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HomeMy WebLinkAboutAgenda Bill 3B 11/16/2009 CITY OF PETALUMA, CALIFORNIA ~' ~ 1-~GEl~1I~A SILL November 16, 2009 Agenda Title: Discussion and Re-Adoption of Ordinances First Adopted Meeting Date: November 2, 2009 Amending Ordinances 2330, 2331, 2332 and 2333 November 16, 2009 N.C.S. to Change Certain Appropriations for the Operations for the City of Meeting Time: 7:00 PM Petaluma from July 1, 2009 to June 30, 2010 and Declaring the Urgency Thereof, To Take Effect Immediately; and Discussion and Re-Adoption of PCDC Resolution First Adopted November 2, 2009 Approving Adjustments to the Petaluma Community Development Commission FY 2009-2010 Budget and First Quarter FY 2009-10 Budget Review -General Fund Category: ^ Presentation ^ Appointments ^ Consent ^ Public Hearing ^ Unfinished Business ®New Business Department: Director: Contact Person: Phone Number: Finance Tamera Haas Tamera Haas 778-4352 Total Cost of Proposal or Proiect: Name of Fund: (-$525,250) -All Funds General, Special Revenue, Enterprise, Internal Amount Budgeted: (-$525,250) -All Funds Service and PCDC (-$344,700) -General Fund Account Number: Various Current Fund Balance: Recommendation: It is recommended that the City Council take the following action: Re-Adopt Ordinances Amending Ordinances 2330, 2331, 2332 and 2333 N.C.S. to Change Certain Appropriations for the Operations for the City of Petaluma from July 1, 2009 to June 30, 2010 and Declaring the Urgency Thereof, To Take Effect Immediately; and Re-Adopt PCDC Resolution Approving Adjustments to the Petaluma Community Development Commission FY 2009-2010 Budget 1. ^ First reading of Ordinance approved unanimously, or with unanimous vote to allow posting prior to second reading 2. ^ First reading of Ordinance approved without unanimous vote: Ordinance has been published/posted prior to second reading; see Attachment 3. ^ Other action requiring special notice: Notice has been given, see Attachment Summary Statement: On June 15, 2009, City Council approved the FY09-10 Budget, including changes agreed to but not then reflected in the Exhibit of Appropriations. The recommended budget incorporated a 5% across the board reduction of salary and benefits, the amount estimated at that time as needed to balance the General fund. This scenario could not be implemented, as accord was not reached with employee groups. Instead, staff recommended and Council approved laying off and abolishing positions, freezing vacancies, reducing service and supplies accounts and reducing intra-governmental charges to the departments to reach the 5% reduction target. City Council was advised legislation reflecting the approved actions would be presented with the first quarter financial report. Adjustments netted reductions of $525,250 across all funds, with General fund adjustments netting reductions of $344,700 more than. the 5% estimate used in June, 2009. At its Nove-nber 2, 2009 meeting, the City Council adopted four urgency ordinances and one resolution amending appropriations for FY 09-] 0 to reflect the adjustments resulting from layoffs, position abolishment, freezing vacancies, reducing services and supplies accounts and reductions in intra-governmental charges. Subsequently, on November 10 an email was transmitted to City officials and staff alleging that the City Council's actions to amend the FY 09-10 appropriations were invalid based on a theory that, because the Council action occurred after a disturbance in the Council chambers and a subsequent recess to restore decorum which the Mayor mistakenly first referred to as an adjournment, the action after the alleged adjournment was in violation of the Brown Act. In an abundance of caution it is recommended that the City Council readopt its appropriation amendment actions of November 2, 2009 to dispel any doubt as to their validity. Attachments to Agenda Packet Item: 1. Attachment 1 -New Cost Saving Proposals Recommend -Since June 4 2. Attachment 2 -Preliminary Unaudited General Fund Summary 3. Attachment 3 -Appropriation Adjustment Summary -All Funds 4. Attachment 4 -Urgency Ordinance Appropriations Amendment to General Fund 5. Attachment 5 -Urgency Ordinance Appropriations Amendment to Special Revenue Funds 6. Attachment 6 -Urgency Ordinance Appropriations Amendment to Enterprise Funds 7. Attachment 7 -Urgency Ordinance Appropriations Amendment to Internal Service Funds 8. Attachment 8 -Resolution Amendment to PCDC Fiords Budget 9. Exhibit A Anorooriations by Department & By Fund -Revised Reviewed by Finance Director: Reviewed b Cit Attorne A rove Y, ana er: Date: Date: Date: ~ - d~ Rev. Date Last Revised: File: s:/bud et10/a ends/11-2-09 ado ted revised 2 CITY OF PETALUMA, CALIFORNIA NOVEMBER 16, 2009 AGENDA REPORT FOR DISCUSSION AND RE-ADOPTION OF ORDINANCES FIRST ADOPTED NOVEMBER 2, 2009 AMENDING ORDINANCES 2330, 2331, 2332 AND 2333 N.C.S. TO CHANGE CERTAIN APPROPRIATIONS FOR THE OPERATIONS FOR THE CITY OF PETALUMA FROM .TULY I, 2009 TO .TUNE 3O, 2OIO AND DECLARING THE URGENCY THEREOF, TO TAKE EFFECT IMMEDIATELY; AND DISCUSSION AND RE-ADOPTION OF PCDC RESOLUTION FIRST ADOPTED NOVEMBER 2, 2009 APPROVING ADJUSTMENTS TO THE PETALUMA COMMUNITY DEVELOPMENT COMMISSION FY 2009-2OIO BUDGET AND FIRST QUARTER FY 2009-10 BUDGET REVIEW -GENERAL FUND 1. RECOMMENDATION: Adopt Ordinances Replacing Ordinances Amending Ordinances 2330, 2331, 2332 and 2333 N.C.S. adopted November 2, 2009 to Change Certain Appropriations for the Operations for the City of Petaluma from July 1, 2009 to June 30, 2010 and Declaring the Urgency Thereof, To Take Effect Immediately; and Adopt Resolution Replacing PCDC Resolution Approving Adjustments to the Petaluma Community Development Commission FY 2009-2010 Budget 2. BACKGROUND: On June 15, 2009, the Council