HomeMy WebLinkAbout2009/11/05 Item 1CITY COUNCIL
AGENDA STATEMENT
~~~ CITY OF
CHULA VISTA
11/05/2009, Item
ITEM TITLE: QUARTERLY FINANCIAL REPORT FOR THE QUARTER
ENDED SEPTEMBER 30, 2009
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA AMENDING FISCAL YEAR 2009/2010
BUDGET IN ACCORDANCE WITH THE COUNCIL POLICY
ON FINANCIAL REPORTING AND TRANSFER
AUTHORITY AND APPROPRIATING AMOUNTS TO THE
FIRE EQUIPMENT REPLACEMENT FUND AND FROM THE
AVAILABLE FUND BALANCE IN THE POLICE GRANTS
FUND
SUBMITTED BY: DIRECTOR OF FIN CE/TREASURER~~
CITY MANAGER
REVIEWED BY: ASSISTANT CIT MANAGER
4/STHS VOTE: YES ^X NO
SUMMARY
Section SOA (f) of the City Charter requires quarterly financial reports to be filed by the Director of
Finance through the City Manager.
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.
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.
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November 5, 2009, Item
Page 2 of 5
RECOMMENDATION
1. Council accepts the report.
2. Council approve the resolution.
BOARDS/COMMISSION RECOMMENDATION
Not Applicable
DISCUSSION
Attached for your consideration is the financial report for the first quarter of fiscal year 2009/10. The
detailed financial report for the quarter ending September 30, 2009 (Attachment 1) discusses the
financial outlook for the City's General Fund for the remainder of fiscal year 2009/10.
The City's General Fund ended the fiscal year 2008/09 with an available balance of $9.3 million or 6.7
percent of the fiscal year 2009/10 operating budget. For fiscal year 2009/1Q, the worst recession since
World War II appears to have bottomed-out but the effects are still being experienced in the City as
housing prices remain at depressed levels and unemployment continues to cause reduced consumer
spending in the City.
The preliminary outlook for General Fund revenues is that downward adjustments of $3.4 million will
have to be made to several revenue sources. Projected expenditure savings of $1.2 million partially
offset the revenue shortfall leaving a deficit of $2.2 million. To mitigate this deficit, we anticipate a
loan repayment from the Redevelopment Agency to the General Fund of $1.4 million. In addition, the
City Manager has authorized an immediate hiring/promotional freeze and administrative freeze on all
non-essential services that are anticipated to result in expenditure savings of $0.8 million. These
actions will avoid impacts to reserves and continue to maintain a balanced budget for the current fiscal
year per the first quarter analysis.
Fiscal Year 2009/10 Budeet Transfer and Appropriation Requests
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. 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.
All recommended General Fund transfers can be done using existing appropriations. For fiscal year
2009/10, budget transfers and appropriations are requested for the Police and Fire departments.
• K-9 Program -The Police Department is requesting to amend the budget for the K-9 Program to
freeze one police officer position and restore overtime and supplies & services related to the
program. This budget amendment reduces $20,547 in personnel services and increases $20,547 in
supplies and services, resulting in no net fiscal impact to the General Fund.
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November 5, 2009, Item
Page 3 of 5
• Fire Department -Due to the timing of the side letter with IAFF regarding alternative cost
saving measures for the Fire Department, the fiscal year 2010 Council Adopted budget reflects the
brownout of the USAR vehicle which was incorporated into the Fire Department's budget as a
reduction to the department's regular overtime budget. The Fire Department is requesting to
amend the budget to incorporate the budget changes necessary to reflect the side letter with IAFF.
These changes include various transfers within the Fire Department's Personnel Services category
to reflect a 1% salary reduction for IAFF members, freezing a Deputy Fire Chief, transferring
savings from compensatory time in lieu, eliminating the payment of uniform allowance, and
increasing anticipated salary savings, the sum of these reductions is $793,000 which will be
transferred to the Fire Department's overtime budget.
