HomeMy WebLinkAboutFin Budget Amendments FY2015-16C/rY OF�
Agenda Item No: 5_a
Meeting Date: December 7, 2015
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: FINANCE
Prepared by: Mark Moses City Manager Approval:
Finance Director
TOPIC: INTERIM FINANCIAL UPDATE AND BUDGET AMENDMENTS TO
REFLECT OPERATIONAL ACTIVITY AND CITY MANAGER
RECOMMENDATIONS
SUBJECT: (1) FIRST FISCAL YEAR 2015-2016 INTERIM FINANCIAL UPDATE
(2) CITY MANAGER RECOMMENDATIONS
(3) RESOLUTION AMENDING FISCAL YEAR 2015-2016 BUDGET
RECOMMENDATION: ADOPT RESOLUTION
BACKGROUND: The Finance Department performs an ongoing review of the City's financial
performance, and provides monthly reports on the General Fund to the City Council Finance
Committee. This report presents the City's financial condition in the current fiscal year (2015-2016)
based on actual revenue and expenditure performance for the period July 1 through
November 30, 2015, and budget actions taken through November 30, 2015, as compared to the
budget approved by City Council on May 18, 2015.
Based on this review and analysis, revisions are recommended to address the following categories:
(1) Revenue projections
(2) Expenditure plan changes
Additional expenditure plan changes are presented in combination with the City Manager's
recommended use of specified, available funds.
The major General Fund content of this report and staff recommendations were reviewed by the
City Council Finance Committee (Mayor Phillips and Councilmember Colin) at its December 3
public meeting.
FOR CITY CLERK ONLY
File No.: 8-5
Council Meeting: 12/07/2015
Disposition: Resolution 14043
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Paae: 2
ANALYSIS:
GENERAL FUND:
Revenues and Other Sources: The table below presents the proposed changes to General Fund
revenues and transfers in, which add $615,000 to total sources.
Revenues: Since the budget adoption in May 2015, there have not yet been any changes to the
projected revenues of $72,394,767, or transfers in of $1,357,349. The revenue forecast has been
increased by $877,287, of which $262,287 represents a reclassification of the projected transfer in
from San Rafael Sanitation District (SRSD) for administrative services. This reclassification is
required by the City to align the budget with a recent change in accounting methodology. The other
revenue adjustments, which impact property tax, franchise tax, permits and licenses and transient
occupancy tax, were all made to bring the fiscal year 2015-2016 projections in line with the actual
ending results for fiscal year 2014-2015.
Transfers in are being reduced by $262,287 to provide for the revenue reclassification discussed
previously.
The ongoing impact of these projections was incorporated into the three year projections presented
to the City Council at its workshop of October 26, 2015.
Revenues and Other Public Sources:
Figure I
Revenues
Property Tax — true up projections to FY14-15 actual
$75,000
Franchise Tax — true up projections to FYI 4-15 actual
(110,000)
Permits & Licenses — true up projections to FY14-15 actual
400,000
Transient Occupancy Tan — true up projections to FYI 4-15 actual
250,000
Charges for Services — SRSD admin now recorded as revenue
262,287
Total proposed revenue changes
877,287
Transfers in
SRSD admin now recorded as revenue
(262,287)
Total proposed transfers in changes
262,287
Total proposed changes to General Fund sources
615,000
Revenues and Transfers in as adopted fiscal year 2015-2016
73,752,116
Revenues and Transfers in as adjusted through December 1, 2015
$74,367,116
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Pa2e: 3
Expenditures and Other Uses:
Since budget adoption, the only changes to the general fund expenditures and transfers out are the
incorporation of purchase order commitments of $115,665 from the previous year, and the approval
of a Measure E - Public Safety Facilities improvement contract of $147,061. (These changes are
incorporated into Figures, 2, 5, 6 and 8.)
Figure 2
Expenditures and Transfers out as adopted fiscal year 2015-2016 $69,481,296
Expenditures and Transfers out as adjusted through November 30, 2015 1 $69,744,022
Inventory of available funds as of December 1, 2015 / City Manager's Recommendations:
The following available funds were discussed by the City Council at its public workshop of
October 26, 2015. Council considered these funds and the potential uses, including additional
contributions to MCERA, additional contributions to OPEB, department staffing priorities, various
infrastructure needs and major technology projects.
