The URL can be used to link to this page

Home My WebLink About2011/05/17 Item 02CITY COUNCIL A STATEMENT ~~ CITY OF CHULA VISTA 5/17/2011, Item `Z ITEM TITLE: QUARTERLY FINANCIAL REPORT FOR THE QUARTER ENDED MARCH 31, 2011 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 FUNDS THEREFOR SUBMITTED BY: DIRECTOR OF FINANCE/TREASURER`~I~ CITY MANAGE REVIEWED BY: ASSISTANT CITY ANAGER S~ 4/STHS VOTE: YES ~X 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 deternuned 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 accepts the report and approves the resolution. 2-1 May 17, 2011, Item 2 Page 2 of 4 BOARDS/COMMISSION RECOMMENDATION Not Applicable DISCUSSION Attached for your consideration is the financial report for the third quarter of fiscal year 2010/11. The detailed financial report for the quarter ending March 31, 2011 (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 yeaz 2010/11 operating budget. For fiscal year 2010/11, the worst recession since the Great Depression appears to have bottomed-out but the effects are still being experienced in the City because of unemployment and reduced housing prices. As noted in previous reports to Council, the Five Year Forecast projected a deficit of $12.5 million for fiscal year 2011/12. This projected deficit grew by approximately $5.6 million to $18.1 million with the loss of the Utility User Tax (UUT) revenue. The reduction in UUT revenue is also impacting the current year's budget; this anticipated loss of revenue is now reflected in the third quarter financial projections. In total, discretionary revenues have been adjusted downward by $1.6 million. This reflects a reduction in UUT partially offset by increases in other discretionary revenues primarily sales tax revenues. The third quarter financial projections also reflect a downward adjustment in programmatic revenues of $1.1 million but corresponding departmental expenditure savings offsets that revenue shortfall. The following chart summarizes the projections for the third quarter. " "' Amended rolectted P Generat_, ,Reserv Bud et , `millions;. Reserves -July 1, 2010 (audited) $ 10.2 $ 10.2 Revenues & Transfers In 133.8 131.1 Ex enditures & Transfers Out 133.6 128.5 Projected Sur lus 0.0 2.6 **Transfer to Economic Contin enc Reserve -2.6 Projected Fund Balance -June 30, 2011 $ 10.2 $ 10.2 Percenta a of O eratin Bud et 7.3% 7.3% **Transfer to Economic Contingency Reserve will be applied towards balancing fiscal year 2011/12 budget Fiscal Year 2010-11 Budffet 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 that azise requiring 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 2-2 May 17, 2011, Item '~ Page 3 of 4 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. For fiscal year 2010/11, appropriations are required for the Library Department, the Police Department Grants Fund, and the Public Library Act Fund. A. General Fund Budget Appropriation Requests Library Department The Chula Vista Public Librazy received aone-time grant award from the California State Library through the California Librazy Literacy Services Fund in the amount of $41,000. The purpose of the award is to support adult literacy services in a library setting. The funds are being used to maintain literacy services at a reduced level to the end of the fiscal year. As a result, an amendment to budgeted revenues is required in the "Revenue From Other Agencies" category. No expenditure appropriation is required as existing appropriations will be used to cover these expenses. There is no net impact to the General Fund resulting from this action. B. Other Funds Budget Appropriation Requests Police Department Grants Fund An appropriation of $12,000 is required in the Supplies and Services category with offsetting revenues in the "Revenues From Other Agencies" category. This action will result in no net impact to the Police Department Grants Fund. Public Library Act Fund The Chula Vista Public Library applies for the California State Library, Public Library Foundation (PLF) Grant on.an annual basis. For the last few years, the Library has been unable to qualify for this grant award due to reductions in service levels resulting from the City's budget constraints. In fiscal year 2010/11, the Library Department received the PLF Grant award for fiscal year 2009/10. As a result, an amendment to budgeted revenues of $81,270 is required in the "Revenue From Other Agencies" category. No expenditure appropriation is required. This action will result in a positive net impact to the Public Library Act Fund. DECISION MAKER CONFLICT Staff has reviewed the decisions contemplated by this item and have determined that the actions contemplated are not site specific and, consequently, the 500-foot rule found in California Code of Regulations section 18704.2(a) is not applicable. 