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Home My WebLink AboutCC AG PKT 2012-02-27 #ADATE: February 27, 2012 TO: Honorable Mayor and City Council THRU: Jill R. Ingram, City Manager FROM: Shally Lin, Director of Finance SUMMARY OF REQUEST: BACKGROUND AND ANALYSIS: Revenues: AGENDA STAFF REPORT SUBJECT: FISCAL YEAR 20011 -12 MID -YEAR BUDGET REVIEW AND MODIFICATIONS Staff requests that the City Council adopt Resolution No. 6224 approving Budget Modification No. 12 -08 -01 to modify fiscal year 2011/2012 budget appropriations. Staff has completed the Mid -Year Budget review of the FY 2011 -12 Budget. Resolution No. 6224 provides changes to various revenue estimates. In addition, based on analysis and discussions with the Executive Management team, appropriations have also been amended. The following outlines the most significant changes: • Property Taxes Secured — Secured property taxes collected for the current fiscal year are slightly higher than previously projected. Therefore, staff is increasing the budget from $5,324,500 to $5,624,500 (an increase of $300,000). • Property Tax In - Lieu of Vehicle License Fees — Vehicle License fees collected for the current fiscal year is slightly higher than previously projected. Therefore, staff is increasing the budget from $2,037,400 to $2,137,400 (an increase of $100,000). • Sales Tax/Use Tax/Sales Tax "Backfill" — Per the City's sales tax consultant sales tax amounts are projected $620,000 higher than previously projected in the original budget for the current fiscal year. • Cable TV Franchise Fees — Cable Franchise Fees projected to be lower than previously budgeted. Therefore, staff is reducing the budget from $300,000 to 200,000 (a decrease of $100,000). Agenda Item A • Business Licenses — The decrease of $249,200 in revenues is due to a large employer losing a contract that was previously calculated into the Business License revenues. • Building Permits — As a result of continuing new development in the City, staff is increasing the estimate for Building Permit Fees from $200,000 to $330,000. Appropriations: • Approximately $130,000 will be appropriated from General Fund Reserves for the October 12 Salon Meritage tragedy. • Salaries and Benefits — As a result of compensation time buy back, vacation buy back and unemployment, staff is revising all salaries and benefits categories by an increase of $21,700. • Staff is subsidizing the Tidelands Fund by an increase of $26,800 due to a decrease in revenues and increase in expenditures in the Tidelands Fund. • Due to the Council's decision to return the $500,000 grant for the Lampson Median Project, $348,133 in matching funds will be re- allocated to General Fund Reserves previously designated by the City Council for street projects. • Total of $40,000 will be designated from the General Fund Reserve (Streets) and Traffic /Development Impact Fee Reserve for Environmental Impact Sciences and WG Zimmerman Engineering agreements. (see agenda item "K ") • An additional $81,428 will be designated from General Fund Traffic /Development Impact Fee Reserve for the traffic and noise impact studies for the traffic north of 405 freeway. ENVIRONMENTAL IMPACT: There is no Environmental Impact related to this item. LEGAL ANALYSIS: The City Attorney has reviewed and approved as to form. FINANCIAL IMPACT: Based on the Mid -Year Budget review, the fiscal year 2011 -12 General Fund revenues is estimated to increase by $1,000,900 and expenditures will also decrease by $69,905 for a net change in the General Fund of $1,070,805. After all budget modifications have been entered into the accounting system, the excess of revenue over expenditures is projected to be $1,482,500, excluding the Capital Improvement Program (CIP). Under the direction of the City Manager, Department Heads will continue to operate within the budget, and at the same time continue to maintain and provide high standard of customer service and programs. Page 2 RECOMMENDATION: It is recommended that the City Council adopt Resolution No. 6224 approving Budget Modification No. 12 -08 -01 to modify the fiscal year 2011 -12 budget. SUBMITTED BY: 'Shally Interim Director of Finance /City Treasurer Attachment: A. Resolution No. 6224 Page 3 NOTED AND APPROVED: . Ingram, City ager DESCRIPTION RESOLUTION NUMBER 6224 A RESOLUTION OF THE SEAL BEACH CITY COUNCIL AUTHORIZING BUDGET MODIFICATION NO. 12 -08 -01 FOR FISCAL YEAR 2011 -12 BUDGET MODIFICATION WHEREAS, the fiscal year 2011 -12 budget requires