Additional changes necessary to reflect the side letter with IAFF include:
o Transferring $172,216 from the Transfer Out expense category to the Fire Department's
Personnel Services category, this transfer reflects the elimination of the debt service
payment for the defibrillators from the Fire Department's budget.
o Transferring $35,000 from the Human Resources Department's Personnel Services
Category to the Fire Department's Personnel Services Category to reflect the elimination of
the IAFF professional enrichment budget for the current fiscal year.
In total, $1.0 million will be restored to the Fire Department's constant minimum staffing overtime
budget offset by committed savings in other expenditure categories.
Finally, the proposed budget changes include the transfer of an Administrative Services Manager
position from the Fire Department to the Finance Department. This change is being made in an
effort to improve operational efficiencies and create an opportunity to share resources among the
Public Safety departments. The Police Department's Administrative Services Manager, along with
their budget analyst, will provide management and budget support to the Fire Department as well
as the Police Department. The transfer of the Fire Department's Administrative Services Manager
position to the Finance Department will help address some workload issues that have been created
as a result of recent vacancies. In total, $87,452 will be transferred from the Fire Department's
personnel services budget to the Finance Department's personnel services budget.
• Police Grants -The Police Department is requesting to aypropriate additional funds to reflect
grant savings from fiscal year 2008/2009 that were not carried over to the current fiscal year. This
budget amendment increases $157,744 in personnel services, increases $12,900 in supplies and
services, and decreases $21,764 in the capital category of the Police Grant Fund (fund 252). Grant
funding in the amount of $148,880 will completely offset these appropriations, resulting in no net
fiscal impact.
Fire Equipment Replacement Fund -The Fire Department is requesting the establishment of a
Fire Equipment Replacement Fund. This fund will account for the revenue received from AMR for
the lease of the defibrillators. Earlier this year Council approved an amendment to the ambulance
service agreement with AMR to incorporate the cost of the defibrillators in the ambulance fees.
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November 5, 2009, Item
Page 4 of 5
The appropriation of $172,216 to the newly established fund will be revenue offset resulting in no
net impact to the Fire Equipment Replacement Fund.
DECISION MAKER CONFLICT
Staff has reviewed the decision contemplated by accepting this report and has determined that it is not
site specific and consequently the 500 foot rule found in the California Code of Regulations section
18704.2(a)(I) is not applicable.
FISCAL IMPACT
The preliminary outlook for General Fund revenues is that downward adjustments of $3.4 million will
have to be made to several revenue sources.
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Revenues . • _ ~_ ~r~,~+ 5 ,~.~Yp2009/;10FP ~
~ Butl eta Pao ected ? ~.r
"I`Delta'~'
Property Tax 27,199 26,613 (586)
Sales Tax 18,707 18,408 (299)
Sales Tax In Lieu (1/4%) 6,838 6,149 (689)
Motor Vehicle License Fee 18,287 17,716 (571)
Franchise Fees 10,033 8,446 (1,587)
Utility Users Tax 8,169 8,669 500
Transient Occupancy Tax 2,602 2,352 (250)
Business License Tax 1,190 1,190 0
Real Property Transfer Tax 841 860 19
Licenses and Permits 880 888 8
Fine, Forfeitures & Penalties 2,380 2,243 (137)
Use of Money and Property 1,780 1,802 22
Other Agency Revenue 2,741 2,754 13
Charges for Services 7,546 7,538 (8)
Other Revenues 11,438 11,651 213
Transfers From Other Funds 12,340 12,340 0
Total $132,971 $129,619 $ 3,352
Projected expenditure savings of $1.2 million partially offsets the revenue shortfall leaving a deficit of
$2.2 million. To mitigate this deficit, we anticipate a loan repayment from the Redevelopment Agency
to the General Fund of $1.4 million. In addition, the City Manager has authorized an immediate
hiring/promotional freeze and administrative freeze on all non-essential services that are anticipated to
result in expenditure savings of $0.8 million. These actions will avoid impacts to reserves and
continue to maintain a balanced budget for the current fiscal year per the first quarter analysis.
