SR 02-12-2019 8A
City Council
Housing Authority
Parking Authority
Report
City Council Meeting: February 12, 2019
Agenda Item: 8.A
1 of 4
To: Housing Authority, Parking Authority, Mayor and City Council
From: Gigi Decavalles-Hughes, Director, Finance Department, Budget
Lori Gentles, Chief People Officer, Human Resources Department
Subject: Approval of Fiscal Year 2018-19 Midyear Budget
Recommended Action
Staff recommends that the City Council, Housing Authority and Parking Authority
approve changes to the FY 2018-19 Revised Budget as detailed in Attachment A. Staff
also recommends that the City Council adopt a Resolution establishing new
classifications and adopting salary rates for various positions as detailed in
Attachment B.
Summary
This report presents proposed midyear budget changes for FY 2018 -19. Proposed
revenue adjustments result in a $10.1 million, or 1.4% increase over the citywide
revenue budget. Approximately 58% ($5.8 million) of the increase is in the Big Blue Bus
Fund reflecting final funding from Metro. The remaining revisions are in the General
Fund reflecting a $4.3 million increase over budget (approximately 1%). E ven with the
changes, the increase in General Fund revenues over the prior year (exclusive of
certain one-time items) is a modest 2.6%. Expenditure adjustments result in a net
$0.8 million or a 0.1% increase over the citywide expenditure budget. These proposed
operating budget adjustments align with the revenue and expenditure projections
reflected in the Ten-Year Financial Forecast presented to Council on January 22, 2019.
Discussion
The midyear budget review analyzes the budget status at the mid -point of the fiscal year
and provides an opportunity to adjust revenue projections and make expenditure
appropriation changes. At midyear, staff recommends revenue budget changes based
2 of 4
on actual performance and new information, and proposes adjustments to the
expenditure budgets that are directly related to the proposed revenue changes.
Revenue Adjustments – General Fund
Recommended revenue adjustments to the FY 2018-19 budget result in a net increase
of $4.3 million. Significant increases include:
$1.3 million from transient occupancy taxes reflecting a continuing increase in
average room rates. However, the projected increase over the prior year of 2.1%
is lower than increases over the prior few years.
$1.2 million from mobility public right of way fees/administrative citations.
$1.1 million from sales taxes (including Measure GSH) primarily reflecting
payments that were originally due in FY 2017-18 but delayed due to State
reorganization of the sales tax administration function.
$0.9 million from documentary transfer taxes reflecting the sale of several very
large properties.
$0.9 million from investment income as interest rates have risen faster than
anticipated.
$0.8 million from parking revenues reflecting the full year impact of rate increases
in City-owned lots and structures partially offset by decreased on -street meter
revenues.
Significant decreases include:
-$0.8 million from parking citation fines reflecting decreased issuance.
-$0.4 million from property taxes (former RDA residual taxes).
-$0.4 million from business license taxes reflecting less taxes paid by some large
taxpayers due to the volatile nature of their businesses.
-$0.5 million from bike share fees due to competition from dockless mobility
options.
Revenue Adjustments – Other Funds
Revenue adjustments in other funds include:
3 of 4
Big Blue Bus Fund (60) – increase of $5.8 million to reflect higher than projected
funding marks from LA Metro.
A full listing of revenue adjustments is included in Attachment A.
Operating Expenditure Adjustments – General Fund
FY 2018-19 proposed General Fund operating expenditure appropriations result in an
increase of $0.8 million:
$0.4 million increase to reflect higher than anticipated Measure Y and GSH
Transaction and Use Tax funds to the Santa Monica-Malibu Unified School
District and Measure GSH funds for the affordable housing program.
$0.4 million increase to adjust the portion of Parking Structure 7 and 8 revenues
paid to Macerich as a result of higher than anticipated parking revenues. This
adjustment is consistent with the contractual agreement with Macerich.
Personnel Changes
This report includes position changes to reflect ongoing operations. A Salary
Resolution detailing new classifications and salary rates is reflected in Attachment B.