2-3 May 17, 2011, Item Page 4 of 4 CURRENT YEAR FISCAL IMPACT There is no fiscal impact resulting from accepting the Quarterly Financial Report. As stated above, a surplus of $2.6 million is currently projected for the General Fund. The projected surplus will be transferred to the Economic Contingency Reserve and used to balance the fiscal year 2011/12 budget. The following chart summarizes the projections for the third quarter. ~ 7lmendeil. Prolect'e~'d f General Fund Reserve .;Bud e = millions Reserves -July 1, 2010 (audited) $ 10.2 $ 10.2 Revenues & Transfers In 133.8 131.1 Ex enditures & Transfers Out 133.8 128.5 Pro ected Sur lus 0.0 2.6 **Transfer to Economic Contin enc Reserve -2.6 Projected Fund Balance -June 30, 2011 $ 10.2 $ 10.2 Percents a of O eratin Bud et 7.3% 7.3% **Transfer to Economic Contingency Reserve will be applied towards balancing fiscal year 2011/12 budget Approval of the resolution will result in the following budget changes: An amendment of $41,000 in the Library Department's revenue budget to reflect revenue from a grant. There is no net fiscal impact in the General Fund resulting from this acfion. A revenue offset appropriation of $12,000 to the Services and Supplies expenditure category of the Police Grants Fund. This action will result in no net impact to the Police Grants Fund. An amendment of $81,270 in the Public Library Act Fund's revenue budget to reflect unanticipated revenues. This will result in a positive net impact to the Public Library Act Fund. ON GOING FISCAL IMPACT There is no on going fiscal impact as a result of the above actions. ATTACHMENTS Attachment 1 -Quarterly Financial Report Prepared by: Phillip Davis, Assistant Director of Finance, Finance Department 2-4 ~«// I~r an of CHUTA VISTA OVERVIEW This financial report summarizes the City's General Fund financial position for the fiscal year through March 31, 2011 and projecting out to June 30, 2011. 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 first quarterly report of 2011, UCLA Anderson Forecast is cautious regarding the national economy, as real Gross Domestic Product (GDP) continues to grow at a steady pace and employment continues to increase. That said, the recovery in the U.S. economy is still slow -and the recession cut jobs so deeply - that growth will be insufficient to surpass the employment peak reached in early 2008. The California forecast is slightly weaker in the near term than it was in December with the unemployment rate predicted to be substantially above the U.S. rate at the end of 2013. In a report titled "On the Mend," UCLA Anderson Forecast Senior Economist David Shulman says, "The U.S. economy is getting better. Slowly, in fits and starts, real GDP is growing and employment is increasing." With that, the Forecast calls for real GDP growth of 3.8% in the current quarter, with 3% growth expected for the duration of the forecast's 2013 horizon. According to Shulman, the economy is being propelled by strong increases in corporate spending and that the impetus for this spending is coming from extraordinarily low interest rates, a rapidly recovering stock market and investment incentives coming out of Washington D.C. Exports and the automobile sector are also spurring the recovery, the latter a rebounding as pent- up demand spurs new car sales. California's forecast, authored by Senior Economist Jerry Nickelsburg, reflects the mixed signals emanating from the State's economic data. Job creation in California remains sluggish. Nevertheless, California's unemployment rate is predicted to be substantially above the U.S. rate at the end of 2013. The forecast actually calls for slower growth than was expected in the December report and that near term slow growth Quarterly Financial Report Third Quarter Ending March 31, 2011 May 17, 2011 means the unemployment rate in California will remain at 10.5% next year. The drivers of the recovery in California will be education, health care, exports and technology, as well as residential construction. The expectation for 2011 is a growth in employment of 1.1 %. The bulk of this growth will be in the latter part of the year... ~ The USD's Index of Leading Economic Indicators for San Diego County rose 1.0 percent in March. The gain was led by big increases in building permits, initial claims for unemployment insurance, and help wanted advertising. Local consumer confidence and the outlook for the national economy were also up solidly. The only negative was a small drop in local stock prices. The outlook for the local economy continues to be positive. One area where things are picking up is the labor market, with 24,700, jobs added in San Diego County between March 2010 and March 2011. While the gain is welcome, the local economy still has a long way to go to fully recover. At the March rate of job growth, it will take another four years to get back to the same local level of employment as the peak in December 2007.2 San Die o Index of Leadin Economic Indicators lsoo ~~,,,,; .;:~ r~~:.: 1as.o 4.. '.