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Reserves - July 1, 2009 $ 9.3 $ 9.3
Projected Revenues & Transfers In 133.0 129.7
Expenditures & Transfers Out (133.0) (131.9)
Midyear A propriation - Contractin Initiative 0.1
Projected Deficit $ 0.1 $ 2.2
Mitigating Actions
RDA Loan Repayment 1.4
Hiring/Promotional/Non Essential Spending Freeze 0.8
Subtotal 2.2
Revised Projected Deficit 0.0
Projected Fund Balance -June 30, 2010 $ 9.2 $ 9.3
Percents a of Operatin Bud et - 6.6% 6.7%
November 5, 2009, ItemJ_
Page 5 of 5
The tables below outline the fiscal impact by fund and category for the budgetary transfer requests and
appropriation requests.
BUDGETARY TRANSFER RE UESTS
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Expense
Personnel Costs $ (35,000) $ 87,452 $ (20,547) $ 119,764 $ 151,669
Supplies and Services $ - $ - $ 20,547 $ - $ 20,547
Capital $ - $ - $ - $ - $ _
Trausfers Out $ - $ - $ - $ (172,216 $ 172,216
Net Fiscal Im act $ (35,000) $ 87,452 $ - $ (52,452) $ -
APPROPRIATION REQUESTS
Othery>~ond_ s`w~~"~~{,,y4 ~ohceGran~ h~rnd- Fore Ei(arQ ReQlac„gment"
Revenue
Revenue from Other A encies $ 148,880 $ L72,216
Total Revenue Adjustments $ 148,880 $ 172,216
Expense
Personnel Costs $ 157,744 $ -
Supplies and Services $ 12,900 $ -
Capital $ (21,764) $ -
Transfers Out $ - $ 172,216
Total Ex ense Adjustments $ 148,880 $ 172,216
Net Fiscal Im act $ - $ -
ATTACHMENTS
Attachment 1 -Quarterly Financial Report
Prepared by: Phillip Davis, Assistant Director of Finance, Finance Department
1-5
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CHUL4 VISTA
OVERVIEW
This financial report summarizes the City's General
Fund financial position for the fiscal year for July 1,
2009 through September 30, 2009. The purpose of his
report is to provide the Ciry Council, Management and
the Citizens of Chula Vista an update on the City's
fiscal status based on the most recent financial
information available.
ECONOMIC UPDATE
National News
In its third quarterly report of 2009, the UCLA Anderson
Forecast concludes that the worst recession in seven
decades likely ended in the current quarter, but then
states that the negative impact of the downturn will last
well into the next decade. Simply put, the Forecast
believes that the roots of the recession originated in
consumer over-indebtedness and that consumer
spending, necessary fora robust recovery, will be
tempered both by the unwillingness of fnancial
institutions to lend and by consumers unwillingness to
borrow.
In California, the UCLA Anderson Forecast tentatively
asserts that the state will join the nation in its economic
recovery, but the contraction of state and local
government will dampen the impact of the national
resurgence for at least the near future. On an annual
basis, employment is forecast to contract -3.7% in
2009 and will barely grow at a 0.2% rate in 2010. The
unemployment rate will grow to a high of 12.2% for 4th
quarter 2009 and will average 11.6% for the year.
Though the state economy will be growing by 2011, it
will not produce enough jobs to get the unemployment
rate below double digits until the end of that year.
The University of San Diego's Index of Leading
Economic Indicators far San Diego County rose 0.6
percent in August. As has been the case in the
previous four months, a sharp gain in local consumer
confidence led the move to the upside. Also advancing
Quarterly Financial Report -General Fund
First Quarter Ending September 30, 2009
November 5, 2009
solidly were local stock prices and the outlook for the
national economy. These gains outpaced big negative
moves in building permits and initial claims for
unemployment insurance and a smaller drop in help
wanted advertising to push the USD Index to its fifth
straight increase.
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Jan-04 Jan-O5 Jan-O6 Jan-07 Jan-O6 Jan-09
San Diego Index of Leading Economic Indicators
August's gain was the biggest monthly gain in the USD
Index since March 2004. It reinforces the view projected
since the Index first turned positive that the local
economy is approaching a bottom. The breadth of the
advance remains mixed, with the number of rising
components matched by the number of decliners. The
August numbers are encouraging in that the
components that were negative were down by smaller
amounts than have recently been the case. A key in the
coming months will be whether the local economy can
stabilize as the summer ends and we head into the
slower fall and winter months. Back-to-school sales
have already been classified as weak, and not much
improvement is expected in the holiday buying season.
