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HomeMy WebLinkAboutStaff Report 2.A 2/11/2013 Ag-enckt/ Itevw#2 A W `SAL U'tr Di s, z. is-5e DATE: February 11,2013 TO: Honorable Mayor and Members of the City Council through City Manager 1 FROM: Bill Mushallo, Finance Director SUBJECT: Introduction and adoption of Urgency Ordinances.Amending Ordinances 2433, 2435, 2437, 2446 and 2447 N.CS. to Change Certain Appropriations for the Operations for the City of Petaluma from July 1,2012 to June 30, 2013.and Declaring thtUrgency Thereof,'to Take Effect Immediately. RECOMMENDATION ' It is recommended that the Ci ty Council t the attached ordinances as urgency ordinances to amend appropriations from July'.1, 2012 to June 30, 2013 in order to provide certainty for departmental operations at the earliest possibleltime and to permit more accurate budget monitoring. BACKGROUND " ' The City reviews its budget on a continual basis. The proposed Mid-Year Budget Adjustments are to the Adopted Budget for"FY 2012-2013. The adjustments would,modify appropriations approved by Ordinances:2433, 2435, 2437, 2446 and 2447 N.C.S. Any additional FY 12-13 budget adjustments will be brought forward later this fiscal year. DISCUSSION The proposed budget adjustments are for the General Fund, Special Revenue Funds, Enterprise Funds, Capital Projects Funds, and the Internal Services Funds for the year ending June 30, 2013. The City,adjustments must be made by ordinance because they modify the appropriations . ordinances adopted,pursuant to the budget Urgency ordinances, which require a unanimous vote � of the Council members present for passage, are recommendediso that the City adjustments may take effect immediately. If not adopted by unanimous vote, the ordinances would be introduced, adopted at a subsequent meeting and take effect 30 days thereafter. The proposed changes are categorized as follows: ' Adjustinerits-Increases.or (decreases) in various funds,to update the budget based on current economic'conditions, changes to city projects, or changes in work activity. Agenda Review: is 1pir City Attorne _ _ Finance Dire.'or I 0,de , City Manage- Transfers—Transfers from one fund to another to.facilitate reporting requirements and true-up fund balance& Grants—Changes and/orinewtgrant revenues and expenditures received after the FY 2013 budget was adopted. Provided below is a summary of,the mid-year budget adjustments by fund type. Exhibit A, in the attached ordinances, shows the detailed budgetadjustments by fund, cost center and account. General Fund: • Change budgeted revenue for certain tax, franchise fees, services and cost-recovery accounts on year-to-date activity and forecast $424,605. • Post a one-time refuse franchise hauler tee of$500,000:resulting from the newly negotiated contract. • Transfer in excess SLESF funds, $12,000. • Transfer in Asset Seizure funds, $155,0b0, for police overtime. • Reverse Ellis Creek landscaping transfers out totaling $180,000: Park Maintenance crews are providing landscaping services to the Ellis Creek Waste Water Treatment plant and are charging their time directly to the Waste Water fund. • Increase expenses for retirement payout $77,400 for Public Works. • Increase cost recovery activity$150,000 • Increase appropriations for Police:Dept:,overtime $155,000 and comp time payouts $155,000 • Increase appropriation'for Battalion Chief position'overtime $22,300 and FLSA over max public safety earnings t$70,000 • Add appropriation for membership to the California.League of Cities $16,450 • Increase appropriation for higher-than-expected`water usage at city parks $40,000 • Increase appropriation for purchase of parking enforcement software $84,000. • Reduce;appropriations,budget for the Animal Services budget due to transfer to non-profit agency $13,800. 2 Special Revenue Funds: Increase certain special.revenue'funds in recognition of feesrecently paid by developers. Traffic Mitigation:Impact'Fees'+-08 $2,880,760, Storm Drainage;Impact Fees -08 $188,040 City FacilitiesImpact Fees $163,130 Parkland Developmeht=ImpactFees -08 $156;340 Public Art -08 $105,530 Commercial Linkage:Fees $48,190 Community Center Facilities Impact Fees $12,230 Public.Facilities IriipactFees -.08. $11,380 Open Spade Acquisition Impact Fees -08 $10,020 Aquatic,Center Impact Fees ', $4,880 Housing in-Lien:Impact Fees $2,290 • Increase 3% Admin revenue and Special Revenue fund appropriations as a result of the increased impact fees $206;350. • Various capitals projects completed.under-budget.. Excess funds returned: $189,730 Storm Impact fees and $52,650 Traffic Mitigation