budgetary modifications as outlined below: THE CITY COUNCIL OF THE CITY OF SEAL BEACH DOES HEREBY RESOLVE: Section 1. The City Council hereby adopts a modification to the FY 2011 -12 budget, as follows: REVISED/ ADOPTED PROPOSED BUDGET (diff) EXPLANATION ACCOUNT BUDGET BUDGET MODIFICATION FOR CHANGE General Fund Revenues Property Taxes Secured 001 - 000 -30001 5,324,500 5,624,500 300,000 Original budget correction Property Taxes Unsecured 001 - 000 -30002 250,000 234,000 (16,000) Original budget correction Secured /Unsecured Prior Year 001 - 000 -30004 150,000 135,000 (15,000) Original budget correction Supplemental Tax Sec/Unsec 001 - 000 -30006 68,000 36,000 (32,000) Original budget correction Property Tax - In Lieu VLF 001 - 000 -30009 2,037,400 2,137,400 100,000 Original budget correction Excise Tax 001 - 000 -30011 500 3,300 2,800 Original budget correction Barrel Tax 001 - 000 -30012 151,400 200,000 48,600 Original budget correction Property Tax Transfers 001- 000 -30013 100,800 45,000 (55,800) Original budget correction Utility Users Tax 001- 000 -30015 5,100,000 5,300,000 200,000 Original budget correction Sales /use Tax 001 - 000 -30016 2,792,300 3,312,300 520,000 Original budget correction Sales Tax "Back-Fill" 001 - 000 -30017 1,200,000 1,300,000 100,000 .Original budget correction Pipeline Franchise Fees 001 - 000 -30120 51,200 100,000 48,800 Original budget correction Cable TV Franchise Fees 001 - 000 -30130 300,000 200,000 (100,000) Original budget correction Building Permits 001 - 000 -30210 200,000 330,000 130,000 Original budget correction Business Licenses 001 - 000 -30215 824,000 574,800 (249,200) Original budget correction Oil Production Licenses 001 - 000 -30240 11,000 12,000 1,000 Original budget correction Parking Permits 001 - 000 -30245 90,000 135,000 45,000 Original budget correction Other Permits 001- 000 -30250 40,000 32,000 (8,000) Original budget correction Plumbing Permits 001 -000 -30255 20,000 30,000 10,000 Original budget correction Arbor Park Dog License 001 - 000 -30270 0 400 400 Original budget correction Muni Code Violations 001 - 000 -30310 1,000 1,700 700 Original budget correction Interest on Investment 001 - 000 -30420 220,100 170,000 (50,100) Original budget correction Parking Meters 001 - 000 -30430 75,000 86,900 11,900 Original budget correction Property Use 001 - 000 -30440 14,500 8,000 (6,500) Original budget correction Rental of Property 001 -000 -30455 99,900 85,000 (14,900) Original budget correction Motor Vehicle in Lieu 001 - 000 -30500 75,000 12,800 (62,200) Original budget correction Recreation Program Insurance 001 - 000 -30670 1,500 4,000 2,500 Original budget correction Recreation Cleaning Fees 001 - 000 -30690 3,000 5,000 2,000 Original budget correction Inmate fee from other agency 001 - 000 -30841 60,000 79,200 19,200 Original budget correction Inmate Self Pay 001 - 000 -30842 400,000 441,000 41,000 Original budget correction Booking Fees 001 - 000 -30843 4,000 10,000 6,000 Original budget correction Traffic Impact Fees 001 - 000 -30870 0 2,100 2,100 Original budget correction Environmental Fees 001 - 000 -30872 2,000 2,700 700 Original budget correction Returned Check Fees 001 - 000 -30935 300 1,000 700 Original budget correction Sale printed material - CIP only 001 -000 -30946 1,000 5,000 4,000 Original budget correction Misc. Revenue 001 - 000 -30960 11,000 20,000 9,000 Original budget correction Admin Fee - Construction /Demo. 001 - 000 -30961 3,600 5,000 1,400 Original budget correction Donated Revenue 001 - 000 -30962 33,000 20,800 (12,200) Original budget correction Unclaimed Found Property 001 - 000 -30963 1,500 100 (1,400) Original budget correction Grant Reimb. 001- 000 -30975 0 16,200 16,200 Original budget correction Charging Station Revenues 001 - 000 -30992 0 200 200 Original budget correction DESCRIPTION REVISED/ ADOPTED PROPOSED BUDGET (diff) EXPLANATION ACCOUNT BUDGET BUDGET MODIFICATION FOR CHANGE Total change in General Fund Revenue Estimates 1,000,900 Expenditures Special Expense 001 - 011 -44001 0 130,000 130,000 October 12th incident Lampson Median project cancelled due to current ongoing surrounding construction by West County Transfer Out 001 - 080 -47000 6,621,066 6,272,933 (348,133) Connector project and City projects. General Fund subsidizeTidelands Transfer Out 001 - 080 -47000 6,272,933 6,299,733 26,800 net operations expenditures Environmental Impact Sciences - General Fund Traffic Impact Transfer Out 001 - 080 -47000 6,299,733 6,319,733 20,000 