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HomeMy WebLinkAboutItem H,©0 G October 23, 2000 STAFF REPORT TO: Mayor Campbell and Members of the City Council ATTN: Donald F. McIntyre, Interim City Manager FROM: Pamela Arends-King, Director of Administrative Services/Treasurer SUBJECT: 1999/2000 FINAL BUDGET AMENDMENTS SUMMARY OF REQUEST: City Council to approve a Resolution authorizing final budget amendments for the 1999/2000 fiscal year DISCUSSION: We have completed the fiscal year 1999/00 closing. The proposed budget amendment adjusts funds so that departmental expenditures at variance from the 1999/00 budget are appropriately recorded and adjusts estimated revenues to reflect actual amounts received. Utility Users Tax revenue was 8% higher than estimated due to an increase in consumer usage and Sales Tax revenue was 7% higher than estimated due to the healthy economy. Cable Franchise Fees exceeded the budgeted amount by 36% due to increase consumer usage and advertising revenues and the Motor Vehicle in Lieu revenues exceeded the budgeted figure by 11%. The largest adjustment for the General Fund is the transfer out of $616,969. This adjustment consists of a $37,917 increase in the transfer out to the Recreation Fund due to the increase in personnel costs for leave pay -downs and step increases and a $579,052 increase in the transfer out to the Tidelands Beach Fund to eliminate a deficit fund balance from prior year. The City Manager's budget adjustment is due to the use of a part-time employee for Fridays and the full- time salaries adjustment is due to leave/vacation pay -downs according to MOU guidelines and step increases. The City Attorney's increase in budgeted expenditures is due to unexpected litigation expenses. Contract and professional services for the Building and Safety department is due to an increase in building activity which is offset by plan check revenue. Increase in the annual pavement project is due to an annual pavement contract encumbered June 1999 and completed during 1999/2000. The increase in part/time salaries for the Landscape Department is due to the delay in hiring a contract landscape company. The increase of machinery and equipment for this department is due to the lease/purchase of a tractor that was budgeted for fiscal year 1998/99. General Fond revenues for fiscal year 1999/00 exceeded budgeted figures by six percent and the revenues exceeded expenditures by one percent, therefore the adjustments for the 1999/00 budget did not effect the City's economic goals for that fund. All other departmental adjustments are to account for emergency purchases, expenditures budgeted in fiscal year 1998/99 but spent in 1999/00 and special projects that Agenda Item October 23, 2000 Staff Repot— /999/2000 Fina! Budget Amendments Page 2 arose after the 1999/00 budget adoption The Public Liability Insurance Fund covers the liability insurance costs, claims administration costs and any claims settlements the City may incur. The adjustment for claims administration is due to expensing the total amount owed to the attorney that administers the City's liability claims, for services rendered in fiscal year 1999/00 and prior fiscal years. The actual expense for Public Claims Administrations for 1999/00 was $561,137.27. Of this amount the City has an unpaid balance to the attorney for his services rendered of $195,000. The increase in settlements for the Public Liability Fund is due to unexpected litigation settlements. The settlement of the claims was funded by the reserve of fund balance for claims. The increase in expenditures for the Supplemental Law Enforcement Grant is due to the uncertainty of how the funds received would be expended. The adjustment in the Detention Facilities Fund is due to increased use of the jail facilities that were offset with revenue received for services rendered. The increase in expenditures for the Air Quality Improvement Fond is due to the acquisition of a alternative fuel vehicle for the police department approved by City Council June 12, 2000. The adjustment for the Park Improvement Fund is due to the City's share of the McGaugh School Pool renovation. The funds to offset this expense were an accumulation of park improvement fees from construction. The Recreation Department adjustment for contract professional services was offset with revenue for leisure classes and increase in skate park expenses were offset by skate park fees. The adjustment for full-time salaries for the recreation department is due to vacation/leave paydowns in accordance with MOU guidelines and step increases. The adjustment to part-time salaries for the Tidelands Beach fund is due to underestimating the actual part-time employment needed to run the lifeguard department efficiently. The increase in part-time salary expenditure for the Junior Lifeguard Program was offset by revenue collected for the program. FISCAL IMPACT: This is a budgetary alignment only and does not have any fiscal impact. %LaX �� -4 -a Pamela Arends-King Director of Administrative Services/Treasurer Donald F. Mclntyr Interim City Manager