SR 01-26-2016 8C
City Council
Housing Authority
Redevelopment Successor Agency
Report
City Council Regular and Special Joint Meeting: January 26, 2016
Agenda Item: 8.C
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To: Housing Authority, Redevelopment Successor Agency, Mayor and City
Council
From: Gigi Decavalles-Hughes, Director, Finance Department, Budget Division
Martin Pastucha, Director, Donna Peter, Director
Subject: Financial Status Update and FY 2015-16 Midyear 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. Appropriate FY 2015-16 midyear revenue and expenditure budget adjustments
and approve corresponding adjustments to the FY 2016-17 budget plan as
detailed in Attachment A.
Staff also recommends that the City Council:
1. Receive the FY 2015-16 through FY 2019-20 Financial Status Update;
2. Adopt a resolution establishing classification and salary rates for various
positions detailed in Attachment B;
3. Approve the position and classification changes detailed in Attachment C;
4. Adopt a resolution of the City of Santa Monica setting forth the administrative
citation schedule of fines for certain violations of the Santa Monica Municipal
Code, setting civil penalties for parking violations and for the late payment of
penalties, setting fines for Police and Fire Department responses to excessive
false fire alarms, and setting fines for the Santa Monica Public Library detailed in
Attachment D;
5. Approve the discontinuance of the $25 non-resident library card fee;
6. Authorize the City Manager to accept a grant awarded in the amount of
$1,613,000 from the California Department of Transportation (Caltrans) Active
Transportation Program for the Expo Station 4th Street Linkages project, and to
accept all grant renewals;
7. Authorize the City Manager to accept a grant awarded in the amount of $987,000
from the California Department of Transportation (Caltrans) Active Transportation
Program for the Michigan Avenue Greenway project, and to accept all grant
renewals;
8. Provide direction on expansion of the City’s aquatics program to include
programing at Lincoln Middle School; and
9. Receive public comment on federal Community Development Block Grant
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(CDBG) and Home Investment Partnership Act (HOME) Program funds.
Executive Summary
The FY 2015-16 through FY 2019-20 Financial Status Update informs the City 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. Taking into account the
adjustments recommended in this report, the January 2016 General Fund Financial
Status Update is slightly more positive in the first two years of the forecast period than
the Update presented to Council on May 27, 2015 (Attachment E), but slightly worse in
the latter years. The revised update shows a potential shortfall of approximately
$2.2 million (0.6% of the General Fund budget) in FY 2019-20. The revised update
includes midyear revenue and expenditure adjustments that are recommended for
approval and detailed in Attachment A. The financial status of non-General funds
remains stable. Proposed FY 2015-16 midyear budget adjustments result in a
$9.5 million, or a 1.7% increase over the adopted citywide revenue budget, and
expenditure adjustments result in a net $4.9 million or a 0.9% decrease over the
adopted citywide expenditure budget.
In this report, staff also proposes adjustments to the City’s master fine resolution and
discontinuance of the $25 non-resident library card fee.
At its meeting on June 23, 2015, Council requested a midyear update on the renovation
of the Lincoln Middle School athletic field, the feasibility of aquatic programming at the
Lincoln Middle School and Santa Monica High School (SAMOHI) pools, and the
feasibility of opening Mt. Olivette for public use. An update is included in this report.
Finally, the City must hold two public hearings prior to the adoption of a One-Year
Action Plan allocating federal CDBG and HOME Program funds. This public hearing
will satisfy one of the two meeting requirements to receive public input and
recommendations for the Proposed FY 2016-17 Action Plan. The City will hold another
public hearing prior to the adoption of the Proposed FY 2016 -17 Action Plan.
Background
On January 27, 2015 (Attachment F), Council reviewed and commented on the
FY 2015-16 through FY 2019-20 Five-Year Financial Forecast and directed staff to
develop a fiscally sustainable budget based on a controlled spending plan. During two
budget study sessions, held on May 27 and 28 (Attachment G), staff presented the
Proposed FY 2015-17 Biennial Budget, the Capital Improvement Program Budget for
FY 2015-16, and the May 2015 Financial Status Update for the General Fund for Fiscal
Years 2015-20.
On June 23, 2015 (Attachment H), Council adopted the first year and approved the
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second year of the FY 2015-17 Biennial Budget. Council also adopted the second year
of the FY 2014-16 Capital Improvement Program Budget. First modifications to the
Adopted FY 2015-16 Budget and FY 2016-17 Budget Plan were approved by City
Council on October 27, 2015 (Attachment I). The modifications were related to staffing
changes, expenditure control savings allocations associated with FY 2014-15
departmental savings, and appropriation of one-time General Fund savings to advance
the City’s Strategic Goals. Since October, staff completed a midyear review of all
revenues and expenditures and is proposing budget adjustments for programs,
activities, and revenues that have changed significantly. These adjustments will align
the FY 2015-16 Revised Budget with current operations.
Discussion
Economic Update
The national economy continues to grow at a slow pace. Economic growth has
averaged only 2.1% annually since the end of the economic downturn, well below
typical rates for periods of economic recovery, and the anticipated growth over the next
two years is anticipated to only be slightly higher at 2 .5% annually – and there are
certainly global economic concerns that may affect the national economy. However, the
labor market has improved, with over 5 million jobs added during the last two years
helping to drop the national unemployment rate to 5%. The housing market has
continued to improve; recent economic forecasts project continued increases in home
prices and sales are anticipated to continue to grow over the next few years. Inflation is
expected to remain relatively low. In December, the Federal Reserve indicated its
confidence in the economy by raising short term interest rates for the first time in nearly
a decade.
Like the national economy, the State economy is expected to show modest
improvement over the next few years. Unemployment in t he State has fallen to 5.7%
after peaking at 12.4% in 2010, and is projected to drop below 5% by the end of 2017.
Housing sales and median prices as well as the commercial real estate market remain
strong and are expected to continue the recent trend over the next few years. The
Governor has submitted a balanced budget for the fourth year in a row. Income tax and
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corporation tax revenues are expected to show solid growth and, as mandated by
Proposition 2, any temporary spikes in revenue will be set aside for future recessions.
However, sales taxes appear to be moderating.
Santa Monica’s diversified tax base and geographic location have led to a strong
recovery from the most recent economic downturn. The City’s economically driven tax
sources have recovered significantly to reach or exceed pre-recession levels. However,
the local recovery has shown some signs of moderating over the last nine months.
Property values remain the third highest in Los Angeles County. Assessed values are
expected to increase by 4% in FY 2016-17 and 3% annually in future years. Sales tax
growth is expected to moderate going forward, reflecting a continued shift of sales to
online platforms. Tourism, which provides a strong stimulus to the local economy by
creating jobs and producing revenues, continues to be one of the strongest performing
components of the local economy. Transient Occupancy Tax revenue growth continues
to be strong, but the rate of increase is moderating as FY 2015-16 growth of 5% is
projected to be about half of the average annual increase over the last five years.
Moderate growth is expected over the forecast period as average room rates continue
to increase and two new hotel properties are scheduled to come online in FY 2016 -17.
Business license taxes are expected to decrease by 1.25% in FY 2016-17, reflecting the
loss of several large taxpayers, and then grow slowly over the forecast period. Utility
Users Taxes are expected to grow about 3.1% due to additional UUT from prepaid
phone charges per AB 1717, then grow about 1.4% annually over the forecast period as
non-taxed internet-enabled telecommunications services gain ground over the more
traditional services that are currently taxed, and as water conservation measures lower
the amount of water consumed and therefore taxed.
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General Fund Financial Status Update
The General Fund Financial Status Update reflects revised revenue projections as well
as staff’s proposed operating and capital budget changes included in this staff report.
Also reflected is the creation of an enterprise fund related to Community Broadband
Services beginning in FY 2016-17; revenues and expenses related to these services,
currently included in the FY 2015-16 General Fund budget, will be accounted for in the
new enterprise fund.
Under the Probable Case Scenario, the General Fund shows positive balances until
FY 2019-20, at which point a shortfall of $2.2 million (0.6% of the General Fund budget)
is projected. Revenue growth rates are expected to increase at an average rate of
2.4% during the forecast period. Expenditure growth rates, anticipated to average 3.1%
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during this period, will exceed revenue growth, gradually lowering the surplus each
year. The reason for the larger dip in FY 2016-17 is due to annualized costs for
FY 2015-16 Midyear staffing changes and projected cost of living costs, while the dip in
the last year is due to the end of contributions made from General Fund savings to self -
insurance reserves in the face of higher workers’ compensation claim activity.
The Best Case Scenario reflects slightly higher revenues than are projected in the
Adopted Budget as well as lower healthcare costs. In the best case, the General Fund
fiscal condition would be positive throughout the forecast period, with a positive b alance
of $9.6 million in FY 2019-20.
The Worst Case Scenario reflects lower revenues than are projected in the Adopted
Budget (reflecting the effects of a potential recession) as well as continued increases in
workers’ compensation claims and the impact of the Patient Protection and Affordable
Care Act’s “Cadillac Tax”, an excise tax on high-cost health plans, in the last year of the
forecast. The implementation of the Cadillac Tax reflects the recent decision to delay it
by one year. Ultimately, the worst case shows a potential shortfall of approximately
$5.4 million, or 1.5% of the City’s General Fund budget, in FY 2016 -17, increasing to
$16.1 million (4.6% of the General Fund budget) in FY 2019-20. Since deficit spending
is prohibited under California law, any revenue shortfall would be offset by reductions in
expenditures or use of reserves.
