HomeMy WebLinkAbout2010/10/26 Item 4CITY COUNCIL
AGENDA STATEMENT
~~~ CITY OF
CHULA VISTA
10/26/2010, Item
ITEM TITLE: QUARTERLY FINANCIAL REPORT FOR THE QUARTER
ENDED SEPTEMBER 30, 2010
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA AMENDING FISCAL YEAR 2010/2011
BUDGET IN ACCORDANCE WITH THE COUNCIL POLICY
ON FINANCIAL REPORTING AND TRANSFER
AUTHORITY AND APPROPRIATING AMOUNTS TO THE
LIBRARY DEPARTMENT AND ANIMAL CARE FACILITY
BUDGETS
SUBMITTED BY: DIRECTOR OF FINAN /TREASURE
CITY MANAGER
REVIEWED BY: ASSISTANT CITY AGER ST
4/STHS VOTE: YES ~ NO
SUMMARY
Section 504 (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 detemuned that filing of the quarterly fmancial
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 envirorunent; therefore, pursuant to Section 15060(c)(3) of the
State CEQA Guidelines the actions proposed aze not subject to CEQA.
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October 26, 2010, Item
Page 2 of 5
RECOMMENDATION
1. Council accepts the report.
2. Council approves the resolution.
BOARDS/COMMISSION RECOMMENDATION
Not Applicable
DISCUSSION
Attached for your consideration is the financial report for the first quarter of fiscal year 2010/11. The
detailed financial report for the quarter ending September 30, 2010 (Attachment 1) discusses the
financial outlook for the City's General Fund for the remainder of fiscal year 2010/11.
The City's General Fund ended the fiscal year 2009/10 with an available balance of $10.2 million or
7.3 percent of the fiscal year 2010/11 operating budget. For fiscal year 2010/11, the worst recession
since World War II appears to have bottomed-out but the effects are still being experienced in the City
by unemployment and reduced housing prices.
The preliminary outlook for the City's General Fund is that there are no adjustments to major revenue
sources. There is a slight downward adjustment in programmatic revenues of $403,000 but
corresponding departmental expenditures savings offsets that revenue shortfall. The following chart
summarizes the projections for the first quarter.
Fiscal Year 2010/11 Budeet Transfer and Appropriation Requests
For government entities, a budget creates a legal framework for spending during the fiscal year. Afrer
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 aze $15,000 and below. City
Council approval is required for budget transfers between departments and/or for amounts greater than
$15,000.
Since the adoption of the fiscal yeaz 2010/11 budget a number of departments have requested
adjustments to their budget allocations. For fiscal year 2010/11, budget transfers and appropriations
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October 26, 2010, Item '7
Page 3 of 5
are requested for the Library, Conservation and Environmental Services and the Animal Care Facility.
Below is a summazy of the budget adjustments requested at this time.
General Fund Budget Amendment Requests
Animal Care Facility (ACF) -The ACF has worked with the City of Imperial Beach to amend their
contract for sheltering services to include animal control services. During the last fiscal year the City
of Imperial Beach reduced their contract with the ACF to eliminate animal control services, as a result
of this change one Animal Control Officer was eliminated from the budget. With the reinstatement of
animal control services to Imperial Beach, the ACF is requesting to add one Animal Control Officer
position, which will be fully revenue offset. An appropriation request of $52,251 will be added to the
Animal Caze Facility and is offset by reimbursement revenue. The contract amendment will be
brought forward for Council approval in November, however in order to have the staffing in place the
personnel adjustment is being requested at this time.
The ACF is also requesting a transfer of $65,000 from Services and Supplies to Personnel Services.
The ACF hired one of their contractual veterinarians as an hourly employee. This allowed for
increased flexibility and utilization of the Veterinazian's services as well as a lower hourly rate once the
Veterinarian became an employee of the City. The hourly Veterinarian will become the permitting
veterinazian for the facility. Sheltering services and procurement of controlled substances/medications
will be done under the hourly Veterinarian's license rather than under the license of a contractual
Veterinarian.