Impact Fees. • Community Facilities.Impact:fees budgeted transfer out reversed$272,000. The funds to be provided for the Swim Center Energy project represent a loan, not a transfer. • SCIP funds received for various completed and on-going capital,projects. As a result, the following excess funds to be returned to the originating funds: o Parklands DevelopmentlmpactUFees-08 $347,664 o Storm Drainage;Impact Fees $ 80,592 • Grants awarded for Lighted Crosswalk,at E. Washington & Edith St. $154,800, for Channelization of Lakeville at Pine View$185400, and for FEMA projects $1,470,882. • Increase Administrative Intragovernmental charge to the Street Maintenance fund $1000. • Salary and retirement increase for Housing Administrator $66,300. • Increase.appropriations for Boys & Girls Club $160,000 and COTS $200,000. u- Purchase of Ammal Control vehicle from the Donations fund $39,850. Vehicle was budgeted in 2012 but actual purchase was delayed. The fund balance was not affected. • Transfer Out ofgrant.and matching funds to the Capital Projects funds for the Lighted Crosswalk at E. Washington & Edith St. $181,250, for the Channelization•of Lakeville at Pine View $216,064,and for FEMA projects $1,470,882. 3 • SLESF fund balance transfer out to the General Fund $12,000. • Underground Utility District,project c00500104, completed. Transfer in additional Gas Tax funds to close out project$250. • Transfer out Asset Seizure funds for Police Dept overtime $155,000. • Transfers out for Pedestrian Safety Enhancement project $127,000 and Petaluma River Flood Control project $336,000 cancelled. 'Transfers were posted end of FY 2012. • Transfers out from:HomeBegin to Housing in Lieu for affordable housing programs $119,095. Capital Project Funds: • Post SCIP revenue for various completed and on-going capital projects $2,739,765. As a result,the following excess funds to be,returned to the originating,funds: o Parklands'Development-Impact Fees-08 $347,664 o Storm Drainage ImpactFees $ 80,592 • Appropriations and transfers-in for Lighted Crosswalk at.E. Washington & Edith St. $181,250, Channelization Lakeville at Pine View $216,064, FEMA projects $1,190,882 and Underground Utility District project $250. • Transfers in for Pedestrian Safety Enhancement project $127,000 and Petaluma River Flood Control project$336,000 reversed. Transfers were posted end of FY 2012. • Appropriation for design phase set to begin for First & F Streets Bridge Replacement, c16101003, $10,000. • Resolution 2013-004 authorizing an increase in the Swim Center Energy Efficiency project budget, c14501001, $178,000. • Various projects completed under-budget. Excess funds transferred back: Storm Impact fees $189;730 and Traffic Mitigation Impact fees $52;650. • Community Facilities Impact fees transfer out reversed $272,000. The funds to be provided for the Swim Center Energy project represent a loan, not a transfer. Enterprise Funds: • Post SCIP revenue for various completed and on-going water and waste water capital projects $2,131,314. • Increased Connection fees revenue $355,000. • Transfers in for FEMA projects $280,000. 4 • Water Main Replacements Various, project c67401008, completed. Transfer in of additional Water operatingfundsto close out project$270. • C St.Pump Station,projectc00500205, completed-under-budget. Excess funds returned to Waste Water.operating;Fund $180,525. • Airport voltage:regulator and design ofrunway,repair`and;corresponding FAA Grant AIP 23 reduced$202,360;"corresponding appropriations reduced$212,750. • Purchase of Eden Permits software for Development,Services $75,500. • Plans Examiner position to be funded in April 2013 $26,660. • SCIP funds received for-various'completed and on-going Water and Waste Water capital projects. As a result, the following excess funds to be returned to the corresponding operating funds: o Waste Water Operating Fund $186,043 o Water Operating Fund $478,848 • Ellis Creek landscaping transfers reversed $180;000. Park Maintenance crews are providing landscaping services to the Ellis Creek Waste Water Treatment plant and are charging their.time directly to the Waste Water fund. Internal Service Funds: • Intragovernmental revenue reduced as a result of the transfer of Animal Services to a non- profit agency $16,1.25. • Liability fund budget adjustment $305,000. • Purchase of 2012 North Star.Atnbulance $169,350. • Information.Technology purchase of equipment and software:Voiceprint (9-1-1 voice recorder) system $16,000, City Hall data storage system (SAN) $20,000 and Tyler Cashiering software $29,000. 