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HomeMy WebLinkAboutStaff Report 1.A 02/17/2017Agenda Item #LA Y85$ DATE: February 13, 2017 TO: Honorable Mayor and Members of the City Council through City Manager FROM: William Mushallo, Finance Director SUBJECT: Urgency Ordinances to Change Certain Appropriations for the Operations of the City of Petaluma from July 1, 2016 to June 30, 2017 and Declaring the Urgency Thereof, to Take Effect Immediately, and Resolution Committing Reserve Funds for Specific Uses. RECOMMENDATION It is recommended that the City Council adopt the attached urgency ordinances to amend Ordinances 2587, 2588, 2589, 2590 and 2591 N.C.S. to Change Certain Appropriations for the Operations of the City of Petaluma from July 1, 2016 to June 30, 2017 and Declaring the Urgency Thereof, to take Effect Immediately. BACKGROUND The proposed Mid -Year Budget Adjustments are to the Adopted Budget for FY 2016-2017. Adjustments to the adopted budget take into account unexpected budget changes and provide a more accurate and current calculation of actual vs. budget comparisons. The reason for the urgency is to avoid, or eliminate, negative appropriation balances. It will also allow us to reflect current appropriations and fund balances in preparation for the FY 18 budget process that has already commenced. DISCUSSION The proposed mid -year budget adjustments are for the General Fund, Special Revenue Funds, Capital Projects Funds, Enterprise Funds, Utility Funds and the Internal Services Funds for the fiscal year ending June 30, 2017. Department Heads were directed to provide Finance with a list of critical, must -do budget adjustments. The list was then compiled, presented to the City Manager, and screened to the recommended list. The resulting adjustments are herein presented for City Council consideration and approval. Budget adjustments modify previously approved budget appropriations. As such, 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 these adjustments may take effect immediately in preparation for the FY 18 budget process. 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 identify funding sources, facilitate reporting requirements, and true -up fund balances. A Transfer In from one fund is always accompanied by a Transfer Out from another; i.e.: Transfers In = Transfers Out. Encumbrances & Designated Reserves — Encumbrances are appropriations budgeted in the prior fiscal year that were delayed. Additionally, unexpected, critical and one-time expenditures can be paid for from designated reserves. These transactions do not affect fund balances in the current fiscal year. Provided below is a summary of the recommended mid -year budget adjustments by fund type: General Fund — net increase in fund balance $149,041 The General Fund encompasses activities traditionally associated with government. These include City Administration, Finance, Public Safety, Planning, Public Works, Parks and Recreation. • Adjustment to Revenue based on forecast; increase revenue $985,000 • Adjustment to salary and benefit appropriations due to labor negotiations; increase appropriation $1,031,219. This increase is partially funded by $300,000 released from designated reserves which were committed for compensation. • Adjustment to appropriations and change in Transfer in for Computer Crimes Investigator to be charged to Police Grants, not the General Fund; decrease appropriations ($170,000) and decrease Transfer in, ($43,740) • Adjustment to appropriations to fund two Traffic Safety police officer positions. Over the past three years fatal and injury traffic collisions have increased 60%. Ticket revenue to partially offset cost. Increase 2016/17 appropriations $60,000, to be covered by salary savings throughout the department. Annual cost estimated at $350,000 • Transfer in from Risk to cover legal expenses incurred by the General Fund. Increase Transfer in, $100,000. Amounts budgeted in Risk are transferred on a periodic basis. • Adjustment to appropriations in the City Clerk's budget for consultant to develop Records Retention schedule, forms and procedures. Increase appropriations $11,000 • Adjustment to appropriations to purchase operating supplies for the Police Dept. in order to meet state and national accreditation standards; one-time increase to appropriations of $70,000 which is paid for using 2016/17 salary savings. 