As was indicated in previous reports, it looks like a
bottom is more likely in the first half of 2010 than in the
latter part of 2009
GENERAL FUND SUMMARY
City Council Policy No 220-03 recommends the City
maintain at least an 8 percent reserve level. As of June
1-6
QUARTERLY FINANCIAL REPORT
FIRST QUARTER OF 2009-10
Page 2 of 4
30, 2009, the General Fund reserve level was at 6.7
percent (unaudited).
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Reserves - July 1, 2009 $ 9.3 $ 9.3
Projected Revenues 8 Transfers In 133.0 129.7
ExpentliluresBTransfers Out (133.0) (131.9)
Mid earA ro nation-Contractin Initiative 0.1
Projected DeOCIt $ 0.1 $ 2.2
Mitigating Actions
RDA Loan Repayment 1.4
Hiring/Promotional/Non Essential Spending Freeze 0.8
Subtotal 2.2
Revised Projected Deficit 0.0
Protected FUnd Balance-June 30, 2010 $ 9.2 $ 9.3
Percents eof Operatln Bud et 6.6% 6.7%
For fiscal year 2009/10, although the economy appears
to have bottomed out the effects are still being
experienced in the City as housing prices remain at
depressed levels and unemployment continues to
cause reduced consumer spending in the City. As a
result, a General Fund deficit of $2.2 million is currently
projected.
Projected expenditure savings of $1.2 million partially
offset the revenue shortfall leaving a deficit of $2.2
million. To mitigate this deficit, we anticipate a loan
repayment from the Redevelopment Agency to the
General Fund of $1.4 million. In addition, the City
Manager has authorized an immediate
hiring/promotional freeze and administrative freeze on
all non-essential services that are anticipated to result
in expenditure savings of $0.8 million. These actions
will avoid impacts to reserves and continue to maintain
a balanced budget for the current fiscal year per the
first quarter analysis.
Revenues
Reilen ~ i ~, ~'x - Bi~'d eta P~'o'ectetl #s, Delta;„
Property Tax 27,199 26,613 (586)
Sales Tax 18,707 18,408 (299)
Sales Tax In Lieu (1/4%) 6,838 6,149 (689)
Motor Vehicle License Fee 18,287 17,716 (571)
Franchise Fees 10,033 8,446 (1,587)
Utility Users Tax 8,169 8,669 500
Transient Occupancy Tax 2,602 2,352 (250)
Business License Tax 1,190 1,190 0
Real Property Transfer Tax 841 860 19
Licenses and Permits 880 888 8
Fine, Forfeitures & Penalties 2,380 2,243 (137)
Use of Money and Property 1,780 1,802 22
Other Agency Revenue 2,741 2,754 13
Charges for Services 7,546 7,538 (8)
Other Revenues 11,438 11,651 213
Transfers From Other Funds 12,340 12,340 0
Total $ 132,971 $129,619 $ 3,352
Reflected in the chart are discretionary and
departmental programmatic revenue adjustments that
total $3.4 million. These adjustments are necessary due
to recent information received from the County
Assessors office, the City's sales tax consultant and
information regarding the City's franchise fees and utility
users tax.
Property Taxes. The City of Chula Vista receives
property tax revenue based upon a 1.0 percent levy on
the assessed value of all real property.
Property tax is the City's largest
revenue source, representing
20.4 percent of General Fund
budgeted revenue in fiscal year
2009/10.
a~~gs,,.~,~,.e~,_.., The fiscal year 2009/10 Property
Tax budget anticipated an 8.4 percent decrease.
However since adoption of the budget the County
Assessor has advised the City that there has been a
further decline of 2 percent in assessed values from the
decline initially reported to the City.
