for new deployment model 453.1$            ‐$                Reflects contributions to the Computer Equipment Replacement Program for  computer equipment purchases (21.0)              (21.0)               Reflects staffing changes 19.3              25.9              TOTAL FIRE EXPENDITURE ADJUSTMENTS 451.4$           4.9$               COMMUNITY & CULTURAL  SERVICES Reflects contributions to the Computer Equipment Replacement Program for  computer equipment purchases (1.3)$              (1.3)$               TOTAL COMMUNITY & CULTURAL SERVICES EXPENDITURE ADJUSTMENTS (1.3)$             (1.3)$              LIBRARY Reflects contributions to the Computer Equipment Replacement Program for  computer equipment purchases (10.5)$            (10.5)$             TOTAL LIBRARY  EXPENDITURE ADJUSTMENTS (10.5)$           (10.5)$            PUBLIC WORKS Reflects staffing changes 2.5$              3.3$               Reflects one‐time appropriation to raise the height of the fence at Airport Park 20.3               ‐                Reflects one‐time appropriation for water efficiency supplies 50.0               ‐                Reflects contributions to the Computer Equipment Replacement Program for  computer equipment purchases (4.5)$              (4.5)$               TOTAL PUBLIC WORKS EXPENDITURE ADJUSTMENTS 68.3$            (1.2)$              HOUSING & ECONOMIC  DEVELOPMENT Reflects contributions to the Computer Equipment Replacement Program for  computer equipment purchases (0.4)                (0.4)                 TOTAL HOUSING & ECONOMIC DEVELOPMENT EXPENDITURE ADJUSTMENTS (0.4)$             (0.4)$              NON‐DEPARTMENTAL Interfund Transfers Reflects increased contribution from the Water (25) Fund to the General (01)  Fund for the addition of 1.0 FTE Water Resources Specialist (limited term)  position in the Water Conservation Unit (81.5)$            (109.8)$          Reflects one‐time transfer from the Self‐Insurance, Comprehensive (56) Fund to  cover the cost to raise the height of the fence at Airport Park (20.3)               ‐                  Reflects one‐time transfer from the Water (25) Fund to cover the cost of water  efficiency supplies (50.0)               ‐                  Reflects an adjustment to account for Information Systems staff time spent on  BBB capital projects with technology components (based on original projection)295.7             302.6              TOTAL NON‐DEPARTMENTAL EXPENDITURE ADJUSTMENTS 143.9$           192.8$           EXPENDITURE CONTROL SAVINGS Represents one‐third of General Fund Department savings, for one‐time  projects associated with each Department's mission 2,480.7$        ‐$                TOTAL EXPENDITURE CONTROL SAVINGS 2,480.7$        ‐$               STRATEGIC INITIATIVES Reflects use of $5.1 million in one‐time General Fund savings to help advance  the City's Strategic Initiatives; adjustment for a 1.0 FTE Senior Advisor to the  City Manager on Airport Affairs (limited term) is reflected in the City Manager  Department 4,734.0$        ‐$                TOTAL STRATEGIC INITIATIVES 4,734.0$        ‐$               2 of 5 ATTACHMENT B Fund/Department Description  FY 2015‐16  Increase /  (Decrease)   FY 2016‐17  Increase /  (Decrease)  REVISIONS TO FY 2015‐16 / FY 2016‐17  EXPENDITURE BUDGET APPROPRIATIONS CAPITAL IMPROVEMENT PROGRAM (CIP) Public Safety Reflects funds for the purchase of two fire rescue ambulances for the new  deployment model 396.0$            ‐$                General Government Reflects contributions to the Computer Equipment Replacement Program for  computer equipment purchases 155.8$           55.8$              TOTAL CAPITAL IMPROVEMENT PROGRAM EXPENDITURE ADJUSTMENTS 551.8$           55.8$             9,271.2$       150.5$           FY 2014‐15 Year‐End Savings