R11120ATTACHMENT A
City Council Meeting: June 12, 2018 Santa Monica, California
RESOLUTION NO. I l `10(CCS)
(CITY COUNCIL SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA
ADOPTING THE SECOND YEAR (FISCAL YEAR 2018-19) OF THE FISCAL YEAR
2017-19 BIENNIAL BUDGET AND ADOPTING ITS CAPITAL IMPROVEMENT
PROGRAM BUDGET FOR FISCAL YEAR 2018-19 AND APPROVING ITS CAPITAL
IMPROVEMENT PROGRAM BUDGET FOR FISCAL YEAR 2019-20
WHEREAS, the proposed Operating Budget for the Fiscal Year 2018-19, and the
proposed Biennial Capital Improvement Program Budget for Fiscal Years 2018-19 and
2019-20 were submitted to the City Council of the City of Santa Monica (the "City Council")
not less than thirty-five (35) days prior to July 1, 2018; and
WHEREAS, the City Council held a public hearing on said Budget after a notice of
the budget hearing was published not less than ten (10) days prior thereto; and
WHEREAS, after the public hearing, the City Council considered further its
proposed Budget.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
RESOLVES AS FOLLOWS:
SECTION 1. The Fiscal Year ("FY") 2018-19 Operating Budget, as submitted by
the City Manager and revised by the City Council, included as the second year in the
document entitled "FY 2017-19 Proposed Biennial Budget' (the "FY 2017-19 Budget'), as
amended by Attachment D, is hereby adopted. The FY 2018-19 Capital Improvement
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Program Budget, as submitted by the City Manager and revised by the City Council,
included in the document entitled "FY 2018-20 Capital Improvement Program Proposed
Biennial Budget' (the "FY 2018-20 CIP Budget'), as amended by Attachment D, is hereby
adopted. The FY 2019-20 Capital Improvement Program Budget, as submitted by the
City Manager and revised by the City Council, included in the FY 2018-20 CIP Budget,
as amended by Attachment D, is hereby approved.
In adopting the FY 2018-19 Operating Budget and FY 2018-19 Capital
Improvement Program Budget, the City Council intends to, and by this Section does,
adopt and approve the total operating appropriation for each departmental and non -
departmental operating budget, consisting of Salaries and Wages, Supplies and
Expenses (including Capital Outlay) major expenditure categories, each project of the
Capital Improvement Program Budget, and the revenue detail. The City Manager is
authorized to allot by Department and fund as appropriated. Copies of the changes to
the proposed Operating Budget for the FY 2018-19, and proposed Biennial Capital
Improvement Program Budget for FY 2018-19 and FY 2019-20 are attached hereto as
Attachment D.
SECTION 2. In adopting the FY 2018-19 Operating Budget, the City Council
hereby re -appropriates the General Fund and all other Non -General Fund unexpended
encumbrances of the FY 2017-18 Budget. In adopting the FY 2018-19 Capital
Improvement Program Budget, the City Council hereby re -appropriates the General Fund
and all other Non -General Fund unencumbered balances and unexpended
encumbrances of the FY 2017-18 Capital Improvement Program Budget.
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SECTION 3. In adopting the FY 2018-19 Budget, the City Council hereby
re -appropriates year-end remaining funds for multi-year operating grants and donations
dedicated to programs, and funds for the encumbrances of goods and services ordered
in FY 2017-18 but not received or provided until FY 2018-19 for the City's General Fund
and proprietary funds (enterprise and internal service).
SECTION 4. In adopting the FY 2018-19 Budget, the City Council hereby
approves the revision to the Operating Budget Policies set forth in the City's Fiscal
Policies included in the FY 2017-19 Budget eliminating expenditure control budgeting for
year 1 of the biennial budget cycle attached hereto as Exhibit 1..
SECTION 5. The budgets of the Housing Authority and the Parking Authority have
been reviewed by the City Council and are hereby approved and adopted.
