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City Council Meeting: June 25, 2019 Santa Monica, California
RESOLUTION NO. (CCS)
(CITY COUNCIL SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA
ADOPTING THE FIRST YEAR (FISCAL YEAR 2019-20) AND APPROVING THE
SECOND YEAR (FISCAL YEAR 2020-21) OF THE FISCAL YEAR 2019-21 BIENNIAL
BUDGET AND ADOPTING ITS CAPITAL IMPROVEMENT PROGRAM BUDGET FOR
FISCAL YEAR 2019-20
WHEREAS, the proposed Operating Budget for the Fiscal Year 2019-20 and Fiscal
Year 2020-21, and the proposed Biennial Capital Improvement Program Budget for Fiscal
Year 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, 2019; 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) 2019-20 Operating Budget, as submitted by
the City Manager and revised by the City Council included in the document entitled “City
of Santa Monica Proposed Biennial Budget FY 2019-21” (the “FY 2019-21 Budget”), as
amended by Attachment D, is hereby adopted. The FY 2020-21 operating budget as
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submitted by the City Manager and revised by the City Council, included in the
FY 2019-21 Budget, as amended by Attachment D, is hereby approved. The FY 2019-20
Capital Improvement Program Budget, as submitted by the City Manager and revised by
the City Council, included in the FY 2019-21 Budget, as amended by Attachment D, is
hereby adopted.
In adopting the FY 2019-20 Operating Budget and FY 2019-20 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 FY 2019-20 and FY 2020-21, and proposed Biennial
Capital Improvement Program Budget for FY 2019-20 are attached hereto as
Attachment D.
SECTION 2. In adopting the FY 2019-20 Operating Budget, the City Council
hereby re-appropriates the General Fund and all other Non-General Fund unexpended
encumbrances of the FY 2018-19 Budget. In adopting the FY 2019-20 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 2018-19 Capital Improvement Program Budget.
SECTION 3. In adopting the FY 2019-20 Budget, the City Council hereby
re-appropriates year-end remaining funds for multi-year operating grants and donations
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dedicated to programs, and funds for the encumbrances of goods and services ordered
in FY 2018-19 but not received or provided until FY 2019-20 for the City’s General Fund
and proprietary funds (enterprise and internal service).
SECTION 4. In adopting the FY 2019-20 Budget, the City Council hereby
re-appropriates strategic goal, Council discretionary, and expenditure control
unencumbered balances and unexpended encumbrances of the FY 2018-19 Budget for
the City’s General Fund.
SECTION 5. In adopting the FY 2019-20 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 2018-19 Budget reestablishing expenditure control budgeting for year
1 of the biennial budget cycle, attached hereto as Exhibit 1.
SECTION 6. The budgets of the Housing Authority and the Parking Authority have
been reviewed by the City Council and are hereby approved and adopted.
SECTION 7. A copy of the Los Angeles County Third Supervisorial District
Consolidated Oversight Board resolution approving the Successor Agency’s
Administrative Budget for FY 2019-20, as adopted in January 2019, is attached hereto as
Exhibit 2.
SECTION 8. A certified copy of the FY 2019-20 Budget and amendments shall be
filed with the Director of Finance and with the City Clerk, and certified copies of the FY
2019-20 Budget shall be reproduced and made available for use as directed by Santa
Monica City Charter section 1505.
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SECTION 9. 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 2019-21 Budget
Exhibit 2 Successor Agency Budget for Fiscal Year 2019-20
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FY 2019-21 PROPOSED BIENNIAL
BUDGET EXHIBIT 1
APPENDIX – FISCAL POLICIES
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OPERATING BUDGET 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 ten-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 each fiscal year, 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.
Beginning in FY 2019-20, the City will follow an accelerated pay down of its unfunded pension liability as of June 30, 2019.
The acceleration will be for a period of 13 years as further detailed in the Section below titled Principles for Pension Funding.
These payments will be in addition to the Annual Required Contribution.
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.
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.
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RESOLUTION NO. 47
RESOLUTION OF THE LOS ANGELES COUNTY THIRD SUPERVISORIAL DISTRICT
CONSOLIDATED OVERSIGHT BOARD APPROVING AND ADOPTING THE
ADMINISTRATIVE BUDGET FOR THE SUCCESSOR AGENCY OF THE FORMER
REDEVELOPMENT AGENCY TO THE CITY OF SANTA MONICA FOR THE PERIOD JULY 1,
2019 THROUGH JUNE 30, 2020
WHEREAS, pursuant to ABx 1 26, enacted on June 28, 2011, and as subsequently amended
by AB 1484, SB 341, and SB 107 ("Dissolution Act"), the Redevelopment Agency to the City of
Santa Monica was dissolved as of February 1, 2012, and the City of Santa Monica elected to
serve as the Successor Agency to the former Redevelopment Agency to the City of Santa
Monica (“Successor Agency”); and
WHEREAS, pursuant to Health and Safety Code Section 34179 (q), commencing on and after
July 1, 2018, the County of Los Angeles, where more than 40 oversight boards were created by
the Dissolution Act, shall have five consolidated oversight boards each encompassing the five
supervisorial districts; and
WHEREAS, the Third Supervisorial District Consolidated Oversight Board ("Third District
Consolidated Oversight Board") has jurisdiction over the Successor Agency of the Former
Redevelopment Agency to the City of Santa Monica; and
WHEREAS, the Third District Consolidated Oversight Board held a special meeting on January
22, 2019; and
WHEREAS, Section 34177(j) of the 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:
EXHIBIT 2
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(1)Estimated amounts for successor agency administrative costs for the upcoming
annual fiscal period;
(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 2, 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
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 Third District Consolidated Oversight Board has reviewed and duly considered
the Administrative Budget for the period July 2019 – June 2020, inclusive, attached as Exhibit 1,
and other written evidence presented at the meeting.
EXHIBIT 2
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Exhibit 1
Successor Agency Administrative Budget
Costs FY 2019‐20 Total
Total Staffing Costs for approx. 0.9 FTE 199,395
Supplies and Expenses Costs FY 2019‐20 Total
Custodial Services 1,163
Office Supplies and Expenses 2,593
Office Equipment 262
General Liability/Auto 506
Conferences, Meetings, Travel 756
Training 423
Mileage 61
Utilities ‐ Light/Power 1,080
Utilities ‐ Telephone 818
Utilities ‐ Water 1,152
Legal Expense 4,079
Bank Fees 2,038
Fiscal Agent Fees 13,040
Financial Consultant Services 3,889
Audit Services 8,490
Successor Agency Office Space Rent 392,110
Total Supplies and Expenses Costs 432,459
Total Successor Agency Administrative Costs *631,854
*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)
EXHIBIT 2
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Adopted and approved this 25th day of June 2019.
__________________________
G l e a m D a v i s , M a y o r
I, Denise Anderson-Warren, City Clerk of the City of Santa Monica, do hereby
certify that Resolution No. 11181 (CCS) was duly adopted at a meeting of the Santa
Monica City Council held on the 25th day of June 2019, by the following vote:
AYES: Councilmembers Himmelrich, Jara, Morena, McKeown, Winterer
Mayor Davis, Mayor Pro Tem O’Day
NOES: None
ABSENT: None
A T T E S T :
_____________________________________
D e n i s e A n d e r s o n - W a r r e n , C i t y C l e r k
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