Loading...
HomeMy WebLinkAboutItem H ,� seaie� f6 . 9i1 AGENDA STAFF REPORT mt- _ , �.„. 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: SIP � n► 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