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HomeMy WebLinkAbout2011/09/20 Item 07 CITY COU NCI L AGENDA STATEMENT ~ \ 'f:. CITY OF '1;$1_ - (HULA VISTA 9/20/2011, ItemL ITEM TITLE: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING FISCAL YEAR 2011/2012 BUDGET IN ACCORDANCE WITH THE COUNCIL POLICY ON FINANCIAL REPORTING AND TRANSFER AUTHORITY AND APPROPRIATING FUNDS THEREFOR DIRECTOR OF F':J!!'JTREASURE!'/lf( CITY MANAGER ASSISTANT CIT NAGERW 4/5THS VOTE: YES [IJ NO 0 SUBMITTED BY: REVIEWED BY: SUMMARY For government entities, a budget creates a legal framework for spending during the fiscal year. After the budget is approved there are circumstances, which arise that could require adjustments to the approved budget. Council Policy 220-02 "Financial Reporting and Transfer Authority" was established in January of 1996 and allows for budget transfers to be completed. Approval of the resolutions also authorizes various appropriations that are revenue offset, resulting in no net impact. ENVIRONMENTAL REVIEW The Environmental Review Coordinator has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that filing of the quarterly financial status report is not a "Project" as defined under Section 15378 of the State CEQA Guidelines because it will not result in a physical change to the environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the actions proposed are not subject to CEQA. RECOMMENDATION That Council approves the resolution. BOARDS/COMMISSION RECOMMENDATION Not Applicable 7-1 September 20, 20 II, Item l Page 2 of 4 DISCUSSION On June 21, 20 II the City Council of the City of Chula Vista adopted a $124.6 million General Fund budget for fiscal year 2011-12. Subsequently, staff has identified various budget adjustments in the form of transfers and new appropriations that are recommended for approval. Some of the requested budget adjustments are attributed to the final approval of Community Development Block Grant (CDBG) allocations that took place after the adoption of the fiscal year 2011-12 budget and are not reflected in the current spending plan. Staff is requesting the approval of various transfers and appropriations that result in no net fiscal impact. The approval of these budget adjustments will enable the accurate reporting of the expenditures that are programmed to fund the City's operations in the current fiscal year. Changes are recommended in the General Fund, American Recovery & Reinvestment Act (ARRA) fund, Energy Conservation fund, and the Home Program fund. Fiscal Year 2011-12 Budl!et Transfer and Appropriation ReQnests For government entities, a budget creates a legal framework for spending during the fiscal year. After the budget is approved there are circumstances that arise that require adjustments to the approved budget. Council Policy 220-02 "Financial Reporting and Transfer Authority" was established in January of 1996 and allows for budget transfers to be completed. The City Manager is authorized to complete budget transfer requests within departments that are $15,000 and below. City Council approval is required for budget transfers between departments and/or for amounts greater than $15,000. In addition to the recommended transfers, staff is also recommending a number of budget appropriations that were not included in the fiscal year 2011-12 proposed budget. Budget appropriation increases are requested for the following departments: Public Works, Recreation, Human Resources. A reduction in the Administration budget is also requested. General Fund Budl!et Amendment ReQuests Public Works Increase the Public Works Department's fiscal year 2011-12 budget by $60,000 based on additional Community Development Block Grant (CDBG) funding. Funds will be used to pay hourly wages for graffiti removal in the City's private and public properties located within the City's low and moderate income areas. 7-2 September 20,2011, Item-2 Page 3 of 4 Recreation Increase the Recreation Department's fiscal year 2011-12 budget by $50,000 based on additional (CDBG) funding. Additional appropriations will be used to pay hourly wages that will be used to support and enhance operations, programming, and activities at Norman Park Center Human Resources Increase the Human Resources Department's fiscal year 2011-12 budget by $25,000 based on additional revenues to be generated from rendering services to National City. Additional funds will be appropriated to the hourly wages budget. Administration Approval of the resolution will result in a reduction of $33,598 in the transfers in revenue category budgeted in the Office of Communications for fiscal year 2011-12. These revenues will not be realized from the ARRA program due to the transfer of ARRA funds to