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Home My WebLink AboutCC AG PKT 2012-06-25 #K �' SEAC'e.� V��9� AGENDA STAFF REPORT . = 1 �'C'4•4I ORN� r- DATE: June 25, 2012 TO: Honorable Mayor and City Council THRU: Jill R. Ingram, City Manager FROM: Shally S. Lin, Interim Director of Finance/City Treasurer SUBJECT: ADOPT THE OPERATING BUDGET, 5-YEAR CAPITAL IMPROVEMENT PROGRAM, SUCCESSOR AGENCY TO THE SEAL BEACH REDEVLOPMENT AGENCY BUDGET, AND ESTABLISH APPROPRIATIONS LIMIT FOR FISCAL YEAR 2012/13 SUMMARY OF REQUEST: That the City Council adopt Resolution No. 6271 adopting the Operating Budget, the 5-Year Capital Improvement Program, the Successor Agency to the Seal Beach Redevelopment Agency Budget, and establishing the Appropriations Limit for Fiscal Year 2012/13. BACKGROUND AND ANALYSIS: The City Council held two (2) budget workshops in May to review and solicit public input on the Proposed Budget and 5-Year Capital Improvement Program for Fiscal Year 2012/13. The proposed budget was prepared based on City Council goals and state and federal mandates with consideration given to preserving core services that the City provides to the businesses and residents of Seal Beach. Copies of the proposed budget were made available to the public for purchase at the City Clerk's office and copies were distributed to the libraries for interested parties to review. Notice of the public hearing was published as required by law in the Sun Newspaper. At the budget study sessions, the City Council directed staff to make modifications to the Proposed Budget and 5-Year Capital Improvement Program based upon community input and Council recommendations. Some of the more significant changes were as follows: Agenda Item K 1. Addition of$538,000 for Main Street improvements; 2. Addition of$310,000 transfer to Vehicle Replacement Fund; 3. Addition of$100,000 for the fleet equipment upgrade; 4. Addition of$20,000 for helicopter/noise study; 5. Addition of$10,000 for design of City's entry monuments; 6. Addition of$37,000 for the tennis center resurfacing/improvement; and 7. Elimination of$4,200 in the City Clerk auto allowance. The salaries and benefits were adjusted for the April Consumer Price Index (CPI) of 1.5% with a minimum of 2.0% adjustment per POA and PMA MOUs. Previously, salaries and benefits had been calculated using a 2.5% CPI. In addition, per Ordinance No. 1610 Section 4.50.070 of the City Municipal Code requires that the rate of Utility Users Tax (UUT) be reviewed annually. Based on the Fiscal Year 2012/13 revenues projection, UUT is the second largest revenue source to the General Fund providing $5.3 million or 19% of General Fund revenue. The UUT funds several capital improvement projects needed in the City; such as street improvements, storm drains, and beaches & pier projects. Without the City's UUT, it would be impossible to continue the aggressive capital improvement program established by the City and maintain the City's core services at the current levels. It is not feasible to reduce the UUT for Fiscal Year 2012/13. The attached resolution approving the City's Operating Budget, Successor Agency to the Seal Beach Redevelopment Agency Budget, and 5-Year Capital Improvement Program includes the following actions: 1. Adopt the Proposed Operating Budget and 5-Year Capital Improvement Program as modified by the City Council at the budget study sessions held in May; 2. Adopt the Proposed Successor Agency to the former Seal Beach Redevelopment Agency Fiscal Year 2012/13 Budget; 3. Re-appropriate all encumbrances