HomeMy WebLinkAboutStaff Report 4.A 06/01/2015DATE: June 1, 2015
Agenda Item #4,A
TO: Honorable Mayor and Members of the City Council through City Manager
Honorable Chairman and Members of the Successor Agency
FROM: William Mushallo, Finance Directo
SUBJECT: Introduction and Adoption of Urgency Ordinances Amending Ordinances 2531,
2532, 2533, 2534 and 2535 N.C.S. to Change Certain Appropriations for the
Operations of the City of Petaluma from July 1, 2014 to June 30, 2015 and
Declaring the Urgency Thereof, to Take Effect Immediately
RECOMMENDATION
It is recommended that the City Council adopt the attached urgency ordinances to amend
Ordinances 2531, 2532, 2533, 2534 and 2535 N.C.S. to Change Certain Appropriations for the
Operations of the City of Petaluma from July 1, 2014 to June 30, 2015 and Declaring the
Urgency Thereof, to Take Effect Immediately. The reason for the urgency is to modify FY
2014 -15 appropriations before the fiscal year expires.
BACKGROUND
The City reviews its budget on a continual basis and recommends periodic adjustments. The
proposed Year -End Budget adjustments are to the Adopted Budget for FY 2014 -2015.
Adjustments to the adopted budget are important for several reasons. They take into account
unexpected budget changes and provide a more accurate calculation of actual vs. budget
comparisons. They also provide departments with current amounts for comparisons with actual
performance of revenues and expenditures.
1St quarter budget adjustments were presented and approved by the City Council on Nov. 17,
2014. Mid -Year budget adjustments were presented and approved by the City Council on
February 9, 2015.
DISCUSSION
The proposed Year -End budget adjustments are for the General Fund, Special Revenue Funds,
Capital Projects Funds, Enterprise Funds, and the Internal Services Funds for the fiscal year
ending June 30, 2015. Department Heads were asked to provide Finance with a list of critical,
must -do budget adjustments. Direction was to keep requests to a minimum and to only include
items needing appropriations prior to June 30, 2015. The list was then compiled, reviewed and
presented to the City Manager.
The resulting adjustments are herein presented for City Council review and consideration.
Because budget adjustments modify previously approved budget appropriations, they must be
adopted by ordinance to become effective. Urgency ordinances, which require a unanimous
vote of the Council members present for passage, are recommended so that the City adjustments
may take effect prior to the end of the Fiscal Year. The proposed changes are categorized as
follows:
Adjustments — Increases or (decreases) in various funds to update the budget based on
current economic conditions, changes to city projects, or changes in work activity.
Transfers — Transfers from one fund to another to facilitate reporting requirements and
true -up fund balances and identify funding sources. A Transfer -In from one fund is
always accompanied by a Transfer -Out from another; i.e.: Total Transfers -In = Total
Transfers -Out.
The recommended Year -End adjustments are noted below and are summarized by fund type and
category of change:
General Fund — net change in fund balance ($101,000):
The General Fund is used to account for resources traditionally associated with government.
These include City Administration, Finance, Public Safety, Community Development, Public
Works, Parks and Recreation.
• The General Fund to transfer $101,000 to the Vehicle Replacement fund for the purchase
of one Type III Fire Engine from Ferrara Fire Apparatus, Inc. as approved by Resolution
2015 -016.
Special Revenue Funds — net change in fund balance ($10,613):
Revenue received from impact fees, grants, and special taxes such as Gas Tax and Transient
Occupancy Tax are recorded in the Special Revenue Funds. These funds are transferred out to
capital projects, street maintenance and the General Fund. Budgeted transfers -out to the capital
projects are adjusted according to the progress of each project. If a project is experiencing
delays, the transfer -out for the current fiscal year is reduced. Upon completion, all unused funds
are returned to the originating special revenue funds.
• Reclassification of the transfer -in for the loan repayment to the Storm Drainage Impact
fees fund. The transfer -in had been incorrectly budgeted to the Storm Utility fund,
$37,420.
• Transfers -in to the Traffic Mitigation and Street Maintenance funds of excess funds from
completed capital projects, $3,832.
