R112621
City Council Meeting: June 23, 2020 Santa Monica, California
RESOLUTION NO. 11262 (CCS)
(CITY COUNCIL SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA
ADOPTING ITS BUDGET FOR THE FISCAL YEAR 2020-21 AND APPROVING ITS
CAPITAL IMPROVEMENT PROGRAM BUDGET FOR FISCAL YEAR 2021-22
WHEREAS, the proposed Operating Budget for the Fiscal Year 2020-21, and the
proposed Biennial Capital Improvement Program Budget for Fiscal Years 2020-21 and
2021-22 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, 2020; 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; and
WHEREAS, on May 5, 2020, in light of the ongoing COVID-19 pandemic, and in
accordance with the City’s fiscal policies, the City Council authorized suspending the
FY 2020-21 and FY 2021-22 pension fund paydown payments and extending the pension
fund paydown from a 13-year to a 15-year schedule.
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NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
RESOLVES AS FOLLOWS:
SECTION 1. The Fiscal Year (FY) 2020-21 Operating Budget, as submitted by
the City Manager and revised by the City Council, included as the document entitled “City
of Santa Monica FY 2020-21 Proposed Budget” (the “FY 2020-21 Budget”), as amended
by Attachment D, is hereby adopted. The FY 2020-21 Capital Improvement Program
Budget, as submitted by the City Manager and revised by the City Council, included in
the document entitled “FY 2020-22 Capital Improvement Program Proposed Biennial
Budget” (the “FY 2020-22 CIP Budget”), as amended by Attachment D, is hereby
adopted. The FY 2021-22 Capital Improvement Program Budget, as submitted by the City
Manager and revised by the City Council, included in the FY 2020-22 CIP Budget, as
amended by Attachment D, is hereby approved.
In adopting the FY 2020-21 Operating Budget and FY 2020-21 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 2020-21, and proposed Biennial Capital
Improvement Program Budget for FY 2020-21 and FY 2021-22 are attached hereto as
Attachment D.
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SECTION 2. In adopting the FY 2020-21 Operating Budget, the City Council
hereby re-appropriates the General Fund and all other Non-General Fund unexpended
encumbrances of the FY 2019-20 Budget. In adopting the FY 2020-21 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 2019-20 Capital Improvement Program Budget.
SECTION 3. In adopting the FY 2020-21 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 2019-20 but not received or provided until FY 2020-21 for the City’s General Fund
and proprietary funds (enterprise and internal service).
SECTION 4. In adopting the FY 2020-21 Budget, the City Council hereby
re-appropriates Council discretionary unencumbered balances and unexpended
encumbrances of the FY 2019-20 Budget for the City’s General Fund.
SECTION 5. In adopting the FY 2020-21 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 2019-21 Budget suspending expenditure control budgeting through
FY 2022-23, limiting the time period for financial forecasts to five years, and suspending
payments to the City’s Other Post Employment Benefit Trust (OPEB) for two years,
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.
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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 2020-21, as adopted in January 2020, is attached hereto as
Exhibit 2.
SECTION 8. A certified copy of the FY 2020-21 Budget and amendments shall be
filed with the Director of Finance and with the City Clerk, and certified copies of the
FY 2020-21 Budget shall be reproduced and made available for use as directed by Santa
Monica City Charter section 1505.
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:
_______________________
GEORGE S. CARDONA
Interim City Attorney
Exhibit 1 Revision to Operating Budget Policies for FY 2020-21 Budget
Exhibit 2 Successor Agency Budget for Fiscal Year 2020-21
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FY 2020-21 PROPOSED 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 tenfive-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 suspend expenditure control budgeting through FY 2022-23. Expenditure control budgeting is the
practice of At the end of each fiscal year, the City will reappropriate reappropriating 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 would 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 suspend prefunding other post employment benefit obligations (OPEB) each yearfor two years, 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. 49
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,
2020 THROUGH JUNE 30, 2021
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
14, 2020; 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 2020 – June 2021, inclusive, attached as Exhibit 1,
and other written evidence presented at the meeting.