2 • Transfers out from General Fund for capital projects experiencing delays reduced ($50,000) Special Revenue Funds — net increase in fund balance $525,890: Special Revenue Funds include Gas Tax, Street Maintenance, Housing, Landscape Assessment Districts, Developer Impact Fees, Donations, Grants and Transient Occupancy funds. • Adjustment to appropriations and change in Transfer in for Computer Crimes Investigator to be charged to Police Grants, not the General Fund. Increase in Transfer in, $43,740 and increase to appropriations, $170,000 • Adjustment to appropriations in Housing for appraisal of two City -owned properties. Increase to appropriations, $7,500 • Adjustment to appropriations in Housing for impact fee study. Increase to appropriations, $50,000 • Transfer out from Storm Drainage Impact Fees for consultant to evaluate XP Storm Model. Increase in Transfer out, $23,350 • Transfer out from Public Works Grants Fund. Dept. of Water Resources grant for new Flood Management Denman Reach, phase 4, project. Increase in Transfer out, $900,000 • Transfer out from Transient Occupancy Tax; transfer to the Vehicle Replacement fund. Increase in Transfer out, $100,000 • Transfers out reduced for capital projects experiencing delays, ($1,733,000) Capital Project Funds — net increase in fund balance $84,125 Capital projects are funded primarily by Special Revenue and Utility capital funds. Transfers In are made according to the progress made so as to cover expenditures in a timely manner. Grant funds and donations are applied first, followed by impact fees and utility capital. If a project is experiencing delays, the budgeted Transfer In is reduced for the current fiscal year and the balance rolled over to the next fiscal year. Upon project completion, any unused funds are returned. • Adjustment to revenue, appropriations and Transfer in. Sonoma County Water Agency funding for new Petaluma River Flood Management Denman Reach, phase 4, project. Increase to revenue, $324,000; appropriations, $1,124,000; and Transfer In, $900,000 • Adjustment to FY 17 budgeted revenues for capital projects experiencing delays. Decrease in revenue, ($1,287,000) • Transfer in changed for Santa Rosa Junior College 12" Water Main project that is to be consolidated with project c66401415, Recycled Water Pipeline System Extensions. Increase in Transfer in, $11,200 • Transfer in for completed project c67501303, 2" Water Main. Additional funds needed to close out project. Transfer in increased, $2,225 • Transfer in for Sewer Main Replacement 2017-2018 project that will start ahead of schedule. Transfer in of Waste Water capital funds increased, $681,000 • Adjustment to appropriations and FY 17 budgeted transfers for capital projects experiencing delays. Reduction in Transfers in, ($13,722,000) and appropriations, ($15,009,000) • Transfer out revised. Transit Signal Priority, phase 1, project completed. Excess Transit funds to be returned to operating fund. Increase in Transfer out, $29,300 Enterprise Funds — net increase in fund balance $29,300: The Enterprise Funds account for the daily operation and maintenance of the Petaluma Airport, Development and Planning Services, Petaluma Marina and Petaluma Transit Services. • Transfer in revised for completed Transit Signal Priority, phase 1, project. Excess Transit funds to be returned to operating fund. Increase in Transfer in, $29,300 Utility Funds — net increase in fund balance $11,244,575 The Utility Funds provide for the comprehensive and integrated management of Petaluma's water resources, storm water and the collection and treatment of wastewater. • Adjustment to appropriations and Transfer in for consultant who will evaluate XP Storm Model. Increase in appropriations and Transfer in $23,350 • Transfer out for Water capital for Santa Rosa Junior College 12" Water Main Extension project revised. Transfer Out increased, $11,200 • Transfer out for completed project c67501303, 2" Water