5 FINANCIAL IMPACTS General Fund budgeted revenues will increase by $911,605. This includes the one-time refuse franchise hauler fee of$500,000 based on,the newly,negotiated contract. General Fund appropriations'will increase by $756,450. The net financial impacts to the General Fund associated with the budget adjustments recommended is a positive $155,155. Special Revenue Fund revenues will increase by $6,117,953, due primarily to impact fees paid by developers. Corresponding,appropriations will increase by $2,365,041 resulting in a positive impact to fund balance of$3,75Z912. Budgeted revenues for Capital Project funds will increase by$3,865,211 due primarily to the SCIP revenue of$2,739,765. Appropriations will increase by $984,200 resulting in a positive net change to fund balances of$2,881,011. Enterprise Funds' budgetedaevenues.will increase by$3,409,640 due in large part to the SCIP revenue and increased connection fees. Corresponding appropriations will increase by $555,366 resulting in a positive impact on fund balances of$2,854,274. Internal Service revenues will decrease by $16,125 due to the elimination of intragovemmental charges to the Animal Services department. This operation has been transferred to a non-profit agency. Budgeted appropriations for Internal Service funds will increase by $539,350 due to the purchase of computer'and software equipment, an ambulance and a liability adjustment approved by City Council. The net effect is a reduction in the Internal Funds' balance of$555,475. ATTACHMENTS 1. Appropriations Ordinance,Amendment, General Fund 2. Appropriations Ordinance;Amendment, Special Revenue Funds 3, Appropriations Ordinance Amendment, Capital Project Funds 4. Appropriations Ordinance Amendment, Enterprise Funds 5. Appropriations Ordinance Amendment, Internal Service Funds 6. FY 2012-13 Mid-Year'Budget Adjustment Suniinary 6 ATTACHMENT I AN ORDINANCE AMENDING ORDINANCE NO. 2433 N.C.S TO CHANGE APPROPRIATIONS FOR THE OPERATION OF THE CITY OF PETALUMA GENERAL FUND FROM JULY 1, 2012. TO JUNE 30, 2013 AND DECLARING THE URGENCY THEREOF, TO TAKE EFFECT'IMMEDIATELY BE IT ORDAINED BY THE'COUNCIL OF THE CITY OF PETALUMA AS FOLLOWS: Section 1. Ordinance No. 2433 N.C.S. is hereby amended for the fiscal year beginning on July 1, 2012 and ending on June 30, 2013 .in.the amounts as set in the attached Exhibit A, incorporated herein by reference, and distributed to the various funds as set out in said exhibit and shall be expended and used in accordance therewith. Section 2. The City Council hereby finds and determines that the amount of appropriations provided hereby does not exceed:the estimated revenue, other sources-and available fund balances for the fiscal year ending June 30, 2013. Section 3. All ordinance or parts of ordinances in conflict herewith are hereby repealed. Section 4. Pursuant to the Charter of the City of Petaluma, Article XII, Section 76A, an urgency ordinance may be adopted to take immediate effect when necessary for the immediate preservation of the public health, safety and welfare and passed by a unanimous vote of the city council members present'atthe time of adoption. Section 5. The economic downturn has significantly impactedlocal governments both regionally and nationally. Petaluma has reduced its workforce by more than 20%, has decreased its general fund spending by nearly 35%, and has eliminated its reserve fund balances. Section 6. Adopting the budget ,amendments'by urgency allows for a much greater amount of certainty for departmental operations at the earliest possible time, and significantly enhances the various city departments ability to more accurately manage expenditures, and track expense and revenue trends. Section 7. This ordinance is hereby declared to be necessary for the immediate preservation of the public of the public peace, health and safety of the City of Petaluma and its citizens; and shall take effect and be in force from and after its final'passage by unanimous vote of the members of the City COuncil present-at'the`time of its adoption. Section 8. The City Clerk is hereby directed to post/publish this ordinance or a synopsis of this ordinance for the period and in the manner required by'the City Charter: INTRODUCED and .ordered posted/published this day of , 2013, by the following vote: 7 ATTACHMENT 2 AN ORDINANCE. AMENDING ORDINANCE NO. 2446 N.C.S. TO CHANGE APPROPRIATIONS FOR THE OPERATION OF THE CITY OF PETALUMA SPECIAL REVENUE. FUNDS FROM JULY 1, 2012 TO JUNE 30, 2013 AND DECLARING THE URGENCY THEREOF, TO TAKE'EFFECT IMMEDIATELY BE IT ORDAINED BY THE COUNCIL OF THE CITY OF PETALUMA AS FOLLOWS: Section I. Ordinance No. 2446,N.CS. is