met approved the 2009-10 Budget which included changes agreed to but not yet reflected in Exhibit A of the Appropriations. The original budget was presented with an "across the board" salary and benefit reduction of approximately five (5) percent as a placeholder pending the outcome of negotiations with employee bargaining units. As concessions equaling the five percent target could not be bargained, a list of cost saving proposals (Attachment 1) was recommended to and approved by Council for implementation during the first quarter of fiscal year 2009-10. All but two of the recommendations were implemented (items 24 and 26). The approved actions resulted in layoffs, abolishments, freezing of vacant positions, reductions in services and supplies and reductions in intragovernmental charges to the departments. City Council was advised legislation reflecting the approved actions would be presented with the first quarter financial report. Adjustments netted reductions of $525,250 across all funds, with General fund adjustments netting reductions of $344,700 more than the five percent (5%) estimate used in June, 2009. At its November 2, 2009 meeting, the City Council adopted four urgency ordinances and one resolution amending appropriations for FY 09-10 to reflect the adjustments resulting from layoffs, position abolishment, freezing vacancies, reducing services and supplies accounts and reductions in intra-governmental charges. At the November 2, 2009 City Council meeting, prior to the actions on budget appropriations, amember of the public created a disturbance by insisting on addressing the City Council without being recognized. The Mayor unsuccessfully attempted to gavel the meeting to order, and then called a recess to restore decorum, although mistakenly, the Mayor stated on the record that the meeting was being adjourned rather than recessed just before the audio and video systems in the chamber were temporarily shut off. Some Council members left the dais during the recess. The City Manager left the chambers to have peace officers called to the chambers in case they were needed. The disruptive member of the public left the chambers before the City Manager rehlrned. Shortly afterward, the City Manager and all City Council Members were seated at the dais and the audio and video systems were turned on and the meeting called back to order. The Council proceeded to act upon the remaining agendized items, and later in the meeting the Mayor clarified for the record that she did not intend to adjourn the meeting but only to call a recess to restore order. 3 The City Attorney indicated that there had been no motion, second and vote on adjournment, which should occur to prematurely adjourn a meeting before. completion of the agendized business, and that the interruption should be treated as a recess. As is common in a number of cities,, including Petaluma,. the City Council does. not customarily adjourn meetings at the conclusion of the agendized business by formal motion,. with second and vote, but rather by the Mayor announcing adjournment to the next scheduled meeting. However, the City Council has not in the past adjourned meetings before the conclusion of the agendized business by a mere announcement of adjournment. Subsequently, on November 10 an email was transmitted to City officials and staff alleging that the City Council's actions to amend the FY 09-10 appropriations where invalid based on a theory that, because the Council action occurred after a disturbance in the Council chambers and a subsequent recess to restore decorum which the Mayor mistakenly first referred to as an adjournment, the action after the alleged adjournment was in violation of the Brown Act. ~. DISCUSSION: a. Re-Adoption of the Appropriation Amendments The validity of the City's November 2, 2009 actions to amend FY 2009-2010 appropriations has been challenged based on the Mayor's inadvertent use of the word "adjourned" instead of the word "recessed" following the disturbance at the November 2, 2009 City Council meeting. In the email of November 10, 2009, it is asserted that the November 2, 2009 recess to restore decorum was an adjournment requiring new notice under the Brown Act before further Council action could occur, and resulting in the invalidity of any action taken after the alleged adjournment. In the email, it was argued that it is incorrect to assert that adjournment of a meeting before the conclusion of business should be by motion, second and vote, because the City Council has not customarily adjourned meetings at the conclusion of Council business by motion, second and vote. It is also asserted that Roberts Rules of Order requires a motion, second and vote to recess a meeting. However, the City Council has not adopted Roberts Rules of Order. The Council has adopted its own rules, last amended October 18, 2004, and the Council Rules make no mention of Robert's Rules. The Council Rules do refer to motions to adjourn and recess, and discuss their precedence and requirements, including a motion, second and vote (see provision VI(A)(3)), and discuss meetings adjourned to a specified future time (see provision I(C)), but the Council rules do not expressly require that adjournment or recess occur by motion with a second and vote. In addition, the Council Rules provide under provision IX as follows: C. ANon-observance of Rule: These Rules are adopted to expedite and facilitate the transaction of the business of the City Council in an orderly fashion and shall be deemed to be procedural only, and the failure to strictly observe any such Rules shall not affect the jurisdiction of, or invalidate any action taken by the Council. D. Non-exclusive Rules: Rules set forth are not exclusive and do not limit the inherent power and general legal authority