°"~~tf~ 140.0 ~~"' , ~ 138 0 __ .. 1ao o . - 1zs.o 1zo.o 11 s.o n o.o ~ "- . .,> looo 95.0 Jan-07 Jan-OB Jan-09 Jan-10 GENERAL FUND SUMMARY t UCLA Anderson Forecast Press Release March 9, 20l !. 2 University of San Diega School of Business Administration, (iSD Index of Leading Economic Indicators, Apri[ 2$ 20! 1. 2-5 QUARTERLY FINANCIAL REPORT THIRD QUARTER OF 2010/11 Page 2 of 5 City Council Policy No 220-03 recommends the City maintain at least an 8 percent reserve level with a long- term goal of 15 percent. As of June 30, 2010, the General Fund reserve level was at 7.3 percent (audited). ~ *~ s ~:, ,~. # ~ ,~~~~ Ge erat Fd Rese rv'e, u, z.s1rY`~~^ ~ Amended ~Bu~ et, Projected (millions) Reserves -July 1, 2010 (audited) Revenues & Transfers In __ _ Expenditures & Transfers Out $ 10.2 . 133.8 133.8 $ 10.2 131.1 128.5 Projected Surplus 0.0 2.6 Transfer to Economic Contingency Reserve -2.6 Projected Fund Balance -June 30, 2011 $ 10.2 $ 10.2 Percentage of Operating Budget 7.3% 7.3% As noted in previous reports to Council, the Five Year Forecast projected a deficit of $12.5 million for fiscal year 2011/12. This projected deficit grew by approximately $5.6 million to $18.1 million with the anticipated loss of the Utility User Tax (UUT) revenue. The reduction in UUT revenue is also impacting the current year's budget; this anticipated loss of revenue is reflected in the third quarter financial projections. In total, discretionary revenues have been adjusted downward by $1.6 million. This reflects a reduction in UUT partially offset by increases in other discretionary revenues, primarily sales tax revenues. The third quarter financial projections also reflect a downward adjustment in programmatic revenues of $1.1 million but corresponding departmental expenditure savings offsets that revenue shortfall. Based on the overall projected revenues and expenditures the City projects ending the current fiscal year with a $2.6 million surplus that will be used to balance the fiscal year 2011/12 budget. Total expenditures are projected at $128.5 million and reflect anticipated savings from the budget reduction plan that was largely implemented in January 2011. Revenues Reflected in the table are discretionary and departmental programmatic revenues. The projection for discretionary revenues indicates the downward adjustment of $1.6 million. Projections for Departmental programmatic revenues have been adjusted downwards by $1.1 million and are mostly related to staff time reimbursements, fines, forfeitures and penalties and other revenues. '~;-~ .Revenues =, Budgef" P.fojected Delta ,~ Property Tax ~ 24,073 24,073 (0) Sales Tax 17,589 19,186 1,596 Sales Tax In Lieu (1/4%) 6,044 6,686 642 a Fee Motor Vehicle Licens 16,934 16,951 17 _ Franchise Fees 7,652 7,395 (257) Utility Users Tax 8,756 4,970 (3,785) Transient Occupancy Tax 1941 2,086 145 Business License Tax _.. 1,190 1,190 0 Real Property Transfer Tax 841 850 9 Licenses and Permits 849 974 126 Fine, Forfeitures & Penalties 2,085 1,722 ~ (363) Use ofMOney and Property 6,512 6,847 334 Other Agency Revenue 2,712 2,693 (19) Charges Tor Services 7,066 6,289 (776) Other Revenues 11,168 10,977 (190) Transfers From Other Funds 18,405 18,255 (150) Total $133,817 $131,144 $(2,673) 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. Based on the collections for the first nine months of the fiscal year property tax revenues appear to be trending as budgeted. The dollar value of the SR125 property tax appeal and its effect on current year revenues is still 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. 25 20 1s% 10% s% o% -s % -10% -1s% I t Chula V ista ~ County Overall 2-6 QUARTERLY FINANCIAL REPORT THIRD QUARTER OF 2010/11 Page 3 of 5 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. 4aa% - aoo% zaa% ,naro o ao% :ro% 3W% .rc% sro%4d~0~~i~~o~~~ _ ,~~ Qua ~s ~~~.e~.