SECTION 6. A copy of the Santa Monica Redevelopment Successor Agency
Resolution approving the Successor Agency's Administrative Budget for FY 2018-19, as
adopted in January 2018, is attached hereto as Exhibit 2.
SECTION 7. A certified copy of the FY 2018-19 Budget and amendments shall be
filed with the Director of Finance and with the City Clerk, and certified copies of the FY
2018-19 Budget shall be reproduced and made available for use as directed by Santa
Monica City Charter section 1505.
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SECTION 8. The City Clerk shall certify to the adoption of this Resolution, and
thenceforth and thereafter the same shall be in full force and effect.
APPROVED AS TO FORM:
LANE DILG
City Attorney
Exhibit 1 Revision to Operating Budget Policies for FY 2017-19,Budget
Exhibit 2 FY 2018-19 Successor Agency Budget
EXHIBIT 1
Fiscal Policies
r#' •' r • �s
• The City will adopt a balanced budget annually by June 30.
• The City will make =all current♦ ongoing expenditures with current, ongoing =revenues, avoiding °-
procedures that balance current budgets by postponing needed expenditures or accruing
future revenues.
• The City will estimate revenues using an objective and analytical process; in the case of
assumption uncertainty, conservative projections will be used.
• The City will maintain a level of expenditures that support essential services and promote
quality -of -life to its citizens.
• The City will forecast its General Fund and other major fund expenditures and revenues for a
five-year period and will update the forecast semi-annually. The forecast will be taken into
consideration when preparing budget recommendations.
• The City will endeavor to maintain a diversified and stable revenue system to minimize the
impact of short-term fluctuations in anyone revenue source.
• The City will avoid targeting revenues for specific purposes whenever possible, allowing
maximum flexibility in funding decisions on an annual basis.
• One-time revenues will be used for one-time expenditures only.
• The City will investigate potential new revenue sources, particularly those that will not add to
the tax burden of residents and local businesses.
• The City will implement expenditure control budgeting. Al the end of the first year of the
biennial budget, the City will reappropriate each General Fund Department's non -salary
operating budget savings to each department to complete proiects that may have been
delayed. At the end of the second year of the biennial budgeteGGh�fi c baa;, the City will
reappropriate one-third of each General Fund Department's non -salary operating budget
savings to each department, to be used as the Department Head decides to fulfill the mission
of the department. The remaining two-thirds of the non -salary savings will be incorporated into
the General Fund fund balance.
• Provided there are sufficient funds, the annual budget will include a minimum set-aside of
$f million in the General Fund, and commensurate set-aside amounts in all other funds, to be
used towards payments to CaIPERS. These payments will be in addition to the Annual Required
Contribution and will serve to reduce the City's unfunded retirement liability. If any additional
funds are available, staff will also annually assess the set-aside of any additional funds for
CaIPERS payments against other unfunded needs, and present the City Council with a
recommendation. This policy will remain in effect until such time as there is no remaining
unfunded retirement liability.
• The City will prefund other post employment benefit obligations (OPEB) each year, setting
aside the equivalent of the actuarially -determined annual required contribution (ARC) in an
irrevocable trust.
• The biennial budget will establish measurable goals and objectives and allow reasonable time
to accomplish those objectives.
Fiscal Policies
• The City will work proactively with the League of California Cities and local communities to
monitor and impact legislation that may impact the City financially.