of the Council, or of its Presiding Officer, to govern the conduct of City Council meetings as may be considered appropriate and not consistent with these Rules from time to time or in particular circumstances for purposes of orderly and effective conduct of the affairs of the City. Thus, in accordance with their express terms, the Council Rules are intended to apply flexibly, and are not exclusive, and lack of strict observance of the Rules does not affect the validity of any Council action. Therefore; the Council Rules support a conclusion that the Mayor's inherent power as Presiding Officer of the 4 Council to govern the conduct of City Council meetings as may be considered appropriate for purposes of orderly and effective conduct of the affairs of the City includes the power to recess a City Council meeting to restore decorum, notwithstanding at first referring to such recess as an adjournment. Nonetheless, in an abundance of caution, to avoid potential legal challenge to the City Council's actions of November 2, 2009 to amend 2009-2010 budget appropriations, the City Council may ratify its November 2, 2009 appropriation amendment actions by adopting new ordinances and a new resolution replacing those adopted November 2. b. Discussion of the Appropriations Amendments and Budget Trends and Issues This section addresses four subject areas, the latter three comprising the 2009-10 first quarter review: legislative amendments implementing the effect on all funds of actions approved by City Council on June 15, 2009, and establishing an appropriation in the PCDC budget for an economic development strategy and implementation plan; unaudited 2008-09 estimated actual revenues and expenditures in the general fund and their impact on 2008-09 ending and 2009-10 beginning fund balance; Revenue and Expenditure trends through the first quarter of 2009-10 and the estimated effect of those trends on year-end balances; and corrections necessary to offset budget shortfalls. A) Legislative Amendments. The attached ordinances adjust Adopted budgets across a variety of funds to reflect the Council's June 15, 2009 actions. Adjustments replace the five percent across the board reductions applied to all General funded departments in the recommended budget with the actual savings associated with Council actions. As indicated previously, these actions are summarized on Attachment 1, but exclude items 24 and 26 which were not approved by Council. In replacing estimates with actual savings associated with implementing those actions, appropriations in some budgets are set higher than approved in June 2009, and some are set lower. The total value of the recommended actions across all affected funds, is $1,286;450. The net effect of these reductions, across all affected funds, is $525,250. The total value of general fund adjustments is $1;059;550 with a net effect of $344,700 more savings than was calculated in June 2009. B) 2008-09 Year Ending Estimates of Revenues and Expenditures, and Effect on Fund Balance. Unaudited estimated actual General Fund revenues and transfers in were $34,152,883; 94% of the total budgeted ($36,264,600). Unaudited estimated actual General fund expenditures and transfers out were $34,836,418; also 94% of the total budgeted ($36,906,450). Total expenditures exceeded revenues by $683,835 which is close to the planned use of reserve budget recommended in the adopted FY 2008-09 budget. Revenue shortfalls reflected dramatic declines in sales tax revenues for the first and second quarter of the calendar year (sales period January through June 2009). Sales tax revenues were at historical low levels at -24% and -38% for each quarter, respectively. The main contributors to that trend were declines in new auto sales, the loss of a major sale tax revenue generator, and overall declines attributable to the recession. Expenditures were $2,070,032 under budget at year-end, due to the effect of a variety of personnel- related actions taken during the year and the efforts of departments to reach reduction targets imposed by the City Manager. Until very recently, as year-end accounting adjustments continue to be made, this savings appeared to be approximately $300,00 less than the current estimate, which would have increased the fund's reliance on fund balance in 2008-09, and which would have reduced beginning fund balance for 2009-10 by a like amount, increasing the amount of imbalance projected at June 30, 2010. The Finance Department is still completing entries related to year end. The numbers above represent known significant accruals and required adjustments. They are still preliminary, however, and subject to change for adjustments that may be required by the City's independent auditors. The estimate for the forgiveness of the ambulance loan, while estimated to the best of the Finance Department's ability at this time, is also preliminary in this report. Actual entries to record this transaction will be done as part of the final audit. S Beginning Fund Balance at June 30, 2008 was $3,614,846. Of that amount $683,835 is estimated for use to balance 2008-09, and $1,212,400 is estimated for the approved forgiveness of the ambulance loan in 2008-09. The remaining reserve estimated to carry forward into 2009-10 is $1,718,611. This is approximately $10,000 greater than was estimated in June, 2009 but is, as previously discussed, subject to further adjustment at mid-year following the completion of the annual audit. Attachment 2 is a Preliminary Unaudited General Fund Summary Report that compares estimated actuals at June 30, 2009 with the 2008-09 adopted budget. This report also displays the. 2009-10 adopted budget, the revised budget that reflects the effect of the actions approved by City Council on June 15, 2009, and 2009-10 estimates