Reserve project 49750 WG Zimmerman Engineering - General Fund Streets Reserve Transfer Out 001- 080 -47000 6,319,733 6,339,733 20,000 project 49750 Traffic and noise impact studies for the traffic north of 405 freeway - Transfer Out 001- 080 -47000 6,339,733 6,421,161 81,428 Traffic Impact Reserve Total General Fund decrease in appropriations (69,905) Net change in General Fund 1,070,805 Tidelands Beach Fund Revenues Reimb Misc Svcs - Tidelands 034- 000 -30700 12,300 11,100 (1,200) Original budget correction Landing Fees 034 - 000 -31600 70,000 80,000 10,000 Original budget correction Property Rental 034 - 000 -31650 125,000 105,000 (20,000) Original budget correction Junior Lifeguard Fees 034 - 000 -31700 100,000 105,000 5,000 Original budget correction Total change in Tidelands Fund Revenue Estimates (6,200) Expenditures Comptime Buy /Payout 034 - 828 -40026 0 600 600 Original budget correction Vacation Buy /Payout 034 - 828 -40027 0 7,000 7,000 Original budget correction Unemployment 034 - 828 -40030 0 12,000 12,000 Original budget correction Vacation Buy /Payout 034 - 863 -40027 0 1,100 1,100 Original budget correction Unemployment 034 - 863 -40030 0 1,000 1,000 Original budget correction Total change in Tidelands Fund expenditures 21,700 Capital Proiect Fund Transfer In Lampson Median project cancelled due to current ongoing surrounding construction by West County 045- 000 -31500 8,979,536 8,131,403 (848,133) Connector project and City projects. Grant funds was received this fiscal Transfer In 045 -000 -31500 8,131,403 9,126,318 994,915 year for project 49750 DESCRIPTION REVISED/ ADOPTED PROPOSED BUDGET (diff) EXPLANATION ACCOUNT BUDGET BUDGET MODIFICATION FOR CHANGE WG Zimmerman Engineering & Environmental Impact Sciences Transfer In 045- 000 -31500 9,126,318 9,166,318 40,000 agreement for project 49750. CEC approved grant amendment Transfer In 045 - 000 -31500 9,166,318 9,162,526 (3,792) for $128k for project BG1103 Lampson Median project cancelled due to current ongoing surrounding construction by West County Contract Professional 045 - 333 -44000 8,979,536 8,131,403 (848,133) Connector project and City projects. Grant funds was received this fiscal Contract Professional 045 - 333 -44000 8,131,403 9,126,318 994,915 year for project 49750 WG Zimmerman Engineering & Environmental Impact Sciences Contract Professional 045- 333 -44000 9,126,318 9,166,318 40,000 agreement for project 49750. CEC approved grant amendment Contract Professional 045- 333 -44000 9,166,318 9,162,526 (3,792) for $128k for project BG1103 Total Capital Projects Fund Increase in Expenditures 182,990 Citywide Grants CEC approved grant amendment Grant Reimb - EECB 080 -350 -30975 81,800 128,008 46,208 for $128k for project BG1103 Lampson Median project cancelled due to current ongoing surrounding construction by West County Grant Reimb - TEG 080 - 362 -30975 888,000 388,000 (500,000) Connector project and City projects. Grant funds was received this fiscal Grant Reimb - OCTA 080 - 361 -30975 1,342,600 1,823,160 480,560 year for project 49750 Grant funds was received this fiscal Grant Reimb - GMA 080 - 360 -30975 0 514,355 514,355 year for project 49750 CEC approved grant amendment Transfer Out - EECB 080 - 350 -47000 131,800 128,008 (3,792) for $128k for project BG1103 Lampson Median project cancelled due to current ongoing surrounding construction by West County Transfer Out - TEG 080 - 362 -47000 888,000 388,000 (500,000) Connector project and City projects. Grant funds was received this fiscal Transfer Out - OCTA 080 -361 -47000 1,342,600 1,823,160 480,560 year for project 49750 Grant funds was received this fiscal Transfer Out - GMA 080 - 360 -47000 0 514,355 514,355 year for project 49750 PASSED, APPROVED AND ADOPTED by the Seal Beach City Council at a regular meeting held on the 27th day of February , 2012 by the following vote: DESCRIPTION ATTEST: City Clerk STATE OF CALIFORNIA } COUNTY OF ORANGE } CITY OF SEAL BEACH } REVISED/ ADOPTED PROPOSED BUDGET (diff) EXPLANATION ACCOUNT BUDGET BUDGET MODIFICATION FOR CHANGE AYES: Council Members NOES: Council Members ABSENT: Council Members ABSTAIN: Council Members Mayor I, Linda Devine, City Clerk of the City of Seal Beach, California, do hereby certify that the foregoing resolution is the original copy of Resolution Number 6224 on file in the office of the office of the City Clerk, passed, approved, and adopted by the Seal Beach City Council at a regular meeting held on the 27th day of February , 2012. City Clerk