R95 (HAS)1
City Council Meeting: June 23, 2020 Santa Monica, California
RESOLUTION NO. 95 (HAS)
(HOUSING AUTHORITY SERIES)
A RESOLUTION OF THE HOUSING AUTHORITY 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 Housing Authority of the City of Santa Monica (the
“Housing Authority”) not less than thirty-five (35) days prior to July 1, 2020; 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; and
WHEREAS, on May 5, 2020, in light of the ongoing COVID-19 pandemic, and in
accordance with the City’s fiscal policies, the Housing Authority 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.
DocuSign Envelope ID: 3D858F98-33F9-49A0-B8C7-D029C60DDDD9
2
NOW THEREFORE, THE HOUSING AUTHORITY OF THE CITY OF SANTA
MONICA RESOLVES AS FOLLOWS:
SECTION 1. The Fiscal Year (FY) 2020-21 Operating Budget, as submitted by
the Executive Director and revised by the Housing Authority, 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 Executive Director and revised by the Housing
Authority, 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 Budget, as
submitted by the Executive Director and revised by the Housing Authority, 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 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 the 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 FY 2020-21, and proposed Biennial Capital
Improvement Program Budget for FY 2020-22 are attached hereto as Attachment D.
DocuSign Envelope ID: 3D858F98-33F9-49A0-B8C7-D029C60DDDD9
3
SECTION 2. A certified copy of the FY 2020-21 Budget and amendments shall be
filed with the Director of Finance and with the Secretary, 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 3. In adopting the FY 2020-21 Budget, the Housing Authority
re-appropriates the General Fund and all other Non-General Fund unexpended
encumbrances of the FY 2019-20 Budget.
SECTION 4. In adopting the FY 2020-21 Budget, the Housing Authority 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 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:
_______________________
GEORGE S. CARDONA
Acting General Counsel to Housing Authority
Exhibit 1 Revision to Operating Budget Policies for FY 2020-21 Budget
DocuSign Envelope ID: 3D858F98-33F9-49A0-B8C7-D029C60DDDD9
FY 2020-21 PROPOSED BUDGET EXHIBIT 1 APPENDIX – FISCAL POLICIES
E1 - 1
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.
DocuSign Envelope ID: 3D858F98-33F9-49A0-B8C7-D029C60DDDD9
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
DocuSign Envelope ID: 3D858F98-33F9-49A0-B8C7-D029C60DDDD9
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
June 23, 2020 2 of 2
DocuSign Envelope ID: 3D858F98-33F9-49A0-B8C7-D029C60DDDD9
Adopted and approved this 23rd day of June, 2020.
__________________________
Kevin McKeown, Chair
I, Denise Anderson-Warren, City Clerk of the City of Santa Monica, do hereby
certify that Resolution No. 95 (HAS) was duly adopted at a joint meeting of the Santa
Monica City Council and the Housing Authority Series held on the 23rd day of June,
2020, by the following vote:
AYES: Agency members: Davis, Himmelrich, Jara, Morena, Winterer
Mayor/Chair McKeown, Mayor/Chair Pro Tem O’Day
NOES: Agency members: None
ABSENT: Agency member: None
ATTEST:
_____________________________________
Denise Anderson-Warren, Agency Secretary
DocuSign Envelope ID: 3D858F98-33F9-49A0-B8C7-D029C60DDDD9