Use of savings for FY 2015‐16 Expenditure Control budget (2,480.7)         ‐                  Use of savings to expand the Santa Monica Institute (SMI) training program (300.0)             Use of savings for LUCE Monitoring, Special Event Traffic Control, and Speed  Survey Update projects (292.1)             ‐                  Use of savings for contributions to the Computer Equipment Replacement  Program for computer equipment purchases (100.0)             ‐                  Use of savings for the water conservation program (426.6)             ‐                  Use of savings for Fire training academy and paramedic school (453.1)             ‐                  Use of savings for purchase of two fire rescue ambulances (396.0)             ‐                  Use of savings for Council identified top priority Strategic Initiatives (4,734.0)         ‐                  (9,182.5)$       ‐$                88.7$             150.5$            SPECIAL REVENUE SOURCE FUND (04) All Other Transactions Reflects a one‐time payment of developer agreement funds to the Santa  Monica‐Malibu Unified School District for cost associated with the construction  of playground facilities at the Edison Language Academy.356.2$            ‐$                356.2$            ‐$                BEACH (11) FUND Community and Cultural  Services Reflects contributions to the Computer Equipment Replacement Program for  computer equipment purchases (1.6)$              (1.6)$               Capital Improvement Program Reflects contributions to the Computer Equipment Replacement Program for  computer equipment purchases 1.6$               1.6$                ‐$                ‐$                WATER (25) FUND Non‐Departmental Interfund  Transfer Reflects increased contribution from the Water (25) Fund to the General (01)  Fund for the addition of 1.0 FTE Water Resources Specialist (limited term)  position in the Water Conservation Unit 81.5$             109.8$            Reflects one‐time transfer to the General (01) Fund to cover the cost of water  efficiency supplies 50.0                ‐                  Public Works Reflects contributions to the Computer Equipment Replacement Program for  computer equipment purchases (2.9)                (2.9)                 Capital Improvement Program Reflects one‐time appropriation related to the Public landscape Irrigation  Controller Replacements and Turf & Irrigation Improvements 1,030.0           ‐                  Reflects contributions to the Computer Equipment Replacement Program for  computer equipment purchases 2.9                 2.9                  1,161.5$       109.8$            TOTAL GENERAL FUND USE OF RESERVES TOTAL WATER FUND EXPENDITURE ADJUSTMENTS TOTAL BEACH FUND EXPENDITURE ADJUSTMENTS NON‐GENERAL FUNDS GENERAL FUND ‐ EXPENDITURE OFFSETS ‐ USE OF RESERVES (INCLUDING FY 2014‐15 YEAR‐END SAVINGS) TOTAL GENERAL FUND EXPENDITURE ADJUSTMENTS, NET OF EXPENDITURE OFFSETS (USE OF RESERVES) TOTAL GENERAL FUND EXPENDITURE ADJUSTMENTS TOTAL SPECIAL REVENUE FUND EXPENDITURE ADJUSTMENTS 3 of 5 ATTACHMENT B Fund/Department Description  FY 2015‐16  Increase /  (Decrease)   FY 2016‐17  Increase /  (Decrease)  REVISIONS TO FY 2015‐16 / FY 2016‐17  EXPENDITURE BUDGET APPROPRIATIONS WASTEWATER (31) FUND Public Works Reflects contributions to the Computer Equipment Replacement Program for  computer equipment purchases (4.4)$              (4.4)$               Capital Improvement Program Reflects contributions to the Computer Equipment Replacement Program for  computer equipment purchases 4.4$               4.4$                ‐$                ‐$                AIRPORT (33) FUND Public Works Reflects contributions to the Computer Equipment Replacement Program for  computer equipment purchases (0.5)$              (0.5)$               