Other Funds
Other major funds included in the Financial Status Update fall into two categories:
1) funds that operate with sufficient revenues to sustain necess ary operation and capital
needs, and 2) funds that have a structural deficit where ongoing revenues are not
sufficient to cover ongoing expenditures.
Self-Sustaining Enterprise Funds
The Resource Recovery and Recycling (RRR), Water and Wastewater Funds have
sufficient revenues to cover current operations, due to rate increases in the Water and
RRR Funds that will allow the implementation of the Sustainable Water Master Plan and
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the Zero Waste Master Plan, respectively, while also maintaining reserve levels . Water
rates are projected to increase annually by 9% pending Council’s annual review of the
State of the Water Fund report in 2016. The Wastewater Fund continues to have
adequate revenues and reserves to meet current operational and capital expenditure s.
The Big Blue Bus Fund will maintain a positive fund balance over the next five years,
aided by the projected increase in passenger revenues due to the recent fare
restructuring, a projected increase in ridership associated with Expo, ongoing revenues
from the Low Carbon Transit Operations Program, the use of Measure R deferred
revenues, Prop C Municipal Operator Bus Service Improvement Program (MOSIP)
funds, and the two year extension of the alternative fuel tax credit. At the April 28, 2015
Council meeting, staff presented “Evolution of Blue,” the Big Blue Bus service
integration plan for first-last mile connectivity to the Expo Light Rail line. The
expenditures included in the forecast reflect the cost associated with approximately
56,000 additional revenue service hours, the purchase of additional buses, employment
of 18 new motor coach operators and 8 additional staff dedicated to service
expansion, and 2 additional positions to align with workload. Staff will continue to
closely monitor ridership levels throughout the forecast period (they are currently down
in line with national and regional trends) and return to Council if specific actions are
required in the future.
The Beach and Airport Funds will also generate adequate revenues to sustain their
operations throughout the next five years.
Staff projects the Pier Fund to be self-sustaining through the end of FY 2017-18,
contingent on capital project expenditures and timing. The FY 2015-16 Capital
Improvement Program (CIP) budget includes $3 million in General Funds for the Pier
Electrical Upgrades project. Pier capital needs that are unable to be funded by the Pier
Fund during the forecast period would need to compete with other capital needs to be
addressed through the General Fund.
Funds Requiring General Fund Subsidies
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The Cemetery Fund is anticipated to require a General Fund subsidy of approximately
$66,000 in FY 2015-16. However, with the implementation of a green burial program by
June 2016, staff projects a positive fund balance beginning in FY 2016 -17 through the
end of the forecast period.
The Housing Authority Fund also has a projected operating structural deficit of
approximately $0.5 million annually due to the loss of redevelopment funding for the
administration of the senior voucher program, and the reduction of U.S. Department of
Housing and Urban Development (HUD) allocations.
FY 2015-16 Midyear Budget Adjustments
As part of the FY 2015-17 Biennial Budget, Council adopted the FY 2015 -16 Budget
and approved the FY 2016-17 Budget Plan. The proposed midyear budget adjustments
amend the FY 2015-17 Biennial Budget and reflect position changes related to
reorganizations, changes in revenue projections and administrative corrections.
Midyear revenue and expenditure adjustments are summarized below.
Revenue Adjustments – General Fund
The FY 2015-16 Midyear Review includes a number of recommended revenue
adjustments, netting to approximately $2.1 million. Significant increases include:
$1.6 million in higher than anticipated parking revenues; $0.7 million in higher than
anticipated plan check fees; $0.6 million in Investment Income as a result of portfolio
rebalancing and slight increases in interest rates; $0.5 million from greater than
anticipated unsecured and supplemental property taxes; $0.4 million in documentary
transfer taxes due to sales of large-scale properties and the continuing improvement in
the local real estate market; $0.4 million in Sales Taxes; $0.4 million in sponsorship
revenue for the Breeze Bikeshare Program that had not been identified during the
adopted budget preparation; $0.3 million in higher than anticipated parking citation
revenue; $0.3 million from State payment of old SB 90 claims put on hold during the
State budget crisis; and a $0.3 million reimbursement from Santa Monica College for
their share of Municipal Pool renovations expenses. Partially offsetting are decreases
in Utility Users Taxes (-$1.7 million); Transient Occupancy Taxes (-$1.3 million); and
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Business License Taxes (-$0.4 million). All revenues recommended for adjustments are
identified in Attachment A.
Revenue Adjustments – Other Funds
Significant revenue adjustments in other funds include:
Special Revenue Source (04) Fund - increase of $1.0 million due to
unanticipated developer fee payments reflecting timing changes.
Pier (30) Fund - increase of $1.3 million correcting the budget to be essentially
the same as prior year actuals.
Wastewater (31) Fund - increase of $2 million from budget. Decrease from prior
year will be less than anticipated as much of water savings is being achieved
from decreased use of water for landscaping, which does not use the sewer
system.
Airport (33) Fund - increase of $0.7 million due to renegotiated leases with higher
lease rates. Revenues could be impacted by significant vacancies.
Big Blue Bus (41) Fund - increase of $2.6 million primarily due to the General
Fund providing funding for the Fare Incentive Program, Buy One – Get One Free;
Alternative Fuel Tax Credit; Cap and Trade revenues; and lease rental revenue
increases due to transit store sublease.
Vehicle Management (54) Fund – decrease of $0.5 million reflects recent
reconciliation of the internal service fund that corrected vehicle replacement
contribution amounts from all funds.
Operating Expenditure and Staffing Adjustments – General Fund
Proposed General Fund operating expenditure adjustments result in a net appropriation
of $1.3 million at midyear. Significant appropriations include:
$0.7 million to reflect cost of living adjustment associated with FY 2015 -16
bargaining unit agreements (this amount is budgeted in non -departmental);
$0.4 million to reflect staffing changes, including:
o the addition of a 1.0 FTE Director of Special Projects for Information
Services to lead the expansion of the City’s revenue -generating
enterprise, CityNet, and the City’s integration into the regional
interoperable radio consortium;
o the addition of a 1.0 FTE Assistant Chief Information Officer to support the
Information Systems Department’s shift to being a coordinator, catalyst
and consultant for user departments as they incorporate the internet,
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digital technology and a mobile workforce into their business and
communications processes;
o the addition of a 1.0 FTE Senior Advisor – Municipal Policies, Procedures
and Innovation in the City Attorney’s Office; and
o minor adjustments in the Planning and Community Development and
Housing and Economic Development Departments, totaling 0.5 FTE, to
reflect operational changes.
$0.3 million to correct budget for Community and Cultural Services Department’s
contract and enrichment class instructor payments;
$0.2 million to assist the Pier Corporation with 2015 Twilight Concert Series
costs;
$0.2 million to reflect ongoing maintenance costs related to the upgrade of the
City’s electronic plan review software;
Reduction of $1.1 million in General Fund subsidies to the Cemetery and Pier
Funds.
The Salary Resolution detailing the addition of new positions and salary rates is
reflected in Attachment B. Staffing adjustments are detailed in Attachment C.
Operating Expenditure and Staffing Adjustments – Other Funds
Proposed operating expenditure adjustments for other funds result in a net decrease of
$2.7 million. Significant changes include:
All other fund expenditures will increase by $0.6 million to reflect cost of living
adjustments associated with FY 2015-16 bargaining unit agreements.
The RRR Fund expenditures will increase by $0.1 million to reflect the addition of
2.0 FTE RRR Equipment Operator positions required to maintain operation
levels.
Certain changes are needed to account for the $1.2 million annual set aside of
post-RDA residual revenue funds in the Special Revenue Source Fund. These
include a transfer of $2.4 million into the Fund: $1.2 million from the General
Fund for the FY 2014-15 set-aside amount, and $1.2 million from the Low-
Moderate Income Housing Fund, representing the FY 2015-16 amount. This
also results in an expenditure increase of $1.2 million in the Low-Moderate
Income Housing Fund.
The Airport Fund expenditures will decrease by $0.6 million to reflect an
accounting adjustment to record the repayment of the principal balance on loans
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from the General Fund as a balance sheet transaction, offset by the conversion
of 0.5 FTE as-needed Staff Assistant II position to permanent status.
The Pier Fund expenditures will increase by $0.9 million to reflect the elimination
of the General Fund subsidy.
The Wastewater Fund expenditures will decrease by $1.6 million to reflect
transfer of funds from operating to Capital Improvement Program to fund the
capital portion of the payment for the use of City of Los Angeles sewer
infrastructure.
The Cemetery Fund expenditures will increase by $0.2 million to reflect the
reduction of the General Fund subsidy.
The Salary Resolution detailing the addition of new positions and salary rates is
reflected in Attachment B. Staffing adjustments are further detailed in Attachment C.
