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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 1 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. 0 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 3 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