Main. Additional funds needed to close out project. Increase in Transfers Out, $2,225 • Transfer out of Waste Water capital funds revised for Sewer Main Replacement 2017- 2018 project. Increase in Transfer Out, $681,000 • Transfers out for capital projects revised due to delays. Decrease in Transfers Out, ($11,939,000) 11 Internal Service Funds — net decrease in fund balance ($53,850 These 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 for Transient Occupancy Tax transfer to the Vehicle Replacement fund. Increase in Transfer In, $100,000 • Adjustment to appropriations for purchase of a new Pitney Bowes postage machine. Parts are no longer available for the machine currently in use. Increase in appropriations, $2,500 • Adjustment to appropriations for purchase of two motorcycles for the Traffic Safety Program. Increase in appropriations, $51,350 • Transfer out from Risk to the General Fund for legal expenses. Increase in Transfer out, $100,000 Encumbrances Adjustment to appropriations for the purchase of an Aquatic Plant Harvester and a Chevy Silverado Truck for the Waste Water Dept. Delivery was delayed until August 2016. Increase in encumbrances, $101,000 • Adjustment to appropriations for purchase of supplies for the City Attorney's office. Payment inadvertently posted to FY 2017. Increase in encumbrances, $3,100 Designated and Committed Reserves The City Council has provided direction that 15% of expenditures be maintained in a designated reserve to be used for contingencies. Those contingencies would include economic downturns and emergencies including natural disasters, catastrophic events, and emergency capital projects and purchases. In addition, amounts have been committed for specific uses. The following appropriations are recommended from these committed reserves: • $600,000 for employee compensation 0 $164,000 for the Payran Underground Storage Tank Site Remediation project FINANCIAL IMPACTS General Fund budgeted revenues will increase by $1,041,260 as a result of forecast adjustments and transfers in from Risk, to cover legal expenses, and changes to the transfer in for the computer crimes investigator position. Expenditures will increase by $892,219 due primarily to salary and benefit adjustments as a result of labor negotiations. Appropriations for a Records Retention consultant and supplies for the Police Dept. to meet state and national accreditation standards will be offset by moving the appropriations for the computer crimes investigator position to the Police Grants fund and the reduction of transfers out for capital projects experiencing delays. The funding for two Traffic Safety police officer positions is to be offset by salary savings throughout the department. The net financial impact to the General Fund associated with the recommended budget adjustments is an increase in fund balance of $149,041. Special Revenue Funds budgeted revenue will increase by $43,740 as a result of the transfer in for the computer crimes investigator position. Appropriations will increase by $227,500 as a result of the appraisal of two City -owned properties, the cost of the computer crimes investigator position and a Housing impact fee study. Transfers out will decline by $709,650 due primarily to delays experienced by several capital projects. The net financial impact is an increase in fund balance of $525,890. Budgeted revenue and transfers in for Capital Project Funds will decline by $13,090,575 due primarily to delays experienced by several capital projects. The decline is offset slightly by the recently awarded Dept. of Water Resources grant for the new Flood Management Denman Reach, phase 4, project; $900,000. Corresponding project appropriations will decline by $13,174,700. The net financial impact is an increase in fund balance of $84,125. Enterprise budgeted revenue will increase by $29,300 due to the return of excess funds from the completed Transit Signal Priority, phase 1, capital project. Budgeted appropriations will remain unchanged. The net financial impact is an increase in fund balance of $29,300. Budgeted revenue for the Utility Funds will increase by $23,350 due to the transfer in to cover the cost of