from Fiscal Year 2011/12 for continued use in Fiscal Year 2012/13; 4. Authorizes the City Manager to make appropriation transfers within functions and programs as long as such transfers do not increase the adopted annual budget appropriations; and 5. Establishes the Appropriations Limit for Fiscal Year 2012/13 required under Article XIIIB of the State Constitution. ENVIRONMENTAL IMPACT: There is no Environmental Impact related to this item. Page 2 LEGAL ANALYSIS: No legal analysis is required for this item. FINANCIAL IMPACT: For Fiscal Year 2012/13, the General Fund estimated revenues are projected to be $27,743,300 compared to operating appropriations and transfers out of $31,625,365 resulting in an estimated fund balance decrease of $3,882,065. Included in the appropriations of $31,625,365 is $3,981,880 for Capital Improvement projects. Therefore, the operating expenditures and transfers out are $27,643,485, which results in operating revenues exceeding operating expenditures by $99,815. RECOMMENDATION: That the City Council adopt Resolution No. 6271 adopting the Operating Budget, the 5-Year Capital Improvement Program, the Successor Agency to the Seal Beach Redevelopment Agency Budget, and establishing the Appropriations Limit for Fiscal Year 2012/13. SUBMITTED BY: NOTED AND APPROVED: 2 /.Shally L, a:11:R . Ingram, Cit nager Interim Director of Finance/City Treasurer Prepared by: Alayna Hoang, Senior Accountant Attachments: A. Resolution No. 6271 B. Budget Changes Copies available for review at the City Clerk's office and City's website: www.sealbeachca.gov • Operating Budget FY 2012/13 • Successor Agency to the Seal Beach Redevelopment Agency Budget FY 2012/13 • 5-year CIP Page 3 RESOLUTION NUMBER 6271 A RESOLUTION OF THE SEAL BEACH CITY COUNCIL ADOPTING THE FISCAL YEAR 2012/13 OPERATING BUDGET,5-YEAR CAPITAL IMPROVEMENT PROGRAM, SUCCESSOR AGENCY TO SEAL BEACH RDA BUDGET, SETTING THE APPROPRIATION LIMIT FOR FISCAL YEAR 2012, AND AUTHORIZING APPROPRIATIONS BY FUND THE SEAL BEACH CITY COUNCIL DOES HEREBY RESOLVE: Section 1 To adopt the Fiscal Year 2012/2013 Operating Budget and 5-Year Capital Improvements Plan for the City of Seal Beach for the fiscal year commencing July 1,2012 and ending June 30,2013. Said budgets to control expenditures in the following amounts which reflect interfund transfers and charges: Appropriations by Fund FY 2012/13 General Fund $31,625,365 Street Lighting 199,500 Supplemental Law Enforcement Grant 151,010 Detention Facility 25,000 Asset Forfeiture-State 4,769 Air Quality Improvement Fund 30,800 Asset Forfeiture-Federal - Park Improvement 57,000 Water Operations Enterprise Fund 3,788,316 Water Capital Fund 3,563,158 Pension Obligation Bond 1,558,775 Fire Station Bond 597,246 Vehicle Replacement 405,861 Tidelands Fund 1,435,899 Gas Tax 952,000 Measure M 550,000 Sewer Operations 8,069,849 Sewer Capital 753,008 Capital Projects 6,086,880 Parking In Lieu 198,000 Community Development Block Grant 180,000 Police Grants 78,975 Traffic Relief - City Wide Grants 650,000 Ad94-1 Redemption F 136,534 CFD Landscape 76,074 CFD Heron Pointe 284,509 CFD Pacific Gateway 543,795 CFD Heron Pointe Admin 22,400 CFD Pacific Gateway Admin 65,500 Redevelopment Obligation Retirement Fund-SA to SB RDA Retirement Fund-Riverfront 2,866,627 Retirement Fund-Debt Service 729,690 Retirement Fund-Tax Increment 1,791,860 Appropriations $67,478,600 Section 2 That all encumbrances from FY 2011/12 are re-appropriated for continued use in FY 2012/13 Resolution Number 6271 Section 3 That all capital project appropriation