EXHIBIT 2
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EXHIBIT 2
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EXHIBIT 2
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Exhibit 1
Successor Agency Administrative Budget
Costs FY 2020‐21 Total
Total Staffing Costs for approx. 0.9 FTE 208,046
Supplies and Expenses Costs FY 2020‐21 Total
Custodial Services 1,114
Office Supplies and Expenses 2,363
Office Equipment 245
General Liability/Auto 864
Conferences, Meetings, Travel 707
Training 395
Mileage 57
Utilities ‐ Light/Power 1,010
Utilities ‐ Telephone 765
Utilities ‐ Water 1,077
Legal Expense 3,815
Bank Fees 2,038
Fiscal Agent Fees 13,040
Financial Consultant Services 2,534
Audit Services 8,490
Successor Agency Office Space Rent 411,387
Total Supplies and Expenses Costs 449,902
Total Successor Agency Administrative Costs *657,948
* 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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ATTACHMENT D
Fund/Department Description
FY 2020-21
Increase /
(Decrease)
CITY MANAGER Adjustments to transfer Office of Emergency Management's function from the
Police and Fire Departments to the City Manager's Office 5,552.2$
Adjustment to establish a Racial Equity Fund 200.0$
TOTAL CITY MANAGER EXPENDITURE ADJUSTMENTS 5,752.2$
RECORDS & ELECTION
SERVICES Adjustments to align salaries and wages to bargaining unit agreements 22.7$
TOTAL RECORDS & ELECTION SERVICES EXPENDITURE ADJUSTMENTS 22.7$
COMMUNITY DEVELOPMENT Adjustments to align salaries and wages to bargaining unit agreements 162.5$
TOTAL COMMUNITY DEVELOPMENT EXPENDITURE ADJUSTMENTS 162.5$
COMMUNITY SERVICES Adjustments to align salaries and wages to bargaining unit agreements 90.3$
TOTAL COMMUNITY SERVICES EXPENDITURE ADJUSTMENTS 90.3$
FINANCE Adjustments to align salaries and wages to bargaining unit agreements 9.2$
TOTAL FINANCE EXPENDITURE ADJUSTMENTS 9.2$
FIRE Adjustments to transfer back Office of Emergency Management's Emergency
Operations Center function from the Fire Dept. to the City Manager's Office (653.5)$
Adjustments related to projected salary savings (2,797.8)$
TOTAL FIRE EXPENDITURE ADJUSTMENTS (3,451.3)$
LIBRARY Adjustments to align salaries and wages to bargaining unit agreements 19.3$
TOTAL LIBRARY EXPENDITURE ADJUSTMENTS 19.3$
POLICE Adjustments to transfer back Office of Emergency Management's Public Safety
Communications function from the Police Dept. to the City Manager's Office (4,898.7)$
TOTAL POLICE EXPENDITURE ADJUSTMENTS (4,898.7)$
PUBLIC WORKS Adjustments to align salaries and wages to bargaining unit agreements 530.8$
TOTAL PUBLIC WORKS EXPENDITURE ADJUSTMENTS 530.8$
NON-DEPARTMENTAL Adjustment to establish an Economic Recovery Fund 1,000.0$
TOTAL NON-DEPARTMENTAL EXPENDITURE ADJUSTMENTS 1,000.0$
(762.8)$
GENERAL FUND - EXPENDITURE OFFSETS
Reappropriation of anticipated FY 2019-20 savings to establish an Economic
Recovery Fund 1,000.0
Reappropriation of anticipated FY 2019-20 savings to establish a Racial Equity
Fund 200.0
1,200.0$
(1,962.8)$
REVISIONS TO FY 2020-21 PROPOSED EXPENDITURE BUDGET APPROPRIATIONS
EXPENDITURE BUDGET ADJUSTMENTS ($ IN THOUSANDS)
GENERAL FUND (01)
NET GENERAL FUND EXPENDITURE ADJUSTMENTS
TOTAL GENERAL FUND EXPENDITURE ADJUSTMENTS
TOTAL GENERAL FUND - EXPENDITURE OFFSETS
Reappropriation of savings
June 23, 2020 1 of 2
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ATTACHMENT D
Fund/Department Description
FY 2020-21
Increase /
(Decrease)
REVISIONS TO FY 2020-21 PROPOSED EXPENDITURE BUDGET APPROPRIATIONS
AIRPORT (57) FUND
Public Works Adjustments to align salaries and wages to bargaining unit agreements 146.3$
146.3$
BIG BLUE BUS (60)
Big Blue Bus Adjustments to align salaries and wages to bargaining unit agreements 9.6
9.6$
RESOURCE RECOVERY AND RECYCLING (54) FUND
Public Works Adjustments to align salaries and wages to bargaining unit agreements 151.7$
151.7$
307.6$
TOTAL GENERAL FUND EXPENDITURE ADJUSTMENTS (762.8)$
TOTAL NON-GENERAL FUND EXPENDITURE ADJUSTMENTS 307.6$
GRAND TOTAL FY 2020-21 ALL FUNDS EXPENDITURE ADJUSTMENTS (455.2)$
TOTAL GENERAL FUND - EXPENDITURE OFFSETS 1,200.0$
1,200.0$
NET GENERAL FUND EXPENDITURE ADJUSTMENTS (1,962.8)$
307.6$
(1,655.2)$
NET NON-GENERAL FUND EXPENDITURE ADJUSTMENTS
GRAND TOTAL FY 2020-21 NET ALL FUNDS EXPENDITURE ADJUSTMENTS
TOTAL NON-GENERAL FUND EXPENDITURE ADJUSTMENTS
NON-GENERAL FUNDS
TOTAL AIRPORT FUND EXPENDITURE ADJUSTMENTS
GRAND TOTAL FY 2020-21 ALL FUNDS - EXPENDITURE OFFSETS
TOTAL BIG BLUE BUS FUND EXPENDITURE ADJUSTMENTS
TOTAL RRR FUND EXPENDITURE ADJUSTMENTS
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Adopted and approved this 23rd day of June 2020.
__________________________
Kevin McKeown, Mayor
I, Denise Anderson-Warren, City Clerk of the City of Santa Monica, do hereby
certify that Resolution No. 11262 (CCS) was duly adopted at a meeting of the Santa
Monica City Council held on the 23rd day of June 2020, by the following vote:
AYES: Councilmembers Davis, Himmelrich, Jara, Morena, Winterer,
Mayor Pro Tem O’Day, Mayor McKeown
NOES: None
ABSENT: None
ATTEST:
_____________________________________
Denise Anderson-Warren, City Clerk
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