Library Department -The department is requesting an appropriation of $25,000 to the Services and
Supplies expense category that will be fully revenue offset, resulting in no net impact to the General
Fund. The appropriation will be used to contract Unique Management Commissions to collect past
library finesT
Other Funds Budget Amendment Requests
American Recovery and Reinvest Act (ARRA) Fund -Staff is requesting a number of budget
adjustments within the ARRA fund, these changes result in no net impact to the ARRA fund. The first
change is a correction in the revenue budget to reflect the receipt of a loan to implement energy
efficiency projects. The budget currently reflects the revenue from this loan as a Federal Grant but the
revenue will be posted as Proceeds of Long Term Debt. The budget adjustment will move the revenue
budget of $2,051,600 to the correct revenue object. Next, staff is requesting a reduction of $27,000 in
the Supplies and Services expenditure category in order to reduce the budget to match available grant
funds; revenues in this fund will also be reduced by $27,000. Finally, a transfer of $18,000 from the
Other Expenses category to the Supplies and Services category is also requested.
Energy Conservation Fund -Over the last few years Conservation and Environmental Services has
implemented a number of energy efficiency projects that have resulted in SDG&E incentive rebates.
There is currently fund balance resulting from this revenue in the Energy Conservation Fund that can
be applied towards the debt service of the CEC loan. The transfer of $19,242 from the Energy
Conservation Fund to the CEC Loan Repayment Fund will allow for the application of this revenue
towards debt service.
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October 26, 2010, Item t}
Page 4 of 5
There aze also a number of budget clean up items requested for the Energy Conservation Fund. These
amendments are needed to correctly reflect the fiscal year 2011 available budget based on the fiscal
year 2010 expenditures. In total these changes result in a reduction of $19,367 in the fiscal year
2010/11 budget for this fund.
CDBG Housing Program -The federal grant award for this program totals $300,000 for fiscal year
2010/11. The adopted budget reflects a budget of $534,315 based on the preliminary grant award
estimate. The department is requesting to reduce the budget to the actual awazd amount. The capital
expenditure category will be reduced by $234,315 and the revenue will be reduced by the same
amount.
DECISION MAKER CONFLICT
Staff has reviewed the decisions contemplated by this item and has determined that the
actions contemplated are: (i) not site specific and, consequently, the 500-foot rule found in California
Code of Regulations section 18704.2(a) is not applicable; and/or (ii) implementation decisions which
will not materially effect the underlying projects; and/or (iii) ministerial, secretarial, manual, or
clerical in nature and, as such, do not require the City Council members to make or participate in
making a governmental decision, pursuant to California Code of Regulations Title 2, section
18702.4(a). Consequently, this item does not present a conflict under the Political Reform Act (Cal.
Gov't Code § 87100, et seq.).
CURRENT YEAR FISCAL IMPACT
The preliminary outlook for the City's General Fund is that there are no adjustments to major revenue
sources. There is a slight downward adjustment in programmatic revenues of $403,000 but
corresponding departmental expenditure savings offsets that revenue shortfall. The following chart
summarizes the projections for the first quarter.
Amen ed; iPro ec~ed,
enera_=dun,, ~,Fteserv_g u e , ,million,:
Reserves -July 1, 2010 (Unaudited) $ 10.2 $ 10.2
Revenues & Transfers In 133. 133.2
Ex enditures & Transfers Out 133.6 133.2
Pro'ected Deficit 0. 0.
Pro'ected Fund Balance -June 30, 2010 $ 10.2 $ 10.2
Percents a of O eratin Bud et 7.3% 7.3%
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October 26, 2010, Item
Page 5 of 5
The following table presents the appropriations and budget transfers that will amend the fiscal year
2010/11 budget.