at June 30, 2010, compared to the revised budget based on current revenue and expenditure trends. C) Revenue and Expenditure trends through September 30, 2009. With the recommended revisions, FY 2009-10 adopted revenues and expenditures total $34,068,550 and $35,233,500, respectively. The budget presented in June 2009 included, based on the across-the board salary reduction of five percent, expenditures that exceeded revenues by $1,509,650. Current revisions have expenditures that are $1,164,950 greater than revenues. Revenues and transfers in through September 30, 2009 are $3,188,633; nine (9) percent of total estimates. This trend is expected at this time of year, and does not account for property tax apportionments, or cyclical revenues such as business license and franchise fees paid later in the year. Property tax revenues are generally received in two major installments in December and April with a clean-up payment. as appropriate at year end. The timing of these installments will be adjusted with the State borrowing of $1.1 million; however the City of Petaluma is participating in the Prop lA securitization program that will neutralize the cash flow issues related to this State borrowing. Business license renewals occur around the beginning of the calendar year. Franchise fees for Telecom and Cable, Solid Waste, and Energy are made quarterly; monthly; and once a year i.n April, respectively. Total expenditures and transfers out for the first quarter are $7,811,247 or 22% of budget. Expenditures are trending below budget expectations by approximately 3% at this time. This information is presented numerically on the second page of Attachment 2. FY 2009-10 revenues and transfers in were estimated at $34,068,550 in June 2009. Since June, sales tax revenue reports for the first and second quarters (January through June 2009) were received. This is the latest information for updating sales tax forecasts. As mentioned, sales tax .revenues are at. historical lows. Forecasts through year end have been revised to reflect this trend, resulting in a current.. estimate that is $961,000 less than in June. This reduced estimate also takes into account. both. one-time and ongoing adjustments associated with the State Board of Equalization's correction of a mis-allocation of sales tax to Petaluma. In addition to sales tax, property tax estimates are also revised. Projections recently provided by Sonoma County anticipate a 2.2% decline from 2008-09. This reflects re- valuations based on current market values. Accordingly, property tax estimates are revised downward by $246,000. It should be noted that with these County estimates came the caveat that property tax projections may be further affected by individual requests for re-valuation, the number or value of which caimot be predicted. With these revisions, revenues are currently estimated at $32,861,500 at June 30, 2009. Estimated expenditures for the year have also been revised downward by $61,600 to $35,140,900 which reflects health insurance premiums coming in below budgeted projections. At June 30, 2010, total estimated expenditures are projected to exceed revenues by $2,279,350. This imbalance can be partially offset by the use of remaining fund balance. Based on current, unaudited estimates, even with the full use of remaining field balance the General fluid will end 2009-10 approximately $561,000 out of balance, with no offsetting resources. b D) Correcting the Budget Imbalance. It is recommended that Council policy direction address several goals, to place the City in a more stable financial position: 1) eliminate projected 2009-10 imbalances; 2) support operating expenditures with current revenues, consistent with what has been the Council's previous budget policy; (3) anticipate actions needed to provide for a balanced budget in 2010-11; and 4) rebuild exhausted reserves back toward policy level of 15% of operating budget. The Council has at least two alternatives available at the present time, authorize actions needed to offset a projected year-end imbalance of approximately $561,000, or authorize actions to support operating expenses with current revenues by reducing expenditures by approximately $2.3 million. The former alternative accomplishes only one of the foregoing goals; the latter accomplishes at least the first three, and potentially the fourth depending on the success of implementation. It is recommended that Council provide direction to pursue the second alternative. By taking steps at this time to bring expenses into line with revenues, current imbalances in both the current and next fiscal year can be corrected. Staff believes this is necessary as, based on current trends, 2010-11 revenues are not anticipated to be any higher than in the current year and expenditures will not otherwise be less. Nor is any fund balance projected to exist to offset that imbalance. Without sufficient corrective action at this time, an additional 2.3 million will have to be cut during FY 2010-11. It is staff's opinion that if cuts are to be made, they should be made once, now, rather than continuing to repeat them into the future as they have been made several time already in the recent past. The City Manager has directed all departments receiving general fund support to reach a targeted savings of an additional five (5) percent in their associated services and supplies accounts. This appears to be as much additional savings as can be accomplished in that area, without impairing the ability to conduct business, given the contraction that has already occurred since May 2008. That action is anticipated to achieve approximately $350,000 in savings in 2009-10, and if carried forward as a baseline, again in 2010-11. Staff is also evaluating shifting approximately $250,000 cost of