hourly wages. The revenue reduction will be offset by salary savings in the amount of $33,598 in the personnel services expenditure category that will be generated by the delay in hiring the marketing position in the Office of Communications. Other Funds Bude:et Amendment Requests Emergency Shelter Grant Program Increase expenditures by $700 in the Emergency Shelter Grant Program fiscal year 2011-12 budget based on additional federal grant funding. Funds will be used to pay South Bay Community Services for provision of homeless services to families under the Emergency Shelter Program. Bude:et Transfer Requests Approval & Other Bude:et Adiustments The following Budget Transfers are requested for the following departments in order to align the fiscfil year 2011-12 budget with planned City operations: Administration/Economic Development A transfer of $23,000 from the personnel services category in the Economic Development Program to supplies and services budget category. These funds will be used to develop and distribute digital communication tools that will help businesses and private agencies create new Economic Development opportunities that include the creation of quality jobs that will increase the generation of additional sales taxes for the City. American Recovery & Reinvestment Act (ARRA) Staff is recommending a transfer of $18,598 from the transfers out expenditure category to the personnel services expenditures category in the fiscal year 2011-12 ARRA budget. These grant funds will be used to pay hourly wages for the Public Information Officer position. 7-3 September 20, 2011, 1tem~ . Page 4 of 4 Staff is also recommending a net reduction of $60,375 in expenditures an-d revenues to align budget resources in the City's energy programs within the ARRA Fund. These reductions include: a reduction to the personnel services expenditure category in the amount of $23,736, a reduction of $1,769 to the supplies and services category, a reduction of $39,750 to capital expenditures, a $60,375 revenue reduction in the revenue from other agencies category and a $4,880 increase in the other expenses expenditure category. These changes are needed to align expenditures with available grant funds. Energy Conservation Fund Staff is recommending a net reduction of $10,869 in expenditures and revenues to align budget resources in the City's energy programs within the Energy Conservation Fund. These reductions include: a $44,968 reduction in the other expenses category and a $10,869 revenue reduction in the revenue from other agencies category. These reductions are offset by an increase of $26,000 to the personnel services expense category and an $8,099 increase to supplies and services expenses. This reduction is needed to align expenditures with available grant funds. Re-categorization of Object Account from "Capital" to "Other Expenses" A transfer of expenditures that are currently budgeted in the object number "7303- Rehabilitation Grants" from the "capital" expenditure category to the "other expenses" expenditure category in order to reflect more accurate financial reporting. There is currently $704,000 budgeted in this object account in the fiscal year 2011-12 budget. This amount is distributed among the Home Program Fund ($500,000) and the American Recovery & Reinvestment Act (ARRA) fund ($204,000). Approval of this change will have no fiscal impact on the current year budget nor affect the use of these funds. DECISION MAKER CONFLICT Staff has reviewed the decisions contemplated by this item and has determined: (i) with respect to the appropriation of funds to the Recreation Department to be used for activities at the Norman Park Senior Center, there are no Council properties within 500 feet of that site; and (ii) the remaining actions are not site specific and, consequently, the 500-foot rule found in California Code of Regulations section I 8704.2(a) is not applicable. CURRENT YEAR FISCAL IMP ACT There is no net fiscal impact resulting from approval of the additional budget appropriations and budget transfers as recommended in this report. The recommended increased budget appropriations are offset by corresponding revenues or offsetting reductions. The recommended budget transfers are neutral. ON GOING FISCAL IMPACT There is no on going fiscal impact as a result of the above actions. Prepared by: Angelica Aguilar Budget Manager, Finance Department 7-4 RESOLUTION NO. 2011- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING FISCAL YEAR 2011/2012 BUDGET IN ACCORDANCE WITH THE COUNCIL POLICY ON FINANCIAL REPORTING AND TRANSFER AUTHORITY AND APPROPRIATING FUNDS THEREFOR WHEREAS, On June 21, 2011 the City Council of the City of Chula Vista adopted a $124.6 million General