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
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Department Head (signature)
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APPROVED AS COUNCIL / AGENCY
AGENDA ITEM:
City M ager (sign6ture)
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APPROVED AS TO FORM:
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City Attorney (signature