Figure 3
Available funds
Unassigned funds as of June 30, 2015 $1,588,500
Unprogrammed projected operating results FY15-16 652,838
Total available funds $2,241,338
Based on the feedback provided by the City Council, the City Manager is recommending the
following programming of these funds:
Figure 4
Recommendations
FY 15-16
FY 16-17
FY 17-18
FY 18-19
Total
Add two police officers
through FYI 7/18; manage
$225,000
$450,000
$450,000
$1,125,000
headcount through attrition
Housing & Homeless Policy:
31,250
62,500
62,500
31,250
187,500
fixed term position — 3 years
4th St Beat patrol
150,000
150,000
through FY 2016-17
Massage Enforcement
80,000
80,000
through FY 2016-17
Technology hn rovements
250,000
250,000
Total
$506,250
$742,500
$512,500
$31,250
$1,792,500
The City Manager's recommendations are focused on enhancing public safety police patrol,
providing dedicated management oversight to the homeless initiatives, continuing the support to
downtown businesses by extending the additional 4th Street beat patrol and dedicated enforcement
of the massage ordinance through fiscal year 2016-2017.
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Paae: 4
The City Manager also proposed the extension of the single, fixed -term Police Officer position
assigned to downtown beat patrol to support Mental Health Outreach Provider through June 30,
2017. This position, filled with a regular employee, was originally established as a three-year
position expiring June 30, 2016.
While these recommendations satisfy only a portion of the City's broader priority needs, they do
preserve approximately $450,000 for future General Fund programming and leave the $600,000 set-
aside in the infrastructure reserve available for contributions to capital and maintenance.
These recommendations have the following impact on the City's General Fund fiscal year
2015-2016 expenditure budget and headcount:
Figure 5
Expenditures and Transfers out as adjusted through
December 1, 2015 $69,744,022
Staffing & Personnel (3 positions @ 6 months)
256,250
Technology contribution
250,000
Total Appropriations
$70,250,272
• Add: 1 Fixed -term (3 year) Housing & Homeless Policy management position
• Add: 2 Police Officers (to be filled with regular employees; however additional headcount
authorization expires June 30, 2018.
The two police officers will be assigned to the Patrol Division, a division that must be fully staffed
at all times. Under present staffing levels, when injuries to officers assigned to Patrol occur,
personnel must be shifted from other units (e.g. Special Operations Unit, Traffic, Street Crimes
Unit, and Investigations). Currently, one member of the Crimes Unit and one motorcycle traffic
officer have been reassigned to Patrol. These reassignments cut both of these units' staffing in half.
When Patrol is staffed appropriately, response times to all call priority types are lowered. Currently,
citizens often wait over an hour for an officer to respond to lower priority calls. Additional Patrol
staffing will allow the City to begin to restore staffing to SCU and Traffic. These units are tasked
with gang enforcement, human trafficking investigations, drug investigations, and traffic
enforcement. These represent significant issues to our community and currently are undermanaged.
The three, additional authorized positions increase the authorized full-time equivalent positions
from 396.41 to 399.41 as presented on Exhibit 11 to the attached Resolution.
General Fund — Operating Results: The following table summarizes the recommended General
Fund changes, the impact on the General Fund budget for fiscal year 2015-2016, and the impact on
Net Operating Results and Unassigned funds.
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 5
Figure 6
General Fund
Adopted
Budget
Approved
Changes
Current
Budget
Proposed
Changes
Revised
Budget
Revenues
$72,394,767
$72,394,767
$877,287
$73,272,054
Transfers in
1,357,349
1,357,349
262,287
1,095,062
FY15-16 Sources
73,752,116
73,752,116
615,000
74,367,116
FY14-15 rollover
115,665
115,665
115,665
Total Sources
73,752,116
115,665
73,867,781
615,000
74,482,781
Expenditures
66,921,296
147,061
67,068,357
$506,250
67,574,607
P.O. Rollover
115,665
115,665
115,665
Transfers out
2,560,000
2,560,000
2,560,000
Total Appropriations
69,481,296
262,726
69,744,022
506,250
70,250,272
Net Operating Results
$4,270,820
$147,061
$4,123,759
$108,750
$4,232,509
Allocations
Measure E Reserve
$3,468,000
$(147,061)
$3,320,939
$3,320,939
Infrastructure Reserve
400,000
400,000
400,000
Emergency Reserve
365,000
365,000
365,000
Unassigned funds
$37,820
$37,820
$108,750
$146,570
The proposed changes increase the current projected net operating results from $4,123,759 to
$4,232,509, an increase of $108,750. Unassigned funds increase from $37,820 to $146,570.