Capital Improvement Program Budget Adjustments
The Midyear changes to the FY 2015-16 Capital Improvement Program (CIP) budget
are largely cleanup measures that result in a total net reduction to the CIP budget of
approximately $3.3 million. The changes do not include any major new projects, as the
new FY 2016-18 Biennial Capital Improvement Program will come before Council in
May and June. Budget changes are detailed in Attachment A, and the most significant
changes are summarized below.
Fleet Vehicle Replacement Internal Service Contributions
Midyear changes reflect updated depreciation charges and enhancement vehicle costs
that various funds pay into the Fleet Vehicle Replacement program for the purchase
and replacement of their fleet vehicles, identified through a recent reconciliation of the
Fund. The total net budget change is approximately $910,000, with some funds
receiving budget increases and others budget decreases depending on their vehicle
inventory and acquisition costs.
General Fund
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The net increase in the General Fund capital budget is approximately $267,000, with
total budget increases largely offset by budget reductions. Significant budget increases
include the following:
An increase to the General Fund’s contribution to the Fleet Vehicle Replacement
program described above (approximately $840,000).
Reed Park Improvements require additional budget due to increasing project
scope and construction costs ($350,000).
The Palisades Park Landscape Modification project requires fun ding due to the
need to incorporate guard rails in project design ($50,000).
The first phase of the City Yards project requires additional funding for further
feasibility analysis, additional public meetings, and geotechnical borings
($30,000).
The Downtown Specific Plan requires additional funding to ensure completion
($150,000).
Project Dox software and Kronos software require upgrades (for $160,215 and
$70,000 respectively).
The Public Landscape Tenant Improvement requires additional budget due to
scope changes to meet revised building code requirements ($225,000 to be
funded by Departmental Expenditure Control Savings).
Affordable Housing Funds
Affordable housing revenues are being budgeted so they are available to spend on
future production and preservation projects. Approximately $12 million in revenues are
being budgeted at Midyear, including legal settlement revenues, developer fees,
residual receipts, TORCA loan repayments, and funds related to former redevelopment
tax revenue to be set aside annually for affordable housing.
Miscellaneous Grant Fund
There is a reduction of the California Incline Bridge Replacement budget to reflect the
adjustment of the final grant award amounts to match final project costs, which are
lower than originally estimated (reduction of approximately $3.9 million). Prop A
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Reserve funds are also being appropriated to install a bus pad and enhance a bus stop
located at eastbound Pico at Lincoln ($50,000).
Water and Wastewater Funds
Staff reviewed all Water and Wastewater Fund CIP budgets and recommends releasing
approximately $6.3 million in Water Fund and $1.6 million in Wastewater Fund budgets
not needed at this time. The State of the Water Fund report will be presented to Council
on February 23, 2016. The Wastewater Fund reduction is offset slightly by a budget
increase to fund a Sanitary Sewer Master Plan that will quantify how future development
will impact the sewer system and calculate fair share costs for developers.
Big Blue Bus Fund
Staff also examined all Big Blue Bus capital accounts and found that budgets could be
reduced by a total of approximately $6.3 million. The reductions will not impact service
delivery, and funds will be released back to the Big Blue Bus Fund to be budgeted for
future capital needs.
Update of Master Fine Resolution
Attachment D provides proposed adjustments to the City’s master fine resolution. The
primary reason for the proposed adjustments is the June 23, 2015 Council action
repealing the prior zoning ordinance and adopting the new zoning ordinance. There are
a myriad of fines and penalties associated with specific zoning code violations which
reference sections of the zoning ordinance that are now obsolete and no longer exist.
This update will correct this by realigning the zoning violations found in the new zoning
ordinance to citations included in the master fine resolution. No revisions to fine
amounts are required by this action.
There is one new transportation-related fine outlined in Division VI of the Zoning
Ordinance associated with violations of Developer Transportation Demand
Management (TDM) Plans. Developers found to be in violation of the Developer TDM
Plan shall be subject to a fine of $5 per residential unit per day and $5 per employee in
the project per day. The fine shall be deposited in accordance with Section 9.53.110.
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In the case of mixed-use projects that include both residential units and employees, the
fine shall be calculated separately for each use.
In addition, staff proposes a revision to the administrative fine for advertising, facilitating,
or operating a vacation rental (SMMC 6.20.030) from $75 to $500. On May 12, 2015
Council adopted the Home Sharing Ordinance and provided funding for additional staff
to address the growing number of vacation rentals in Santa Monica. Vacation rentals
contribute to a reduction in the City’s available and affordable housing stock and alter
the character of residential neighborhoods. Due to the potential for significant financial
benefits resulting from hosting vacation rentals, the current fine amounts do not serve
as an effective deterrent.
Discontinuance of Library Non-Resident Fee
Staff proposes to eliminate the $25 non-resident library card fee and sustain the
Library’s budget at current levels. The fee was adopted as part of the FY 2013-15
Biennial Budget to help offset projected budget shortfalls. Revenues in the amount of
$139,000 were included in the FY 2015-16 budget. However, revenues have been
decreasing each year since the fee was implemented.
The non-resident fee is an issue that came up frequently during the Library’s strategic
planning process. Local organizations including the Library Board, the Innovation Tech
Task Force and the Friends of the Library Board have all overwhelmingly advocated for
dropping the fee.
Ninety percent of libraries in California provide free library cards to all state residents.
The City’s current practice of assessing a non-resident fee is broadly perceived as
exclusionary, especially by neighboring library systems su ch as Los Angeles Public
Library and the County of Los Angeles Public Library, who both offer Santa Monica
residents free cards to access their large library networks. Additionally, the Library is
disqualified from membership in the Southern California Library Consortium (SCLC)
because it does not provide free library cards to non-residents. SCLC is the local
consortium of library systems supported by the California State Library in accordance
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with the California Library Services Act. It is a valuable source for professional
development and resource sharing for its member libraries.
On December 10, the Library Board passed a motion to eliminate the non-resident
library card fee and sustain the Library’s budget at current levels. Staff requests that
Council authorize the discontinuance of the fee effective February 1, 2016. If the
discontinuance is approved, staff will formally revise the master fee resolution to reflect
this change when it is presented to Council as part of the FY 2016 -17 exception based
budget.
California Department of Transportation Active Transportation Program Grants
On June 1, 2015, staff submitted four applications to the California Department of
Transportation (Caltrans) Active Transportation Program (ATP) Cycle II. Of the four
applications, two projects were selected for funding.
Expo Station 4th Street Linkages to Downtown and Civic Center
This project would design and construct pedestrian and bicyclist improvements along a
0.2-mile segment of 4th Street between Colorado Avenue and Olympic Drive to support
safer first- and last-mile access and connectivity to the future Expo terminus station,
central business district, Civic Center, and other local destinations. Staff is requesting
authorization to accept grant funds of $1,613,000 for this project. A local match of
$403,175 is already included in the CIP budget, as this grant was originally awarded
through Metro’s Call for Projects and then staff was instructed that funding had to be
applied for through the new ATP process.
Michigan Avenue Greenway: Completing Bike/Ped Expo Connection Over the I-10
The project would design and construct bike path improvements and a new bike/ped
path to close the gap in the bike network and enhance pedestrian access by connecting
discontinuous segments of Michigan Avenue across the I-10 Freeway at the 20th Street
overcrossing and linking to Expo light rail. Staff is requesting authorization to accept
grant funds of $987,000 for this project. A local match of $247,000 will be required, and
will be requested from Council in the FY 2016-18 Biennial CIP Budget. Funds are
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available from the Transportation Impact Fee revenues and from Transportation
Development Act, Article III revenues.
Lincoln Middle School Fields
Staff has met with SMMUSD personnel to discuss the timing for the renovation of the
Lincoln Middle School athletic field. The plan is to replace the grass with synthetic turf
and operationalize the field lights. At this time, SMMUSD is anticipating implementing
this project during summer 2017. City staff will continue to cooperate with the District to
support this project.
Lincoln Middle School Pool
Per Council’s direction, staff conducted an analysis of current and projected SMMUSD
scheduling to analyze the feasibility of aquatic programming at the Lincoln Middle
School and Santa Monica High School (SAMOHI) pools. Staff found that, due to the
district’s impacted facility scheduling, it is not feasible to expand City aquatic
programming at SAMOHI. There is, however, an opportunity to pilot new programming
at the Lincoln Middle School pool.
Staff reviewed program demand for youth swim lessons, lap swim and unmet demand
for various private user groups for pool permits. Based on this review, the ongoing and
consistent demand for swim lessons, both group and semi-private, have been
determined to represent the most significant public need. Given the availability of the
Lincoln Pool (seasons available and time of day), staff estimates that approximately 360
youth would be served in more than 240 classes. The vast majority of these new
classes would be offered during the summer. Due to the popularity of swim lessons at
the Swim Center, there are typically waiting lists. Piloting swim lessons at Lincoln
Middle School pool would provide an opportunity to examine how much these lessons
help to reduce the size of the waiting lists, and would increase the number of young
people in Santa Monica who are water safe and able to swim. In addition, staff
recommends piloting lap swimming, family special events, and splash ball (youth water
polo). These proposed activities are estimated to serve 1,590 people annually, would
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reduce the demands on the Santa Monica Swim Center, and would provide expanded
aquatic programming to the community.