street lighting from the General fund to the Street fund, as was done in 2008-09, but will wait until the annual audit is complete before doing so to assure that appropriate revenues within that fund are available to support the shift. Transient Occupancy Tax (TOT) revenues will also be reviewed to determine if more can be transferred to the General fund. TOT proceeds are tracking closely the projections made in June, with 24 percent of estimated revenues received at September 30, 2009. Any relief from this source would be minor. In June, 2009, staff advised it would explore options for contracting out, either to private or other public entities, support services. Informal discussions have occurred with both the County and other cities in this regard, but with no positive result as of yet. While any savings associated with these proposals would be incremental at best, they might allow the City to continue to provide a service would otherwise need to be eliminated. Beyond these actions, staff stands ready to evaluate for the Council any revenue increase proposals you may support. The majority of General fund expenditures support employee salary and benefits. Due to the magnitude of the reductions necessary to assure this and next year's budgets remain balanced, it appears once again that corrective action needs to involve reduction of salaries and benefits, through workforce reductions, employee concessions, or a combination of the two. In that regard, the City Manager initiated conversations employee representatives to discuss options for balancing the budget. These will include, unless directed otherwise, the suspension of salary step advancements through at least June 30, 2010 for those employees who are not at the top steps of their salary ladders, and an unpaid furlough of 40 hours in 2009-10 and again in 2010-11. Such furlough would fall, for all employees working 4/10 or 9/80 shifts, during the two weeks prior to January 2"d and occur around paid holidays. Furloughs for Public Safety employees would be spread throughout the year to maintain response capability and to minimize the use of overtime hours. Your authorization to implement this concession is sought at the present time so, if it is obtained, sufficient time will exist to modify work schedules prior to mid-December. In addition to these actions, and based on your direction Management will seek to bargain further salary concessions. As in the past, these may include shifting a greater cost of health benefits to employees, or reducing salaries. Failing in these efforts, staff will return to Council with a list of proposed workforce reductions for your consideration. That list is currently being refined, for use in bargaining. Staff would hope to bring recommendations back to Council at either the November 16th or December 7th meeting for action, and subsequent implementation in January. 4. I+'INANCIAL IMPACTS: Various funds will receive a net reduction in appropriations totaling ($525,250). S Cost Saving Proposals Recommended -Since June 4 Attachment 1 General Fund PRC][~OSALS DEVEU~PEDSINCE lUNE4 Employee Loss Impact Savings 20 Remove 2009-2010 Election Cost from Budget $ 30,000.00 na No Impact -Funds are not required 21 Eliminate PT Allocation in Police Department $ 119,000.00 PT Employees Conduct background checks; need not anticipated 09-10 22 Eliminate Portion of Professional Services Allocation in $ 73 00 000 na Withdraw participation from County wide Bomb Squad and Drug Task Police Bud et , . Force. 23 Reduce Allocation for Supplies in Police Budget $ 50,000.00 na Department will adjust to revised level of funding Response times are impacted; Traffic division staffing and 24 ~ .., ..FF ~ o.,i~~,. nu~~,.. o..~~....,~ ggaT -+ S 3yS 3 I M i i f t d d bilit t i t t l t t , , re o re programs; n a ns en orcemen uce . na y ns a e os a 2S Reduce Allocation for Police CAD $ 31,000.00 Reduced fees paid to the county 09-10. No impact. I ~., ..FF ~ ...a,. T,,..ti ~....~~-.~~~« a.,..., ~~«„ ~~.,...,,.,,. Results in loss of stand-b availabilit im actin response time to 26 n~'~6-2-'r. $6~00~00 1 p g y y major issues; possible review and reduction in off-site technology. k ff f ili i M i W 1 $ 87 424 93 1 Reduced response time and deferment of preventative maintenance. 27 or er a ntenance Lay-o 1 ac t es , . Loss of back u to traffic division. i M h i ff $ 91 816 32 1 Delay in repairs to some equipment; Possible outsourcing of specific 28 pment ec an c Lay-o 1 Equ , . re airs• rioritization must occur. Impacts processing of Airport and Transit agreements and service to 29 Lay-off 1 Secretary Public Works/Transit $ 72,963.00 1 Commissions. Some work reassigned as part of organizational 30 Lay-off Risk Claims Administrator CM Office; Costs $ 23,036.00 1 Loss of response time and investigative resources. Distributed Across all 0 eratin Funds Possible delay in recruitment, hiring and other HR services, such as 31 Lay-off half time HR Analyst II City Manager Office $ 32,005.00 O.S early retirement and other unique activities resulting from budget 32 Eliminate PT Support in Finance $ 51,935.00 PT Employees Loss of staff to process license renewals, receipts and applications. Potential to incur overtime. Golden Handshake incentive creates vacancies; Reduction in minimum Leave 2 Additional Firefighter/Paramedic Positions staffing allows holding vacancies. Reduces minimum staffing from 14 33 Vacant. $ 380,000.00 2 to 13; 09 Staffing levels min. plus 3; Reduced from plus 4. Possible impact to ISO rating; Reduces all-hands capabil Maintains 09 July 4th; 2010 July 4 must self sustain as must other 34 Eliminate Special Events Budget and Reduce Contract $ 20,000.00 PT Employees special events. Contract class is cost recovering; adjustment reflects Class Expense. anticipated expense level. Eliminate PT Program Manager from Museum and 4 hours of Museum PT remains funded. Tiny Tots Student/teacher 35 Substitute Teacher Backup from Tiny Tots $ 17,000.00 PT Employees ratio moves from 1:10 to 1:12 as needed. TOTAL-,NEN/ COST SAVINGS PROPOSALS ~ 1~~'-8.9~ 9 City of Petaluma Attachment"2 (page 1 of 2) **Preliminary ilnaudited General Fund Summary** FY 2009-2010 Budget FY 2008 FY 2009 FY 2009 FY 2010 FY 2010 FY 2010 Revised Estimated Adopted Revised Estimated Actual Budget Actual Budget Budget Actual Revenues: Property Taxes 7,392,340 7,261,000 7,172,636 7,261,000 7,261,000 7,015,000 Sales Tax 11,649,972 10,500,000 9,440,135 9,300,000 9,300,000 8,339,000 Franchise Fees 2,549,1.84 2,591,000. 