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HomeMy WebLinkAboutFin Budget Amendments FY2012-13CITY OF Agenda Item No: 4. a. Meeting Date: July 1, 2013 SAN RAFAEL CITY COUNCIL AGENDA REPORT Department: FINANCE Prepared by: Mark Moses, ')A -r—, -- Interim Finance Director City Manager Approval: 1 SUBJECT: RESOLUTION ADOPTING AMENDMENTS TO THE CITY OF SAN RAFAEL BUDGET FOR FISCAL YEAR 2012-2013 FOR THE PURPOSE OF REVISING THE FINAL FISCAL YEAR 2012-2013 BUDGET RECOMMENDATION: ACCEPT REPORT AND ADOPT RESOLUTION AS PRESENTED. BACKGROUND: The fiscal year 2012-2013 City-wide budget was last amended by the City Council on February 4, 2013, as part of the mid -year budget review. These amendments addressed operational changes that had taken place since the budget was adopted on July 2, 2012, and allocated resources that were not part of the original projections (e.g., one-time revenues related to the dissolution of the Redevelopment Agency, adjustments to revenue projections, based on year-to- date trends, etc.). Since the mid -year review, additional resources have been identified (again, stemming from one- time sources and adjustments to revenue projections, based on updated trends). The potential uses of these resources were discussed at the May 9, 2013 City Council Study Session and, again, at the June 3, 2013 City Council meeting. Several areas of pent up needs and funding deficiencies were cited by staff, including facilities maintenance, technology, capital projects, and reserves. City Council requested a study session held on June 18, 2013, in order to discuss the unfunded needs in more detail, and to provide staff with direction regarding the priorities and parameters for the programming and use of funds that become available to address them. The purpose of these amendments is to (1) appropriate the resources identified and projected after the mid -year budget review for the purpose of funding the activities and programs consistent with City Council priorities and direction; and (2) to revise spending authority as necessary to ensure that all fiscal year 2012-2013 expenditures are properly authorized. ANALYSIS: At the June 18, 2013 City Council study session, City Council reviewed the unprogrammed resources in the fiscal year 2012-2013 budget. These resources were the result of. (1) the release of a $1.5 million general liability reserve, following a revision to reserve levels required to offset the current level of risk; (2) other one-time and limited -term resources identified after the mid -year budget review: $0.8 million; and (3) increases to revenue projections (already File No.: ' Council Meeting: -;i� It L ot Disposition: SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2 built into the fiscal year 2013-2014 budget and projections for future years) based on updated information and year-to-date results: $1.1 million. In addition, the City Council discussed the appropriate use of $1.5 million in discretionary funds accumulated in the retirement internal service fund. The total amount considered was approximately $4.9 million. The chief guiding principles for the study session discussion included: 1. Use one-time and limited resources for one-time expenditures. 2. Prioritize safety & health, financially prudent actions, and visible community improvements. 3. Focus first on deferred items/underfunded needs, and then on new projects/programs. 4. Limit discussion to items approximately $100,000 or larger. 5. Indentify spending priorities for allocation of funds beyond those currently estimated. Council direction at the study session included the following uses for the funds: General Fund Use Description $ Deferred Maintenance Provide additional funds to the Building Fund to make progress on a $1,238,000 priority list of deferred maintenance items. This includes much needed repairs in several fire stations, Downtown Library, community centers, and funds for emergency repairs. Technology Provide additional funds to the Technology Fund to complete a priority $500,000 Improvements list of computer related items. This includes projects such as electronic document storage and management, much needed security enhancements, network upgrades for all remote city facilities to properly operate, and an infrastructure to allow improved use of mobile devices. Land & Improvements To purchase and improve property for civic use. $1,300,000 Downtown Improvements Provide funds for decorative banners, continuation of Twinkle Lights $100,000 through the West End, and other beautification improvements to help promote the Downtown. Watershed Assessment An initial $40,000 for participation in the program and an additional $50,000 District Feasibility Study $10,000 for contractual assistance to staff, with additional funding to be determined once more information regarding the benefits to the City become available. Additional Code One-time infusion of funds to contract for dedicated code enforcement $100,000 Enforcement efforts of massage ordinance Additional Fire Protection One time infusion of funds to contract for clearance of open space and $150,000 parks for fire protection. Includes temporary hire of additional part time open sace ranger. Sub -total General Fund $3,438,000 Vehicle Replacement Provide funding to the vehicle replacement fund for future vehicle As funds purchases. become available Capital Improvement Provide funds for street or other improvements as needed. As funds become i available Other Fund Use Pension Payment Payment to MCERA to reduce unfunded liabilities. $1,000,000 Retiree Medical Payment Pavment to new trust to reduce unfunded liabilities. $500,000 Sub -total Other Funds $1,500,000 SAN RAFAEL CITY COUNCIL AGENDA REPORT 1 Page: 3 The attached budget resolution provides for the appropriation of projected resources to fund these areas in accordance with the City Council direction and priorities. The actual amounts will be determined and recorded in the course of preparing the year-end financial statements, and reported back to the City Council. General Fund Projected changes to General Fund resources and uses — fiscal year 2012-2013 (excerpted from Attachment A - Exhibit I of the corresponding resolution): General Fund Adopted Budget FY2012-13 Budget as revised at Mid -Year Changes after Mid -Year Revised Projection for FY2012-13 Revenues 56,120,018 57,229,261 $1,633,000 $58,862,261 Transfers in 1,485,195 1,487,421 $1,804,520 $3,291,941 Total Resources $57,605,213 $58,716,682 $3,437,520 $62,154,202 Expenditures 56,145,941 56,344,047 $1,548,116 $57,892,163 Transfers out 1,438,998 2,340,439 $1,921,600 $4,262,039 Total Uses $57,584,939 $58,766,385 $3,469,716 $62,154,202 Net Results $20,274 $32,196 $32,196 $0 Other Funds The Retirement internal service fund will fund the $1,000,000 payment to MCERA, as well as provide funding to the Retiree Medical internal service fund for a $500,000 additional contribution to the medical trust. The General Fund transfers in after the mid -year review reflect the $1,500,000 release of reserves from the General Liability fund, following a review of the reserve levels required as of June 30, 2013. Staff will report back to City Council on the operational results of fiscal year 2012-2013, prior to the issuance of audited financial statements. At that time there may be minor budget amendments to reflect expenditure adjustments to other funds (i.e., outside the General Fund) necessary to meet operational needs during the year. FISCAL IMPACT: By approving the Resolution as presented, the Council is authorizing the appropriation of additional resources in the 2012-2013 fiscal year to fund the expenditures and programs described on page 2 of this report. RECOMMENDATION: Staff recommends that City Council accept the report and adopt the Resolution as presented. ATTACHMENT RESOLUTION W Alanabement Services- WorkFile;Finance- WorkFiletCouncil MateriaRstaff Reports12013tcityt12-13BudgetAmendments.doe Budget Summary - Fiscal Year 2012-2013 EXHIBIT I Total Operating Capital Revenues Transfers in Sources Expenditures Expenditures Transfers Out Total Uses Adopted Budget General Fund 56,120,018 1,485,195 57,605,213 56,122,681 23,260 1,438,998 57,584,939 Special Revenue & Grant Funds 23,825,173 1,511,996 25,337,171 18,979,805 5,445,981 1,055,700 25,481,486 Debt Service Funds 350 350 - Capital Project Funds 2,448,140 2,448,140 3,900 2,314,681 2,318,581 Enterprise (Parking) 4,142,700 4,142,700 4,114,361 100,000 502,500 4,716,861 Internal Service Funds 9,351,630 300,000 9,651,630 8,548,844 512,000 300,000 9,360,844 Capital Replacement Funds 1,811,937 1,811,937 1,609,556 1,609,556 Trust & Agency Funds 22,740 22,740 22,520 22,520 Combined Fund Totals 97,722,688 3,297,193 101,019,881 89,401,667 8,395,922 3,297,198 101,094,787 Less Interfund Transfers (3,297,193) (3,297,193) (3,297,198) (3,297,198) Less Internal Service Charges (9,706,431) (9,706,431) (9,706,431) (9,706,431) Net Totals FY 2012-2013 $ 88,016,257 $ $ 88,016,257 $ 79,695,236 $ 8,395,922 $ $ 88,091,158 Up to and including Mid -Year General Fund 1,109,243 2,226 1,111,469 240,005 40,000 901,441 1,181,446 Special Revenue & Grant Funds 501,133 752,158 1,253,291 1,824,225 462,868 416,173 2,703,266 Debt Service Funds 1,874,600 - 1,874,600 114,365 - 1,585,555 1,699,920 Capital Project Funds (1,751,019) 2,039,155 288,136 - 415,661 365 416,026 