An annual expenditure budget of approximately $135,000 would be needed to support
equipment and supplies, on-duty lifeguards, swim lesson instructors, and staff
supervision. The estimated revenue generated annually by these activities is projected
to be approximately $58,000, for a net annual cost of $77,000. There will be a one-time
cost of $21,000 in the first year to implement the program. Staff is seeking Council’s
direction on whether to provide a funding proposal for a pilot program during FY 2016 -
17 as part of the FY 2016-17 Exception Based Budget.
The School District intends to make some minimal physical improvements to the facility
this coming summer and is evaluating long term capital improvements for the pool in the
context of their other capital projects. Staff will continue to monitor these efforts.
Mt. Olivette
Per Council’s direction, staff has analyzed the feasibility of opening Mt. Olivette, an
approximately 3.0 acre space, for public use. Staff has determined that providing public
access to the west parcel is not feasible due to existing equipment, existing reservoir,
and other site limitations, but recommends conducting outreach through a public survey
or other means to assess the community’s desire to open the east parcel of this space.
The east parcel of Mt. Olivette is 2.25 acres but only a portion of the site could
potentially be developed due to the existing reservoir and other infrastructure and
equipment on site. If the site is opened for public use, staff recommends that Mt.
Olivette be utilized as a passive park with minimal amenities, such as seating, a walking
path, trash receptacles, and possibly modest lighting improvements. If the public
process validates public receptivity to this approach, staff has provided two possible
options for the site with approximate cost estimates.
A small portion (.30 acres/13,000 square feet) of the east parcel surrounding the
existing trees could be improved and opened to the public at a cost of $656,500.
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Alternatively, a larger area of the site measuring just over one acre at 45,000 square
feet could be opened to the public at an estimated cost of $2,157,300. Both cost
estimates were determined using an industry standard of $35 per square foot for
construction, with additional allotments for community out reach and design, and
miscellaneous costs such as permits, testing and inspections, and project/construction
management. (Please see Attachment J for a map of the site and the proposed project
areas.)
Community Development Block Grant (CDBG) and Home Investment Partnership Act
(HOME) Program
To receive federal Community Development Block Grant (CDBG) and Home Investment
Partnership Act (HOME) Program grant funds, the City must prepare and submit a
Council-approved One-Year Action Plan to HUD by May 15, 2016. The Action Plan
outlines how the funds will be expended and confirms that the funded activities are
consistent with the City’s Five-Year Consolidated Plan adopted by Council on May 12,
2015. The City must hold two public hearings prior to the adoption of a One-Year
Action Plan allocating federal CDBG and HOME Program funds. This public hearing
will satisfy one of the two meeting requirements to receive public input and
recommendations for the Proposed FY 2016-17 Action Plan. The City will hold another
public hearing prior to the adoption of the Proposed FY 2016 -17 Action Plan.
Financial Impacts and Budget Actions
Recommended FY 2015-16 midyear budget adjustments result in a $9.5 million, or a
1.7% increase over the adopted citywide revenue budget, an d expenditure adjustments
result in a net $4.9 million or a 0.9% decrease over the adopted citywide expenditure
budget. Detail for FY 2015-17 adjustments is included in Attachment A.
Prepared By: Susan Lai, Budget Manager
19 of 19
Approved
Forwarded to Council
Attachments:
A. FY 2015-17 Midyear Budget Adjustments
B. Salary Resolution
C. Position and Classification Changes
D. Master Fine Resolution
E. May 27, 2015 Staff Report (web link)
F. January 27, 2015 Staff Report (web link)
G. May 28, 2015 Council Agenda (web link)
H. June 23, 2015 Staff Report (web link)
I. October 27, 2015 Staff Report (web link)
J. Mt. Olivette Map
K. Written Comments
L. Powerpoint
ATTACHMENT A
1 of 10
Fund/Department Description
FY 2015-16
Increase /
(Decrease)
FY 2016-17
Increase /
(Decrease)
CITY MANAGER Reflects increase in one-time video production services revenues due to receipt
of revenues for services provided in the prior year, as well as implementation of
water conservation penalties 116.6$ -$
TOTAL CITY MANAGER REVENUE ADJUSTMENTS 116.6$ -$
RECORDS & ELECTION
SERVICES
Reflects increase in 1630 17th Street sublease revenues due to reimbursement
of parking and common area maintenance (CAM) fees 32.2$ -$
TOTAL RECORDS & ELECTION SERVICES REVENUE ADJUSTMENTS 32.2$ -$
FINANCE Reflects increase in one-time State of California SB 90 claims due to payment of
previously suspended reimbursements 297.7$ -$
TOTAL FINANCE REVENUE ADJUSTMENTS 297.7$ -$
Reflects increase in parking revenues in City parking lots and structures 1,643.7$ -$
Reflects increase in plan check fees, partially offset by a reduction in
administrative fines and penalties 637.4$ -$
Reflects increase in Taxi Franchise fees as anticipated reduction to number of
taxis did not occur 130.0$ -$
Increase reflects implementation of Bikeshare program 360.0$ -$
TOTAL PLANNING & COMMUNITY DEVELOPMENT REVENUE ADJUSTMENTS 2,771.1$ -$
POLICE Reflects reduction to adjust Alarm Registration, False Alarm, Police Billable
Services and Police Permit revenues, offset by an increase in Parking Citation
Fines (15.1)$ -$
TOTAL POLICE REVENUE ADJUSTMENTS (15.1)$ -$
FIRE Reflects reduction to adjust EMS and Fire Residential Inspection Fee revenues,
offset by an increase in Fire Permit Fees (215.8)$ -$
TOTAL FIRE REVENUE ADJUSTMENTS (215.8)$ -$
COMMUNITY AND CULTURAL
SERVICES
Reflects increase in Santa Monica College Swim Center revenues, partially offset
by less summer and fall sports program revenues 324.7$ -$
TOTAL COMMUNITY & CULTURAL SERVICES REVENUE ADJUSTMENTS 324.7$ -$
LIBRARY Reflects elimination of Non-Resident Library Fees beginning February 1, 2016 (64.0)$ -$
TOTAL LIBRARY REVENUE ADJUSTMENTS (64.0)$ -$
HOUSING & ECONOMIC
DEVELOPMENT Reflects net increase to adjust lease revenues based on updated lease schedule 208.3$ -$
TOTAL HOUSING & ECONCOMIC DEVELOPMENT REVENUE ADJUSTMENTS 208.3$ -$
NON-DEPARTMENTAL Business License Tax - Reflects decrease due to the departure of several major
taxpayers (370.7)$ -$
Real Property Transfer Tax - Primarily reflects continuing strength of local real
estate market as well as sales of several large properties 600.0$ -$
Investment Income - Reflects increasing portfolio due to implementation of
revised investment strategies and increasing interest rates 581.0$ -$
Property Taxes - Primarily reflects greater than anticipated supplemental and
unsecured taxes.511.1$ -$
REVENUE BUDGET ADJUSTMENTS ($ IN THOUSANDS)
PLANNING & COMMUNITY
DEVELOPMENT
FY 2015-16 MIDYEAR REVENUE AND EXPENDITURE BUDGET ADJUSTMENTS / FY 2016-17 BUDGET PLAN ADJUSTMENTS
GENERAL FUND (01)
ATTACHMENT A
2 of 10
Fund/Department Description
FY 2015-16
Increase /
(Decrease)
FY 2016-17
Increase /
(Decrease)
FY 2015-16 MIDYEAR REVENUE AND EXPENDITURE BUDGET ADJUSTMENTS / FY 2016-17 BUDGET PLAN ADJUSTMENTS
Sales and Use Tax/Transaction and Use Tax - Increased based on year-to-date
results.354.2$ -$
Transient Occupancy Tax - Reflects lower than anticipated growth in average
room rates (1,300.0)$ -$
Utilities Users Tax - Primarily reflects less than anticipated revenues from
electricity and natural gas as well as a delay in the implementation of AB 1717
adding UUT to prepaid telephony.(1,693.4)$ -$