Animal Care Facility Add revenue offset Animal Control Officer $ 52,251 $ 52,251
Animal Care Facility Transfer $65,000 for hourly veteranarian $ - $ -
Library Add revenue offset contractual services $ 25,000 $ 25,000
SUBTOTAL GENERAL FUND ADJUSTMENTS $ 77,251 $ 77,251 $ -
~
ARRA ~
Misc budget clean up items
$ (27,000)
$ (27,000)
$ -
Energy Conservation Fund
Energy Conservation Fund
CEC Loan Repayment Fund Misc budget clean up items
Transfer available fund balance to CEC loan repayment fund
Transfer available fund balance from Energy Conservation $ (19,637)
$ 19,242 $ (19,637)
$ 19,242 $ -
$ (19,242)
$ 19,242
CDBG Housing Reduce budget to match grant award $ (234,315) $ (234,315) $ -
SUBTOTAL OTHER FUNDS ADJUSTMENTS $ (261.710) $ (251,710) $
`,~_v~..,.,~ TOTAG LLE D tIS~MEN ~ ~-~;. ,r",%"_,$;~(154~458) $ 1844459) $'~~'`-T''a
ON GOING FISCAL IMPACT
There are no on going fiscal impact as a result of the above actions.
ATTACHMENTS
Attachment 1 -Quarterly Financial Report
Prepared by: Phillip Davis, Assistant Director ofFrnance, Finance Department
4-5
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~~
cm of
CHULA VISfA
OVERVIEW
This financial report summarizes the City's General
Fund fnancial position for the fiscal year through
September 30, 2010 and projecting out to June 30,
2010. The purpose of this report is to provide the City
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
In its third quarterly report of 2010, the UCLA Anderson
Forecast calls for "very sluggish growth" for the
foreseeable future as the United States' economy
continues to recover from the recession that plagued
the nation earlier in the decade. As for the California
economy, the State is looking at a difficult period ahead
as it attempts to generate not only the 1.3 million jobs
lost during the recession, but also the additional jobs
needed for new entrants into the job market over the
past two and a half years.
UCLA Anderson Forecast Senior Economist Jerry
Nickelsburg writes that "all the evidence suggests that
California is ever so slowly coming out of the recession
but, slow growth means that while the groundwork for
faster growth is being put down, there is not a lot or
perceptible change." The Forecast implies that the
weak growth will continue in the absence of any
imminent changes in consumer or business behavior.
According to the report, the very slow growth period will
remain until next year. The recovery from the recession
will be driven by education, healthcare, exports and
technology and to a lesser extent growth in the
battered residential construction sector.
The University of San Diego's Index of Leading
Economic Indicators for San Diego County rose 1.0
percent in March. Leading the way to the upside were
strong moves in local stock prices and the outlook for
the national economy. Building permits, initial claims
for unemployment insurance, and help wanted
advertising were also positive, but to a lesser extent.
The only down component was local consumer
confidence, which fell slightly. With March's advance,
the USD Index has now been up for 12 months in a
row.
~ UCLA Anderson Forecast Press Release September I5,
2010.
Quarterly Financial Report
First Quarter Ending September 30, 2010
October 26, 2010
August's unchanged reading is the latest sign of
continued choppiness in the local economy. The USD
Index has still not turned negative, so there is no sign of
an impending downturn. But growth in the local economy
is likely to be uneven, with fts and starts along the way.
Job growth continues to be weak and will likely remain
so for a long time. While better than in previous months,
the economy is down almost 10,000 jobs in August
compared to the same time last year. Among the
hardest hit sectors are manufacturing (down 2,900 jobs),
leisure and hospitality (2,700), government (2,300),
retailing (2,200), finance and real estate (2,200), and
construction (1,500). The only sectors showing year-
over-year gains are health care (up 2,600) and business
and professional services (2,700). The latter category is
important because it is largely due to big increases in
temporary employment, which is often a precursor to
full-time employment.Z.
San Diego Index of Leading Economic Indicators
GENERAL FUND SUMMARY
City Council Policy No 220-03 recommends the City
maintain at least an 8 percent reserve level. As of June
30, 2010, the General Fund reserve level was at 7.3
percent (unaudited).
2 University ojSan Diego School of Business Administration, USD
Index of Leading Economic /ndicators, September 29, 2010.