The changes to General Fund Sources and Appropriations are summarized in Tables I and II of
Exhibit I to the attached Resolution.
OTHER FUNDS:
The adopted budgeted appropriations for Other Funds, including approved carryforward of funds
approved in prior years and changes approved since July 1, 2015, total $63,416,941 at Figure 7.
These expenditures and transfers will result in the spending of approximately $7.0 million in
accumulated funds (i.e., fund balance), primarily in the areas of infrastructure maintenance (e.g.,
streets and storm drain) and equipment replacement. Approximately three-quarters of the fund
balance expenditures stems from spending in the gas tax fund for street projects, while the
remainder is a result of pump station repairs, vehicle replacement, city facilities maintenance
projects, and miscellaneous project spending.
The proposed increase in other fund revenues captures the $250,000 addition to the internal service
funds for technology, which was part of the City Manager's proposed use of unassigned General
Fund reserves. There are two proposed increases in the Other Fund expenditures: (1) $123,658 is
dedicated to support of the recent enhancements to the homeless initiative and covers (a) the
additional patrol on 4th Street, and (b) up to six months for the newly created position to implement
and manage the City's homeless policies; (2) $80,000 from funds aside by the Police Department
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 6
for the purchase of records management software, Taser and other police equipment. The proposed
$262,287 decrease of transfers out results from a change in methodology by which charges to San
Rafael Sanitation District (SRSD) for administrative services are reported.
Figure 7
Other Funds
Adopted
Budget
Approved
Changes
Current
Budget
Proposed
Changes
Revised
Budget
Operating/Capital
Revenue
$38,621,826
$4,235,380
$42,857,206
$250,000
$43,107,206
Transfers in
2,650,000
$67,690,272
2,650,000
$16,858,404
2,650,000
FY15-16 Sources
41,271,826
4,235,380
45,507,206
250,000
45,757,206
FY14-15 Rollover
2,158,321
2,158,321
2,158,321
FY14-15 CIP
Carry Over
8,729,884
8,729,884
8,729,884
Total Sources
$41,271,826
$15,123,585
$56,395,411
$250,000
$56,645,411
Expenditures
45,111,188
16,858,404
61,969,592
203,658
62,173,250
Transfers out
1,447,349
1,447,349
(262,287)
1,185,062
Total
Appropriations
46,558,537
16,858,404
63,416,941
(58,629)
63,358,312
Net Results
$5,286,711
$1,734,819
$7,021,530
$308,629
$6,712,901
These changes to Other Fund Sources and Appropriations are summarized in Table III of Exhibit I
to the attached Resolution.
CITY-WIDE IMPACT: The following table summarizes the impact of the recommended
appropriation changes across all funds.
Figure 8
Adopted
Approved
Current
Proposed
Revised
All Funds Budget
Changes
Budget
Changes
Budget
General Fund $66,921,296
$262,726
$67,184,022
$506,250
$67,690,272
Other Funds $45,111,188
$16,858,404
$61,969,592
$203,658
$62,173,250
RECOMMENDATION: Accept the report and recommendations, and adopt the attached
Resolution as presented.
