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Home My WebLink AboutSupplemental Information - Moore - BudgetRobin Roberts From: Jill Ingram Sent: Thursday, June 22, 2017 3:49 PM Cc: Craig A. Steele (CSteele@mglaw.com); Executive Team; Alayna Hoang Subject: RE: Budget Questions Attachments: 2017 - 2018SB- Budget Questions.pi f BCC: CITY COUNCIL Attached are staff responses to Councilman Moore's questions regarding Agenda Item H on the June 26`h Council Agenda (FY 17 -18 Operating Budget /5 -Year CIP). Please call if you have any additional questions and /or staff can address at the public hearing on Monday night as well. Jill R. Ingram, City Manager City of Seal Beach - 211 Eighth Street, Seal Beach, CA 90740 (562) 431 -2527, Ext. 1300 For Information about Seal Beach, please see our city website: hftp,ih w.sealbeachca.gov NOTICE: This communication may contain privileged or other confidential information. If you are not the intended recipient of this communication, or an employee or agent responsible for delivering this communication to the intended recipient, please advise the sender by reply email and immediately delete the message and any attachments without copying or disclosing the contents. Thank you. From: Thomas Moore Sent: Tuesday, June 20, 2017 9:34 PM To: Vicki Beatley Cc: Jill Ingram Subject: Budget Questions Having had more time to review the budget the last few weeks, here is a list of questions I put together Thank you! -Tom Sincerely, r%UH1 Thomas Moore Council Member, District 2 — Leisure World, College Park West and Rossmoor Center City of Seal Beach - 211 Eighth Street, Seal Beach, CA 90740 (562) 431 -2527 x1502 2017 -2018 Budget Questions — Thomas Moore Here are my questions /comments: Police — There is an increase in position allocation of 1 full time equivalent (increase in crossing guard time). The increase in Crossing Guards is.72 FTE's. There is no Increase in the number of staff, just an increase in the hours worked. When we need addl. officers, is more crossing guards the best use of funds? The cost increase is approximately $26,000. Page 15: 101 AD 94 -1 Rdmtn F — What is this? Surfside Colony Reassessment District. Why no longer in budget? The final debt service payment was made in September 2015. Page 16: In the box at the bottom of the page there is 310,000 Vehicle Replacement mentioned. I believe this is a mistake left in from last year's budget. Thank you, this page has been corrected in the final version. Water Operations: On page 233, why is depreciation missing for 2016/2017 estimated and 2017/2018 proposed budget? With the change In audit firms staff had a discussion regarding depreciation. Although a depreciation calculation is performed annually, there is no accounting requirement to budget depreciation. Vehicle Replacement: On page 237, why is depreciation Rem missing for 2016/2017 estimated and 2017/2018 proposed budget? See response above. Page 19: What is Property Tax— Other? These are various to payments that are the result of assessments on railroads, public utilities, pass - thru's, delinquent payments, etc. Why 120k lower than 2014/2015? Primarily due to the decline in the pass -thru, residual, and delinquent payments. What are Electric Franchise Fees? Payments from Southern California Edison for the right to provide services to the City. Why 40K lower than 2015/2016? Primarily due to a change approved by the PUC in the calculation of municipal service revenues on which the franchise fees are calculated. Why is Animal License 25K higher than budgeted 2016/2017? Fee Increases. Page 20: Engineering Inspection Fees —why so much lower? 30K to 2.5K These fees are based upon the departments expected level of activity during the year. and is 001 -000 -30873 the same as 001- 042- 30815? No, the first is for inspections performed and the second is for permits issued. Page 21: Tennis Center Services —why budgeted so high at 294K in 2016? Based upon discussions with Recreation staff, there was an unrealistic expectation of the increased level of activities at the Tennis Center for the current fiscal year. Other Interest Income —what is this? Itdepends. In 2015 -2016 there was a payment by the State of California for interest on unfunded mandate claims that the City had filed. What is Prior Year Revenues item? Again, it depends. Each year there are some revenue payments that come to the City late that are attributable to a prior fiscal year. So as to not skew the historical revenue payments, any revenues received are posted to this account. In 2015 -2016 the largest component was for the payment of unfunded mandate claims previously filed. Page 23: Tidelands Beach — Transfer in — CIP / Transfer in — operations // can you explain how this works? I just want to understand this. Thanks. Tidelands (Marine Safety and beach maintenance) is supported by the General Fund. If there is not enough revenue generated in the Tidelands fund, an operating transfer in will be made from the General Fund to balance the Tidelands fund. If there is a need in Tidelands for a capital project, the item will show in the CIP budget. The CIP receives funding from Fund 045, so a transfer is made. Leisu re Program Fees — Curious what this is? Payments from users of the City's recreation programs. Gas Tax -040— Road Maintenance Rehab/ Loan Repay — what is $173,300? Is this a one -time payment? This is a new revenue source based upon the passage of the State's gas tax increase. No, this revenue will appear annually. Page 31: Can you explain the difference between the operating fund and capital fund for water /sewer? There is a detailed description on page 231 of the budget. Generally speaking, the revenue that comes to the City from the water users are comprised of two payments for water. The Water Service goes to fund the daily operations performed by the Water division. The Water Capital payment is used to complete water infrastructure projects. Page 39: Information Systems Technology — Will send a separate email regarding contract /invoice. Parking Enforcement -This contract was cancelled and council needs to approve new contract, in any case so why not put into "unassigned funds'? I am not sure of the reference to a cancelled contract. In the context of this page, Parking Enforcement is a division of Public Safety. Page 92 and 93 detail the cost for the division. Landscape Maintenance In 2015/2016 actual is 182,414; In 2016/2017 estimated is 500,000 and projected is 602,100 for this year. 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