evaluating the XP Storm Model. Appropriations will increase by the same amount; $23,350. Transfers out will decrease by $11,244,575 due primarily to delays experienced by several capital projects. The net impact will be an increase in the fund balance of $11,244,575. Internal Service Funds budgeted revenue will increase by $100,000 due to a transfer from TOT to the Vehicle Replacement Fund. Appropriations will increase by $53,850 as a result of the purchase of a new Pitney Bowes postage machine and two motorcycles for the Traffic Safety Program. Transfers out from Risk to the General Fund for legal expenses will increase by $100,000. The net financial impact associated with these recommended budget adjustments is a decrease in the fund balance of $53,850. Adjustments to committed and designated reserves across all funds total $764,000. This includes $600,000 for employee compensation and $164,000 for the Payran UST project. This does not include any first quarter budget adjustments or reserve adjustments adopted prior. :1 ATTACHMENTS 1. FY 2016-17 Mid -Year 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. Resolution appropriating General Fund Reserves for Specific Uses 8. Exhibit A — Detailed FY 16/17 1" Quarter Budget Adjustments 7 Attachment', City of Petaluma , . .. • , FY 2016-17 Mid -Year Budget Adjustment Summary (13,090,575) 29,300 23,350 100,000 (11,852,925)' Ref REVENUE General SpecialRevenue Adiustments ...985,000 FY 2016 -171st Quarter Budget Adjustment Summary i General Fund revenue adjustments Funds _. L SCWA funding for new Petaluma River Flood Mgmt Denman Reach 4 project ':EXPENSES 324,000 N -AE Reduce FY 17 budgeted revenue for projects experiencing delays (1,287,000), Total Revenue Adjustments 985,000 (963,000)', - 22,000 Transfers M ii General Fund salary and benefit adjustments due to labor negotiations 3 SRJC 12" Water Main project to be consolidated with project c66401415 11,200 E Consultant to evaluate XP Storm Model; transferfrom Storm Drainage Impact Fees Pitney Bowes postage machine for General Services; parts no longer available 23,350 F Transit Signal Priority Ph 1 complete; excess Transit funds returned 2,500 29,300 G Project c67501303 2" Water Main project complete; additional funds needed 2,225 H Computer Crimes Investigator to be charged to Police Grants; not GF (43,740)!, 43,740 L Dept of Water Resources grant for new Flood Mgmt Denman Reach 4 project 900,000 M Sewer Main Replacement 2017-2018 project to start; transfer of WW capital funds Consultant to evaluate changes to the XP Storm Model 681,000' M1 ''..TOTtransferto Vehicle Replacement fund; general support 23,350'. 100,000 N -AE Reduce FY 17 transfers for projects experiencing delays (170,000); (13,722,000) M3:Risk transfer tothe General Fund for legalexpenses 100,000 Purchase of 2 motorcycles for Traffic Safety Program Total Transfers In; I TOTAL REVENUES 1,041,260 43,740 (13,090,575) 29,300 23,350 100,000 (11,852,925)' City of Petaluma General SpecialRevenue Capital Project Enterprise Utlily Internal Service TOTAL FY 2016 -171st Quarter Budget Adjustment Summary Fund Funds Funds Funds �Funcls Funds ALL FUNDS Ref ':EXPENSES Adjustments ii General Fund salary and benefit adjustments due to labor negotiations 1,031,219 A Pitney Bowes postage machine for General Services; parts no longer available 2,500 C Appraisal for two city -owned properties 7,500 D Consultant to develop Records Retention schedule, forms and procedures 11,000 E Consultant to evaluate changes to the XP Storm Model 23,350'. x Computer Crimes Investigator to be charged to Police Grants; not GF (170,000); 170,000 z Purchase of 2 motorcycles for Traffic Safety Program 51,350 J Police operating supplies to meet state and national accreditation standards 70,000 L New Petaluma River Flood Mgmt Denman Reach 4 project 1,124,000 M Sewer Main Replacement 2017-2018 project to start ahead of schedule 681,000 M2 :, Housing Impact fee study _.. _- ".. _.. _. .50,000 _... N -AE !; Reduce FY 17 budgeted expenditures for projects experiencing delays (15,009,000)! I City of Petaluma FY 2016 -171st Quarter Budget Adjustmen t Summary Transfers Out B Water Capital for SRJC 12" Water