hereby amended for the fiscal year beginning on July 1, 2012 and ending on June 30, 2013 in the amounts as set in the attached Exhibit A, incorporated herein by reference, and distributed'to the various funds as set out in said exhibit and shall be expended and used in accordance therewith. Section 2. The City Council hereby finds and determines that. the amount of appropriations provided hereby does not exceed the estimated revenue, other sources and available fund balances for the fiscal year ending.June'30,:2011 Section 3. All ordinance or parts of ordinances in conflict herewith are hereby repealed. Section 4. .Pursuant,to the Charter of the City of Petaluma, Article XII, Section 76A, an urgency ordinance may be adopted to take immediate effect when-necessary for the immediate preservation of the public health, safety and welfare and passed by a unanimous vote of the city council members present at the time of adoption. Section 5. The economic downturn has significantly impacted local governments both regionally and nationally. Petaluma has reduced its workforce by more than 20%, has decreased its general fund spending by nearly 35%, and has eliminated its reserve fund balances. Section 6. Adopting the budget amendments by urgency allows for a much greater amount of certainty for departmental operations at the earliest possible time, and significantly enhances the various city departments ability to more accurately manage expenditures, and track expense and revenue;trends. Section 7. This ordinance is hereby declared to be necessary for the immediate preservation of the public of the public peace, health and safety of the City of Petaluma and its citizens, and shall take effect and be in force:;from and after its final passage by unanimous vote of the members of the City Council present at-the time of its adoption. Section 8: The City Clerk is hereby directed to post/publish this ordinance or a synopsis of this ordinance for the period and in the manner required by�the'City Charter. INTRODUCED and ordered'posted/published-this'_ day of , 2013, by the following vote: 8 ATTACHMENT 3 AN ORDINANCE AMENDING ORDINANCE NO. 2437 N.C.S. TO CHANGE APPROPRIATIONS FOR OPERATION OF THE CITY OF'PETALUMA CAPITAL PROJECT FUNDS FROM JULY 1, 2012 TO JUNE, 30, 2013 AND DECLARING THE URGENCY THEREOF,TO TAKE EFFECT.IMMEDIATELY BE IT ORDAINED BY THE COUNCIL OF THE CITY OF PETALUMA AS FOLLOWS: Section 1. Ordinance No. 2437 N.C.S. is hereby amended for the fiscal year beginning on July 1, 2012 and ending on June 30, 2013 in the amounts as set in the attached Exhibit A, incorporated herein by reference, and distributed to the various funds as set out in said exhibit and shall be expended and used in accordance therewith. Section 2. The City Council hereby finds and determines that the amount of appropriations provided hereby does not exceed the estimated revenue,,other sources and available fund balances for the fiscal year ending June 30, 2013. Section 3. All ordinance or parts of ordinances in conflict herewith are hereby repealed. Section 4. Pursuant to the Charter of the City of Petaluma, Article XII, Section 76A, an urgency ordinance may be adopted to take immediate effect when necessary for the immediate preservation of the public health, safety and welfare and passed by a unanimous vote of the city council members present at the time of adoption. Section 5. The economic downturn has significantly impacted local governments both regionally and nationally. Petaluma has reduced its workforce,by more than 20%, has decreased its general fund spending by nearly 35%, and has eliminated its reserve fund balances. Section 6. Adopting the budget amendments by urgency allows for a much greater amount of certainty for departmental operations,at the earliest possible time, and significantly enhances the various city departments ability to more accurately manage expenditures, and track expense and revenue trends. Section 7. This ordinance is hereby declared to be necessary for the immediate preservation of the public of the public peace, health and safety of the City of Petaluma and its citizens, and shall take effect and be in force from and after its final passage by unanimous vote of the members of the City Council present at the time of its adoption. Section 8. The City Clerk is hereby directed to post/publish this ordinance or a synopsis of this ordinance for the period and in the manner required by the.City Charter. INTRODUCED and ordered posted/published.this day of , 2013, by the following vote: 9 ATTACHMENT 4 AN ORDINANCE AMENDING ORDINANCE NO... 2447 N.C.S. TO CHANGE