HomeMy WebLinkAbout6-22-20 Budget AdoptionPROPOSED OPERATING & CAPITAL IMPROVEMENT BUDGETFISCAL YEAR 2020-2021CITY OF SEAL BEACHBUDGET WORKSHOPJUNE 4, 20201
FY 2020-21 BUDGET CHALLENGES•Pre-COVID-19 –•Revenues were already expected to slow to a 1% increase from FY 19/20 while expenses were expected to increase by nearly 5% •Cost increases that are unavoidable•2% increase in base salaries for already negotiated contracts•5% increase in PERS costs•Post-COVID-19 – Closures have triggered an economic decline that has now officially become a recession.2
FY 2020-21 PROPOSED BUDGETALL FUNDS3Amended Proposed $ %Budget Budget Increase/ Increase/Description FY 2019-20 FY 2020-21 (Decrease) (Decrease)Revenues 61,815,600$ 57,136,375$ (4,679,225)$ -8%Operating Expenditures 58,143,200 55,189,203 (2,953,997) -5%Net Operating Surplus/(Deficit) 3,672,400 1,947,172 Capital Improvement Program 11,344,200 8,063,000 (3,281,200) -29%Net Surplus/(Deficit) (7,671,800)$ (6,115,828)$
FY 2020-21 PROPOSED BUDGETGENERAL FUND$ 0 Balanced Budget presented at Budget Workshops(140,000) Use of Reserves -COVID‐19 Related Temporary Business Reopening Support Measures560,803 CARES Act funds from County of Orange (Revenue)(560,803) Appropriation for small business grant program using CARES Act funds12,000 Fire appropriation reduction for updated info from OCFA(128,000)REVISED USE OF RESERVES4Amended Proposed $ %Budget Budget Increase/ Increase/Description FY 2019-20 FY 2020-21 (Decrease) (Decrease)Revenues 35,676,400$ 34,692,700$ (983,700)$ -3%Operating Expenditures 37,804,300 34,820,700 (2,983,600) -8%Net Operating Surplus/(Deficit) (2,127,900) (128,000) Transfer Out - CIP 3,416,700 2,987,600 (429,100) -13%Net Surplus/(Deficit) (5,544,600)$ (3,115,600)$
FY 2020-21 SUPPLEMENTAL ITEMS –ONE ITEM•Changes to staff in City Manager’s Office and Finance Department•Eliminate FT Accounting Clerk and PT Management Analyst•Add FT Management Analyst•NO CHANGE IN TOTAL FT PERSONNEL•Would be a resource to work on special projects:•Project management for the IT Master Plan•Project management for IT project implementations•Conduct community outreach •Assist with social media outreach•Assist with accomplishment of Strategic Plans and GoalsResource would assist in meeting City Council Goals 2 and 35
FY 2020-21 SUPPLEMENTAL ITEMS•No Increase in Full-Time Personnel•Results in Cost Savings to City•Allows time for Finance to conduct a needs assessment while utilizing resources needed today6
CAPITAL IMPROVEMENT PROGRAM BUDGET7
Proposed CIP Projects $8,063,000 –By Funding SourceCIP 045, $1,928,000 Water 019, $2,710,000 SB1 RMRA 039, $400,000 Gas Tax 040, $670,000 Measure M2 042, $500,000 Sewer 044, $550,000 Citywide Grants 080, $1,305,000 8
5-Year CIP Program•General Fund:•Lifeguard Headquarters/PD Substation•Tennis Center Locker Room•Main Street Improvements•Tidelands Fund (General Fund Subsidy):•Seal Beach Pier Concrete Abutment Restoration•Pier Restroom Restoration •Beach Planter Rings Replacement•Rivers End Restroom Restoration•Sewer Fund:•Sewer Mainline Improvement Program•6thSt. Alley Waterline/Sewerline Replacement•Water Fund:•Bolsa Chica Water Well Rehabilitation •Lampson Well Head Treatment•LCWA Watermain Lining•Advanced Metering Infrastructure9
1.Adopts the Proposed Operating and Capital Improvement Budget; and, 2.Authorizes the Financial and Budget policies in the Proposed Fiscal Year 2020‐21 Operating and Capital Improvement Budget 3.Authorizes the City Manager to issue salary adjustments of 2% for all contracts in effect on July 1, 2020, including: Mid‐Management and Confidential; Seal Beach Supervisors and Professionals Association; Orange County Employees Association; Seal Beach Marine Safety Management Association; and a 0.07% salary adjustment for Executive Management employees representing CPI as of April 2020Establishes the Appropriations Limit for Fiscal Year 2020‐21 required under Article XIIIB of the State Constitution; and, 4.Authorizes the City Manager to delegate purchasing authority to Department Heads. 5.Authorizes the continuation of the Fiscal Year 2019‐20 Cost Recovery Schedule for use in Fiscal Year 2020‐21.10BUDGET RESOLUTION