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• An adjustment to the Home Begin fund for the final payment to Burbank Housing
Development for Logan Place, ($25,000).
• Transfer -out from Storm Drainage Impact fees for the Old Corona Rd Water project,
C16301518, ($22,000).
• Transfer -out from Street Maintenance for the completion of the First & F Streets Bridge
Rehabilitation project, 016101003, ($4,400).
• Transfer -out from Street Maintenance for the completion of the East D St. Bike Blvd.
project, e16012011, ($465).
Capital Projects — net change in fund balance $321,033:
Capital Projects, the acquisition and construction of major capital improvement projects in the
City, are funded primarily by Special Revenue funds. Transfers -in are made according to the
progress made so as to cover the corresponding expenditures. Grant .funds and donations are
applied first, followed by impact fees. If a project is experiencing delays, the budgeted Transfer -
in is reduced for the current fiscal year. Upon project completion, all unused funds are returned
to the originating Special Revenue funds.
• An adjustment to budgeted revenue from Measure M funds for the River Trail project,
003200503, $320,000.
• Transfer -in from Street Maintenance for the completion of the First & F Streets Bridge
Rehabilitation project, C16101003, $4,400.
• Transfer -in from Street Maintenance for the completion of the East D St. Bike Blvd.
project, e16012011, $465.
• Transfers -out from various completed Public Works projects returning excess funds to
the Traffic Mitigation and Street Maintenance funds, ($3,832).
Enterprise Funds — net change in fund balance ($15,420):
The Enterprise Funds account for the daily operation and maintenance of the Petaluma Airport,
Development and Planning Services, Petaluma Marina, Petaluma Transit Services, and the
comprehensive and integrated management of Petaluma's water resources, including collection
and treatment of wastewater.
• Reclassification of the transfer -in for the loan repayment to the Storm Drainage Impact
fees fund. The transfer -in had been incorrectly budgeted to the Storm Utility fund,
($37,420).
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• Transfer -out from the Transit Operating fund, ($66,730) and a corresponding transfer -in
to the Transit CIP fund, $66,730, as approved by Resolution 2014 -035 for the completion
of the Petaluma Transit Maintenance Facility project, C65201201.
Transfer -in from the Storm Drainage Impact fees fund for the Old Corona Rd. Water
project, C16301518, $22,000.
Internal Service Funds — net change in fund balance ($207,100):
Funds include Employee Benefits, General Services, Information Technology, Risk
Management, Vehicle and Equipment Replacement, and Workers' Compensation. All Internal
Service fund costs are charged back to user departments in the City.
• Transfer -in from the General Fund to the Vehicle Replacement fund to contribute to the
purchase of one Type III Fire Engine, $101,000.
An adjustment to appropriations in the Vehicle Replacement fund for the purchase of one
Type III Fire Engine, ($308,100).
FINANCIAL IMPACTS
There are no recommended budget adjustments to General Fund revenues. Transfers -out will
increase by $101,000. The General Fund will contribute $101,000 to the Vehicle Replacement
fund for the purchase of one Type III Fire Engine. The net financial impact of the recommended
budget adjustment to the General Fund is a decrease in fund balance of $101,000.
Budgeted revenue for Special Revenue funds will increase by $41,252 due to the reclassification
of a transfer -in to the Storm Drainage Impact Fees, $37,420, and the return of excess funds from
completed projects, $3,832. Appropriations will increase by $51,865 as a result of the final
payment to Burbank Housing for Logan Place, $25,000 and transfers -out to various projects,
$26,865. The net financial impact is a reduction in fund balance of $10,613.
Budgeted revenues for the Capital Projects funds will increase by $324,865 comprised of
revenue from Measure M funds for the River Trail project, $320,000, and transfers -in for the
completion of the First & F St. Bridge and East D St. Bike Bl. projects, $4,865. Transfers -out of
excess funds from completed projects will increase budgeted appropriations by $3,832. The net
financial impact to the Capital Projects funds is a net increase of $321,033.
Enterprise Funds budgeted revenue will increase by $51,310; transfers -in for the Old Corona Rd.