Capital Improvement Program Reflects contributions to the Computer Equipment Replacement Program for  computer equipment purchases 0.5$               0.5$                ‐$                ‐$                BIG BLUE BUS (41) Big Blue Bus Reflects staffing changes (36.1)$            (28.5)$             Non‐Departmental Interfund  Transfer Reflects an adjustment for Information Systems staff time spent on BBB capital  projects with technology components (based on original projection)(295.7)$         (302.6)$          Capital Improvement Program Reflects an adjustment for Information Systems staff time spent on BBB capital  projects with technology components (based on updated projection)342.0$           348.8$            10.2$             17.7$              VEHICLE MANAGEMENT (54) Public Works Reflects contributions to the Computer Equipment Replacement Program for  computer equipment purchases (0.1)$              (0.1)$               Capital Improvement Program Reflects contributions to the Computer Equipment Replacement Program for  computer equipment purchases 0.1$               0.1$                ‐$                ‐$                SELF‐INSURANCE, COMPREHENSIVE (56) FUND Non‐Departmental Reflects contributions to the Computer Equipment Replacement Program for  computer equipment purchases (0.2)$              (0.2)$               Non‐Departmental Interfund  Transfer Reflects the one‐time transfer to cover the cost to raise the height of the fence  at Airport Park 20.3$              ‐$                20.1$             (0.2)$               SELF‐INSURANCE, BUS (57) FUND Non‐Departmental Reflects contributions to the Computer Equipment Replacement Program for  computer equipment purchases (0.2)$              (0.2)$               (0.2)$              (0.2)$               SELF‐INSURANCE, WORKERS' COMPENSATION (59) FUND Non‐Departmental Reflects contributions to the Computer Equipment Replacement Program for  computer equipment purchases (0.4)$              (0.4)$               Capital Improvement Program Reflects contributions to the Computer Equipment Replacement Program for  computer equipment purchases 0.7$               0.7$                0.3$               0.3$                1,548.1$       127.4$            TOTAL BIG BLUE BUS FUND EXPENDITURE ADJUSTMENTS TOTAL WASTEWATER FUND EXPENDITURE ADJUSTMENTS TOTAL AIRPORT FUND EXPENDITURE ADJUSTMENTS TOTAL NON‐GENERAL FUND EXPENDITURE ADJUSTMENTS TOTAL VEHICLE MANAGEMENT FUND EXPENDITURE ADJUSTMENTS TOTAL SELF‐INSURANCE, COMPREHENSIVE FUND EXPENDITURE ADJUSTMENTS TOTAL SELF‐INSURANCE, BUS FUND EXPENDITURE ADJUSTMENTS TOTAL SELF‐INSURANCE, WORKERS' COMPENSATION FUND EXPENDITURE ADJUSTMENTS 4 of 5 ATTACHMENT B Fund/Department Description  FY 2015‐16  Increase /  (Decrease)   FY 2016‐17  Increase /  (Decrease)  REVISIONS TO FY 2015‐16 / FY 2016‐17  EXPENDITURE BUDGET APPROPRIATIONS Special Revenue Source (04)  Fund Use of reserves for one‐time payment of developer agreement funds to the  Santa Monica‐Malibu Unified School District for cost associated with the  construction of playground facilities at the Edison Language Academy.(356.2)$          ‐$                Water (25) Fund Use of water demand mitigation fee reserves to cover the cost of the Public  landscape Irrigation Controller Replacements and Turf & Irrigation (1,030.0)$       Use of water demand mitigation fee reserves to cover the cost of water  efficiency supplies (50.0)$             TOTAL NON‐GENERAL FUND EXPENDITURE OFFSETS (USE OF RESERVES)(1,436.2)$       ‐$                TOTAL GENERAL FUND EXPENDITURE ADJUSTMENTS 9,271.2$       150.5$            TOTAL NON‐GENERAL FUND EXPENDITURE ADJUSTMENTS 1,548.1          127.4              GRAND TOTAL FY 2015‐17 ALL FUNDS EXPENDITURE ADJUSTMENTS 10,819.3$     277.9$            TOTAL