HomeMy WebLinkAboutItem 3c: FY 2010-11 Budget Review Update and Approval of Budget Appropriations for Programs and Expenditures Occuring During the Fiscal Year of ARc
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„„nity oit; STAFF REPORT
Administrative Services Department
DATE: March 15, 2011
TO: Mayor and City Council
FROM: Donald Penman, City Manager
Hue C. Quach, Administrative Services Director ' ki
SUBJECT: Fiscal Year 2010 -11 Budget Review Update and Approval of Budget
Appropriations for Programs and Expenditures Occurring During the
Fiscal Year.
RESOLUTION NO. 6760 A Resolution of the City Council of the City
of Arcadia, California, Adopting and Appropriating the Amounts
Specified Therein Into the Fiscal Year 2010 -11 Operating Budget for
Programs and Expenditures Occurring During the Fiscal Year.
Recommendation: Receive and File FY 2010 -11 Budget Review and
Adopt Resolution No. 6760
SUMMARY
Enclosed are the most recent General Fund revenue budget projections and an
estimated ending fund balance for the fiscal year 2010 -11. Both the Revenue
Projections and General Fund Summary are provided as Exhibits A and B, respectively.
In general, staff's outlook for the remainder of the fiscal year is positive as there are
indications of a slow recovery currently taking place. Revenues have slightly improved
but not significant that would warrant a change to our original projections at budget
adoption. There are a few items that were unexpected, meaning not budgeted, that will
be reported in the current year's revenue which will help fund balance. Those are SB
90 mandates reimbursement from the State ($43,000) and an early payoff to a
promissory note ($207,119) from the sale of the Winnie Way Park parcel that took place
in 2009.
From the expenditure side, additional savings from our Police Department's operation
accounts ($232,000) and Library's personnel accounts ($69,000) will further add to the
budget surplus.
After factoring in revenues and expenditure savings noted, the fiscal year is projected to
Mayor and City Council
March 15, 2011
Page 2
end with $462,315 of revenues over expenditures, in turn decreasing the use of
reserves from $574,000 to $111,685 and providing a fund balance of $6,410,690.
Historically, staff has found that by year end additional savings from all departments
tend to exceed the net use reserve figure noted and it appears that we may end the
fiscal year without using reserves.
DISCUSSION
When the budget for fiscal year 2010 -11 was adopted, deep cuts were made in
operating line items, continued hiring freezes were sustained from the prior year,
deferral of a slurry seal program was initiated, and a projected use of reserves of
approximately $574,000 was needed to balance the budget. Since the budget adoption,
the economy has steadily improved and our revenues are trending in line with our
projections. Overall changes to the major revenues group that includes Property Tax,
Sales Tax, Transient Occupancy Tax, and Business License Tax, as a few examples,
have not varied from our budgeted figures. The net changes in these revenues since
budget adoption are expected to increase $76,000. Staff also reviewed "all other
revenues" for variances and determined that minor changes in this group will not affect
the overall fund balance. However, there were two line items within that group that the
City received revenues from that was unexpected and not budgeted. The first was the
additional SB90 Mandate Reimbursement from the State. Staff had originally budgeted
$5,000 for this line item but have since received $48,415 year to date. These are
payments for various FY 2008 -09 Program Claims that were filed with the State last
year. The second payment is from a promissory note on the sale of the Winnie Way
Park parcel. The repayment was not due until FY 2011 -12, however, last week the
buyer requested for an early payoff to the note. The payment of principal plus interest
totaled $207,092 and will be recorded as revenue in the current fiscal year.
In addition to reviewing revenues, each department also reviewed their operating
budget to determine if there are additional savings to be found as well as determining a
need for additional budget appropriations. In savings, the Police Department projects
an additional savings of $232,000 from their operational line items such as Contract
Services and Supplies accounts. Library and Museum Services will have additional
savings of approximately $69,000 from personnel vacancies.