4-6
QUARTERLY FINANCIAL REPORT
FIRST QUARTER OF 2010/11
Page 2 of 5
- :~ ~~ °a ~~~.~. r mended gRiotected
Genera Funserve.. ~, ~.. Bu e mfllfo's
Reserves -July 1, 2010 (Unaudited) $ 10.2 $ 10.2
Revenues & Transfers In 133.6 133.2
Ex enditures & Transfers Out 133.6 133.2
Pro ected Deficit 0.0 0.0
Projected Fund Balance • June 30, 2011 $ 10.2 $ 10.2
Percents a of O eradn Bud et 7.3% 7.3%a
On November 5, 2009, the City Council approved a
revised General Fund operating reserve policy setting
a long-term goal of building the reserves to 15%. In
addition, the Council approved the establishment of
two additional reserves, the Economic Contingency
Reserve and Catastrophic Event Reserves at 5% and
3% respectively. The additional reserve categories
were established to provide for greater distinction,
increased security and accountability in the use of
reserves.
'Revenues.' $t"13rid"e~ el.4"r'OecteB .:Deltaa°
Property Tax 24,073 24,073 0
Sales Tax 17,589 17,589 0
Sales Tax In Lieu (1/4%) 6,044 6,044 0
Motor Vehicle License Fee 16,934 16,934 0
Franchise Fees 7,652 7,652 0
Utility Users Tax 8,756 8,756 0
Transient Occupancy Tax 1,941 1,941 0
Business License Tax 1,190 1,190 0
Real Property Transfer Tax 841 841 0
Licenses and Permits 849 868 19
Fine, Forfeitures & Penalties 2,060 2,054 (6)
Use of Money and Property 6,512 6,515 3
Other Agency Revenue 2,769 2,753 (16)
Charges for Services 6,928 6,730 (198)
Other Revenues 11,022 10,817 (205)
Transfers From Other Funds 18,405 18,405 0
Total $133,564 $133,162 $ 403
Based on the overall projected revenues and
expenditures the City projects ending the current fiscal
year with a balanced budget and with no impact to
reserves. This is due largely to the one-time revenues
that will be used to balance the current fiscal year
budget. The signs of moderate economic recovery, as
discussed in the economic overview section, appear to
have stopped the hemorrhaging in the City's major
revenue sources and confirms that the fiscal year
2011/12 deficit will be approximately $12.5 million as
projected in the Five Year Forecast. This assumes that
the City continues to collect UUT revenues.
At this point in the fiscal year we are not projecting any
shortfalls in the City's major revenue sources.
However there are some revenues that may be at risk
due to risk factors that are discussed in the revenue
section of the report. There is a slight downward
adjustment in programmatic revenues of $403,000 but
corresponding departmental expenditures savings
offsets that revenue shortfall.
Total expenditures are projected at $133.2 million
offset by projected revenues of $133.2 million.
Revenues
Reflected in the table are discretionary and
departmental programmatic revenues. The projection
for discretionary revenues is that no adjustments are
required at this time. Projections for Departmental
programmatic revenues have been adjusted
downwards by $403,000 and are mostly related to staff
time reimbursements.
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 18 percent of General Fund budgeted
revenue in fiscal year 2010/11.
The fiscal year 2010/11 Property Tax budget anticipated
a 4.9 percent decrease because of the reduction in the
City's base assessed values from 2010 to 2011. There
are no adjustments being proposed for property tax but
that is contingent on the dollar value of the SR125
property tax appeal. The effect of the appeal on current
year revenues is unknown at the time of this report.
The chart below compares the City's assessed values
with the assessed values of San Diego County overall.
zsr
20 r
1sr
for
sr
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-s r
for
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Chula Vista County Overall
4-7
QUARTERLY FINANCIAL REPORT
FIRST QUARTER OF 2010/11
Page 3 of 5
Despite the quarter over quarter increase in sales tax, it
does not warrant an increase in the projections for sales
tax because one quarter does not represent a trend and
could represent pent up consumer spending.
The chart represents sales tax per capita as compared
to other Cities in the County.
Sales Tax. Sales tax is the City's second largest
revenue source, representing 17.7 percent of fiscal
year 2010/11 budgeted revenues. The sales tax
budget for fiscal year 2010/11 anticipated a 1.7%
increase over the prior year projection.
City staff has received preliminary sales tax data from
the City's sales tax consultant, HdL Companies. They
report that the change in sales tax receipts between
second quarter calendar year 2010 and second quarter
calendar year 2009 increased by 7.3 percent
Statewide, by 6.4 percent in Southern California and
6.5 percent in Chula Vista.