TOTAL NON-DEPARTMENTAL REVENUE ADJUSTMENTS (1,317.8)$ -$
TOTAL GENERAL FUND REVENUE ADJUSTMENTS 2,137.9$ -$
SPECIAL REVENUE SOURCE FUND (04)
CITY MANAGER Reflects energy efficient rebates from efficiency projects 17.5$ -$
PLANNING & COMMUNITY
DEVELOPMENT
Reflects increase in development agreement contribution, partially offset by a
correction to account for in-lieu development agreement funds to be paid
directly to the Santa Monica Conventions & Visitors Bureau for the private
operation of the Downtown Shuttle Program 224.8$ -$
COMMUNITY & CULTURAL
SERVICES
Reflects increase in Childcare Linkage Fee, Cultural Arts In-Lieu Fee, Parks and
Recreation Impact Fees, one-time developer contribution to Open Space
contribution and Ozone Park Kiwanis donations 753.5$ -$
995.8$ -$
HOUSING AUTHORITY (12) FUND
HOUSING & ECONOMIC
DEVELOPMENT
Reflects decrease in Section 8 housing assistance program vouchers and Serial
Inebriate Program administrative reimbursements due to lower than projected
vouchers being utilized (263.3)$ -$
(263.3)$ -$
TORCA FUND (14)
HOUSING & ECONOMIC
DEVELOPMENT
Reflects increase in shared appreciation mortgage from repayment of TORCA
loans based on year to date receipts 214.8$ -$
214.8$ -$
MISCELLANEOUS GRANTS FUND (20)
CITY MANAGER Reflects less Ocean Protection Council (OPC) Sea Level Rise Adaptation revenues
than originally anticipated, partially offset by an increase in Used Oil Pay
Program (OPP)(64.3)$ -$
LIBRARY Reflects the receipt of three new grants - 2nd Chances Learning Program, Adult
Literacy Library Action, and Reading to Go 30.0$ -$
(34.3)$ -$
PIER FUND (30)
CITY MANAGER Reflects correcting the budget to be essentially the same as prior year actuals 1,300.0$ -$
1,300.0$ -$
WASTEWATER FUND (31)
PUBLIC WORKS Reflects revised impact of water conservation as much of water savings is being
achieved from decreased use of water for landscaping, which does not use the
sewer system.2,000.0$ -$
2,000.0$ -$
TOTAL PIER FUND REVENUE ADJUSTMENTS
TOTAL WASTEWATER FUND REVENUE ADJUSTMENTS
NON-GENERAL FUNDS
TOTAL SPECIAL REVENUE FUND REVENUE ADJUSTMENTS
TOTAL HOUSING AUTHORITY FUND REVENUE ADJUSTMENTS
TOTAL TORCA FUND REVENUE ADJUSTMENTS
TOTAL MISCELLANEOUS GRANTS FUND REVENUE ADJUSTMENTS
ATTACHMENT A
3 of 10
Fund/Department Description
FY 2015-16
Increase /
(Decrease)
FY 2016-17
Increase /
(Decrease)
FY 2015-16 MIDYEAR REVENUE AND EXPENDITURE BUDGET ADJUSTMENTS / FY 2016-17 BUDGET PLAN ADJUSTMENTS
AIRPORT FUND (33)
PUBLIC WORKS Reflects renegotiated higher lease rates for Airport Office Shop Rental and
Property Management Fees for the portion of 3400 Airport Avenue 742.3$ -$
742.3$ -$
STORMWATER MANAGEMENT FUND (34)
PUBLIC WORKS Reflects greater SMURRF operating and maintenance reimbursements than
originally anticipated 86.1$ -$
86.1$ -$
BIG BLUE BUS (41)
BIG BLUE BUS Reflects increase in lease rental revenues due to transit store sublease
agreement, partially offset by a reduction in state sales tax proceeds based on
final funding allocations from LACMTA.66.5$ -$
Reflects increase in State of California low carbon transit operations program
revenues 518.1$ -$
Reflects receipt of alternative fuel tax credit 1,400.0$ -$
Reflects General Fund subsidy to the Big Blue Bus Fund for the "Buy One Get
One Free" fare media pilot program 575.0$ -$
2,559.6$ -$
VEHICLE MANAGEMENT FUND (54)
PUBLIC WORKS Reflects contribution adjustment to the Fleet Vehicle Replacement Program (533.1)$ -$
(533.1)$ -$
INFORMATION TECH REPLACEMENT & SERVICES FUND (55)
INFORMATION SYSTEMS Reflects contribution adjustment to the Computer Equipment Replacement
Program 287.0$ -$
287.0$ -$
TOTAL NON-GENERAL FUND REVENUE ADJUSTMENTS 7,354.9$ -$
GRAND TOTAL - ALL FUND REVENUE ADJUSTMENTS 9,492.8$ -$
CITY COUNCIL Reflects cost of living adjustment associated with FY 2015-16 bargaining unit
agreements 0.01$ 0.03$
TOTAL CITY COUNCIL EXPENDITURE ADJUSTMENTS 0.01$ 0.03$
CITY MANAGER Reflects staffing changes and cost of living adjustment associated with FY 2015-
16 bargaining unit agreements 17.5$ 0.8$
TOTAL CITY MANAGER EXPENDITURE ADJUSTMENTS 17.5$ 0.8$
RECORDS & ELECTION
SERVICES
Reflects staffing changes and cost of living adjustment associated with FY 2015-
16 bargaining unit agreements 35.8$ 80.3$
TOTAL RECORDS & ELECTION SERVICES EXPENDITURE ADJUSTMENTS 35.8$ 80.3$
FINANCE Reflects cost of living adjustment associated with FY 2015-16 bargaining unit
agreements 21.1$ 33.3$
TOTAL FINANCE EXPENDITURE ADJUSTMENTS 21.1$ 33.3$
TOTAL INFORMATION TECH REPLACEMENT & SVCS FUND REVENUE ADJUSTMENTS
TOTAL AIRPORT FUND REVENUE ADJUSTMENTS
TOTAL STORMWATER FUND REVENUE ADJUSTMENTS
TOTAL BIG BLUE BUS REVENUE ADJUSTMENTS
TOTAL VEHICLE MANAGEMENT FUND REVENUE ADJUSTMENTS
EXPENDITURE BUDGET ADJUSTMENTS ($ IN THOUSANDS)
GENERAL FUND (01)
ATTACHMENT A
4 of 10
Fund/Department Description
FY 2015-16
Increase /
(Decrease)
FY 2016-17
Increase /
(Decrease)
FY 2015-16 MIDYEAR REVENUE AND EXPENDITURE BUDGET ADJUSTMENTS / FY 2016-17 BUDGET PLAN ADJUSTMENTS
CITY ATTORNEY Reflects new position and cost of living adjustment associated with FY 2015-16
bargaining unit agreements 236.2$ 416.9$
TOTAL CITY ATTORNEY EXPENDITURE ADJUSTMENTS 236.2$ 416.9$
HUMAN RESOURCES Reflects staffing changes and cost of living adjustment associated with FY 2015-
16 bargaining unit agreements 22.9$ 37.4$
TOTAL HUMAN RESOURCES EXPENDITURE ADJUSTMENTS 22.9$ 37.4$
INFORMATION SYSTEMS Reflects two new positions and cost of living adjustment associated with FY 2015-
16 bargaining unit agreements 235.9$ 556.0$
Reflects an adjustment to account for Information Systems staff time spent on
Big Blue Bus Fund capital projects (154.3)$ (166.8)$
Reflects annual membership costs associated with Interagency Communications
Interoperability System (ICIS), and one-time computer/furniture costs to support
two new positions 50.7$ 46.9$
TOTAL INFORMATION SYSTEMS EXPENDITURE ADJUSTMENTS 132.3$ 436.1$
PLANNING & COMMUNITY
DEVELOPMENT
Reflects staffing changes and cost of living adjustment associated with FY 2015-
16 bargaining unit agreements 94.2$ 120.1$
Reflects ongoing maintenance cost related to the upgrade of the City's
electronic plan review software 160.0$ 216.0$
TOTAL PLANNING & COMMUNITY DEVELOPMENT EXPENDITURE ADJUSTMENTS 254.2$ 336.1$
POLICE Reflects staffing changes and cost of living adjustment associated with FY 2015-
16 bargaining unit agreements 24.8$ 41.9$
TOTAL POLICE EXPENDITURE ADJUSTMENTS 24.8$ 41.9$
FIRE Reflects budget correction for Fire Chief classification and cost of living
adjustment associated with FY 2015-16 bargaining unit agreements 37.3$ 38.4$
TOTAL FIRE EXPENDITURE ADJUSTMENTS 37.3$ 38.4$
Reflects staffing changes and cost of living adjustments associated with FY 2015-
16 bargaining agreement changes 46.7$ 91.5$
Reflects budget correction for contract and enrichment class instructor
payments 281.4$ 281.4$
TOTAL COMMUNITY & CULTURAL SERVICES EXPENDITURE ADJUSTMENTS 328.1$ 372.9$
LIBRARY Reflects cost of living adjustment associated with FY 2015-16 bargaining unit
agreements 17.8$ 30.9$
TOTAL LIBRARY EXPENDITURE ADJUSTMENTS 17.8$ 30.9$
PUBLIC WORKS Reflects staffing changes and cost of living adjustment associated with FY 2015-
16 bargaining unit agreements 324.6$ 572.6$
Reflects budget correction for maintenance of Fire Station, libraries, and park
buildings 25.5$ 26.7$
TOTAL PUBLIC WORKS EXPENDITURE ADJUSTMENTS 350.1$ 599.3$
HOUSING & ECONOMIC
DEVELOPMENT
Reflects staffing changes and cost of living adjustment associated with FY 2015-
16 bargaining unit agreements, partially offset by a reduction in Farmers' Market
special events budget due to historical savings 17.6$ 27.2$
TOTAL HOUSING & ECONOMIC DEVELOPMENT EXPENDITURE ADJUSTMENTS 17.6$ 27.2$
COMMUNITY & CULTURAL
SERVICES
ATTACHMENT A
5 of 10
Fund/Department Description
FY 2015-16
Increase /