Main ext project E Consultant to evaluate XP Storm Model; transfer from Storm Drainage Impact Fees 23,350 F Transit Signal Priority Ph 1 complete; refund excess Transit funds 29,300 G Project c67S01303 2" Water Main project complete; additional funds needed i Dept of Water Resources grant for new Flood Mgmt Denman Reach 4 project 900,000 M Sewer Main Replacement 2017-2018 project to start; transfer of WW capital funds Nn ':TOT transfer to Vehicle Replacement fund; general support 100,000 N -AE Reduce FY 17 transfers for projects experiencing delays (50,000) (1,733,000)., M3 Risk transfer to the General Fund for legal expenses 11,200 2,225 681,000 (11,939,000) 100,000 Encumbrances EncA Purchase of Aquatic Plant Harvester and Chevy Silverado Truck; delivery delayed 101,100 En"a Purchase of supplies; payment incorrectly posted to FY 2017 3,100 Total Encumbrances3,100 101,100 104,200 Designated and Committed Reserves Employee compensation (600,000) Payran Underground Storage Tank Site Remediation project (164,000) Tntal Racar — (7rA nnnl nnnt' bJ ATTACHMENT 2 AN URGENCY ORDINANCE AMENDING ORDINANCE NO. 2587 N.C.S. TO CHANGE GENERAL FUND APPROPRIATIONS FOR THE OPERATION OF THE CITY OF PETALUMA FROM JULY 15 2016 TO JUNE 30, 2017 AND DECLARING THE URGENCY THEREOF, TO TAKE EFFECT IMMEDIATELY Section 1. Ordinance No. 2587 N.C.S. is hereby amended for the fiscal year beginning on July 1, 2016 and ending on June 30, 2017 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, 2017. 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 reflect up-to-date appropriations and true -up fund balances in preparation for the upcoming FY 18 budget process. 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 Chatter. INTRODUCED and ordered posted/published this day of )2017, by the following vote: 10 ATTACHMENT 3 AN URGENCY ORDINANCE AMENDING ORDINANCE NO. 2588 N.C.S. TO CHANGE ENTERPRISE FUNDS APPROPRIATIONS FOR THE OPERATION OF THE CITY OFPETALUMA FROM JULY 1, 2016 TO JUNE 30, 2017 AND DECLARING THE URGENCY THEREOF, TO TAKE EFFECT IMMEDIATELY Section 1. Ordinance No. 2588 N.C.S. is hereby amended for the fiscal year beginning on July 1, 2016 and ending on June 30, 2017 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, 2017. 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 reflect up-to-date appropriations and true -up fund balances in preparation for the upcoming FY 18 budget process. 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 , 2017, by the following vote: 11 ATTACHMENT 4 AN URGENCY ORDINANCE AMENDING ORDINANCE NO. 2589 N.C.S. TO CHANGE INTERNAL SERVICE FUNDS APPROPRIATIONS FOR THE OPERATION OF THE CITY OF PETALUMA FROM JULY 1, 2016 TO JUNE 30, 2017 AND DECLARING THE URGENCY THEREOF, TO TAKE EFFECT IMMEDIATELY Section 1. Ordinance No. 2589 N.C.S. is hereby amended for the fiscal year beginning on July 1, 2016 and ending on June 30, 2017 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, 2017. 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 reflect up-to-date appropriations and true -up fund balances in preparation for the upcoming FY 18 budget process. 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 , 2017, by the following vote: 12 ATTACHMENT 5 AN URGENCY ORDINANCE AMENDING ORDINANCE NO. 2590 N.C.S. TO CHANGE SPECIAL REVENUE AND TRUST FUNDS APPROPRIATIONS FOR THE OPERATION OF THE CITY OF PETALUMA FROM JULY 1, 2016 TO JUNE 30, 2017 AND DECLARING THE URGENCY THEREOF, TO TAKE EFFECT IMMEDIATELY Section 1. Ordinance No. 2590 N.C.S. is hereby amended for the fiscal year beginning on July 1, 2016 and ending on June 30, 2017 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, 2017. 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 reflect up-to-date appropriations and true -up fund balances in preparation for the upcoming FY 18 budget process. 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 , 2017, by the following vote: 13 ATTACHMENT 6 AN URGENCY ORDINANCE AMENDING ORDINANCE NO. 2591 N.C.S. TO CHANGE CAPITAL PROJECTS FUNDS APPROPRIATIONS FOR THE OPERATION OF THE CITY OF PETALUMA FROM JULY 1, 2016 TO JUNE 30, 2017 AND DECLARING THE URGENCY THEREOF, TO TAKE EFFECT IMMEDIATELY Section 1. Ordinance No. 2591 N.C.S. is hereby amended for the fiscal year beginning on July 1, 2016 and ending on June 30, 2017 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, 2017. 