Sales Tax per Capita
1atDwrter 261°
In'pe,ial Beach $23
Ban Diego County $3]
omanaitla s]e
comaeao sea
GM1ula Visd $93
Vlsle E106
BaMee Et f2
Lemon Gmw $i ib
san Diaga $44
Encinitas $131
Ban Ma,cos $134
Esmntlido E136
La Mesa 5151
EI Cajon S15fi
Bolena Beach $169
Paway 8l]°
National Cay Et62
Catlsbatl E191
Del Mar E26d
$- E6° E1W Et6° E2n0 E256 E3W
Gemral Retail • Footl Pmtluds • Tonsponation
a COmhuc(ion •BUSiness TO Business ~Miscellaneauz
The results of the 2nd quarter report shows that the
most significant gains came from the General
Consumer Goods sector, which was up 4.7% primarily
due to Walmart +5.3%, Costco +8.9%, Best Buy
+g.5%; and Apple Computer +59.6%. The jump in fuel
prices increased the results from the Fuel and Service
Stations sector up 17.1% adjusted. Although new auto
sales were up 1.6%, the overall gain was muted by the
closeout of McCune Chrysler.
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 by the State, 97% of the City's
VLF revenues fluctuate with changes in assessed values
in the City. Due to current state of the housing market in
the City budgeted VLF revenues for the current fiscal
year have been adjusted down by 4.4% from the prior
year projections. There is no adjustment to this revenue
source being proposed at this time.
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 businesswithin 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
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4-8
The next chart compares the change in assessed
values of the City for fiscal year 2010/11 as compared
to other Cities in the County.
QUARTERLY FINANCIAL REPORT
FIRST QUARTER OF 2010/11
Page 4 of 5
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 following chart reflects the drop in revenue in the
current fiscal year due to the drop in natural gas prices
and the reduced usage of the power plant overall. In
addition, the current year budget does assume that the
South Bay Power Plant is dismantled and is no longer
generating franchise fee revenues. The Public Utilities
Commission recently ruled that the power plant no
longer has Reliability Must Run status and will be
decommissioned in 2011. There is no adjustment
proposed for this revenue at this time.
Transient Occupancy Tax (TOT). The City receives
10 percent of hotel and motel room rates for stays less
than 30 days. The current year budget contemplated
no increase from the prior projected revenues. .
Below is a chart showing the percentage change in
TOT revenues compared to prior years. It is
anticipated that no adjustments to the current year
budget are required at this time.
Utility Users Tax (UUT). The City adopted its Utility
Users Tax (UUT) in 1970. The City imposes a UUT on
the use of telecom at the rate of 5% of gross receipts,
which represents 63% of the total UUT revenues
received. The UUT on natural gas services is
$0.00919 per therm and $0.00250 per kilowatt on
electricity services, which equates to approximately a
1 % tax.
The City's UUT ordinance (Chula Vista Municipal Code
Chapter 3.44) is outdated as it applies to
telecommunications usage and needs to be amended
to reflect recent changes in Federal tax law and to
modernize the definition of telecommunications so that
it is technology neutral. The City will continue- to
monitor legislation which may require changes to budget
estimates.
Revenues are budgeted at $8.8 million for fiscal year
2010/11. This represents a decrease of 6.9 percent
from the prior year projections. The decrease in the
budget anticipated the closure of the South Bay Power
Plant and the loss and the loss of revenues from
telecommunications companies that have stopped
paying the UUT.
Expenditures
The General Fund's Amended Budget reflects the
Council adopted budget of $133.6 million and all mid-
year appropriations ($331,340) approved by City
Council. Actual expenditures to date are reflected in the
chart below. It indicates that Departments have
expended 21.9 percent of the General Fund budget after
25 percent of the fscal year has elapsed.
- '
De a men' r dmende
Bud`e~,~ FlritQiiarter"y
Act al. + ~ %.~ -..
xF~r nd d`.