Water project, $22,000, and for the Petaluma Transit Maintenance Facility project, $66,730 will
be offset by the reclassification of transfer -in for a Storm Utility loan to the Storm Drainage
Impact Fees fund, ($37,420). Budgeted Enterprise appropriations will increase by $66,730 as a
result of the transfer -out from Transit Operating to Transit CIP for the Petaluma Transit
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Maintenance Facility project. The net financial impact to the Enterprise Funds is a decrease of
$15,420.
Recommended budget adjustments to the Internal Service Funds revenue will result in an
increase of $101,000 as a result of the transfer -in from the General Fund to contribute to the
purchase of one Type III Fire Engine. Adjustments to appropriations for the purchase of the
vehicle total $308,100. The net change to fund balances is a decrease of $207,100.
No Year -End budget adjustments are proposed for the Successor Agency and its fund balances
will remain unchanged.
ATTACHMENTS
1. FY 2014 -15 Year -End Budget Adjustment Summary
2. Appropriations Ordinance Amendment, General Fund
3. Appropriations Ordinance Amendment, Enterprise Funds
4. Appropriations Ordinance Amendment, Internal Service Funds
5. Appropriations Ordinance Amendment, Special Revenue Funds
6. Appropriations Ordinance Amendment, Capital Projects Funds
7. Exhibit A — Detailed FY 14/15 Year -End Budget Adjustments
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ATTACHMENT 2
AN URGENCY ORDINANCE AMENDING ORDINANCE NO. 2531 N.C.S.
TO CHANGE GENERAL FUND APPROPRIATIONS FOR THE OPERATION OF
THE CITY OF PETALUMA FROM JULY 1, 2014 TO JUNE 30, 2015
AND DECLARING THE URGENCY THEREOF, TO TAKE EFFECT IMMEDIATELY:
Section 1. Ordinance No. 2531 N.C.S. is hereby amended for the fiscal year beginning on July
1, 2014 and ending on June 30, 2015 in the amounts as set forth 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, 2015.
Section 3. All ordinance or parts of ordinances in conflict herewith are hereby repealed.
Section 4. 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 modify FY 2014 -15
appropriations before the fiscal year expires.
Section 5. Severability. If any section, subsection, sentence, clause, phrase or word of this
ordinance is for any reason held to be unconstitutional, unlawful or otherwise invalid by a court
of competent jurisdiction or preempted by state legislation, such decision or legislation shall not
affect the validity of the remaining portions of this ordinance. The City Council of the City of
Petaluma hereby declares that it would have passed and adopted this ordinance and each and all
provisions thereof irrespective of the fact that any one or more of said provisions be declared
unconstitutional, unlawful or otherwise invalid.
Section 6. 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 , 2015,
by the following vote:
7
ATTACHMENT 3
AN URGENCY ORDINANCE AMENDING ORDINANCE NO. 2532 N.C.S. TO
CHANGE ENTERPRISE FUNDS APPROPRIATIONS FOR THE OPERATION OF
THE CITY OF PETALUMA FROM JULY 1, 2014 TO JUNE 30, 2015
AND DECLARING THE URGENCY THEREOF, TO TAKE EFFECT IMMEDIATELY:
Section 1. Ordinance No. 2532 N.C.S. is hereby amended for the fiscal year beginning on July
1, 2014 and ending on June 30, 2015 in the amounts as set forth 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, 2015.
Section 3. All ordinance or parts of ordinances in conflict herewith are hereby repealed.
Section 4. 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 modify FY 2014 -15
appropriations before the fiscal year expires.
Section 5. Severability. If any section, subsection, sentence, clause, phrase or word of this
ordinance is for any reason held to be unconstitutional, unlawful or otherwise invalid by a court
of competent jurisdiction or preempted by state legislation, such decision or legislation shall not
affect the validity of the remaining portions of this ordinance. The City Council of the City of
Petaluma hereby declares that it would have passed and adopted this ordinance and each and all
provisions thereof irrespective of the fact that any one or more of said provisions be declared
unconstitutional, unlawful or otherwise invalid.