EXHIBIT 2
EXHIBIT 1
Successor Agency Meeting: January 9, 2018 Santa Monica, California
RESOLUTION NUMBER ���' (SA)
A RESOLUTION OF THE SANTA MONICA
REDEVELOPMENT SUCCESSOR AGENCY APPROVING
AND ADOPTING THE ADMINISTRATIVE BUDGET FOR THE PERIOD
JULY 2018 — JUNE 2019
WHEREAS, pursuant to the California Community Redevelopment Law (Health
and Safety Code Section 33000 et seq.), the City Council of the City of Santa Monica
(the "Council') adopted the Earthquake Recovery Redevelopment Project by Ordinance
No. 1747 (CCS) on June 21, 1994, the Downtown Redevelopment Project by Ordinance
No. 1021 (CCS) on January 13, 1976, the Ocean Park 1A Project by Ordinance No. 497
(CCS) on June 30, 1960, and the Ocean Park 18 Project by Ordinance No. 516 (CCS)
on January 24, 1961 (collectively the "Redevelopment Plans"); and
WHEREAS, the California Legislature adopted, and the Governor signed,
Assembly Bill No. x1 26 and 27 x1 (2011-2012 1st Ex. Sess,) enacted as Stats. 2011,
1st Ex. Sess. 2011-2012, chs. 5-6 (hereinafter AB 26 and AB 27) into law; and
WHEREAS, in July 2011, Califomla Redevelopment Agency v. Matosantos was
filed in the California Supreme Court, challenging the constitutionality of AB 26 and AB
27, and on December 29, 2011, the Supreme Court issued its opinion in Matosantos,
upholding AB 26 and exercising its power of reformation to revise and extend each
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effective date or deadline for performance of an.obligation in part 1.85 of division 24 of
the California Health and Safety Code, and invalidating AB 27; and
WHEREAS, the City of Santa Monica is the designated Successor Agency of the
Redevelopment Agency of the City of Santa Monica, within the meaning of AB 26; and
WHEREAS, Section 341770) of the California Health and Safety Code provides
that the Successor Agency shall prepare an administrative budget ("Administrative
Budget") and submit it to the Oversight Board of the Successor Agency for its approval;
and
WHEREAS, the Administrative Budget shall include the following:
(1) Estimated amounts for successor agency administrative costs for the
upcoming annual fiscal period; and
and
(2) Proposed sources of payment for the costs identified in subparagraph (1);
(3) Proposals for arrangements for administrative and operations services
provided by a city, county, city and county, or other entity; and
WHEREAS, on February 14, 2012, the Successor Agency approved a
Reimbursement Agreement by and between the City of Santa Monica and Successor
Agency, Contract No. 9549 (CCS/RAS/SA), in accordance with Section 34171(d)(1)(F)
of the California Health and Safety Code; and
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WHEREAS, Section, 34177(k) of the California. Health and Safety Code requires
the Successor Agency to provide administrative cost estimates, from its approved
Administrative Budget that are to be paid from property tax revenues deposited in the
Redevelopment Property Tax Trust Fund, to the Los Angeles County Auditor -Controller
for each six-month fiscal period; and
WHEREAS, under Title 14 of the California Code of Regulations, Section
15061(b)(3), the approval of the Administrative Budget is exempt from the requirements
of the California Environmental Quality Act ("CEQA"), in that it is not a project as the
adoption of the Administrative Budget will not have the potential of causing a significant
environmental effect and it can be seen with certainty that there is no possibility that the
adoption of the Administrative Budget will have any significant effect on the
environment; and
WHEREAS, the California Legislature adopted, and the Governor signed,
Assembly Bill No. 1484 enacted as Stats. 2012, ch. 25 (hereinafter AB 1484) into law;
and
WHEREAS, the California Legislature adopted, and the Governor signed, Senate
Bill No. 107 enacted as Stats. 2015 ch. 325 (hereinafter SB 107) into law; and
WHEREAS, SB 107, requires the Santa Monica Redevelopment Successor
Agency to submit to the Los Angeles County Auditor -Controller the ROPS for the period
ending June 30, 2019, for its review before approval by the Oversight Board; and
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WHEREAS, SB 107, requires the Santa Monica Redevelopment Successor
Agency to submit to the State of California Department of Finance the ROPS for the
period ending June 30, 2019, which must be approved by the Oversight Board, no later
than February 1, 2018; and
WHEREAS, the Successor Agency has reviewed and duly considered the
Administrative Budget for the period July 2018 — June 2019, inclusive, attached as
Exhibit 1, and other written evidence presented at the meeting, if any.