City Council $ 1,288 $ 266 20.7%
Boards/Commissions 15 7 44.5%
City Clerk 936 183 19.6%
City Attorney 2,170 381 17.6%
Administration 1,788 411 23.0%
Information Technology 3,227 916 28.4%
Human Resources 3,789 1,482 39.1%
Finance 3,210 722 22.5%
Non-Departmental 9,149 177 1.9%
Animal Care Facility 2,265 517 22.8
Planning & Building 3,957 866 21.9
Police 44,175 10,365 23.5%
Fire 22,055 5,254 23.8%
Public Warks 25,943 5,557 21.4%
Recreation 4,801 1,092 22.7%
Libra 4,796 1,079 22.5%
Totals $ 133564 $ 29,275 21.9%
4-9
TOT Revenues
QUARTERLY FINANCIAL REPORT
FIRST QUARTER OF 2010/11
Page 5 of 5
The table below shows the General Fund departments
expenditure budgets and the projected expenditures for
the fiscal year. The updated department projections
anticipate savings of approximately $403,000.
Budget Transfers
There were four administrative budget transfers during
the first quarter that totaled $15,449.
=a a~ ~ "a` ~
De artment-~'~ , Amended ~,
.-Bud e! ~." ~iiP~j'ectel
_''" 8130H 0, - ",
.l)e ~~'
City Council $ 1,288 $ 1,272 $ (17)
Boards/Commissions 15 15 $ -
City Clerk 936 930 $ (5)
City Attorney 2,170 1,988 $ (182)
Administration 1,788 1,725 $ (63)
Information Technology 3,227 3,108 $ (119)
Human Resources 3,789 3,679 $ (110)
Finance 3,210 3,091 $ (119)
Non-Departmental 9,149 10,253 $ 1,104
Animal Care Facility 2,265 2,265 $ -
Planning & Builtling 3,957 3,758 $ (199)
Police 44,175 43,970 $ (205)
Fire 22,055 22,234 $ 180
Public Works 25,943 25,507 $ (436)
Recreation 4,801 4,648 $ (153)
Libra 4,796 4,719 $ 77
Totals $ 1335fi4 $ 133,162 5 403
Mid-Year Budget Amendments
Mid-year appropriations through the first quarter totaled
$331,340 with offsetting revenues of $331,340 for no
net impact to the General Fund. The following
discusses new appropriations for the first quarter.
The Police Department hired an hourly latent print
examiner that is funded by the CAL ID program
from the County of San Diego.
Bonita Canyon repairs for drainage improvements.
• The Cities of Service grant awarded to the City will
be used to fund the Chief Service Officer.
• Library received a Leap into Reading grant for
fiscal year 2009/10 but it was not carried over into
the current fiscal year.
- - ~
~ 'Ne
utY en man R nu andiW , m
Hourly Staff Fundetl by CAL ID Program $ 95,000 $ 95,000 $0
DR169-Bonita Canyon Repairs 150,000 150,000 -
Grant Funded Chiet Service Officer 86,340 66,340 -
Lea into Readin Grant Car over 2 000 2 000
Total of lst Quarter Bud et Amentlments $331340 $331,340 $0
Yeat-to-Date Budget Amendment $331,340 $331,340 $0
t;~De anmsnG. aq, Frtirri,Y i#CTOw 'r,.,_.;_»?Y I?y~1y'DaYcd`tian r'T'~~M`')i'°. ""ATblint
Publi<WOrks 58S Capital New MOwerB Trailer COSI 1449
Public Works S8S Personnel Atlj To SSS Butlget 10,000
HR S86 585 Atlf To S8S Butlget 2,500
Cit Council S8S 585 Atl' To S8S Bud et 1,500
,.p,'gY: ..i: "8:'ldb;i'k Total'oralsfLlLarter eu0 at Tradsfan ;<.•^fi $164te:
Development Services Fund
With the approval of the fiscal year
the City Council authorized th
Development Services Fund (DSF)
from the Departments of Planning
Works and Engineering that are
planning, permitting, plan review,
development applications.
2008/2009 budget,
e creation of the
comprised of staff
& Building, Public
responsible for the
and inspection of
The Development Services Fund ended fiscal year
2009/10 with a defcit of approximately $350,000 that is
detailed in the table below. Preliminary reviews for the
current year appear to indicate a deficit for fiscal year
2010/11 of approximately $482,400.