Past Council Actions
Meeting Date Description
6/12/18 (Attachment C) Adoption of the Second Year of the Fiscal Year (FY) 2017-19
Biennial Budget, Adoption of the First Year and Approval of the
Second Year of the FY 2018-20 Biennial Capital Improvement
Program Budget
11/27/18 (Attachment D) FY 2017-18 Year-End Budget Changes; and FY 2018-19 Budget,
Position and Compensation Changes
Financial Impacts and Budget Actions
Recommended FY 2018-19 midyear budget adjustments result in a $10.1 million, or a
1.4% increase over the citywide revenue budget, and expenditure adjustments result in
a net $0.8 million or a 0.1% increase over the citywide expenditure budget. Detail for
FY 2018-19 midyear adjustments is in Attachment A.
4 of 4
Prepared By: Susan Lai, Budget Manager
Approved
Forwarded to Council
Attachments:
A. FY 2018-19 Mid-Year Budget Adjustments
B. Finance - Reso - Mid-Year Budget Salary - 02.12.2019
C. June 12, 2018 Staff Report (web link)
D. November 27, 2018 Staff Report (web link)
ATTACHMENT A
Fund / Department Description
FY 2018‐19
Increase /
(Decrease)
PLANNING & COMMUNITY
DEVELOPMENT
Reflects revenues from Shared Mobility Public Right Of Way Fees from the
Shared Mobility Pilot Program that began September 2018 and Mobility
Administrative Citations 1,201.0$
Reflects increase in parking revenues in City parking lots and structures due
to increased parking rates, offset by decrease in On Street Meter revenues 839.7$
Reflects decrease in revenues from Bikeshare Program Fees due to
competition from dockless mobility options (507.3)$
TOTAL PLANNING & COMMUNITY DEVELOPMENT REVENUE ADJUSTMENTS 1,533.4$
POLICE Reflects decrease in issuance of parking citations due to various street
meters being unenforceable because of battery issues that have since been
resolved, unanticipated use of TSOs for traffic enforcement rather than
parking enforcement during special events, the suspension of enforcement
during Woolsey Fire, and staffing shortages due to injuries (800.0)$
TOTAL POLICE REVENUE ADJUSTMENTS (800.0)$
NON‐DEPARTMENTAL Transient Occupancy Tax ‐ Primarily due to higher than anticipated room
rental rates as tourism remains strong 1,300.0$
Sales and Use Tax/Transaction and Use Tax ‐ Increase primarily reflects
timing change of payments from State. Payment of a portion of FY 2017‐18
taxes due the City were not paid to the City until FY 2018‐19 due to the State
shifting the collection and payment function from the Board of Equalization
to the new Department of Tax and Fee Administration 1,054.0$
Investment Income ‐ Reflects faster than expected growth in interest rates 900.0$
Documentary Transfer Tax ‐ Primarily reflects one‐time transfer of several
large properties 863.0$
Statutory Pass‐Throughs ‐ Primarily reflects higher than anticipated
payments from former Redevelopment Agency project areas. Total
percentage of tax increment revenues allocated to statutory pass‐through
agencies increased from prior years 498.1$
Parking Facility Tax ‐ Reflects greater revenues from City‐owned facilities
primarily reflecting increased parking rates 100.0$
Utility Users Tax ‐ Based on year‐to‐date results, taxes from electricity
greater than expected, partially offset by greater than expected decrease in
telecommunication taxes 94.0$
VLF (Vehicle License Fee) Swap ‐ Final funding levels from Los Angeles
County reconciling the end of a 2004 swap of city and county vehicle license
fee revenues for additional property tax share as a part of a state‐local
budget agreement.59.6$
FY 2018‐19 MIDYEAR REVENUE AND EXPENDITURE BUDGET ADJUSTMENTS