2,671,805 2,591,000 2,591,000 2,591,000 Property Transfer Tax 861,987 770,000 737,354 750,000 750,000 750,000 Business License 847,390 800,000 754;181 750,000 750,000 750,000 Licenses Permits and Fees 1,439,710 541,000 820,130 571,000 571,000 571,000 Fines, Forfeitures, Penalties & Other 661,025 513,000 426,092 513,000 513,000 51.3,000 Investment Earnings & Rent 709,224 436,000 371,492 384,000 384,000 384,000 Intergovernmental 4,923,244 "5,154,100 5,055,765 4,800,000 4,800,000 4,800,000 Charges for Services 5,301,615 5,086,500 4,259,280 5,808,650 5,808,650 5,808,650 Other Revenues 5,857,195 311,000 149,71.3 207,000 207;000 207,000 Total Revenues 42,192,886 33,963,600 31,858,583 32,935;650 32,935,650 31,728,650 Transfersdn 1,327,805 2,301,000 2,294,000 1,1.32;900 1,132,900 1,132,900 Total Revenues & Transfers In 43,520,691 36,264,600 34,152,583 34,068,550 34,068,550 32,861,550 Expenditures: General Government 2,275,670 1,654,750 1,485,876 1,750,650 1,701,750 1.,698,700 Finance 1,596,943 1,496,000 1,427,325 1,495,000 1.,460,950 1,458,350 Police 17,751,317 16,824,600 15,729,476 16,037,600 16,048,600 15,989,850 Fire 8,134,708 7,795,800 7,774,571 9,360,750 9,26.1,250 9,245,050 Community Development 1,894,860 370,100 328;237 241,300 240,900 24;0,500 ~ Public Works 11.,729,461 4,032,750 3,369,803 5,052,850 4,905,100 4,902,250 Park&Recreation 5;051,946 4,160,100 4,116,097 1,640,050 ],614,950 1,606,200 Total Expenditures 48,434,905 36,334,100 34,231,385 35,578;200 35,233,500 35,140,900 Transfers Out 438,000 572,35.0 605,03.3 - - - Total Expenditures & Transfers Out 48,872,905 36,906,450 34,836,418 35,578,200 35;233,500 35,140;900 Difference (5,352,214) (641,850) (683,835) (1,509,650) (1,1.64,950) (2,27.9,350) Beginning Fund Balance 3,614,846 _ 1,71;8;6'1 1 Revenues/Expenditures over (under) (683,835) (2,279,350) Est. Ambulance Loan Forgiveness (1,2.12;400) - Ending Fund Balance 1,718,61 1 (560,739) Reserve/Encumbrances 98,000 98,000 Contingencies 1,520,61 1 (758;739) Reserve-Assets 100,000 100,000 Designated for Projects/Contingencies Total Reserve/Designated 1,718,611 _ (560,739) Unobligated Fund Balance to Preliminary Unaudited General Fund Summary - Attachment 2 (Page 2 of 2) First Quarter FY 2009-2010 Budget Review FY 09-10 FY 09-10 % of FY 09-10 3 months Revised Budget @ Estimated Actual Budget 3 months Actual Revenues: Property Taxes Sales Tax - 7,261,000 0% 7,015,000 898,280 9,300,000 10% 8,339,000 304,439 2,591,000 12% 2,591,000 43,920 750,000 6% 750,000 30,057 750,000 4% 750,000 119,650 531,000 23% 571,000 136,748 513.,000 27% 513,000 97,605 384,000 25% 384,000 104,687 4,800,000 2% 4;800,000 1,159,196 5,848,650 20% 5,808,650 10,826 207,000 5% 207,000 2,905,408 32,935,650 9% 31,728,650 283,225 1,132,900 25% 1,132,900, 3,188,633 34,068,550 9% 32,861,550 Franchise Fees Property Transfer Tax Business License Licenses Permits and Fees Fines, Forfeitures, Penalties & Other Investment Earnings & Rent Intergovernmental Charges for Services* Other Revenues Total Revenues Transfers In Total Revenues & Transfers In Expenditures: City Council City Attorney City Clerk City Manager HR Finance Police Fire* Community Development Public Works Park & Recreation Total Expenditures Transfers Out 63,577 128,700 49% 128,471 50,183 395,250 13% 394,546 64,470 284,600 23% 284,093 124,328 602,300 21% 601,228 59,796 290,900 21% 290,382 258,349 1,460,950 18% 1,458,350 3,490,480 16,048,600 22% 15,989,850 2,123,697 9,261,250 23% 9,245,050 31,961 240,900 13% 240;500 1,145,606 4,905,100 23% 4,902,250 398,800 1,614,950 25% 1,606,200 7,811,247 35,233,500 22% 35,140,920 - - _ 0% Total Exp. & Transfers Out 7,811,247 35,233,500 22% Difference (4,622,614) (1,164,950) * In FY 09, Ambulance Services was in a separate fund. 35,140,920 (2,279,370) ~~ Attachment 3 FY 2009-10 Adopted Budget Adj~ust~ment Summary General.Fund Expenditures (reduction)/increase Reduction in Salaries/Benefits Reduction in Services/Supplies Reduction in Intragovernmental Charges Net Decrease General Fund Appropriations .Special Revenue Funds -Expenditures (reduction)/increase Reduction in Salaries/Benefits Reduction in Intragovernmental Charges Net Decrease Special Revenue Funds Appropriations Enterprise 1E+'unds -Expenditures {reduction)lincrease Increase in Salaries/Benefits Reduction in Intragovernmental Charges Net Decrease Enterprise Funds Appropriations Internal. Service Funds -Expenditures (reduction)Lincrease Reduction in Salaries/Benefits Net Decrease Internal Service Funds Appropriations PCDC Fund -Expenditures (reduction)/increase Increase in Salaries/Benefits Net Increase PCDC .Fund Appropriations Net Decrease Al Funds ($58,150) ($204,850) ($81,700) ($38,600) ($150) $6,750 ($39,150) ($122,800) $13,400 First Quarter FY 2009-10 Budget Adjustment PCDC Fund -Expenditures Increase Contract Services -Economic Development and Strategy Plan ($344,700) ($38,750) ($32,400) ($I22,800) $13,400 525 25`0 145 000 12 AN ORDINANCE REPLACING ORDINANCE NO. 2351 ADOPTED NOVEMBER 2, 2009 AMENDING ORDINANCE NO. 2330 N.C.S: TO CHANGE CERTAIN APPROPRIATIONS FOR THE GENERAL FUND FOR THE OPERATION OF THE CITY OF PETALUMA FROM JULY 1, 2009 TO JUNE 30, 2010, 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. 