R93 (HAS)City Council Meeting: June 12, 2018
RESOLUTION NO. 4,3 (HAS)
(HOUSING AUTHORITY SERIES)
ATTACHMENT B
Santa Monica, California
A RESOLUTION OF THE HOUSING AUTHORITY 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 Housing Authority of the City of Santa Monica (the
"Housing Authority") not less than thirty-five (35) days prior to July 1, 2018; and
WHEREAS, the Housing Authority held a public hearing on said Budget after a
notice of said budget hearing was published not less than ten (10) days prior thereto; and
WHEREAS, after said public hearing, the Housing Authority considered further its
proposed Budget.
NOW THEREFORE, THE HOUSING AUTHORITY OF THE CITY OF SANTA
MONICA RESOLVES AS FOLLOWS:
SECTION 1. The Fiscal Year (FY) 2018-19 Operating Budget, as submitted by
the Executive Director and revised by the Housing Authority, included as the second year
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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 Program Budget, as submitted by the Executive Director and revised by the
Housing Authority, 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 Executive Director and revised by the Housing Authority,
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 Housing Authority 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 revenue detail. The Executive Director 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. A certified copy of the FY 2018-19 Budget and amendments shall be
filed with the Director of Finance and with the Secretary, 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 3. In adopting the FY 2018-19 Budget, the Housing Authority does
hereby reappropriate the unencumbered balances and unexpended encumbrances of the
FY 2017-18 Budget.
SECTION 4. In adopting the FY 2018-19 Budget, the Housing Authority hereby
approves the revision to the Operating Budget Policies set forth in the City of Santa
Monica'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 Secretary 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
Attorney for Housing Authority
Exhibit 1 Revision to Operating Budget Policies for FY 2017-19 Budget
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EXHIBIT 1
Fiscal Policies
• 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 any one 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. At the end of the first year of the
biennial budget the City will reappropriate each General Fund Department's non -salary
ooeratina budget savings to each department to complete projects than may have been
delayed. At the end of the second year of the biennial budgeteGG44NG ar, 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
$1 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 iici
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.
Adopted and approved this 12th day of June, 2018.
Ted Winterer, Chair
I, Denise Anderson -Warren, City Clerk of the City of Santa Monica, do hereby
certify that Resolution No. 93 (HAS) was duly adopted at a joint meeting of the Santa
Monica City Council and the Housing Authority Series held on the 12th day of June,
2018, by the following vote:
AYES: Agency members: Himmelrich, O'Conner, Vazquez,
Chair Winterer, Chair Pro Tem Davis
NOES: Agency members: None
ABSENT: Agency member: McKeown, O'Day
ATTEST:
Denise Anderson -Warren, Agency Secretary