The current projections for Property Tax are being
adjusted downwards by $600,000 to reflect the final
Assessors value of an overall -10.4 percent decline in
the City's assessed value. The chart below compares
the City's assessed values with the assessed values of
all San Diego County.
25%
20%
15%
10%
5%
0%
-5
-10
-15
-Chula Vista -County Overall
Sales Tax. Sales tax is the City's second largest
revenue source, representing 19.2 percent of fiscal year
2009/10 budgeted revenues.
City staff met with the City's sales tax consultant,
MuniServices, to review the most recent sales tax
~-~
QUARTERLY FINANCIAL REPORT
FIRST QUARTER OF 2009-10
Page 3 of 4
revenues. They report that the change in sales tax
receipts between second quarter 2009 and the second
quarter 2008 decreased by 20.8 percent Statewide, by
19.9 percent in Southern California and 16.4 percent in
Chula Vista.
As seen in the revenue table, Sales Tax In-Lieu
accounts for much of the adjustment in projected Sales
Tax. The Sales Tax In Lieu represents the
reimbursement by the State for 0.25 percent of the
City's sales tax diverted by the "triple flip' and is
actually reimbursed with property tax monies in lieu of
sales tax. This account grows at the sales tax rate and
not the property tax rate. The City has not been
formally notified of the adjustment amount but we have
learned that revenue from this source is likely to be
$0.7 million below budget. The State has indicated
that the City was "over advanced" for last year and that
an adjustment by the State would be forthcoming.
The City's per capita sales tax rate is shown in the
chart below.
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8150
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Del NOr CatlzbaE National BCapn Bcontlitlo La Meza San Gago Chula
$264 $205 City $195 81]0 $148 $158 $131 Vista 898
^ General Retail ^ Footl Protluds ^ Transportation
^Consiruction ^BUSiness bBusiness ®htiscellaneous
Motor Vehicle License Fee (VLF). With the State
Budget Act of 2004, the allocation of VLF revenues to
cities and counties was substantially changed. For FY
2005/06 and beyond, the majority of VLF revenues for
each city will grow essentially in proportion to the
growth in the change in gross assessed valuation. Due
to the new formula that relies on assessed valuations,
the continued decline in automotive sales and the
County Assessors additional adjustment of -2 percent
in assessed values this revenue source has been
adjusted downward by approximately $0.6 million.
Franchise Fees. Franchise fee revenues are
generated from public utility sources such as San
Diego Gas & Electric (2% on gas and 1.25% on
electricity), trash collection franchises (9.05% fee), and
cable franchises (5% fee) conducting business within
City limits. SDG&E is the single largest generator of
franchise fees and accounts for approximately 35% of
the total franchise revenues. SDG&E collects the
franchise fee from Chula Vista customers and through a
municipal surcharge imposed on the South Bay Power
Plant based on their usage of natural gas. Due to the
volatility of the price of natural gas and fluctuation in
usage, this component is difficult to project. Trash
franchise fees and cable fees are more predictable due
to the fixed rates charged and the monthly and quarterly
receipt of the revenues respectively. Revenue growth is
projected based on population and inflation factors with
the exception of the South Bay Power Plant, which is
impacted by the cost of natural gas and the actual usage
of the plant itself.
The Franchise Fee revenue projection is being revised
downward by $1.6 million based on two factors. Based
on the most recent information on the price of natural
gas, the price per unit has dropped by 51.2 percent
($7.69 Sept 08 vs. $3.75 Sept 09). In addition, the
Public Utilities Commission recently ruled that only two
of the power plant's four generators now have Reliability
Must Run status which is also impacting projected
revenues for the current fiscal year and on an on-going
basis.
$12.0
$10.0
$fi.0
$fi.0
$4.0
$2.0
$(z.q
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
^ Trash/Cable ~ Energy -Consumer ®Energy -Power Plant
Transient Occupancy Tax. It is too early in the fiscal
year to predict how TOT will perform for fiscal year
2009-10. However, the two-month's receipts recorded
so far this year show a decline of 21 percent from the
prior year. The same two-month period in fscal year
2008-09 may be quite different than this year in that
those months were just before the financial market
meltdown and travelers may not have changed their
travel plans at that point. The preliminary projection is
that TOT will fall short of budget by $250,000.