balances from FY 2011/12 are carried forward for use in FY 2012/13 Section 4 That the City Manager is hereby authorized to make appropriation transfers within and between functions and programs,in accordance with Fiscal Policy,as long as such transfers do not increase the adopted annual budget appropriations. Section 5 That for fiscal year ending June 30,2013 the City of Seal Beach establishes an appropriations limit of$24,051,871,thereby demonstrating compliance with Article XIIIB of the State Constitution. PASSED,APPROVED AND ADOPTED by the City Council of the City of Seal Beach at a meeting hereof held on the 25th day of June,2012 by the following vote: AYES: Councilmembers NOES: Councilmembers ABSENT: Councilmembers ABSTAIN: Councilmembers Mayor ATTEST: City Clerk STATE OF CALIFORNIA } COUNTY OF ORANGE } SS CITY OF SEAL BEACH } I,Linda Devine,City Clerk of Seal Beach,California,do hereby certify that the following resolution is the original copy of Resolution Number 6271 on file in the office of the City Clerk,passed,approved,and adopted by the City Council of the City of Seal Beach,at a regular meeting thereof held on the 25th day of June ,2012. City Clerk Budget Changes FY 2012/13 Upcoming 06/25/12 Council Meeting General Fund: Original Reiised, Variance EXPENDITURES 001-010-40300 Membership 16,500 25,500 9,000 ACCOC 001-010-40802 Special Exp.-Comm.Input Proj - 5,000 5,000 Concerts&Permits(Chamber) 001-012-40008 Auto Allowance 4,200 - (4,200) Elimination City Clerk auto allowance 001-042-40802 Special Exp.-Comm.Input Proj - 30,000 30,000 Helicopter/noise study/entry monument 001-044-40802 Special Exp.-Comm.Input Proj - 3,500 3,500 Girl Scott House 001-080-47000 Transfer Out 6,697,029 7,057,029 360,000 Various CIP project 001-080-47010 Vehicle/Equipment Replacement - 310,000 310,000 Transfer to Vehicle Repl Fund 713,300 Other Funds: REVENUES 021-000-31500 Transfer In - 310,000 310,000 Transfer in from GF 045-000-31500 Transfer In 5,491,880 6,186,880 695,000 Various CIP projects 1,005,000 EXPENDITURES 016-800-47000 Transfer Out 20,000 57,000 37,000 Project PR1202&PR1203 021-980-47000 Transfer Out - 100,000 100,000 Project BG1207 045-333-44000 Contract Professional 5,491,880 6,186,880 695,000 Various CIP projects 048-400-47000 Transfer Out 150,000 198,000 48,000 Project ST1203 080-361-47000 Transfer Out 500,000 650,000 150,000 Project ST1106 1,030,000 Capital Projects: General Fund ST1206 Street Tree Planting Program 10,000 20,000 10,000 ST1203 Main Street Lighting(Assigned FB) - 490,000 490,000 BG1203 Underground Tank Remediation - 10,000 10,000 ST1106 College Park Drive-Studebaker 150,000 - (150,000) Total 360,000 Park Improvement(Fund 016) - PR1202 Heather Prk light improv/Tennis Center Resurface 10,000 22,000 12,000 PR1203 Tennis Center Improvement - 25,000 25,000 Total 37,000 Vehicle/Equipment Replacement(Fund 021) BG1207 Fleet Equipment Upgrade - 100,000 100,000 Total 100,000 Parking In Lieu(Fund 048) ST1203 Main Street Lighting 150,000 198,000 48,000 Total 48,000 Citywide Grant(Fund 080.361) ST1106 College Park Drive-Studebaker 500,000 650,000 150,000 Total 150,000 General Fund Balance: Revenue over Expenditures as of 05/30/012 Meeting 428,707 City Clerk-Auto Allowance 4,200 POA/PMA 24,408 Vehicle Replacement (310,000) Helicopter/Noise Study (20,000) Entry Monument (10,000) Concerts (5,000) Girls scout Pavers (3,500) ACCOC Membershi. 9,000 Net Revenues over Expenditures S';99,815, • RA-WORKING STAFF REPORTS 06-25-12\FD-Staff Report-Adopt 2012-13 Budget(attachment-budget changes)6/16/20121:21 PM