Additional Appropriations:
Periodically, during the fiscal year there are programs or services that occur and are
decided upon after the budget has been adopted. There are a few of those cases which
staff would like to call to Council's attention and request for approval of appropriations to
formalize their place in the budget. Note that these additional appropriations have been
accounted for in the overall mid -year analysis and factored into the fund balance figure
Mayor and City Council
March 15, 2011
Page 3
provided.
Staff would like to request that additional appropriation be approved by Council for
these items:
1. Concession Give Back to Employees: After the budget adoption, Council gave
direction to give back concessions made by each employee group from the prior
year. An appropriation was not adopted as the decision took place after the FY
2010 -11 budget adoption. In total, the give back was $230,330 with $196,106
from the General Fund and $34,230 from other Funds. Based on staff's mid -year
review, total revenue increases and additional savings from expenditure are
sufficient to cover this cost without additional use of reserves.
2. Physical Examination Agreement: Pursuant to the City's Memorandums of
Understanding with the Arcadia Police Officers' Association and the Arcadia
Firefighters' Association, the City provides annual and biennial physicals
(frequency depends on the age of the employee) to all association members.
Additionally, the City provides biennial physicals to its Management employees.
With respect to Firefighters, a multitude of provisions require annual physicals as
defined by the United States Department of Labor Occupational Safety and
Health Standards; NFPA 1582 Standard on Comprehensive Occupational
Medical Program for Fire Departments; and the California Code of Regulations,
Title 8, Section 5199 Aerosol Transmissible Diseases.
Over the years, Methodist Hospital has provided these services at minimal cost
to the City. However, due to the recent economic recession, Methodist had
informed the City that due to budget constraints they are no longer able to
provide the service at a fractional cost. Staff is currently in the process of bidding
out this service to find a medical facility that can provide similar service and meet
requirements as prescribed by each public safety group's guidelines and
parameters. Staff has estimated the annual cost at approximately $60,000. The
FY 2010 -11 cost is expected to not exceed $15,000.
3. Mandate for various vaccinations: A recent mandate requires that Fire personnel
receive or have been vaccinated for all childhood immunizations (Measles,
Mumps, Rubella, and Varicella); plus Influenza, Tetanus, Diphtheria, and
Acellular Pertussis. The estimated cost for this program is approximately $6,000
annually. In compliance with this mandate, Fire personnel have already acted in
accordance with the requirement by ensuring all personnel given or obtained the
required vaccinations. The estimated annual cost is approximately $6,000.
Mayor and City Council
March 15, 2011
Page 4
4. Coyote Program: This program was initiated during the year and was already
approved by Council to appropriate $30,000 in the operating budget. It is being
noted again in this report to reflect its appropriation to the total expenditure
budget for this mid -year review.
CONCLUSION:
Based on staff's mid -year budget analysis, we expect that the fiscal year will end in a
better position than originally forecasted at budget adoption. Revenues are coming in
as projected and in some cases slightly better. Expenditures year to date are also
within budget and in some cases, as in the examples of Police and Library, have
already seen savings.
The General Fund is projected to end with a surplus of $462,315 (revenues over
expenditures) and in effect will decrease the net use of reserves originally proposed
from $574,000 to $111,685. Should our projections materialize, our ending fund
balance result will be $6,410,690.
RECOMMENDATION
It is recommended that the City Council:
1. Receive and File the Mid -Year Budget Review Update
2. Adopt Resolution No. 6760 A Resolution of the City Council of the City of
Arcadia, California, adopting and appropriating the amounts specified therein into
the Fiscal Year 2010 -11 Operating Budget for programs and expenditures that
occurred during the fiscal year.
