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AGENDA STAFF REPORT mt-
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DATE June.26, 2017
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 2017-2018; SET THE
APPROPRIATIONS LIMIT FOR FISCAL YEAR 2017-
2018; AND AUTHORIZE APPROPRIATIONS BY FUND
SUMMARY OF REQUEST:
That the City Council hold a public hearing and adopt:
(1) Resolution No. 6745 adopting the Fiscal Year 2017-2018 Operating
Budget and 5-Year Capital Improvement Program; approving the
Capital Improvement Program budget for Fiscal Year 2017/2018;
setting the Appropriations Limit for Fiscal Year 2017-2018; and
authorizing appropriations by fund.
BACKGROUND AND ANALYSIS:
The City Council held two budget workshops on May 24th and May 30th to
review and solicit public input on the Proposed Budget and 5-Year Capital
Improvement Program for Fiscal Year 2017-2018. 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.
iln 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 H
At the budget 'study.sessions, the estimated surplus was $11 ,000 as presented.
Since then, the proposed 201.7-2018 Schedule of Fees and Charges was
adopted as, proposed. Based upon the adoption of the fees there are no
changes to the proposed budget.
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 2017-2018 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 beach and pier projects. Without the
City's UUT, it would be impossible to continue the aggressive capital
improvement program e stablished 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
2017/2018;,
3. Re-appropriates all encumbrances from Fiscal Year 2016-2017 for
continued use in Fiscal Year 2017-2018;
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 2017-2018 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 20176-2018, the General Fund estimated revenues are projected
to be $30,195,900 compared to operating appropriations and transfers out of
$39,786,000 resulting in an estimated fund balance decrease of $9,590,100.
Included in the appropriations of $39,786,000 is $9,601 ,100 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 $11,000.
RECOMMENDATION:
That the City Council hold a public hearing and adopt:
(1) Resolution No. 6745 adopting the Fiscal Year 2017-2018 Operating
Budget and 5-Year Capital Improvement Program; approving the
Capital Improvement Program budget for Fiscal Year 2017/2018;
setting the Appropriations Limit for Fiscal Year 2017-2018; and
authorizing appropriations by fund.
SUBMITTED = NOTED AND APPROVED:
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Victoria L. Beatley . Ingram, City 3:ger
Director of Finance/City'Treasurer
Attachments:
A. Resolution No. 6745
Page 3
"Attachment A"
RESOLUTION NUMBER 6745
A RESOLUTION OF THE SEAL BEACH CITY COUNCIL
ADOPTING THE FISCAL YEAR 2017-2018 OPERATING
BUDGET AND 5-YEAR CAPITAL IMPROVEMENT PROGRAM,
APPROVING THE CAPITAL IMPROVEMENT PROGRAM
BUDGET FOR FISCAL YEAR 2017-2018, SETTING THE
APPROPRIATION LIMIT FOR FISCAL YEAR 2017-2018, AND
AUTHORIZING APPROPRIATIONS BY FUND
RECITALS
a. On May 24, 2017. and May 30, 2017, the City Council conducted budget
workshops to provide an opportunity to the public to comment on the
proposed budget for Fiscal Year 2017-2018, the 5-Year Capital
Improvement Program, and the Capital Improvement Program Budget for
Fiscal Year 2017-2018.
b. Pursuant to Seal Beach City Charter Article X, the City Council held a duly
noticed public hearing on June 26, 2017 to consider adopting the budget
for Fiscal Year 2017-18 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 110 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 2017-2018 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
$29,177,939 does not exceed the appropriations limit for Fiscal Year
2017-2018 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 26,
2017, the City Council provided an opportunity for the public to comment
on the proposed budget for Fiscal Year 2017-2018, the 5-Year 'Capital
Improvement Program for the period FY 2017/18 — FY 2021/22, the
Capital Improvement Program Budget for Fiscal Year 2017-2018, and the
appropriations limit.
Resolution;Number 6745
NOW THEREFORE, THE SEAL BEACH CITY COUNCIL DOES HEREBY
RESOLVE:
SECTION 1.: That certain document entitled "City of Seal Beach Fiscal Year
2017-2018 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 2017-2018, beginning July 1, 2017 and ending June 30, 2018.
The following list shows the appropriations by each fund:
Resolution Number 6745
Appropriations by Fund
FY 2017-2018
General Fund $ 39,786,000
Street Lighting 196,400
Special Projects 88,600
Waste Management Act 156,800
Supplemental Law Enforcement Grant 116,200
Detention Facility 18,000
Asset Forfeiture - State 4,800
Air Quality Improvement 30,600
Asset Forfeiture - Federal 329,500
Water Operations 4,763,800
Water Capital 12,721,500
Pension Obligation Bond • 1,264,700
Fire Station Bond 522,300
Vehicle Replacement 260,000
Tidelands Fund 5,066,900
Gas Tax 1,543,800
Measure M2 1,601,600
Sewer Operations 1,339,000
Sewer Capital 1,185,500
Capital Projects 12,737,500
Traffic Impact 35,000
Seal Beach Cable 105,000
Community Development Block Grant 180,000
Police Grants 119,400
City Wide Grants 780,000
CFD Landscape 169,800
CFD Heron Pointe 300,000
CFD Pacific Gateway 586,800
CFD Heron Pointe Admin 19,000
CFD Pacific Gateway Admin 249,300
Retirement Fund - Debt Service 151,800
Retirement Obligation Fund 1,211,900
Appropriations 87,641,500
Resolution Number 6745
SECTION 2. Appropriations in the amount not to exceed $87,641,500 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 riot increase the adopted annual budget appropriations.
SECTION 3. All encumbrances from FY 2016-2017 are re-appropriated for
continued use in FY 2017-2018.
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, 2017 and ending June
30, 2018. All capital project appropriation balances from FY 2016-2017 shall be
carried forward for use in FY 2017-2018.
SECTION 5. The City Council hereby establishes an appropriations limit of
$29,177,939 for fiscal year 2017-2018, in full compliance with Article XIIIB of the
State Constitution.
PASSED,, APPROVED, AND ADOPTED by the Seal Beach City Council at a
regular meeting held on 26th day of June, 2017 by the following'vote:
AYES: Council Members:
NOES: Council Members:
ABSENT: Council Members:
ABSTAIN: Council Members:
Sandra Massa-Lavitt, Mayor
ATTEST:
Robin L. Roberts, City Clerk
Resolution Number 6745
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 6745 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 26th day of June, 2017.
Robin L. Roberts, City Clerk