~~ m 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 sales tax data from the City's sales tax consultant, HdL Companies. They report that the change in sales tax receipts between fourth quarter calendar year 2010 and fourth quarter calendar year 2009 increased by 6.6 percent Statewide, by 6.8 percent in San Diego County and 6.9 percent in Chula Vista. Sales tax projections for the fiscal year are being adjusted upwards by $1.6 million based on recent trends and analysis by the sales tax consultant. In addition, Sales Tax In-Lieu is being adjusted upwards by $642,000 based on recent reports from the State. The chart represents sales tax per capita as compared to other Cities in the County. Saks Tax per Capi[a 141 oaarmrzom Imperial Beacb $23 San Diego County 33] Oceansitle 518 comnaae a6o Chula Visa 593 Vrsta 8106 Santee 8112 Lemon Grove 8116 San Diego Si2a Encinitas 8131 San Marcos $134 EsmndMO 8136 La Mesa 8151 EI Cajon 8156 Solana Beacb St69 Poway Ei]0 National City $162 Catlsbatl $191 Del Mar 5254 8- 850 $100 8150 8200 8260 Gere,al Ixetao a reoa Proa,ms •ransponation a DoeStra[tle,l •Business TO Business aMiscellaneous 8300 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 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 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. sao E00 Si.e 4aa s.o sa.o sx.o 210 zwt zoox z°°y=°~°tergy~-Trash/Cables :ooe zo,o zott The chart above reflects the drop in revenue in the current fiscal year due to the drop in natural gas prices and the closure of the power plant. Revenue growth is projected based on population and inflation factors. Franchise Fee revenue projections are being adjusted downward by $0.5 million due to the unusually mild summer and reduced usage of electricity 2-7 QUARTERLY FINANCIAL REPORT THIRD QUARTER OF 2010/11 Page 4 of 5 for cooling and because of recent decreases in natural gas prices. 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. . Above is a chart showing the percentage change in TOT revenues compared to prior years. Current collections of TOT revenue indicate that projected revenues will exceed the amount budgeted by $145,447. Utility Users Tax (UUT). The City adopted its UUT in 1970. The City imposes a UUT on the use of telecommunications 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 attempted to modernize the ordinance by placing Proposition H on the November 2010 election but the proposition was defeated and therefore revenue projections are being adjusted accordingly by $3.8 million. Expenditures ~'~ -' ` "t Deparhnent ~~ ~ 'Amendei[` Budge _ a hifd.i(ltr .actual` °/, ; Exp nded~~ City Council $ 1,288 $ 830 64.4% Boards/Commissions 15 7 45.2% City Clerk 936 ~ 626 66.9% City Attorney 2,170 1,302 60.0% Administration 1,801 1252 69.5% Information Technology 3,227 2,259 70.0% Human Resources 3,789 2,552 67.3% _ Finance ~ 3,210 2,176 67.8% Non Departmental _ 9,174 6 022 65.6% Animal Care Facility 2,317 1,623 70.0% Planning & Building 3,957 2,461 62.2% Police 44,175 31,658 71.7% Fre - ~ 22,188 15,947 71.9% Public Works 25,943 17,133 66.0% Recreation - 4,801 2,992 - 62.3% Library ~ - 4,851 2,966 61.1% Totals $ 133,843 $ 91,807 68.6% The General Fund's Amended Budget reflects the Council adopted budget of $133.8 million and all mid- year appropriations ($609,528) approved by City Council. Actual expenditures to date are reflected in the chart above. It indicates that Departments have expended 68.6 percent of the General Fund budget after 75 percent of the fiscal year has elapsed. The following table shows the General Fund departments' expenditure budgets and the projected expenditures for the fiscal year. The updated department projections anticipate savings of approximately $5.3 million. y~ i `" O pa en ~'~,' ~~. r mended; ,°~.a BUd eL~.:R Qrojebted ~ ~6130I1Ua~t z ~<~^~ 7'De ~~, City Council $ 1,288 $ 1,244 $ (44) Boards/Commissions 15 15 $ - City Clerk 936 827 $ (108) City At[omey 2,170 1,965 $ (205) Administration 1,801 1,713 $ (88) Information Technology 3,227 3,027 $ (201) Human Resources 3,789 3,619 $ (170) Finance 3,210 2,986 $ (224) Non-Deparmental 9,174 10,566 $ 1,392 Animal Care Facility 2,317 2,249 $ (68) Planning & Building 3,957 3,500 $ (457) Police 44,175 43,060 $ (1,116) Fire 22,188 21,805 $ (383) Public Worics 25,943 23,927 $ (2,016) Recreation 4,801 4,026 $ (775) Libmry 4,851 3,964 $ (887) Totals $ 133,843 $ 128,493 $ (5,349) 2-8 QUARTERLY FINANCIAL REPORT THIRD QUARTER OF 2010/11 Page 5 of 5 approximately $152,000 that is due to less staff time Mid-Year Budget Amendments reimbursements in the Land Development and Development Planning areas. ~eutl etA 'entlmen~ s~s~k~"~~'~~''`~ ~Revenue Eitpe'ndit rere = m acts Hourly Stag Funtletl by CAL ID Program $ 95,000 $ 95,000 $0 Dft169 -Bonita Canyon Repairs 150,000 