REVENUE BUDGET ADJUSTMENTS ($ IN THOUSANDS)
GENERAL FUND (01)
1 of 2
ATTACHMENT A
Fund / Department Description
FY 2018‐19
Increase /
(Decrease)
FY 2018‐19 MIDYEAR REVENUE AND EXPENDITURE BUDGET ADJUSTMENTS
Discount on PERS Prepayment ‐ Revision reflects actual prepayment amount,
which had not been finalized at the time of budget adoption (16.1)$
Business License ‐ Taxes paid by certain large taxpayers, whose gross receipts
can vary significantly year due to the nature of their business, were slightly
less than anticipated (356.0)$
RPTTF Residuals ‐ Primarily due to less than anticipated residual property tax
increment from former RDA areas reflecting an adjustment in the payment
schedule of loans between the City and the Successor Agency (971.7)$
TOTAL NON‐DEPARTMENTAL REVENUE ADJUSTMENTS 3,524.9$
TOTAL GENERAL FUND REVENUE ADJUSTMENTS 4,258.3$
BIG BLUE BUS FUND (60)
BIG BLUE BUS Primarily reflects final funding marks from LA Metro 5,835.0$
5,835.0$
TOTAL NON‐GENERAL FUND REVENUE ADJUSTMENTS 5,835.0$
GRAND TOTAL ‐ ALL FUND REVENUE ADJUSTMENTS 10,093.3$
PLANNING & COMMUNITY
DEVELOPMENT
Reflects adjustment to Macerich contract based on increased parking
revenues due to increased parking rates 352.5$
352.5$
NON‐DEPARTMENTAL
All Other Transactions Reflects adjustment to reflect higher than anticipated Measure Y and GSH
funds to SMMUSD 440.3$
TOTAL NON‐DEPARTMENTAL EXPENDITURE ADJUSTMENTS 440.3$
792.7$
TOTAL GENERAL FUND REVENUE ADJUSTMENTS 4,258.3$
TOTAL NON‐GENERAL FUND REVENUE ADJUSTMENTS 5,835.0$
GRAND TOTAL FY 2018‐19 ALL FUNDS REVENUE ADJUSTMENTS 10,093.3$
TOTAL GENERAL FUND EXPENDITURE ADJUSTMENTS 792.7$
TOTAL NON‐GENERAL FUND EXPENDITURE ADJUSTMENTS ‐$
GRAND TOTAL FY 2018‐19 ALL FUNDS EXPENDITURE ADJUSTMENTS 792.7$
EXPENDITURE BUDGET ADJUSTMENTS ($ IN THOUSANDS)
GENERAL FUND (01)
TOTAL GENERAL FUND EXPENDITURE ADJUSTMENTS
TOTAL BIG BLUE BUS FUND REVENUE ADJUSTMENTS
TOTAL PLANNING & COMMUNITY DEVELOPMENT EXPENDITURE ADJUSTMENTS
NON‐GENERAL FUNDS
2 of 2
ATTACHMENT B
1
City Council Meeting: February 12, 2019 Santa Monica, California
RESOLUTION NUMBER _________ (CCS)
(City Council Series)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA
ESTABLISHING NEW CLASSIFICATIONS AND ADOPTING SALARY RATES FOR
ADMINISTRATIVE INTERN I, ADMINISTRATIVE INTERN II, ASSISTANT DIRECTOR
– PUBLIC WORKS, ASSISTANT POLICE CHIEF AS-NEEDED, CITY HEARING
OFFICER I, CITY HEARING OFFICER II, DEPUTY FIRE CHIEF AS-NEEDED,
PRINCIPAL PAYROLL AND FINANCIAL SYSTEMS ANALYST, SPECIAL PROJECTS
ADMINISTRATOR – PCD.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES RESOLVE AS FOLLOWS:
SECTION 1. The following salary levels are hereby established, effective
February 12, 2019, for the indicated permanent classifications:
ASSISTANT DIRECTOR – PUBLIC WORKS $16,142/month, Step 5
CITY HEARING OFFICER I $10,538/month, Step 5
CITY HEARING OFFICER II $14,401/month, Step 5
PRINCIPAL PAYROLL AND FINANCIAL SYSTEMS
ANALYST $10,559/month, Step 5
SPECIAL PROJECTS ADMINISTRATOR – PCD $11,576/month, Step 5
SECTION 2. The following salary levels are hereby established, effective
December 9, 2018, for the indicated as-needed classification:
ASSISTANT POLICE CHIEF AS-NEEDED $112.29/hour
ATTACHMENT B
2
SECTION 3. The following salary levels are hereby established, effective
February 12, 2019, for the indicated as-needed classifications:
ADMINISTRATIVE INTERN I $16.10/hour
ADMINISTRATIVE INTERN II $17.31/hour
DEPUTY FIRE CHIEF AS-NEEDED $122.76/hour
SECTION 4. 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
REFERENCE:
Resolution No. 11162
(CCS)