Staff will continue to monitor the Development Services
Fund and bring back recommendations for mitigating the
projected deficit.
4-10
RESOLUTION N0.2010-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA AMENDING FISCAL YEAR 2010/2011
BUDGET IN ACCORDANCE WITH THE COUNCIL POLICY
ON FINANCIAL REPORTING AND TRANSFER AUTHORITY
AND APPROPRIATING AMOUNTS TO THE LIBRARY
DEPARTMENT AND ANIMAL CARE FACILITY BUDGETS
WHEREAS, the City's General Fund ended the fiscal year 2009/10 with an available
balance of $10.2 million or 7.3 percent of the fiscal year 20010/11 operating budget; and
WHEREAS, for government entities, a budget creates a legal framework for spending
during the fiscal year; and
WHEREAS, after the budget is approved there are circumstances which arise that could
require adjustments and amendments to the approved budget; and
WHEREAS, Council Policy 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, 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
WHEREAS, for fiscal year 2010/11, budget transfers and appropriations are requested
for the Animal Control Facility (ACF); and
WHEREAS, the (ACF) ACF has worked with the City of Imperial Beach to amend their
contract for sheltering services to include animal control services; and
WHEREAS, with the reinstatement of animal control services to Imperial Beach, the
ACF is requesting to add one Animal Control Officer position at a cost of $52,251, which will be
fully revenue offset; and
WHEREAS, the ACF is also requesting a transfer of $65,000 from Services and
Supplies to Personnel Services to fund the hourly costs of a contractual veterinazian that was
hired as an hourly employee in order to provide increased flexibility and utilization of the
Veterinazian's services; and
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Resolution No. 2010-
Page 2
WHEREAS, the Library department is requesting an appropriation of $25,000 to the
Services and Supplies expense category that will be fully revenue offset, resulting in no net
impact to the General Fund with the appropriation to be used to contract Unique Management
Commissions to collect past library fines; and
WHEREAS, staff is requesting a number of budget adjustments within the American
Recovery and Reinvest Act (ARRA) Fund; and
WHEREAS, the first adjustment is a correction in the revenue budget to reflect the
receipt of a loan to implement energy efficiency projects; and
WHEREAS, the budget currently reflects the revenue from this loan as a Federal Grant
but the revenue requires to be reflected as Proceeds of Long Term Debt, the requested budget
adjustment will reflect the revenue budget of $2,051,600 in the correct revenue object; and
WHEREAS, a reduction of $27,000 is requested in the Supplies and Services expenditure
category in the ARRA fund in order to reduce the budget to match available grant funds;
revenues in this fund will also be reduced by $27,000; and
WHEREAS, a transfer of $18,000 from the Other Expenses category to the Supplies and
Services category in the ARRA fund is also requested; and
WHEREAS, there is currently fund balance resulting from SDG&E incentive rebate
revenue earned in the Energy Conservation Fund that can be applied towards the debt service of
the CEC loan; and
WHEREAS, a transfer of $19,242 from the Energy Conservation Fund is requested to the
CEC Loan Repayment Fund will allow for the application of this revenue towazds debt service;
and
WHEREAS, a reduction in vazious object accounts totaling $19,637 in the Energy
Conservation Fund is requested in order to align the fund with available budget resources based
on the fiscal year 2010 expenditures thus resulting in a balanced budget for FY 2010-11; and
WHEREAS, adopted budget for the CDBG Housing Program reflects a budget of
$534,315 based on the preliminary grant award estimate; and
WHEREAS, the actual total federal grant award for this program totals $300,000 for
fiscal year 2010/11; and
WHEREAS, a reduction the budget to the actual award amount is for the CDBG Housing
Program is requested that will result in a reduction to the capital expenditure of $234,315 and a
commensurate revenue reduction of an equal amount in order to balance the budget for FY 2010-
11.
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Resolution No. 2010-
Page 3
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula
Vista does hereby amend the Fiscal Year 2010-2011 Budget in accordance with the Council
Policy on Financial Reporting and Transfer Authority and appropriate funds thereof.
Presented by
Approved as to form by
Maria Kachadoorian Bart C.`~ e d
Director of Finance ~G1~ity Attorney
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