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 reflect up-to-date appropriations and true -up fund balances in preparation for the upcoming FY 18 budget process. 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 , 2017, by the following vote: 14 ATTACHMENT 7 RESOLUTION AUTHORIZING THE APPROPRIATION OF VARIOUS GENERAL FUND RESERVES FOR SPECIFIC USES WHEREAS, the City Council has provided direction that 15% of General Fund expenditures be held in a designated reserve for emergency contingencies; and, WHEREAS, in addition, one time General Fund monies have been accumulated for specific uses; and, WHEREAS, those specific uses include employee compensation, General Plan update, street repairs and maintenance, and sidewalk repairs and maintenance, NOW, THEREFORE, BE IT RESOLVED that: 1. The City Council hereby approves appropriation of committed General Fund reserves in the amounts of $600,000 for employee compensation and $164,000 for the Payran Underground Storage Tank Site Remediation project. 15 Ell Detailed FY 16117 Mid -Year Budget Adjustments E)diibit f account strip project string Ref !fund name Revenue Expenditures amount Fundgroup fund cost ctr ob'ect Type if a Iicable revision purpose I General Fund 420,000 420,000 GF 1100 11100 41110,F General Fund revenue adjustments General Fund (220,000), (220,000), GF 1100 11100' 41220 F General Fund 30,000: 30,000 GF 1100' 111001 41230!F ',General Fund 250,000: 250,000 ;GF 9100' 11100', 41240''F !General Fund 50,000 50,000 !GF 11001 11100': 41320'F General Fund _ 30,000 30,000 GF 1100, 11100 41330 F General Fund 60,000 60,000 GF 1100' 12100' 42514 F General Fund 15,000 15,000 GF 11001 12100 42524.E General Fund 40,000 40,000 .GF 1100! 13100' 42353 'General Fund 35,000 35,000 !GF 1100' 13400, 42524'F General Fund 12,000 ! 12,000 ''GF 1100' 15100: 42320'F ,General Fund 50,000 50,000 iGF 1100! 151001 42710,F General Fund (10,000) (10,000) GF 1100 15100 42720 F General Fund 30,000 30,000 GF 1100 16100 42513 F General Fund 15,000 15,000 :GF 1100' 16100', 42524'F General Fund (35,000) (35,000) GF 1100' 11100 44250 F General Fund 200,000 2.00,000 GF 1100 11100 44260 F General Fund 13,000 13,000 GF 1100 15100 44430,F 985,000 985,000 ii General Fund 936,660 (936,660) GF 1100 various E General Fund salary and benefit adjustments due to labor negotiations. General Fund 94,559 (94,559) GF 1100 various E _ 1,031,219; (1,031,219), A General Services Mail 2,500 (2,500) Internal Services 7200 72200 56320 E Pitney Bowes postage machine. Replacement parts no longer available for current equipment 2,500 (2,500) B ' Water CIP 11,200 - 11,200 CIP 6790 67999: 49910 F _ c67501302-67100 SRJC 12" Water Main Et project suspended. Project to be consolidated with project c66401415 Water Admin 11,200. (11,200) Utility 6700 67100 69910 E_ Recycled Water System Ext Prop 1B/Sonoma Mountain Pipeline. _ 11,200 11,200 C Housing -in -Lieu Impact Fees 3,500 ! (3,500) Special Revenue 2130' 21300, 54110 E Appraisal of two city -owned properties at 307 and 951 Petaluma Blvd. So. Successor Agency Housing 4,000 (4,000), Successor Agency 51151 51150! 54110':E sar05150-54140 7,500 ! (7,500) D City Clerk 11,000 (11,000) General Fund 1100 11320 54140 E _ Consultant to develop Records Retention schedule, forms and procedures. 11,000 (11,000)! _ E Storm Utility 23,350 (23,350) Utility 6800 68100 54140 E To evaluate changes to the XP Storm Model Storm Utility 23,350 23,350 Utility 6800 68100' 49910 F 'Storm Drainage Impact Fees 23,350 (23,350)! Special Revenue 2155!, 21550' 69910,E 23,350 46,700 (23,350), F Transit Cl P 29,300 (29,300) CIP 6590 65999: 69930, F c65101402.65100'Transit Signal Priority Ph 1 project complete. Retund excess Transit operating funds. Transit Operating 29,300', 29,300 Enterprise 6500: 65100: 49930 F 29,300 29,300 Ell 17 Detailed FY 16117 Mid -Year Budget Adjustments E>hibit P account string _ project string Ref 'fund name Revenue E>menditures amount Fundgroup fund cost ctr object Type' (if applicable) re, ,.