NOW, THEREFORE, THE SUCCESSOR AGENCY DOES RESOLVE AS
FOLLOWS:
SECTION 1. The Successor Agency hereby finds and determines that the
foregoing recitals are true and correct.
SECTION 2. The Successor Agency hereby approves and adopts the
Administrative Budget for the period July 2018 — June 2019, inclusive, attached as,
Exhibit 1.
SECTION 3. The Successor Agency authorizes the Chief Administrative Officer
or his designee to:
(1) Provide an administrative cost estimate to the County Auditor -Controller
for the period July 2018 - June 2019, inclusive, based upon the approved
Administrative Budget; and
(2) Submit the Administrative Budget to the Oversight Board for approval;
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(3) Take such other actions and execute such other documents as are
appropriate to effectuate the intent,of of this Resolution and to implement the
Administrative Budget on behalf of the Successor Agency.
SECTION 4. The Secretary of the Successor Agency shall certify the adoption of
this Resolution and thenceforth and thereafter the same shall be in full force and effect.
APPROVED AS TO FORM:
LANE DIL.G
Successor Agency Counsel
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Exhibit 1
Successor Agency Administrative Budget
C
SUCCESSOR AGENCY ADMINISTRATIVE BUDGET
-_m
Exhibit 1
----- —
Position .t
Total Costs
Total Staffing Costs for appx 1.0 FTE
_ 214,310
Custodial Services
1,601
Office Supplies and Expenses
_ 3,657
Office E%L'P.Tent_
369'
General Liabilrty/Auto — _ _______ j
3,363
Conferences, Meetings Travel
— 1,066
Training
596
Mileage
86
Utilities - Light/Power�LL ___..._ .._._._..
1,524
Utlhtles -Telephone _ � __
__,__W1�1S4
Utilities-Water I
Utilities
1,625
_._
Legal ..-_..._.__..._.
,_
--- _ -...5,753
Bank Fees T—
1,978
Fiscal Agent Fees
13,040
Financial Consultant Services _
7,811
— ..._...._. _ _
Audit Services
8,324
_
Successor Agency OffIce Space Rent
_
373,615TQTAE
" Per HSC 34171 (b), the administrative cost allowance shall be up to 3 percent of
actual property tax distributed in the preceding fiscal year, less prior year administrative
cost allowance and City -Agency loan repayments pursuant to HSC section 34191.4 (b).
Adopted and approved this gth day of January, 2018.
wo
ed Winterer, Chair
1, Denise Anderson -Warren, Agency Secretary of the City of Santa Monica, do
hereby certify that Resolution No: 35 (SA) was duly adopted at the meeting of the Santa.
Monica Redevelopment Successor Agency held on the gth day of January, 2017, by the
following vote:
AYES: Agency members: Himmelrich, McKeown, O'Day, Vazquez
Chair Winterer, Chair Pro Tem Davis
NOES: Agency members: None
ABSENT: Agency members: O'Connor
ATTEST:
Ana jotdm,�Iixvo"
Denise Anderson -Warren, Agency Secretary
Adopted and approved this 12th day of June, 2018.
Ted Winterer, Mayor
I, Denise Anderson -Warren, City Clerk of the City of Santa Monica, do hereby
certify that Resolution No. 11120 (CGS) was duly adopted at a meeting of the Santa
Monica City Council held on the 12th day of June, 2018, by the following vote:
AYES: Councilmembers Himmelrich, O'Connor, Vazquez,
Mayor Pro Tem Davis, Mayor Winterer
NOES: None
ABSENT: Councilmembers McKeown, O'Day
ATTEST:
IZ,Qe, J-/?( -, L X42 ! Cf
Denise Anderson -Warren, City Clerk