(Decrease)
FY 2016-17
Increase /
(Decrease)
FY 2015-16 MIDYEAR REVENUE AND EXPENDITURE BUDGET ADJUSTMENTS / FY 2016-17 BUDGET PLAN ADJUSTMENTS
NON-DEPARTMENTAL
All Other Transactions Reflects portion of anticipated increase in Transaction & Use Tax to be remitted
to the Santa Monica/Malibu School District 62.0$ -$
Reflects transfer of funds to departments for cost of living adjustment
associated with FY 2015-16 bargaining unit agreements (703.0)$ (1,136.6)$
Interfund Transfers Reflects adjustment to transfer from the Miscellaneous Grants Fund to the
General Fund for staff time spent on the preparation of the Local Coastal Plan (4.1)$ (9.9)$
Reflects an adjustment to account for Information Systems staff time spent on
Big Blue Bus Fund capital projects with technology components (based on
original projection)146.6$ 148.1$
Reflects appropriation of funds set aside in prior year to be dedicated to
affordable housing in the Special Revenue Source Fund 1,200.0$ -$
Represents elimination of subsidy from the General Fund to the Airport Fund for
lost revenue due to the termination of the lease agreement with the Federal
Small Business Development Center (31.7)$ (32.6)$
Reflects reduction to subsidy from the General Fund to the Cemetery Fund due
to improved financial position (166.8)$ (151.5)$
Reflects transfer from the General Fund to the Pier Fund to support the
operations of the Pier Corporation (2015 Twilight Concert Series)200.0$ 200.0$
Reflects elimination of subsidy from the General Fund to the Pier Fund due to
improved financial position (909.1)$ (515.8)$
TOTAL NON-DEPARTMENTAL EXPENDITURE ADJUSTMENTS (206.1)$ (1,498.3)$
EXPENDITURE CONTROL SAVINGS
Reflects one-time transfer of year-end savings to cover the cost of the Public
Landscape Tenant capital improvement project (225.0)$ -$
TOTAL EXPENDITURE CONTROL SAVINGS ADJUSTMENTS (225.0)$ -$
CAPITAL IMPROVEMENT PROGRAM (CIP)
Reflects expansion of project scope to include feasibility analysis for a parking
structure; two public outreach meetings; and additional geotechnical borings for
City Yards Phases 1A-2B 30.0$ -$
Reflects additional funding for the Downtown Specific Plan 150.0$ -$
Reflects updated depreciation schedules for vehicle replacement and budget for
enhancement vehicles purchased by General Fund Divisions 840.8$ -$
Reflects upgrade of Kronos timekeeping system 70.0$ -$
Reflects expansion of project scope to incorporate guard rails into the Palisades
Park Landscape Modification project 50.0$ -$
Reflects Percent for Arts for Reed Park, Tenant Improvement, Palisades Park, and
City Yards budget increases 6.6$ -$
Reflects upgrade of ProjectDox software 160.2$ -$
Reflects scope changes to meet revised building code requirements for the
Public Landscape Tenant Improvement project 225.0$ -$
Reflects increasing project scope and construction costs for Reed Park
Improvements 350.0$ -$
Funds not needed at this time for the Olympic Treatment Plant (1,000.0)$ -$
Elimination of duplicate budget for the Pilot Treatment Tech/Olympic Water
project (500.0)$ -$
Savings from Surface Lot Parking Improvements project (115.6)$ -$
TOTAL CAPITAL IMPROVEMENT PROGRAM EXPENDITURE ADJUSTMENTS 267.0$ -$
1,331.6$ 953.2$ TOTAL GENERAL FUND EXPENDITURE ADJUSTMENTS
ATTACHMENT A
6 of 10
Fund/Department Description
FY 2015-16
Increase /
(Decrease)
FY 2016-17
Increase /
(Decrease)
FY 2015-16 MIDYEAR REVENUE AND EXPENDITURE BUDGET ADJUSTMENTS / FY 2016-17 BUDGET PLAN ADJUSTMENTS
GENERAL FUND - EXPENDITURE OFFSETS (USE OF RESERVES)
Use of Reserves Use of affordable housing funds set aside in prior year to be dedicated to
affordable housing projects in the Special Revenue Source Fund 1,200.0$ -$
Use of capital reserves set aside to fund City Yards Project phases 1A-2B and
Palisades Park Landscape modification project 80.0$ -$
Set Aside Funds Savings from for Gillette Olympic Treatment Plant and Pilot Treatment
Tech/Olympic Water projects (1,500.0)$ -$
Savings from surface parking lot improvement project (115.6)$ -$
(335.6)$ -$
1,667.2$ 953.2$
SPECIAL REVENUE SOURCE FUND (04)
Planning & Community
Development
Reflects a correction to account for in-lieu development agreement funds to be
paid directly to the Santa Monica Conventions & Visitors Bureau for the private
operation of the Downtown Shuttle Program (69.2)$ (70.6)$
Non-Departmental Reflects transfer of funds set aside in prior year to be dedicated to affordable
housing in the Special Revenue Source Fund (1,200.0)$ -$
Reflects the General Fund transfer of the funds dedicated to affordable housing
from the Low/Mod Income Fund (15) to the Special Revenue Source Fund (04)(1,200.0)$ (1,200.0)$
Capital Improvement Program Reflects appropriation of funds to be dedicated to affordable housing in the
Special Revenue Source Fund 1,200.0$ -$
Reflects appropriation of one-time settlement funds and inclusionary housing
funds for Affordable Housing Development Program 6,968.3$ -$
5,699.1$ (1,270.6)$
CLEAN BEACHES & OCEAN PARCEL TAX (06) FUND
Public Works Reflects update to water monitoring costs based on revised cost sharing
Memorandums of Agreement with the City of Los Angeles and the participating
agencies (107.3)$ 150.2$
(107.3)$ 150.2$
BEACH (11) FUND
Public Works Reflects cost of living adjustment associated with FY 2015-16 bargaining unit
agreement 46.7$ 82.6$
Capital Improvement Program Reflects contribution adjustment to the Fleet Vehicle Replacement Program 288.5$ -$
335.2$ 82.6$
HOUSING AUTHORITY (12) FUND
Housing & Economic
Development
Reflects reduction due to timing delay in the award of HAP vouchers for the
Neilson Villa Project (233.3)$ -$
Reflects reduction in Serial Inebriate Program housing assistance payments due
to current funding levels and lease-up rates (52.9)$ -$
(286.2)$ -$
TORCA (14) FUND
Capital Improvement Program Affordable Housing Capital Improvement Program 1,380.9$ -$
1,380.9$ -$
NON-GENERAL FUNDS
TOTAL GENERAL FUND EXPENDITURE ADJUSTMENTS, NET OF EXPENDITURE OFFSETS (USE OF RESERVES)
TOTAL SPECIAL REVENUE FUND EXPENDITURE ADJUSTMENTS
TOTAL HOUSING AUTHORITY FUND EXPENDITURE ADJUSTMENTS
TOTAL TORCA FUND EXPENDITURE ADJUSTMENTS
TOTAL GENERAL FUND USE OF RESERVES
TOTAL CLEAN BEACHES & OCEAN PARCEL TAX FUND EXPENDITURE ADJUSTMENTS
TOTAL BEACH FUND EXPENDITURE ADJUSTMENTS
ATTACHMENT A
7 of 10
Fund/Department Description
FY 2015-16
Increase /
(Decrease)
FY 2016-17
Increase /
(Decrease)
FY 2015-16 MIDYEAR REVENUE AND EXPENDITURE BUDGET ADJUSTMENTS / FY 2016-17 BUDGET PLAN ADJUSTMENTS
LOW-MOD INCOME HOUSING (15) FUND
Non-Departmental Reflects transfer of funds dedicated to affordable housing from the Low/Mod
Income Fund (15) to the Special Revenue Source Fund (04)1,200.0$ 1,200.0$
Capital Improvement Program Low-Mod Income Housing Development 2,631.7$ -$
3,831.7$ 1,200.0$
MISCELLANEOUS GRANTS (20) FUND
Library Reflects award and receipt of three grants - Ready to Go, 2nd Chances Learning
Program, and Adult Literacy 30.0$ -$
Public Works Reflects accounting adjustment to transfer MWD grant funds from operating to
capital improvement program budget (400.0)$ -$
Non-Departmental Reflects adjustment to transfer from the Miscellaneous Grants Fund to the
General Fund for staff time spent on the preparation of the Local Coastal Plan 4.1$ 9.9$
Capital Improvement Program Reflects adjustment of final grant award for the California Incline - HBP grant (5,582.5)$ -$
Reflects adjustment of final grant award for the California Incline - TEA 21 grant 1,704.9$ -$
Reflects accounting adjustment to transfer MWD grant funds from operating to
capital improvement program budget 400.0$ -$
Reflects funds to install a bus pad and enhance a bus stop located at eastbound
Pico at Lincoln 50.0$ -$
(3,793.5)$ 9.9$
WATER (25) FUND
Public Works Reflects cost of living adjustment associated with FY 2015-16 bargaining unit