ATTACHMENTS
Resolution with Exhibits I, II
W:\Council Material\Staff Reports\2015\City\FIscalYearl5-16 Interim Financial Update-Ldoc
RESOLUTION NO. 14043
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN
RAFAEL ADOPTING AMENDMENTS TO THE 2015-2016 BUDGET
WHEREAS, the City Council approved Resolution 13932 adopting the fiscal year
2015-2016 budget; and
WHEREAS, the changes in available funding sources and operational needs
require adjustments to some City budgets; and
WHEREAS, it is the intention of this Council to review recommendations from
staff regarding the City's financial condition, including revenue projections and available
resources, and provide funding for various ongoing, capital and other service needs;
and
WHEREAS, after examination, deliberation and due consideration, the City
Council has approved the staff report and recommendations, and directs the City
Manager to proceed with the implementation of these recommendations;
NOW, THEREFORE, BE IT RESOLVED, by the San Rafael City Council that
Resolution 13932 for fiscal year 2015-2016 is amended to increase total general fund
revenues to $73,272,054 and reduce transfers in to $1,095,062 as presented on
Exhibit I Table I attached hereto and incorporated herein; and increase general fund
expenditure authorization to $67,690,272 (in addition to prior year rollovers of
$115,665) with transfers out unchanged at $2,560,000, as presented on Exhibit 1,
Table 11 attached hereto. Further, the Resolution is amended to increase other fund
revenues to $43,107,206 and leave transfers in unchanged at $2,650,000, and to
increase expenditures to $62,173,250 and leave transfers out unchanged at
$1,185,062, all as presented on Exhibit I Table III attached hereto. These changes
result in City-wide General Fund appropriations of $70,250,272 and other fund
appropriations of $63,358,312 as summarized on Exhibit I Table IV;
BE IT FURTHER RESOLVED, by the San Rafael City Council that Resolution
13932 for fiscal year 2015-2016 is amended to increase the number of full-time
equivalent, authorized positions from 396.41 to 399.41 as presented in Exhibit II
attached hereto and incorporated herein.
I, ESTHER C. BEIRNE, Clerk of the City of San Rafael, hereby certify that the
foregoing resolution was duly and regularly introduced and adopted at a regular
meeting of the Council of said City on Monday, the 7th of December 2015, by the
following vote, to wit:
AYES: COUNCILMEMBERS: Bushey, Colin, Gamblin, McCullough & Mayor Phillips
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: None
ESTHER C. BEIRNE, City Clerk
WACouncil Material\Resolutions\2015\CityWmend City budget 15-16-5month.doc
EXHIBIT I
TABLE
CHANGES TO GENERAL FUND REVENUES AND OTHER SOURCES
General Fund
Adopted Budget FY
2015-16
Approved
Changes
Current Budget
Proposed Changes
Revised Budget
Revenues
72,394,767
506,250
72,394,767
877,287
73,272,054
Transfers in
1,357,349
2,560,000
1,357,349
(262,287)
1,095,062
FY15-16 Sources
73,752,116
Total Appropriation
73,752,116
615,000
74,367,116
FY14-15 Rollover
I -
115,665
1 115,665 1
250,000
115,665
Total Resources
1 73,752,116
115,665
1 73,867,781 1
615,000
74,482,781
TABLE II
CHANGES TO GENERAL FUND EXPENDITURES AND OTHER USES
General Fund
Adopted Budget FY
2015-16
Approved
Changes Current Budget
Proposed Changes
Revised Budget
Expenditures
66,921,296
147,061 67,068,357
506,250
67,574,607
Transfer out
2,560,000
2,560,000
38,621,826
2,560,000
FY14-15 Rollover
-
115,665 115,665
Transfers in
115,665
Total Appropriation
69,481,296
262,726 69,744,022
506,250
70,250,272
TABLE III
CHANGES TO OTHER FUNDS
Other Funds
Adopted Budget FY
2015-16
Approved
Changes
Current Budget
Proposed Changes
Revised Budget
Revenues
38,621,826
4,235,380
42,857,206
250,000
43,107,206
Transfers in
2,650,000
-
2,650,000
-
2,650,000
FY15-16 Sources
41,271,826
4,235,380
45,507,206
250,000
45,757,206
FY14-15 Rollover
2,158,321
2,158,321
2,158,321
FY14-15 CIP Carry Over
8,729,884
8,729,884
8,729,884
Total Resources
41,271,826
15,123,585
56,395,411
250,000
56,645,411
Expenditures
45,111,188
16,858,404
61,969,592
203,658
62,173,250
Transfer out
1,447,349
-
1,447,349
(262,287)
1,185,062
Total Appropriation
46,558,537
16,858,404
63,416,941
(58,629)
63,358,312
Net Results
(5,286,711)
(1,734,819)
(7,021,530)
308,629
(6,712,901)
TABLE IV
CITY-WIDE APPROPRIATION SUMMARY
Adopted Budget FY Approved
All Funds 2015-16 Changes Current Budget Proposed Changes Revised Budget
General Fund 69,481,296 262,726 69,744,022 506,250 70,250,272
Other Funds 46,558,537 16,858,404 63,416,941 (58,629) 63,358,312
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