APPROPRIATIONS FOR THE OPERATION OF THE CITY OF PETALUMA ENTERPRISE FUNDS FROM JULY 1, 2012 TO JUNE 30, 2013 AND DECLARING THE URGENCY THEREOF, TO TAKE EFFECT IMMEDIATELY BE IT ORDAINED.BY THE COUNCIL OF THE CITY OF PETALUMA AS FOLLOWS Section 1. Ordinance No. 2447 N.C.S. is hereby amended for the fiscal year beginning on July 1, 2012 and ending on June 30, 2013 'in the,amounts as set in the attached Exhibit A, incorporated herein by reference, and distributed to the various funds as set out in said exhibit and shall be expended and used in accordance therewith. Section 2. The City Council hereby finds and determines that the amount of appropriations provided hereby does not exceed the estimated revenue, other sources and available fund balances for the fiscal year ending June,30, 2013. Section 3. All ordinance or parts of ordinances in conflict herewith are hereby repealed. Section 4. Pursuant to the Charter of the.City of Petaluma, Article XII,,Section 76A, an urgency ordinance may be adopted to:take immediate effect when necessary for the immediate preservation of the public health, safety and welfare and passed by a unanimous vote of the city council members present at the time of adoption. Section 5. The'economic downturn has significantly impacted local governments both regionally and nationally. Petaluma has reduced its workforce by more than 20%, has decreased its general fund spending by nearly 35%, and has eliminated its reserve fund balances. Section 6. Adopting the budget amendments by urgency allows,for a much greater amount of certainty for departmental operations at the earliest possible time, and significantly enhances the various city departments ability to more accurately manage expenditures, and track expense and revenue trends. Section 7. This ordinance is hereby declared to be necessary for the immediate preservation of the public of the'public peace, health:and safety of the City of Petaluma and its,citizens, and shall take effect and be in force from and after its final passage by unanimous vote of the members of the City Council presentat the time of its adoption Section.8. The City Clerk is hereby directedto post/publish this ordinance or a synopsis of this ordinance for the period and in the manner:required by the City Charter. INTRODUCED and, ordered posted/published'this day of , 2013, by the followingvote: 10 ATTACHMENT 5 AN ORDINANCE AMENDING ORDINANCE NO. 2435 N.C.S.TO CHANGE APPROPRIATIONS FOR THE OPERATION OF THE CITY OF PETALUMA INTERNAL SERVICE FUNDS FROM JULY 1, 2012 TO JUNE 30, 2013 AND DECLARING THE URGENCY THEREOF, TO TAKE EFFECT IMMEDIATELY BE IT ORDAINED BY THE COUNCIL OF THE CITY OF PETALUMA AS FOLLOWS: Section I. Ordinance,No. 2435 N.C.S. is hereby amended for the fiscal year beginning on July 1, 2012 and ending on June 30, 2013 in the amounts as set in the attached Exhibit A, incorporated herein by reference, and distributed to the various funds as set out in said exhibit and shall be expended and used in accordance-therewith. Section 2. The City Council, hereby finds and determines that the amount of appropriations provided hereby does not exceed the estimated revenue, other sources and available fund balances for the fiscal year ending June 30,,2013. Section 3. All ordinance or parts of ordinances in conflict herewith are hereby repealed. Section 4. Pursuant to the Charter of the City of.Petaluma, Article XII, Section 76A, an urgency ordinance may be adopted to take immediate effect when necessary for the immediate preservation of the public health; safety and welfare and passed by a unanimous vote of the city council members present at the time of adoption. Section 5. The economic downturn has significantly impacted local governments both regionally and nationally. Petaluma has reduced its workforce by more than 20%, has decreased its general fund spending by nearly 35%, and has eliminated its reserve fund balances. Section 6. Adopting the budget amendments by urgency allows for a. much greater amount of certainty for departmental,operations at the earliest possible time,.and significantly enhances the various city departments ability to more accurately manage expenditures, and track expense and revenue trends. Section 7. This ordinance is hereby declared to be necessary for the immediate preservation of the publicof the public peace, health and safety of the City of Petaluma and its citizens, and shall take effect and be in force from and,after its final'passage by unanimous vote of the members of the City Council present at the time of its adoption. Section 8. 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