agreements 65.1$ 114.4$
Capital Improvement Program Savings from Charnock Wellfield Restoration Project (1,011.1)$ -$
Savings from Booster Pumps and Actuators Evaluation Project (700.0)$ -$
Savings from Charnock Water Treatment Plant Project (346.1)$ -$
Savings from Colorado Ave Esplanade - Water Main Project (61.2)$ -$
Savings from Expo Water Betterments Project (504.9)$ -$
Reflects contribution adjustment to the Fleet Vehicle Replacement Program (96.1)$ -$
Savings from Pico Library Harvesting System Project (36.7)$ -$
Savings form Valve Study/Replacement Project (528.5)$ -$
Savings from Water Main Replacement Project (2,833.8)$ -$
Savings from Water Modeling Software Project (271.2)$ -$
(6,324.5)$ 114.4$
RESOURCE RECOVERY AND RECYCLING (27) FUND
Public Works Reflects staffing changes and cost of living adjustment associated with FY 2015-
16 bargaining unit agreements 195.3$ 385.4$
Capital Improvement Program Reflects contribution adjustment to the Fleet Vehicle Replacement Program (29.6)$ -$
165.7$ 385.4$
PIER (30) FUND
City Manager Reflects cost of living adjustment associated with FY 2015-16 bargaining unit
agreements 2.9$ 6.0$
Reflects increase in funds to support the 2015 Twilight Concert Series 200.0$ 200.0$
Police Reflects cost of living adjustment associated with FY 2015-16 bargaining unit
agreements 1.6$ 3.3$
Public Works Reflects cost of living adjustment associated with FY 2015-16 bargaining unit
agreements 10.5$ 18.9$
TOTAL LOW-MOD HOUSING FUND EXPENDITURE ADJUSTMENTS
TOTAL WATER FUND EXPENDITURE ADJUSTMENTS
TOTAL MISCELLANEOUS GRANTS FUND EXPENDITURE ADJUSTMENTS
TOTAL RRR FUND EXPENDITURE ADJUSTMENTS
ATTACHMENT A
8 of 10
Fund/Department Description
FY 2015-16
Increase /
(Decrease)
FY 2016-17
Increase /
(Decrease)
FY 2015-16 MIDYEAR REVENUE AND EXPENDITURE BUDGET ADJUSTMENTS / FY 2016-17 BUDGET PLAN ADJUSTMENTS
Non-Departmental Reflects the elimination of subsidy from the General Fund to the Pier Fund to
support ongoing operations due to improved financial position 909.1$ 515.8$
Reflects transfer from the General Fund to the Pier Fund to support the 2015
Twilight Concert Series (200.0)$ (200.0)$
Capital Improvement Program Reflects contribution adjustment to the Fleet Vehicle Replacement Program (6.2)$ -$
917.9$ 544.0$
WASTEWATER (31) FUND
Public Works Reflects cost of living adjustment associated with FY 2015-16 bargaining unit
agreements 27.9$ 50.7$
Reflects accounting adjustment to transfer funds from operating to capital
improvement program budget to fund the capital portion of the City's payment
for use of Los Angeles sewer services (1,600.0)$ -$
Capital Improvement Program Reflects budget savings due to ability to use prior years' rollover budget savings
first for AB1600 Sewer Expo Project (209.6)$ -$
Savings from Colorado Ave Esplanade - Wastewater Improvement project (301.0)$ -$
Reflects contribution adjustment to the Fleet Vehicle Replacement Program (58.8)$ -$
Reflects transfer of funds from operating to capital improvement program to
fund capital portion of the City's payment for use of Los Angeles sewer services 1,600.0$ -$
Reflects budget savings due to ability to use prior years' rollover budget savings
first for Moss Avenue Pump Station Project (907.6)$ -$
Reflects budget savings due to ability to use prior years' rollover budget savings
first for Wastewater Main Replacement Project (208.6)$ -$
Reflects funds for the Wastewater Modeling Software Project 250.0$ -$
(1,407.7)$ 50.7$
AIRPORT (33) FUND
Public Works Reflects staffing changes and cost of living adjustment associated with FY 2015-
16 bargaining unit agreements 34.3$ 75.8$
Reflects an adjustment to properly account for the payment of principal balance
on loans from the General Fund as a balance sheet transaction (630.3)$ (630.3)$
Reflects correction to interest expense on loan payments to the General Fund
based on updated repayment schedule (27.3)$ (61.3)$
Non-Departmental Represents elimination of subsidy from the General Fund to the Airport Fund for
lost revenue due to leasable space at the Airport being occupied free of rent by
the Federal Small Business Development Center 31.7$ 32.6$
Capital Improvement Program Reflects contribution adjustment to the Fleet Vehicle Replacement Program (26.0)$ -$
(617.6)$ (583.2)$
STORMWATER MANAGEMENT (34) FUND
Public Works Reflects interest adjustment for loans from the Wastewater Fund (31)2.5$ 1.7$
Reflects interest adjustment for SMURRF loans based on updated repayment
schedule (18.8)$ (27.3)$
(16.3)$ (25.6)$
CEMETERY (37) FUND
Public Works Reflects cost of living adjustment associated with FY 2015-16 bargaining unit
agreements 4.5$ 8.0$
Non-Departmental Reflects reduction to subsidy from the General Fund to the Cemetery Fund due
to improved financial position 166.8$ 151.5$
Capital Improvement Program Reflects contribution adjustment to the Fleet Vehicle Replacement Program (2.2)$ -$
169.1$ 159.5$ TOTAL CEMETERY FUND EXPENDITURE ADJUSTMENTS
TOTAL STORMWATER MANAGEMENT FUND EXPENDITURE ADJUSTMENTS
TOTAL WASTEWATER FUND EXPENDITURE ADJUSTMENTS
TOTAL AIRPORT FUND EXPENDITURE ADJUSTMENTS
TOTAL PIER FUND EXPENDITURE ADJUSTMENTS
ATTACHMENT A
9 of 10
Fund/Department Description
FY 2015-16
Increase /
(Decrease)
FY 2016-17
Increase /
(Decrease)
FY 2015-16 MIDYEAR REVENUE AND EXPENDITURE BUDGET ADJUSTMENTS / FY 2016-17 BUDGET PLAN ADJUSTMENTS
BIG BLUE BUS (41)
Big Blue Bus Reflects staffing changes and cost of living adjustment associated with FY 2015-
16 bargaining unit agreements 214.4$ 383.9$
Reflects budget correction to Dial-A-Ride paratransit service and one-time
reduction in promotional items due to sufficient inventory levels (52.0)$ (90.1)$
Non-Departmental Reflects an adjustment to account for Information Systems staff time spent on
Big Blue Bus Fund capital projects with technology components (based on
original projection)(146.6)$ (148.1)$
Capital Improvement Program Reflects an adjustment to account for Information Systems staff time spent on
Big Blue Bus Fund capital projects with technology components (based on
updated projection)154.3$ -$
Reflects savings from ongoing maintenance related to rebuilding of engines,
transmissions, differentials and refurbishment of buses (3,446.0)$ -$
Reflects new federal grant award for Bus Stop Amenities Program 1,000.0$ -$
Savings from ongoing program costs related to the Downtown Transit Mall (50.0)$ -$
Reflects additional funds for marketing, outreach, and promotional items related
to the Expo Light Rail Support Program 300.0$ -$
Reflects savings from ongoing improvements and renovations related to the
Facility Upgrades and Renovation Program (3,510.0)$ -$
Reflects savings related to the ongoing purchase of service vehicles program (250.0)$ -$
Reflects additional funds for an LED lighting project 250.0$ -$
Reflects savings related to professional services to implement operating systems
for asset management (100.0)$ -$
Reflects savings related to the Transit Oriented Development Program (430.0)$ -$
Reflects savings related to restriping, paving, and fencing improvements at the
Big Blue Bus yard (190.0)$ -$
(6,255.9)$ 145.7$
VEHICLE MANAGEMENT (54)
Public Works Reflects staffing changes and cost of living adjustment associated with FY 2015-
16 bargaining unit agreements 48.5$ 87.7$
48.5$ 87.7$
RISK MANAGEMENT ADMINISTRATION (58) FUND
Finance Reflects cost of living adjustment associated with FY 2015-16 bargaining unit
agreements 5.1$ 8.4$
Capital Improvement Program Reflects contribution adjustment to the Fleet Vehicle Replacement Program 3.4$ -$
8.5$ 8.4$
SELF INSURANCE, WORKERS' COMPENSATION (59) FUND
Capital Improvement Program Reflects contribution adjustment to the Fleet Vehicle Replacement Program (3.3)$ -$
(3.3)$ -$
(6,255.7)$ 1,059.1$
NON-GENERAL FUND - EXPENDITURE OFFSETS (USE OF RESERVES)