2330 N.C.S. is hereby amended for the fiscal year beginning on July 1, 2009 and ending on June 30, 2010 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, 2010. Section 3. Ordinance 2351 N.C.S. adopted November 2, 2009 is hereby repealed in its entirety. Section 4. All ordinance or parts of ordinances in conflict herewith are hereby repealed. Section 5. This ordinance is hereby declared to be necessary for the immediate preservation 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. The reason for the urgency is to approve adjustments to appropriations .needed as the result of the final recalculations made to the FY 09-10 Adopted Budget pursuant to Council direction on June 15, 2009, in order to provide certainty for departmental operations at the earliest possible time and permit more accurate budget monitoring. Section 6. The City Clerk is hereby directed to post and publish this ordinance or a synopsis of this ordinance for the period and in the manner required by the City Charter. l3 AN ORDINANCE REPLACING ORDINANCE NO. 23'54 N.C.S. ADOPTED NOVEMBER 2, 2009, AMENDING ORDINANCE NO. 233 N.C.S. TO CHANGE SPECIAL REVENUE FUND APPROPRIATIONS FOR THE OPERATION OF THE CITY OF PETALUMA FROM JULY 1, 2009 TO JUNE; 30„ 2010, 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. 2333 N.C.S. is hereby amended for the fiscal year beginning on July 1, 2009 and ending on June 30, 2010 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 nat exceed the estimated revenue, other sources and available fund balances for the fiscal year ending June. 30, 2010. Section 3. Ordinance 2354 N.C.S. adopted November 2, 2009 is hereby repealed in its entirety. Section 4. All ordinance or parts of ordinances in conflict herewith are hereby repealed. Section 5. This ordinance is hereby declared to be necessary for the immediate preservation 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, The reason for the urgency is to approve adjustments to appropriations needed as the result of ,the firial recalculations made to the FY 09-10 Adopted Budget pursuant to Council direction on June 15, 2009, in order to provide certainty for departmental operations at the earliest possible time and permit more accurate budget monitoring. Section 6. The City Clerk is hereby directed to post and publish this ordinance or a synopsis of this ordinance for the period and in the manner required by the City Charter. ly AN ORDINANCE REPLACINGORDINANCE N0.23"52,N.C.S. ADOPTED NOVEMBER 2, 2009, AMENDING ORDINANCE Nb. 2331 N.C.S. TO CHANGE APPROPRIATIONS FOR THE OPERATION OF "THE CITY OF PETALUMA ENTERPRISE FUNDS FROM JULY 1, 2009 TO JUNE 30;.2010, AND DECLARING THE URGENCY THEREOF, TO TAKE EFFECT IMIvIEDIATELY BE IT ORDAINED BY THE COUNCIL OF THE CITY OF PETALUMA AS FOLLOWS: .Section 1. Ordinance No. 2331 N.C.S. is hereby amended for the fiscal year beginning on July 1, 2009 and ending on June 30, 2010 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, 2010. Section 3. Ordinance 2352 N.C.S. adopted November 2, 2009 is hereby repealed in its entirety. Section 4. All ordinance or parts of ordinances in conflict herewith are hereby repealed. Section 5. This ordinance is hereby declared to be necessary for the immediate preservation 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. The reason for the urgency is to approve adjustments to appropriations needed as the result of the final recalculations made to the FY 09-10 Adopted Budget pursuant to Council direction on June 15, 2009, in order to provide certainty for departmental operations at the earliest possible time and permit more accurate budget monitoring. Section 6. The City Clerk is hereby directed to post and publish this ordinance or a synopsis of this ordinance for the period and in the manner required by the City Charter. 15 AN ORDINANCE REPLACING ORDINANCE NO. 23..53 N:C'.S. ADOPTED NOVEMBER 2, 2009, AMENDING ORDINANCE NO.233'2.N.C.S. TO CHANGE APPROPRIATIONS FOR THE OPERATION OF THE CITY OF PETALUMA SPECIAL REVENUE FUNDS FROM JULY 1, 2009 TO JUNE 30, 20.10, 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. 2332 N.C.S. is hereby amended for the .fiscal year beginning on July 1, 2009 and ending on June 30, 2010 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, 2010. Section 3. Ordinance 23.53 N.C.S. adopted November 2, 200.9 is hereby;repealed in its entirety. Section 4. All ordinance or parts of ordinances in conflict herewith are hereby repealed. Section 5. This ordinance is hereby declared to be necessary for the immediate preservation of the public. peace,. health and safety of the City of Petaluma and 'its citizens, and. shall take effect and 6e in force from and;after:ts final .passage by unanimous vote of the members of the City Council present at the time of its adoption.. Thee reason for the urgency is to approve adjustments. ~ to appropriations needed as the result of the final. recalculations made to the FY 09-10 Adopted Budget pursuant to Council direction on June' 15, 2Q09, in order' to provide certainty for departmental operations at the earliest possible time and permit more accurate budget° monitoring. Section 6. The City Clerk is hereby directed to post and publish this ordinance or a synopsis' of this ordinance for the period and in the manner required by the City Charter. I.b RESOLUTION REPLACING RESOLUTION 2009-12 ADOPTED NOVEMBER 2, 2009 APPROVING ADJUSTMENTS TO THE PETALUMA COMMUNITY DEVELOPMENT COMMISSION FY 2009-10 BUDGET WHEREAS, on June 15, 2009, the PCDC Commissioners adopted Resolution No. 2009-08, adopting the FY 2009-10 PCDC Preliminary Budget; and WHEREAS, the PCDC considered various adjustments to the budget and requested that changes be reflected