HomeMy WebLinkAboutItem X AGENDA STAFF REPORT
DATE: June 27, 2016
TO: Honorable Mayor and City Council
THRU: Jill R. Ingram, City Manager
FROM: Victoria L. Beatley, Director of Finance/City Treasurer
SUBJECT: ADOPT THE OPERATING BUDGET AND 5-YEAR
CAPITAL IMPROVEMENT PROGRAM (CIP); APPROVE
THE CIP BUDGET FOR FY 2016-2017; SET THE
APPROPRIATIONS LIMIT FOR FISCAL YEAR 2016-
2017; AND AUTHORIZE APPROPRIATIONS BY FUND
SUMMARY OF REQUEST:
That the City Council hold a public hearing and adopt:
(1) Resolution No. 6665 adopting the Fiscal Year 2016-2017 Operating
Budget and 5-Year Capital Improvement Program; approving the
Capital Improvement Program budget for Fiscal Year 2016/2017;
setting the Appropriations Limit for Fiscal Year 2016-2017; and
authorizing appropriations by fund.
BACKGROUND AND ANALYSIS:
The City Council held two budget workshops on June 2nd and June 1 3th to review
and solicit public input on the Proposed Budget and 5-Year Capital Improvement
Program for Fiscal Year 2016-2017. The City Charter requires that the City
Council hold this public hearing prior to the adoption of the budget.
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, residents, and visitors of Seal Beach.
In addition to being made available on the City's website, 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.
Agenda Item X
At the budget study sessions, the estimated surplus increased from $17,100 to
$186,700. The primary reason for the change was the removal of $150,000 for
the Sand Back Pass. As a result of the surplus increase, the City Council made
two changes to the Proposed Budget. The changes are as follows:
1. Continued to fund $100,000 for City Council Discretionary funds,
$20,000 per Council District, and
2. Add one full-time Marine Safety Officer position, with an estimated cost
of approximately $67,500.
In addition, per Ordinance No. 1643 Section 4.50.125 of the City Municipal Code
requires that the rate of Utility Users Tax (UUT) be reviewed annually. Based on
the Fiscal Year 2016-2017 revenue projections, UUT is the third largest revenue
source to the General Fund providing $4.5 million of General Fund revenue.
The UUT funds several capital improvement projects needed in the City; such as
street improvements, storm drains, and beaches and 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. The current Utility Users' Tax rate is 10% on
electric, gas, and telecommunications and 9% on pre-paid wireless services.
The attached resolution approving the City's Operating Budget and 5-Year
Capital Improvement Program:
1. Adopts the Proposed Operating Budget and 5-Year Capital Improvement
Program;
2. Approves the Capital Improvement Program budget for Fiscal Year
2016/2017;
3. Re-appropriates all encumbrances from Fiscal Year 2015-2016 for
continued use in Fiscal Year 2016-2017;
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 2016-2017 required
under Article XIIIB of the State Constitution.
ENVIRONMENTAL IMPACT:
There is no environmental impact related to this item.
LEGAL ANALYSIS:
There is no legal analysis required for this item.
Page 2
FINANCIAL IMPACT:
For Fiscal Year 2016-2017, the General Fund estimated revenues are projected
to be $29,934,800 compared to operating appropriations and transfers out of
$38,270,800 resulting in an estimated fund balance decrease of $8,336,000.
Included in the appropriations of $38,270,800 is $8,352,900 for Capital
Improvement projects. As a result of the changes highlighted in the staff report,
General Fund revenues exceed operating expenditures and operating transfers
by $16,900.
RECOMMENDATION:
That the City Council hold a public hearing and adopt:
(1) Resolution No. 6665 adopting the Fiscal Year 2016-2017 Operating
Budget and 5-Year Capital Improvement Program; approving the
Capital Improvement Program budget for Fiscal Year 2016/2017;
setting the Appropriations Limit for Fiscal Year 2016-2017; and
authorizing appropriations by fund.
SUBMITTED BY: NOTED AND APPROVED:
, Aagillif
AIL ilitt
Victoria L. Beatley i ill . Ingram, City Si:ger
Director of Finance/City Treasur-
Attachments:
A. Resolution No. 6665
Page 3
Attachment "A"
RESOLUTION NUMBER 6665
A RESOLUTION OF THE SEAL BEACH CITY COUNCIL
ADOPTING THE FISCAL YEAR 2016-2017 OPERATING
BUDGET AND 5-YEAR CAPITAL IMPROVEMENT PROGRAM,
APPROVING THE CAPITAL IMPROVEMENT PROGRAM
BUDGET FOR FISCAL YEAR 2016-2017, SETTING THE
APPROPRIATION LIMIT FOR FISCAL YEAR 2016-2017, AND
AUTHORIZING APPROPRIATIONS BY FUND
RECITALS
a. On June 2, 2016 and June 13, 2016, the City Council conducted budget
workshops to provide an opportunity to the public to comment on the
proposed budget for Fiscal Year 2016-2017, the 5-Year Capital
Improvement Program, and the Capital Improvement Program Budget for
Fiscal Year 2016-2017.
b. Pursuant to Seal Beach City Charter Article X, the City Council held a duly
noticed public hearing on June 27, 2016 to consider adopting the budget
for Fiscal Year 2016-17 and the 5-Year Capital Improvement Program.