Fund budget for fiscal year 2011-12; and WHEREAS, subsequently staff has identified various budget adjustments in the form of transfers and new appropriations that are recommended for approval; and WHEREAS; these budget adjustments are necessary in order to properly reflect the expenditures that are programmed to fund the City's operations in the current fiscal year; and WHEREAS, Council Policy 220-02 "Financial Reporting and Transfer Authority", requires that the City Council approve budget transfers between departments and/or amounts greater than $15,000; and WHEREAS, approval is recommended for a budget appropriation to increase the Public Works Department fiscal year 2011-12 personnel services budget by $60,000 based on additional Community Development Block Grant (CDBG) funding to fund graffiti removal in the City's low and moderate income areas; and WHEREAS, approval is recommended for a budget appropnatton to increase the Recreation Department fiscal year 2011-12 personnel services budget by $46,000 and the supplies and services budget by $4,000 based on additional (CDBG) funding to support and enhance operations, programming, and activities at Norman Park Center; and WHEREAS, approval is recommended for a budget appropriation to increase the Human Resources Department fiscal year 2011-12 budget for personnel services by $25,000 based on offsetting revenues to be generated from rendering services to National City; and WHEREAS, approval is recommended for a budget transfer of appropriations in the amount of $23,000 from the personnel services category to the supplies and services expenditure category within the Administration Department's Economic Development Division; and WHEREAS, approval is recommended for a budget transfer of appropriations in the amount of $18,598 from the transfers out expenditure category to the personnel services expenditures category in the American Recovery & Reinvestment Act (ARRA) fund to pay hourly wages for the Public Information Officer position that is currently funded from the ARRA program; and 7-5 Resolution No. Page 2 WHEREAS, approval is recommended for a net reduction of $60,375 in expenditures and revenues to align budget resources in the City's energy programs within the ARRA Fund consisting of a reduction to the personnel services expenditure category in the amount of $23,736, a reduction of $1,769 to the supplies and services category, a reduction of $39,750 to capital expenditures, a $60,375 revenue reduction in the revenue from other agencies category and a $4,880 increase in the other expenses expenditure category; and WHEREAS, approval is recommended for a net reduction of $10,869 in expenditures and revenues to align budget resources in the City's energy programs within the Energy Conservation Fund consisting of a $44,968 reduction in the other expenses category and a $10,869 revenue reduction in the revenue from other agencies category and offset by a an increase of $26,000 to the personnel services expense category and a $8,099 increase to supplies and services expenses; and WHEREAS, approval is recommended for a reduction of $33,598 in the transfers in revenue category budgeted in the Administration Department's Office of Communications as those revenues will not be realized from the ARRA program due to the transfer of ARRA funds to hourly wages; and WHEREAS, approval is recommended for an increase in salary savings in the amount of $33,598 in the Administration Department's Office of Communications personnel services budget in order to offset revenues that will not be realized from the ARRA fund; and WHEREAS, the transfer of expenditures that are currently budgeted in the object number "7303- Rehabilitation Grants" from the "capital" expenditure category to the "other expenses" expenditure category in order to reflect accurate financial reporting and Re-categorization of account - these changes will impact the ARRA fund and the Home Program fund. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City ofChula Vista does hereby approve the following budget amendments, appropriations and transfers: $ 60.000 $ $ $ $ $ 60,000 $ 60,000 $ Recreation $ 46,000 $ 4,000 $ $ $ $ 50,000 $ 50,000 $ Human Resources $ 25,000 $ $ $ $ .- $ 25,000 $ 25,000 $ Administration $ (56,598) $ 23,000 $ $ $ $ (33,598) $ (33,598) $ Other Funds: ARRA $ (5,138) $ (1,769) $ (18,598) $(243,750) $ 208,880 $ (60,375) $ (60,375) $ Energy Conservation $ 26,000 $ 8,099 $ $ (44,968) $ (10,869) $ (10,869) $ Home Program $ $ $ $ (500,000) $ 500,000 $ $ $ Total changes $ 95,264 $ 33,330 $ (18,598) $ (743,750) $ 663,912 $ 30,158 $ 30,158 $ 7-6 Resolution No. Page 3 Presented by Maria Kachadoorian . Director of Finance/Treasurer Appm"od ~ '" f~;m bt~ 7-7