1-8
QUARTERLY FINANCIAL REPORT
FIRST QUARTER OF 2009-10
Page 4 of 4
Utility Users Tax (UUT). Revenues are budgeted at
$8.2 million for fiscal year 2009/10. This revenue is
projected to come in $0.5 million higher as a result of
new UUT vendor collections.
Expenditures
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De'artment. '~ xv. :~ °-Amended'"~!.<
' •Bud ek""-' rist Qtr, e, ~.xX ag+; t>
b ~ACtua1 ;3V'.d'Ex ridedr.
City Council $ 1,218,463 $ 196,620 16.1
Boards/Commissions 14,736 $ 1,880 12.8%
City Clerk 1,165,554 $ 172,685 14.8%
City Attorney 1,971,380 $ 321,402 16.3%
Administration 1,727,479 $ 336,709 19.5%
Information Technology 3,145,549 $ 863,756 2Z5%
Human Resources 3,856,276 $ 1,354,706 35.1
Finance 3,164,019 $ 613,987 19.4%
Non-Departmental 8,676,225 $ 4,760,274 54.9%
General Services 2,403,505 $ 389,400 16.2%
Planning&Building 4,107,525 $ 788,474 19.2%
Police 44,039,025 $ 9,116,401 20.7%
Fire 21,227,800 $ 4,652,430 21.9%
Public Works 26,395,596 $ 5,194,416 19.7%
Recreation 4,835,080 $ 1,154,521 23.9%
Libra 5,136312 $ 1,162,005 22.6%
Total $ 133,086,524 $ 31,079,666 23.4%
The General Fund's Amended Budget reflects the
Council adopted budget of $133.0 million and all mid-
year appropriations ($120,500) approved by City
Council. Actual expenditures to date are reflected in
the chart above. It indicates that Departments have
expended 23.4 percent of the General Fund budget
after 25 percent of the fiscal year has elapsed.
~
De artment. ~. Amended
w:x Bud et.N' ,~ Projected e °~' °'=t
fdr i'e~r End. :Delta`='
Ciry Council $ 1,218,463 $ 1,157,702 $ 60,761
BoardslCommissions 14,736 14,736 -
City Clerk 1,165,554 1,160,310 5,244
City Attorney 1,971,380 1,886,048 85,332
Administration 1,727,479 1,681,156 46,323
Information Technology 3,145,549 3,082,281 63,268
Human Resources 3,858,276 3,758,929 99,347
Finance 3,164,019 2,978,503 185,516
Non-Departmental 8,676,225 8,309,064 367,161
Animal Care Facility 2,403,505 2,236,982 166,523
Planning & Building 4,107,525 4,107,525 -
Police 44,039,025 43,967,616 71,409
Fire 21,227,800 21,882,562 (654,762)
Public Works 26,395,596 25,767,831 627,765
Recreation 4,617,080 4,567,810 49,270
`Nature Center 218,000 519,630 (301,630)
Libra 5,136,312 4,780,287 356,025
Total $ 133,086,524 $ 131,858,971 $ 1,227,553
The table shows the General Fund departments with
their amended budgets and the projected expenditures
for the fiscal year. The projected expenditures
anticipate savings of approximately $1.2 million.
Mid-Year Budget Amendments
Mid-year appropriations during the quarter totaled
$120,500 with offsetting revenues of $6,500 for a net
negative impact of $114,000. The appropriations were
for a San Diego Police Foundation Grant for the
purchase of a narcotics detection canine. The other two
appropriations are related to an initiative for "Fair and
Open Competition in Contracting Ordinance' to be
placed on the June 8, 2010 General Municipal Election
ballot.
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SD Polica Fountlation Grant $6,500 $6,500 $0
Contracting Initiative Ballot Measure $0 $93,000 ($93,000)
Coun of SD Re istrar of Voters $0 $21,000 $21,000
Total of lst Quarter Bud et Amendments $8500 $180,500 $114000
Budget Transfers
There were three administrative budget transfers during
the first quarter that totaled $9,196.