Use of Reserves Reflects use of one-time settlement funds and inclusionary housing funds for
Affordable Housing Development Program 6,968.3$ -$
6,968.3$ -$
TOTAL NON-GENERAL FUND EXPENDITURE ADJUSTMENTS
TOTAL VEHICLE MANAGEMENT FUND EXPENDITURE ADJUSTMENTS
TOTAL SELF-INSURANCE, RISK MANAGEMENT ADMIN FUND EXPENDITURE ADJUSTMENTS
TOTAL SELF-INSURANCE, WORKERS' COMPENSATION FUND EXPENDITURE ADJUSTMENTS
TOTAL BIG BLUE BUS FUND EXPENDITURE ADJUSTMENTS
TOTAL NON-GENERAL FUND USE OF RESERVES
ATTACHMENT A
10 of 10
Fund/Department Description
FY 2015-16
Increase /
(Decrease)
FY 2016-17
Increase /
(Decrease)
FY 2015-16 MIDYEAR REVENUE AND EXPENDITURE BUDGET ADJUSTMENTS / FY 2016-17 BUDGET PLAN ADJUSTMENTS
TOTAL GENERAL FUND REVENUE ADJUSTMENTS 2,137.9$ -$
TOTAL NON-GENERAL FUND REVENUE ADJUSTMENTS 7,354.9$ -$
GRAND TOTAL FY 2015-17 ALL FUNDS REVENUE ADJUSTMENTS 9,492.8$ -$
TOTAL GENERAL FUND EXPENDITURE ADJUSTMENTS 1,331.6$ 953.2$
TOTAL NON-GENERAL FUND EXPENDITURE ADJUSTMENTS (6,255.7)$ 1,059.1$
GRAND TOTAL FY 2015-17 ALL FUNDS EXPENDITURE ADJUSTMENTS (4,924.1)$ 2,012.3$
TOTAL GENERAL FUND USE OF RESERVES/SET ASIDE FUNDS (335.6)$ -$
6,968.3$ -$
6,632.7$ -$ GRAND TOTAL FY 2015-17 ALL FUNDS USE OF RESERVES
TOTAL NON-GENERAL FUND USE OF RESERVES
ATTACHMENT C
REASON
Fund Dept Delete
(#FTE)
Position Title Fund Dept Add
(#FTE)
Position Title Primary Reason Net FTE
Change
Salary
Change
41 BBB 1.0 Transit Government and Community Relations Manager 41 BBB 1.0 Transit Planning and Community Engagement Manager Title change - equity adjustment - 6,252
41 BBB 1.0 Transit Community Relations Coordinator 41 BBB 1.0 Transit Community Engagement Coordinator Title change - no salary change - -
41 BBB 1.0 Transit Community Relations Officer 41 BBB 1.0 Transit Community Engagement Officer Title change - no salary change - -
41 BBB 1.0 Chief Financial Officer 41 BBB 1.0 Transit Chief Administrative Officer Title change - salary change - (4,200)
01 CAO 1.0 Senior Advisor - Municipal Policies, Procedures and Innovation New position 1.0 105,619
01 CCS 1.0 Senior Human Services Program Analyst 01 CCS 1.0 Human Services Administrator -- Youth and Families Operational change - 3,683
01 CCS 1.0 Senior Administrative Analyst 01 CCS 1.0 Senior Admin Analyst-Child/Family Resources Title change - no salary change - -
01 CCS 2.4 Swim Instructor/Lifeguard 01 CCS 2.4 Senior Lifeguard Title change - no salary change - -
01 CCS 1.0 Community Use Administrator 01 CCS 1.0 Principal Administrative Analyst Operational change - 13
01 CMO 1.0 Assistant City Manager 01 CMO 1.0 Assistant City Manager Equity adjustment - 7,297
01 CMO 0.5 Administrative Analyst 01 RES 0.5 Administrative Analyst Division change - reorganization - -
01 HR 1.0 Human Resources Specialist 01 HR 1.0 Human Resources Analyst Reclassification - 5,610
01 ISD 1.0 Director of Special Projects for Information Services New position 1.0 120,263
01 ISD 1.0 Assistant Chief Information Officer New position 1.0 82,570
01 ISD 1.0 Lead Systems Analyst - Public Safety 01 ISD 1.0 Lead Systems Analyst - Public Safety Equity adjustment - 3,141
01 ISD 1.0 Lead Systems Analyst - Transit Systems 01 ISD 1.0 Transit Technology Administrator2 Operational change - 7,708
01 PCD 1.0 Special Projects Manager 01 PCD 1.0 Principal Planner Operational change - (8,360)
01 PCD 1.0 Transportation Engineer 01 PCD 1.0 Principal Traffic Engineer Operational change - 605
01 PCD 1.0 Community & Strategic Planning Manager 01 PCD 1.0 Mobility Division Manager Title change - no salary change - -
01 PCD 1.0 Principal Planner 01 PCD 1.0 Principal Planner Division change - reorganization - -
01 PCD 1.0 Senior Planner 01 PCD 1.0 Senior Planner Division change - reorganization - -
01 PCD 1.0 Senior Planner 01 PCD 1.0 Senior Planner Division change - reorganization - -
01 PCD 1.0 Environmental Planner 01 PCD 1.0 Environmental Planner Division change - reorganization - -
01 PCD 0.5 Assistant Planner (Limited Term Grant Funded) 01 PCD 0.6 Assistant Planner (Limited Term Grant Funded)3 Operational change 0.1 4,059
01 Police 1.0 Police Chief 01 Police 1.0 Police Chief Equity adjustment - 5,561
01 Police 1.0 Lead Forensic Specialist 01 Police 1.0 Forensic Supervisor Operational change - (432)
01 Police 1.0 Lead Animal Control Officer 01 Police 1.0 Animal Control Supervisor Operational change - (2,565)
01 Police 1.0 Animal Control Officer 01 Police 1.0 Lead Animal Control Officer Operational change - (2,894)
33 PW 0.5 Staff Assistant II (Temporary)33 PW 1.0 Staff Assistant II (Permanent) New position 0.5 23,530
01 PW 1.0 Field Attendant 01 PW 1.0 Groundskeeper Operational change - 6,620
27 PW 2.0 Resource Recovery & Recyc. Equipment Operator New position 2.0 69,777
SUBTOTAL 5.60 FTE 433,854
01 HED 0.43 Labor Trainee, Farmers' Market Coordinator (Temporary)Operational change 0.43 17,429
SUBTOTAL 0.43 FTE 17,429
GRAND TOTAL 6.03 FTE 451,283
POSITION AND CLASSIFICATION CHANGES
2. Net zero impact to the General Fund (01) -- Position is funded by the Big Blue Bus Fund (41).
3. Net zero impact to the City -- Position is grant funded.
PERMANENT EMPLOYEES
TEMPORARY EMPLOYEES
1/26/2016
SUBTOTALS 1
1. Salary totals include fringe costs. Amounts are pro-rated for the remaining five months of FY 2015-16.
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Financial Status Update and
FY 2015-16 Midyear Budget
January 26, 2016
Biennial Budget Process
Council
Study
Session
Confirm
FY 2016-17
Budget
Develop
FY 2016-18
CIP Budget
Midyear
Report /
Financial
Status
Update
Budget
Adoption
January 2016 January -May 2016 May 24, 2016 June 14, 2016
Economic Update
National and State
•Low unemployment rate
•Strong housing market
•Low inflation
•Federal Reserve raised
rates
Santa Monica
•Slight decreases this year
•Slower growth in future
•TOT -5%
•Business License -2.8%
•UUT -1.4%
Other Funds Status
•Self-Sustaining Enterprise Funds
•Airport, Beach, BBB, Pier, RRR, Water, Wastewater
•Funds Requiring General Fund Subsidies
•Cemetery-this year only
•Housing Authority-forecast period
Midyear Adjustments: General Fund
Increases in tax
revenues, parking and
plan check fees,
Bikeshare fees
Decreases in UUT, TOT,
Business License Taxes
Fleet vehicle
replacement program
Reed Park
Improvements
Downtown Specific Plan
Software upgrades
Information Systems
2.0 FTE
City Attorney’s Office,
Housing & Econ Dev.,
Planning & Comm. Dev.
1.5 FTE
Twilight Concert Series
REVENUES
$2.1M
CAPITAL
$0.3M
OPERATING
$1.3M
Midyear Adjustments: Other Funds
Developer fee
payments
Correct Pier budget
Wastewater
Airport leases
BBB alt fuel tax credit
and cap and trade
Fleet vehicle
replacement program
California Incline Bridge
Replacement
Water, Wastewater, BBB
project review
Housing Funds
programmed
RRR 2.0 FTE
Airport accounting
correction
Wastewater transfer
REVENUES
$7.4M
CAPITAL
-$3.5M
OPERATING
-$2.7M
Other Changes
•Master Fine Resolution update
•Termination of non-resident library card fee
•California Department of Transportation Active
Transportation Program grant funds
Other Updates
•Lincoln Middle School fields
•Lincoln Middle School Pool
•Mt. Olivette
Recommended Actions
Receive:
•FY 2015-16 through FY 2019-20 Financial Status Update
•Public comment on Community Development Block Grant (CDBG) and Home Investment Partnership Act
(HOME) Program funds
Adopt Resolutions:
•Setting fines
•Establishing classification and salary rates
Approve:
•FY 2015-16 midyear revenue and expenditure budget adjustments and corresponding adjustments to the
FY 2016-17 budget plan
•Position and classification changes
•Discontinuance of the $25 non-resident library card fee
Accept:
•Caltrans Active Transportation Program grant funds
Provide:
•Direction on expansion of the City’s aquatics program to include programing at Lincoln Middle School
Reference:
Resolution No. 10932
(CCS)
&
Resolution No. 10933
(CCS)