in certain line-items with the intention of having the budget reflect current financial conditions; and NOW, THEREFORE BE IT RESOLVED, that the Petaluma Community Development Commission hereby: 1. Approves and adopts adjustments to the FY 2009-10 PCDC Budget, attached hereto as Exhibit A. 2. Repeals in its entirety Resolution No. 2009-12 adopted November 2, 2009. l"'I Exhibit A CITY~OF PETA'LUMA, CA APPROPRIATIONS BY DEPARTMENT Revised .July 1,.:2009 -June 30, 2010 Original FY 09-10 Revised FY 09-10 DEPARTMENT Adopted'Budget Adopted Budget Difference Legislative. City Council 128,700 128,700 - City Clerk 309,900 284,600 (25,300) City Attorney 393,600 395,250 1,650 Executive City Manager 585,250 602,300 17,050 Human Resources 333,200 290,900 (42,300) Employee Benefits 927,200 925,800 (1,400) Worker's Compensation 1,354.,500 1,349,550 (1,950) Housing C DBG 343, 550 343, 550 - Commercial Linkage Fees 103,000 ~ 103,000 - Housing in-Lieu Fees 1,402,300 1,402,200 (100) TOT 181, 000 1'81, 000 - Risk .Management 1, 674, 600 1, 585, 000 (89, 600) Information Technology 1,546,700 1,527,900 (18,800) Finance Administration 661,200 662,150 950 Accounting Services 576,050 565,050 (11,000) Trusts 4,100 4,100 - Donations 75,000 75,000 - Commercial Services 257,750 233,750 (24,000) General Services 359,550 348,500 (11,050) 3% Admin Impact Fees 19,600 19,600 - Police Police Operations 15,255,800 15,257,900 2,100 Animal Services 781,800 790,700 8,900 General Government Grants 20,000 20,000 - Police Facility Fees 950 950 - Police Grants 560,000 560,000 - Asset Seizure 100,000 100,000 - Supplemental Law Enforcement - - - Fire Fire Operations 9,360,750 9,261,250 (99;500) Fire. Department Grants 105,000 105,000 - Fi~e; Suppression Fees 700 700 - Haz Mat Fines - - - Fire In-Lieu Fees ~ - ~ - - Fire CIP - - - 1~ Exhibit A CITY OF PETALUMA, CA ' APPROPRIATIONS BY DEPARTMENT Revised July 1, 2009 -June 30, 2010 Original FY 09-10 Revised FY 09-10 DEPARTMENT Adopted Budget Adopted Budget Difference Community Development Community Development Operations 241,300 240,900 (400) Community Development Enterprise Fui 471,100 472,250 1,150 Public Works Public Works Operations 5,052,850 4,905,100 (147,750) Comm Facility Fees 600 600 - Public Facility Fees 500 500 - Traffic Mitigation Fees 3,700 3,700 - Storm Drainage Impact Fees 1,950 1,950 - Gas Tax 150,650 150,650 - Street Maintenance Gas Tax 2,707,550 2,657,800 (49,750) Street Maintenance Franchise Fees 375,000 375,000 - Transit 2,159,000 2,113,250 (45,750) Airport Operations 1,640,900 1,602,200 (38,700) LAD 373,950 375,850 1.,900 FEMA CIP 698,000 698,000 - Public Works/Surface Water CIP 12,751,300 12,751,300 - Public Works Grants 1,666,000 1,666,000 - Parks and Recreation Parks and Rec Operations 1,640,050 1,614,950 (25,100) Parkland Acquisition Fees 4,800 4,800 - Aquatic Fac Impact Fee 150 150 - Library Fac Impact Fee 250 250 - Marina 485,450 485,350 (100) Parks CIP 129,000 129,000 - Petaluma Community Development Commission Merged Project Area Admin 7,303,700 7,317,100 13,400 Merged Project Area CIP 3,048,000 3,048,000 - Merged Project:Area Debt 5,000,000 5,000,000 - Low and Mod Income Housing 1,685,650 1,694,850 9,200 PCDC Grants 1,000;000 1,000,000 - PCDC Donations - - - Water Resources and Conservation Waste Water 42,585,400 42,611,500 26,100 .. Water 15,649,450 15,674,350 24,900 Transfers Out All Funds 8,817;500 8,817,500 - TOTAL DEPARTMENTS 153,062,500 152,537,250 (525,250) ~~ Exhibit A CITY OF PETALUMA; CA APPROPRIATIONS Bl' FUND Revised July 1, 2009 -June 30, 2010 Original FY 09-10 Revised FY 09-10 FUND Adopted Budget Adopted Budget Difference General Fund 35,578,200 35,233,500 (344,700) Special Revenue Funds: CDBG 343,550 343,550 - Home/Begin Low/Mod Income Housing 1,750,650 1,759,850 9,200 Comm Fac Impact Fee 600 600 - Libr'ary Fac Impact Fee 250 250 - Public Fac Impact Fee 500 500 - Fire Suppress Impact Fee 700 700 - Storm Drainage Impact Fee 1,507,950 1,507,950 - Housing in-Lieu Impact Fee 1.,402,300 1,402;200 (100) Commercial Linkage Impact Fee 1.03,000 103,000 - Parkland Acquisition Impact Fee 108,800 108,800 - Aquatic Fac Impact Fee 150 150 - Police Fac Impact Fee 950 950 - Traffic Mitigation Impact Fee 255,700 255,700 - 3°1o Admin Impact Fees 19,600 19,600 - General Government Grants 20,000 20,000 - Fire Grants 105,000 105,000 - PCDC Grants 1,011,000 1,011,000 - Police Grants 560,000 560,000 - Park & Rec Grants - Public Works Grants 4,946,000 4,946,000 - Gas Tax 1,263,650 1,263,650 - Supplemental Law Enforcement 100,000 100,000 - LAD 373,950 375,850 1,900 Asset Seizure 100,000 100,000 - Street Maintenance Gas Tax 2,707.,550 2,657,800 (49,750) Street Reconstruction 24,000 24,000 - Street Maintenance Franchise Fees 375,000 375,000 - TOT 1,181,000 1,181,000 - Haz Mat Fines - Fire in-Lieu Fees 15,000 15,000 - Donations 100,000 100,000 - Prince Park Trust 17,900 17,900 - PCDC Donations 20 Exhibit A CITY OF PETALUMA, CA APPROPRIATIONS BY FUND Revised July 1, 2009 -June 30; 2010 FUND Original FY 09-10 Adopted Budget Revised FY 09-10 Adopted Budget Difference Capital Projects 16,626,300 16,626,300 - Debt Funds 5,000,000 5,000,000 - Redevelopment Funds 8,608,300 8,621,700 13,400 Enterprise Funds: Airport 1,640,900 1,602,200 (38,700) Ambulance - Development Services 471,100 472,250 1,150 Marina 485,450 485,350 (100) Public Transportation 2,159,000 2,113,250 (45,750) Waste Water 42,585,400 42,611,500 26,100 Water 15.,649,450 15,674,350 24,900 Internal Service Funds: Employee Benefits 927,200 925,800 (1,400) General Services 359,550 348,500 (11,050) Information Technology 1,546,700 1,527,900 (18,800) Risk 1,674,600 1,585,000 (89,600) Vehicle/Equip Replace - - - Worker's Comp 1,351,500 1,349,550 (1,950) Private Purpose Trust Funds 4,100 4,100 - TOTAL FUNDS 153,062,500 152,537,250 (525,250) 1322844.1 21