150 000 - Gant Fundetl Chief Senlce ORCer 86,340 86,340 - Leapinto Reatling Grant Carryc~er 2,000 2,000 - TotaloflstDuarterBudgetAmendments $331,340 $331,340 $0 Funding to Close Completed CIP Projects ~ $ - $ 25,344 ($25,344) Retl Cross Gant 133,333 133,333 - Contract Amentlment with Imperial Beach 52,251 52,251 - Collection Agency contract for Library Fines 25,000 25,000 - Hentage Museum Photo Contest 9 600 9 600 - Online Homework Help Program 20,000 20,000 - Energy and Water Consenetion Services 12,660 12,660 - ToGlof2ndDuarter6udgetAmendments $252,844 $ 278,188 ($25,344) Revenue from new CBAG positions $ 9,990 $ $ 9,990 Total of 3rd Duarter Butlget Amendments $ 9,990 $ E 9.990 Year-to-Date Bud et Amendments $594,174 $609,528 ($15,354) Staff will continue to monitor the Development Services Fund. "< '~ fi "~D ~'`~ ;a Protected` ~%Re e~ ~ Projected nd W` s p Projected;. I ' p c lvlg_on ~ - ~a venu s zw...u.,.~.~. Eic i re e Ne I m a t Planning 1,783 2,081 (298) Building 2,287 2,001 286 Engineering 1,555 1,695 (140) DSF TOTAL $ 5,624 $ 5,776 $ (152) Mid-year appropriations through the third quarter totaled $609,528 with offsetting revenues of $594,174 for a net impact to the General Fund of $15,354. The only budget amendment during the quarter was for the 4 percent administrative fee that the City receives for administering the CBAG program. Budget Transfers There were three administrative budget transfers during the third quarter. De Pt From--~- f., To ~s':., 'o: Dascn lion ii ;xic. ^¢.AmaunC- PW S&S Capital New MOwer&Tailer C05l 1449 PW S&S Personnel Atlj TO S&S Butlget 10,000 HR S8S SB.S Atlj To S&S Budget 2,500 CC S&S 885 Atlj To S8S Butlget 1,500 . '~aY~ „z.Epi} 'ToTa7.ts[puarter Butlget Tr>iTi"sfers - Y?'iEt5,449 No tansfers for the Quarter „»e dn'^.%":; `e~,v"', T9... ~ d'i~, .±x ;.-`mod ';Tfansiers -a ad;'w35u: CC Personnel Personel Tansfer Auto Allowance to Wages $4,108 Rec S&S Utilities For Utility Casts $15,000 CC S&S S8S Align Budget with Actuals 6,000 ko- .x,• r `R"'".`; Total Jrd',OuarfBF BUtl9et Transfers-'t. .".::'$25;108 Development Services Fund With the approval of the fiscal year 2008/2009 budget, the City Council authorized the creation of the Development Services Fund (DSF) comprised of staff from the Departments of Planning & Building, Public Works and Engineering that are responsible for the planning, permitting, plan review, and inspection of development applications. Preliminary reviews for the current year appear to indicate a deficit for fiscal year 2010/11 of 2-9 RESOLUTION N0.2011- 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 FUNDS THEREFOR WHEREAS, Council Policy 220-02, "Financial Reporting and Transfer Authority," requires that the City Council approve budget transfers that are between departments or that exceed $15,000; and WHEREAS, the Chula Vista Public Library received aone-time grant award from the California State Library through the California Library Literacy Services Fund in the amount of $41,000, which funds are being used to maintain literacy services at a reduced level to the end of the fiscal year; and WHEREAS, receipt of the grant requires an appropriation in the amount of $41,000 to the General Fund budgeted revenues, in the "Revenue From Other Agencies" category; and WHEREAS, the Police Department Grants Fund requires an appropriation of $12,000 in the "Supplies and Services" category, with offsetting revenues in the "Revenue From Other Agencies" category; and WHEREAS, the Chula Vista Public Library annually applies for the California State Library, Public Library Foundation (PLF) Grant and, in Fiscal Year 2010/2011, it received the PLF Grant award for Fiscal Year 2009/2010; and WHEREAS, receipt of the grant requires an amendment to budgeted Public Library Act Fund revenues of $81,270 is required in the "Revenue From Other Agencies" category. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby approve the following budget amendments and appropriations: • General Fund, Library Department: An amendment to budgeted revenues in the "Revenue from Other Agencies" revenue category, appropriating $41,000 in California State Library Literacy Services grant funds; and • Police Department Grants Fund: An appropriation of $12,000 in the "Supplies and Services" category, with offsetting revenues in the "Revenues From Other Agencies" category; and 2-~~ Resolution No. Page 2 Public Library Act Fund: An amendment appropriating $81,270 in Public Library Foundation Grant funds to the "Revenue from Other Agencies" revenue category. Presented by Maria Kachadoorian Director of Finance/Treasurer Approved as to 2-11