Enterprise (Parking) 266 266 (500,000) - - (500,000) Internal Service Funds 183,809 483,600 667,409 225,000 373,600 598,600 Capital Replacement Funds 275,719 - 275,719 1,456,815 - - 1,456,815 Trust & Agency Funds - - - - 5,000 - 5,000 Combined Fund Totals 2,193,486 3,277,404 5,470,890 3,360,409 923,529 3,277,134 7,561,072 Less Interfund Transfers (3,277,404) (3,277,404) (3,277,134) (3,277,134) Less Internal Service Charges (428,531) (428,531) (428,531) (428,531) Mid -Year Net Totals FY 2012-2013 $ 89,781,211 $ $ 89,781,211 $ 82,627,113 $ 9,319,451 $ $ 91,946,565 Proiected Actual General Fund 58,862,261 3,291,941 62,154,202 57,721,640 170,523 4,262,039 62,154,202 Special Revenue & Grant Funds 24,326,306 3,120,277 27,446,583 20,732,030 6,215,675 2,010,914 28,958,619 Debt Service Funds 1,874,950 - 1,874,950 114,365 - 1,585,555 1,699,920 Capital Project Funds 697,121 3,339,155 4,036,276 3,900 2,730,342 365 2,734,607 Enterprise (Parking) 4,142,700 266 4,142,966 3,614,361 100,000 502,500 4,216,861 Internal Service Funds 11,373,439 1,283,600 12,657,039 9,775,844 512,000 2,673,600 12,961,444 Capital Replacement Funds 2,119,852 - 2,119,852 3,066,371 - - 3,066,371 Trust & Agency Funds 22,740 - 22,740 22,520 5,000 - 27,520 Combined Fund Totals 103,419,370 11,035,238 114,454,608 95,051,030 9,733,541 11,034,972 115,819,543 Less Interfund Transfers - (11,035,238) (11,035,238) - (11,034,972) (11,034,972) Less Internal Service Charges (11,972,962) (11,972,962) (11,972,962) (11,972,962) Projected Net Totals FY 2012-2013 $ 91,446,408 $ {0} $ 91 446 408 $ 83,078,068 $ 9,733,641 $ (0) $ 92,811,609 RESOLUTION NO. 13568 RESOLUTION ADOPTING AMENDMENTS TO THE CITY OF SAN RAFAEL BUDGET FOR FISCAL YEAR 2012-2013 FOR THE PURPOSE OF REVISING THE FINAL FISCAL YEAR 2012-2013 BUDGET WHEREAS, the City Council approved Resolution 13382 adopting the fiscal year 2012- 2013 budget; and WHEREAS, the City Council approved Resolution 13494 amending the fiscal year 2012- 2013 budget; 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, the City Council conducted a study session on June 18, 2013, and has provided direction to staff to dedicate current year general fund revenues and other resources to deferred maintenance, pension and retiree medical contributions, technology improvements, land acquisition and improvements, downtown improvements, watershed assessment study, code enforcement, fire protection in open space, vehicle replacement and capital improvement projects, and the City Manager has submitted to the City Council a report outlining how this direction can be incorporated into the fiscal year 2012-2013 budget; and WHEREAS, after examination, deliberation and due consideration, the City Council has approved the same report and recommendations. NOW, THEREFORE, BE IT RESOLVED, by the San Rafael City Council that Resolution 13382 for fiscal year 2012-2013 is further amended to authorize from the Retirement internal service fund payments of $1,000,000 to MCERA for additional pension contributions, and $500,000 for additional contributions to the OPEB (Retiree Medical) trust, and adjust General Fund revenues and other resources to an estimated $62,154,202 per attached Exhibit I for the purpose of appropriating those resources as well as unused authorized general fund expenditures for the purpose of deferred maintenance, technology improvements, land acquisition and improvements, downtown improvements, watershed assessment study, code enforcement, fire protection in open space, vehicle replacement and capital improvement projects, with the actual amounts to be determined in the course of the financial close of the fiscal year-end and reported in the year-end audited financial statements. 1, ESTHER C. BEIRNE, Clerk of the City of San Rafael, hereby certify that the foregoing resolution was duly and regularly introduced and adopted at a regular meeting of the Council of said City on Monday, the 1st of July 2013, by the following vote, to wit: [401110 [$]11 & 1:4 IT, I QQ M11111011 ESTHER C. BEIRNE, City Clerk CITY OF SAN RAFAEL INSTRUCTIONS: USE THIS FORM WITH EACH SUBMITTAL OF A CONTRACT, AGREEMENT, ORDINANCE OR RESOLUTION BEFORE APPROVAL BY COUNCIL / AGENCY. SRRA / SRCC AGENDA ITEM NO. DATE OF MEETING: July 1, 2013 FROM: Mark Moses DEPARTMENT: Finance DATE: June 24, 2013 TITLE OF DOCUMENT: RESOLUTION ADOPTING AMENDMENTS TO THE CITY OF SAN RAFAEL BUDGET FOR FISCAL YEAR 2012-2013 FOR THE PURPOSE OF REVISING THE FINAL FISCAL YEAR 2012-2013 BUDGET zi Department Head (signature) • ' • i• •• ,•••11 IFi10111• i • APPROVED AS COUNCIL / AGENCY AGENDA ITEM: City M ager (sign6ture) trawm—i:{.`li APPROVED AS TO FORM: iI IILL��' - City Attorney (signature