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HomeMy WebLinkAboutReso 2010-117RESOLUTION NO. 2010-117 (HA Resolution No. 2010-043) RESOLUTION OF THE CITY COUNCIL AND HOUSING AUTHORITY 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 FUNDS THEREFOR WHEREAS, the City's General Fund ended the fiscal yeaz 2008/2009 with an available balance of $9.3 million or 6.7 percent of the fiscal year 2009/2010 operating budget; and WHEREAS, for fiscal year 2009/2010, the worst economic downturn since the Great Depression appeazs to have bottomed-out but the effects aze still being experienced in the City as housing prices appear to have stabilized however high unemployment continues to cause reduced consumer spending in the City; and WHEREAS, all General Fund depazhnents with the exception of Fire will come in at or below budget; and WHEREAS, the Fire Department is currently projected to be over budget by approximately $800,000; and WHEREAS, the Fire Department overage will be covered by a combination of better than anticipated revenues and additional expenditure savings identified in other General Fund Departments; and WHEREAS, for government entities, a budget creates a legal framework for spending during the fiscal yeaz; and WHEREAS, after the budget is approved there are circumstances which arise that could require adjustments to the approved budget; and WHEREAS, Council Policy No. 220-02 "Financial Reporting and Transfer Authority" was established in January of 1996 and allows for budget transfers to be completed; and WHEREAS, the City Manager is authorized to complete budget transfer requests within departments that are $15,000 and below; and WHEREAS, the City Council approval is required for budget transfers between departments and/or for amounts greater than $15,000; and WHEREAS, all recommended General Fund transfers can be done using existing appropriations; and Resolution No. 2010-117 (HA Resolution No. 20/0-043) Page 2 WHEREAS, for fiscal yeaz 2009/2010, budget transfers and appropriations aze requested for the Recreation department; and WHEREAS, the Recreation Department is requesting a transfer of $16,200 from Utilities to the Supplies and Services expense category; and WHEREAS, an unanticipated cost increase in pool chemicals combined with a necessary change in the type of chemicals that aze used has caused the department to exceed its budget for pool chemicals; and WHEREAS, there aze sufficient savings in personnel services to offset this transfer, resulting in no net impact to the General Fund; and WHEREAS, in the development of the fiscal year 2009/2010 budget, the Finance Department allocated citywide overhead costs to the Development Services, Environmental Services, Chula Vista Housing Authority, Transit and Wastewater funds based on the fiscal yeaz 2008/2009 budget; and WHEREAS, since that time, the Finance Department has updated the City's Cost Allocation Plan and is now recommending adjustments to the citywide overhead allocations; and WHEREAS, those adjustments will result in an appropriation to the Chula Vista Housing Authority Transfers-Out Category ($36,330); and WHEREAS, in total, the General Fund will receive $130,031 less of transfers-in from the vazious funds due to reductions in overhead for various other funds in the Transfers-Out category (Development Services, Environmental Services, Transit and Wastewater Funds); and WHEREAS, this projected revenue shortfall has already been reflected in the third quarter projections; and WHEREAS, an appropriation request of $1.7 million is requested for the Public Liability Trust Fund (Other Expenses Category); and WHEREAS, the City has received a reimbursement of $1.75 million paid from the City's Public Liability Trust Fund for costs (settlement and defense) related to a recently settled claim; and WHEREAS, the reimbursement payment comes from the City's liability insurance pool, SANDPIPA (San Diego Pooled Insurance Program Authority), for costs incurred in excess of the City's $250,000 Self-Insured Retention (aka deductible) to the SANDPIPA pool limit of $2.0 million; and WHEREAS, it is requested that this reimbursement be appropriated to the Public Liability Trust Fund to cover payments made; and Resolution No. 2010-117 (HA Resolution No. 2010-043) Page 3 WHEREAS, an appropriation is requested for the Traffic Signal Fee Fund of $16,990 to provide for a refund of fees paid; and WHEREAS, the Traffic Signal Fee Fund requires developers to participate in the cost of signalization needs of the City when there is an increase in the number of trips generated by a development project; and WHEREAS, the Developer paid the Traffic Signal Fee required by his development project in the amount of $19,040; and WHEREAS, in addition to this fee, the Developer also funded the improvement of the traffic signal required by his project; and WHEREAS, the total cost of the improvement was $16,990; and WHEREAS, the Public Works department is requesting a refund of the $16,990 however there are insufficient appropriations in the Traffic Safety Fund to accommodate the request. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby amend fiscal year 2009/2010 Budget in accordance with the Council Policy on Financial Reporting and Transfer Authority and appropriates funds therefor. Presented by Approved as to form by ~,/ ~ Qom: Mari Kachadoorian Director of Finance ~~ Bart iesfel C}ky~ Attorney Resolution No. 2010-117 (HA Resolution No. 2010-043J Page 4 PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 25th day of May 2010 by the following vote: AYES: Councilmembers: Bensoussan, Castaneda, Ramirez, Thompson and Cox NAYS: Councilmembers: None ABSENT: Councilmembers: None Cheryl Coy Ma or ATTEST: R ~~_ Donna R. Norris, MC, ity Clerk STATE OF CALIFORNIA COUNTY OF SAN DIEGO CITY OF CHULA VISTA I, Donna R. Noms, City Clerk of Chula Vista, California, do hereby certify that the foregoing Resolution No. 2010-117/Housing Authority Resolution No. 2010-043 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 25th day of May 2010. Executed this 25th day of May 2010. /`~-D~U~ Donna R. Norris, CMC, Crty Clerk