Section 6. 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 , 2015,
by the following vote:
ATTACHMENT 4
AN URGENCY ORDINANCE AMENDING ORDINANCE NO. 2533 N.C.S. TO
CHANGE INTERNAL SERVICE FUNDS APPROPRIATIONS FOR THE OPERATION OF
THE CITY OF PETALUMA FROM JULY 1, 2014 TO JUNE 30, 2015
AND DECLARING THE URGENCY THEREOF, TO TAKE EFFECT IMMEDIATELY:
Section 1. Ordinance No. 2533 N.C.S. is hereby amended for the fiscal year beginning on July
1, 2014 and ending on June 30, 2015 in the amounts as set forth 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, 2015.
Section 3. All ordinance or parts of ordinances in conflict herewith are hereby repealed.
Section 4. 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 modify FY 2014 -15
appropriations before the fiscal year expires.
Section 5. Severability. If any section, subsection, sentence, clause, phrase or word of this
ordinance is for any reason held to be unconstitutional, unlawful or otherwise invalid by a court
of competent jurisdiction or preempted by state legislation, such decision or legislation shall not
affect the validity of the remaining portions of this ordinance. The City Council of the City of
Petaluma hereby declares that it would have passed and adopted this ordinance and each and all
provisions thereof irrespective of the fact that any one or more of said provisions be declared
unconstitutional, unlawful or otherwise invalid.
Section 6. 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 , 2015,
by the following vote:
9
ATTACHMENT 5
AN URGENCY ORDINANCE AMENDING ORDINANCE NO. 2534 N.C.S.
TO CHANGE SPECIAL REVENUE FUNDS APPROPRIATIONS FOR THE OPERATION
OF THE CITY OF PETALUMA FROM JULY 1, 2014 TO JUNE 30, 2015
AND DECLARING THE URGENCY THEREOF, TO TAKE EFFECT IMMEDIATELY:
Section 1. Ordinance No. 2534 N.C.S. is hereby amended for the fiscal year beginning on July
1, 2014 and ending on June 30, 2015 in the amounts as set forth 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, 2015.
Section 3. All ordinance or parts of ordinances in conflict herewith are hereby repealed.
Section 4. 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 modify FY 2014 -15
appropriations before the fiscal year expires.
Section 5. Severability. If any section, subsection, sentence, clause, phrase or word of this
ordinance is for any reason held to be unconstitutional, unlawful or otherwise invalid by a court
of competent jurisdiction or preempted by state legislation, such decision or legislation shall not
affect the validity of the remaining portions of this ordinance. The City Council of the City of
Petaluma hereby declares that it would have passed and adopted this ordinance and each and all
provisions thereof irrespective of the fact that any one or more of said provisions be declared
unconstitutional, unlawful or otherwise invalid.
Section 6. 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 , 2015,
by the following vote:
10
ATTACHMENT 6
AN URGENCY ORDINANCE AMENDING ORDINANCE NO. 2535 N.C.S.
TO CHANGE CAPITAL PROJECTS FUNDS APPROPRIATIONS FOR THE OPERATION
OF THE CITY OF PETALUMA FROM JULY 1, 2014 TO JUNE 30, 2015
AND DECLARING THE URGENCY THEREOF, TO TAKE EFFECT IMMEDIATELY:
Section 1. Ordinance No. 2535 N.C.S. is hereby amended for the fiscal year beginning on July
1, 2014 and ending on June 30, 2015 in the amounts as set forth 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, 2015.
Section 3. All ordinance or parts of ordinances in conflict herewith are hereby repealed.
Section 4. 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 modify FY 2014 -15
appropriations before the fiscal year expires.
Section 5. Severability. If any section, subsection, sentence, clause, phrase or word of this
ordinance is for any reason held to be unconstitutional, unlawful or otherwise invalid by a court
of competent jurisdiction or preempted by state legislation, such decision or legislation shall not
affect the validity of the remaining portions of this ordinance. The City Council of the City of
Petaluma hereby declares that it would have passed and adopted this ordinance and each and all
provisions thereof irrespective of the fact that any one or more of said provisions be declared
unconstitutional, unlawful or otherwise invalid.
Section 6. 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 , 2015,
by the following vote:
11