Copies of the proposed budget have been available for inspection by the
public in the City Clerk's Office and on the City's website at least 10 days
prior to the public hearing.
c. On November 6, 1979, the voters of California added Article XIII B to the
State Constitution placing various limitations on the appropriations of the
State and local governments. Article XIII B provides that the
appropriations limit for the Fiscal Year 2016-2017 shall not exceed the
appropriations limit for the prior year adjusted for the change in the cost of
living and the change in population. The proposed appropriations limit of
$28,179,039 does not exceed the appropriations limit for Fiscal Year
2016-2017 adjusted for the change in the cost of living and the change in
population.
d. At the duly noticed workshops and the public hearing held on June 27,
2016, the City Council provided an opportunity for the public to comment
on the proposed budget for Fiscal Year 2016-2017, the 5-Year Capital
Improvement Program for the period FY 2016/17 — FY 2020/21, the
Capital Improvement Program Budget for Fiscal Year 2016-2017, and the
appropriations limit.
Resolution Number 6665
NOW THEREFORE, THE SEAL BEACH CITY COUNCIL DOES HEREBY
RESOLVE:
SECTION 1. That certain document entitled "City of Seal Beach Fiscal Year
2016-2017 Operating Budget", a copy of which is on file in the office of the City
Clerk and on the City's website, which may hereafter be amended by the
Council, is hereby approved as the operating budget for the City of Seal Beach
for the Fiscal Year 2016-2017, beginning July 1, 2016 and ending June 30, 2017.
The following list shows the appropriations by each fund:
Resolution Number 6665
Appropriations by Fund
FY 2016-2017
General Fund $ 38,270,800
Street Lighting 185,100
Special Projects 100,000
Supplemental Law Enforcement Grant 116,200
Detention Facility 15,000
Asset Forfeiture - State 4,800
Air Quality Improvement 30,000
Asset Forfeiture - Federal 124,300
Water Operations 4,624,400
Water Capital 12,337,600
Pension Obligation Bond 1,221,700
Fire Station Bond 535,000
Vehicle Replacement 1,226,000
Tidelands Fund 5,548,600
Gas Tax 1,132,000
Measure M2 1,050,000
Sewer Operations 1,213,300
Sewer Capital 2,119,100
Capital Projects 11,596,500
Traffic Impact 330,000
Seal Beach Cable 294,000
Community Development Block Grant 180,000
Police Grants 179,000
City Wide Grants 974,000
CFD Landscape 191,200
CFD Heron Pointe 294,000
CFD Pacific Gateway 587,400
CFD Heron Pointe Admin 19,000
CFD Pacific Gateway Admin 238,300
Retirement Fund - Debt Service 192,300
Retirement Obligation Fund 1,038,000
Appropriations 85,967,600
SECTION 2. Appropriations in the amount not to exceed $85,967,600 are
authorized for the purpose of carrying on the business of the City. 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.
Resolution Number 6665
SECTION 3. All encumbrances from FY 2015-2016 are re-appropriated for
continued use in FY 2016-2017.
SECTION 4. The City Council hereby adopts the 5-Year Capital Improvement
Program for the City of Seal Beach, and approves the Capital Improvement
Program Budget for the fiscal year commencing July 1, 2016 and ending June
30, 2017. All capital project appropriation balances from FY 2015-2016 shall be
carried forward for use in FY 2016-2017.
SECTION 5. The City Council hereby establishes an appropriations limit of
$28,179,039 for fiscal year 2016-2017, in full compliance with Article XIIIB of the
State Constitution.
Resolution Number 6665
PASSED, APPROVED, AND ADOPTED by the Seal Beach City Council at a
regular meeting held on 27th day of June, 2016 by the following vote:
AYES: Council Members
NOES: Council Members
ABSENT: Council Members
ABSTAIN: Council Members
Mayor
ATTEST:
City Clerk
STATE OF CALIFORNIA }
COUNTY OF ORANGE } SS
CITY OF SEAL BEACH }
I, Robin L. Roberts, City Clerk of the City of Seal Beach, do hereby certify that
the foregoing resolution is the original copy of Resolution Number 6665 on file in
the office of the City Clerk, passed, approved, and adopted by the Seal Beach
City Council at a regular meeting held on 27th day of June, 2016.
City Clerk