-..Oeamnent ,L*-„'-Fmm ~ aTO. '.~-a,°' "::-04scd on Amount
Flre Dept Personnel 585 AdjustmeMS to SBS BUtlget 7,314
Ciry Cwncil Ulilities 585 AtljustmeMS to 58S BUtlget 15d
C Council Personnel 585 Communication Services 1 720
.$+'.- ~~ Tohl ofiat Quarter 6utl et Trans(en '--39196
1-9
RESOLUTION NO. 2009-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA AMENDING FISCAL YEAR 2009/2010
BUDGET 1N ACCORDANCE WITH THE COUNCIL POLICY
ON FINANCIAL REPORTING AND TRANSFER AUTHORITY
AND APPROPRIATING AMOUNTS TO THE FIRE
EQUIPMENT REPLACEMENT FUND AND FROM THE
AVAILABLE FUND BALANCE IN THE POLICE GRANTS
FUND
WHEREAS, the Council Policy established in January 1996 allows for budget transfers
to be completed; and
WHEREAS, the Police Department is requesting to amend the budget for the K-9
Program by freezing one police officer position and restoring overtime and supplies & services
related to the program; and
WHEREAS, this budget transfer reduces personnel services by $20,547 and increases
supplies and services by $20,547, resulting in no net fiscal impact to the General Fund; and
WHEREAS, the Fire Department is requesting to amend the budget to incorporate the
budget changes necessary to reflect the side letter with IAFF; and
WHEREAS, the budget transfers amend the Fire Department budget to include various
transfers within the Fire Department's Personnel Services category to reflect a 1% salary
reduction for IAFF members, freezing a Deputy Fire Chief, transferring savings from
compensatory time in lieu, eliminating the payment of uniform allowance, and increasing
anticipated salary savings; and
WHEREAS, the additional changes necessary to reflect the side letter with IAFF include:
Transferring $172,216 from the Transfer Out expense category to the Fire Department's
Personnel Services category reelecting the elimination of the debt service payment for the
defibrillators from the Fire Department's budget and transferring $35,000 from the Human
Resources Department's Personnel Services Category to the Fire Department's Persomtel
Services Category to reflect the elimination of the IAFF professional enrichment budget for the
current fiscal year, and
WHEREAS, total Fire Department transfers equal $1,000,216 and will be restored to the
Fire Department's constant minimum staffing overtime budget offset by committed savings in
other expenditure categories; and
WHEREAS, the proposed budget changes include the transfer of an Administrative
Services Manager position from the Fire Department to the Finance Department; and
WHEREAS, in total, $87,452 will be transferred from the Fire Department's personnel
services budget to the Finance Department's personnel services budget, and
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WHEREAS, the Police Department is requesting to appropriate additional funds to reflect
grant savings from fiscal year 2008/2009 that were not carried over to the current fiscal year, and
WHEREAS, this budget amendment increases $157,744 in personnel services, increases
$12,900 in supplies and services, and decreases $21,764 in the capital category of the Police
Grant Fund (fund 252), and
WHEREAS, grant funding in the amount of $148,880 will completely offset these
appropriations, resulting in no net fiscal impact to the Police Grant Fund, and
WHEREAS, the Fire Department is requesting the establishment of a Fire Equipment
Replacement Fund, and
WHEREAS, this fund will account for the revenue received from AMR for the lease of
the defibrillators, and
WHEREAS, earlier this year Council approved an amendment to the ambulance service
agreement with AMR to incorporate the cost of the defibrillators in the ambulance fees, and
WHEREAS, the appropriation of $172,216 to the newly established fund will be revenue
offset resulting in no net impact to the Fire Equipment Replacement Fund.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula
Vista amends the City's fiscal year 2009-2010 budget in accordance with the Council Policy on
Financial Reporting and Transfer Authority and appropriates $148,880 from the available fund
balance of the Police Grant Fund and appropriates $172,216 to the newly established Fire
Equipment Replacement Fund.
Presented by Approved as to form by
Maria Kachadoorian
Director of Finance/Treasurer 1(/a'
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