GENERAL FUND USE OF RESERVES (9,182.5)$       ‐$                (1,436.2)         ‐                  (10,618.7)$     ‐$                TOTAL GENERAL FUND EXPENDITURES, NET OF RESERVES 88.7$             150.5$            111.9             127.4              200.6$           277.9$            TOTAL NON‐GENERAL FUND EXPENDITURES, NET OF RESERVES GRAND TOTAL FY 2015‐17 ALL FUNDS EXPENDITURES, NET OF RESERVES GRAND TOTAL FY 2015‐17 ALL FUNDS USE OF RESERVES NON‐GENERAL FUND ‐ EXPENDITURE OFFSETS (USE OF RESERVES) TOTAL NON‐GENERAL FUND USE OF RESERVES 5 of 5 PO S I T I O N A N D C L A S S I F I C A T I O N C H A N G E S ATTACHMENT  D REASON FU N D D e p t De l e t e (# F T E ) PO S I T I O N T I T L E F U N D D e p t Ad d (# F T E ) PO S I T I O N T I T L E P R I M A R Y R E A S O N NET FTE CHANGENET SAL CHANGE 41 B B B 1 . 0 T r a n s i t O p e r a t i o n s M a n a g er 4 1 B B B 1 . 0 Tr a n s i t O p e r a t i o n s S u p e r i n t e n d e n t Operational chan g e - (48,881 ) 41 B B B 1 . 0 S e n i o r M o t o r C o a c h O p e r a t o r S u p e r v i s o r 4 1 B B B 1 . 0 Tr a n s i t O p e r a t i o n s S u p e r i n t e n d e n t Operational chan g e - 12,775 01 C M O 1 . 0 Se n i o r A d v i s o r t o t h e C i t y M a n a g e r o n A i r p o r t A f f a i r s 2 New position 1.0 138,152 01 C M O 1 . 0 Wa t e r R e s o u r c e s S p e c i a l i s t 2, 3 New position 1.0 81,548 01 F i n a n c e 1 . 0 S e n i o r R e v e n u e O p e r a t i o n s A s s i s t a n t 0 1 F i n a n c e 1 . 0 Tr e a s u r y O p e r a t i o n s S u p e r v i s o r Operational chan g e - (5,883 ) 01 F i n a n c e 6 . 0 R e v e n u e O p e r a t i o n s A s s i s t a n t I I 0 1 F i n a n c e 6 . 0 Re v e n u e O p e r a t i o n s S p e c i a l i s t Reclassification - 30,731 01 F i r e 3 . 0 F i r e f i g ht e r 0 1 F i r e 3 . 0 Fi r e E n g i n e e r Operational chan g e - 19,262 01 H R 1 . 0 H u m a n R e s o u r c e s I n f o r m a t i o n S y st e m s A n a l y st 0 1 H R 1 . 0 Se n i o r H u m a n R e s o u r c e s A n a l y s t Operational chan g e - - 01 I S D 1 . 0 P u b l i c S a f e t y C o m m u n i c a t i o n s a n d T e c h n o l o gy A d m i n i s t r a t o r 0 1 I S D 1 . 0 Co m m u n i c a t i o n s S y s t e m s T e c h n i c i a n Operational chan g e - (48,878 ) 01 P C D 1 . 0 C i t y P l a n n i n g D i v i s i o n A s s i s t a n t 0 1 P C D 1 . 0 Ci t y P l a n n i n g D i v i s i o n A s s i s t a n t Eq u i t y Ad j ustment - 1,137 01 P C D 1 . 0 C i t y P l a n n i n g S t a f f A s s i s t a n t 0 1 P C D 1 . 0 Ci t y P l a n n i n g S t a f f A s s i s t a n t Eq u i t y Ad j ustment - 2,243 01 P C D 1 . 0 B u i l d i n g a n d S a f e t y P e r m i t S p e c i a l i s t I 0 1 P C D 1 . 0 Le a d B u i l d i n g a n d S a f e t y P e r m i t S p e c i a l i s t Operational chan g e - (4,181 ) 01 P o l i c e 1 . 0 P o l i c e R e c o r d s T e c h n i c i a n 0 1 P o l i c e 1 . 0 Le a d P o l i c e R e c o r d s T e c h n i c i a n 4 Operational change - - 01 P W 1 . 0 F a c i l i t i e s M a i n t e n a n c e M a n a g er 0 1 P W 1 . 0 Fa c i l i t i e s M a i n t e n a n c e M a n a g e r Eq u i t y Ad j ustment - 2,450 1/ S a l a r y t o t a l s i n c l u d e f r i n g e c o s t s , a n d a r e p r o - r a t e d f o r t h e r e m a i n i n g 9 m o n t h s o f F Y 2 0 1 5 - 1 6 . TO T A L 2.00 FTE 180,474 2/ 2 - y e a r l i m i t e d - t e r m p o s i t i o n . 3/ G e n e r a l F u n d i s r e i m b u r s e d f o r t h i s p o s i t i o n b y t h e W a t e r F u n d . 4/ T h e a d d i t i o n a l c o s t i n c u r r e d b y t h i s p o s i t i o n c h a n g e w i l l b e a b s o r b e d b y t h e d e p a r t m e n t . N o a d d i t i o n a l b u d g e t w i l l b e a l l o ca t e d . DE L E T E A D D SUBTOTALS 1  10/27/2015