Approved By:
Donald P-nman
City Manager
Exhibit A — Mid -Year Revenue Review
Exhibit B — General Fund Summary
Resolution No. 6760
EXHIBIT A
CITY OF ARCADIA
GENERAL FUND: MID -YEAR REVENUE REVIEW
FY 2010 -11 FY 2010 -11 Change
Adopted Estimated Budget vs. Percent
Budget Actual Actual Change
Revenue:
Property tax 9,300,000 9,208,000 (92,000) -0.99%
Franchise fee 1,100,000 1,100,000 0 0.00%
Sales tax 8,700,000 8,843,600 $143,600 1.65%
Transient occupancy ta) 2,225,000 2,300,000 75,000 3.37%
Utility users tax 5,400,000 5,320,500 (79,500) -1.47%
Business license tax 1,131,300 1,131,300 0 0.00%
Plan check fee 605,000 630,000 25,000 4.13%
Building permits 767,000 767,000 0 0.00%
Motor vehicle license fe( 4,576,100 4,580,000 3,900 0.09%
Ambulance charge 1,000,000 1,000,000 0 0.00%
All other 6,671,035 6,921,127 250,092 * 3.75%
Total Revenue: $41,475,435 $41,801,527 $326,092 0.79%
* Inclusive of additional SB 90 reimbursement from the State ($43,000) and Promissory Note early repayment
($207,092)
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EXHIBIT B
General Fund Summary
FY 2009 -10 FY 2010 -11 FY 2010 -11
Actuals Adopted Budget Mid -Year
Estimates
Beginning Fund Balance * $ 5,761,000 $ 5,948,375 $ 5,948,375
Estimated Revenue:
Revenues 39,155,495 40,901,435 41,227,527
Transfers -In from other funds 5,338,780 5,363,494 5,363,494
Total Revenues 44,494,275 46,838,929 47,165,021
Proposed Expenditures:
Transfers -Out to other funds 611,344 738,730 738,730
Expenditures 43,695,556 46,017,870 45,963,976
Total Expenditures 44,306,900 46,756,600 46,702,706
Revenue Over Expenditure 187,375 82,329 462,315
A
Ending Fund Balance $ 5,948,375 $ 6,030,704 $ 6,410,690
* Figures revised and updated based on fiscal year 2009 -10 actuals.
Net Mid -Yr
Mid - Year Changes Changes
Revenue: $82,329
Major Revenue Categories $ 76,000
SB 90 Reimb 43,000
Winnie Way Park Repayment 207,092
$ 326,092 $ 326,092
Expenditure:
PD Savings 232,000
Lib /Museum Savings 69,000
Concession Give Back (GF) (196,106)
Coyote Program (30,000)
Physical Agreement (Pub Sfty) (15,000)
Additional MandateNaccination (6,000)
$ 53,894 $ 53,894
Net Revenue & Expenditures: $ 462,315'`
Proposed Use of Reserves: $ (574,000)
Net Use of Reserves: $ (111,685)
RESOLUTION NO. 6760
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ARCADIA, CALIFORNIA, ADOPTING AND APPROPRIATING
THE AMOUNTS SPECIFIED THEREIN INTO THE FISCAL YEAR
2010 -2011 OPERATING BUDGET FOR PROGRAMS AND
EXPENDITURES OCCURING DURING THE FISCAL YEAR
WHEREAS, on June 15, 2010, the City Manager submitted to the City Council a
proposed budget for fiscal years 2010 -2011, a copy of which is on file in the Office of
the City Clerk; and
WHEREAS, from time to time certain programs and services are enacted during
the fiscal year which necessitate amendments to the adopted Operating Budget for
fiscal year 2010 -2011; and
WHEREAS, the amounts listed below are hereby appropriated for the fiscal year
for the purposes stated:
Description General Fund Other Funds
Concession Repayment $ 196,106 $ 34,230
Vaccination Mandate 6,000 -
Physical Examination Agreement 15,000 -
Total: $ 217,106 $ 34,230
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARCADIA,
CALIFORNIA DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS:
SECTION 1. That certain "City of Arcadia Budget, fiscal years 2010-2011", as on
file in the office of the City Clerk, together with any approved amendments thereto, is
hereby adopted, in pertinent part, as the official budget of the City of Arcadia for the
fiscal year 2010 -2011 and the amounts specified therein as expenditures from the funds
indicated are hereby appropriated for the purposes specified therein.
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SECTION 2. The City Clerk shall certify to the adoption of this Resolution.
Passed, approved and adopted this day of , 2011.
Mayor of the City of Arcadia
ATTEST:
City Clerk
APPROVED AS TO FORM:
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Stephen P. Deitsch
City Attorney
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