�rs G Water CIP 2,225 2,225 CIP 6790 67999 49910 F c67501303-36799 Project c67501303, 2" Water Main Replacements complete. Additional funds needed Water Admin 2,225 (2,225) Utility 6700: 67100 69910: E to close out 2,225 2,225 H General Fund (43,740) (43,740) General Fund 1100 11100 49910'R Computer Crimes Irroestigation position to be charged to Police Grants; not the General Police Grants 43,740 43,740 Special Revenue 2250 22500 49910: R Fund. Police Dept (95,000)' 95,000 General Fund 1100 15600 51110 E Police Dept (75,000)' 75,000 General Fund 1100 15600 52110 E Police Grants 95,000 (95,000) Special Revenue 2250 22500 51110,E Police Grants 75,000 (75,000)'' Special Revenue 2250! 22500' 52110 E I Police Dept 60,000 (60,000) General Fund 1100 15620, 51110 E Request funding for 2 police officer positions to be assigned to the Traffic Safety Program. Police Dept (60,000)': 60,000 General Fund 1100 15100 51110'E Annual cost estimated at $350k. Over the past three years fatal and injury traffic collisions have Vehicle Replacement 51,350 (51,35a Internal Service 7500 75100 62220: E increased 60%. Ticket revenue to partially offset cost. Includes initial purchase of 2 motorcycles. 51,350 (51,350)i J Police Dept 70,000 (70,000) General Fund 1100 15100 53020 E Increase Police Admin operating supplies to meet the state and national required 70,000 (70,000) accreditation standards. L Public Works CIP 324,000 324,000 CIP 3160 31600 44220 F New project Petaluma River Flood Mgmt Denman Reach 4. Another agency was unable Public Works CIP 900,000 900,000 CIP 3160 31600 49920! F newproject-02260 to fulfill the requirements for a Dept of Water Resources grant Petaluma offered to meet Public Works Grants 900,000 (900,000) Special Revenue 2260 22600 69920 E the requirements with a new project that will provide additional flood water storage on Public Works CIP 1,124,000' (1,124,000) CIP 6800 68100 62110 E _ newproject 30200 Denman Reach. 1,224,000 21024,000 (800,000) M WW CIP 681,000 681,000 'CIP 6690 66999' 49910'' F c66401822-66100' Sewer Main Replacement 2017-2018 project to start ahead of schedule. Rollforward Waste Water Admin 681,000 (681,000) Utility 6600 66100 69910', E part of FY 18 budget to FY 17. Water CIP 681,000 (681,000) CIP 6690, 66999 various: E c66401822 -various 681,000 1,362,000 (681,000)' M1 Vehicle Replacement 100,000 100,000 Internal Service 7500 75100 49910 F general support TOT 100,000 (100,000) Special Revenue 2520, 25200 69910 E 100,000 ! 100,000 M2 3% Admin Fee fund 50,000 (50,000) Special Revenue 2190 21900 5411&E Housing Impact fee study 50.000': (50,000)1 M3 General Fund 100,000 100,000 GF 1100i 11100 49910 F for legal e)>enses Risk 100,000, (100,000)IInternal Service 7400: 74100' 69910,,E _ 100,000 100,000 17 M Detailed FY 16117 Mid -Year Budget Adjustments Exhibit A account strip project string Ref 'fund name Revenue Expenditures amount Fundgroue fund cost ctr object !T ifa licable revision purpose The following projects have experienced delays requiring a reduction in the FY 17 budget: N Facilities ClP (74,000) (74,000) CIP 3110 311001 49910 F c11201706-02520 Fire Station 1 Roof Replacement TOT (74,000), 74,000,Special Revenue 25201 25200 69910'!E Facilities CIP (74,000)', 74,000 CIP 3110! 31100 54151E 01291695-30600 (74,000)': (148,000); 74,000 O :Parks ClP (4,000) (4,000)CIP 3140 31400 49910F c00400205 -various Playground Replacements Parks CIP (50,000) (50,000), CIP 3140 31400' 49920 F c00400205-02240' ,General Fund (50,000)'] 50,000 GF 1100! 11100, 699101E '.Parkland Impact Fees _ 46,000 (46,000), Special Revenue 2140! 21400' 69910'E Housing Grants (50,000) 50,000 Special Revenue 2240 22400 69920'E Parks CIP (54,000)' 54,000 'CIP 3140 31400 54151,E c00400205-30600 (54,000)1 (108,000) 54,000 P Parks CIP (246,000) (246,000) CIP 3140 31400, 49910 F c14501607-02142 Petaluma Community Sports Fields Baseball Diamond Parkland Dev Impct Fees (246,000) 246,000 ,Special Revenue 2142' 21420 69910 E Parks CIP (246,000)' 246,000 CIP 3140 31400 54151!E c14501607-30600 (246.000) (492.000)'', 246,000 Q Public Works CIP (43,000) (43,000) CIP 3160 31600 49910 F c00501204-02270 Design for Rainier Crosstown Connector Traffic Mitigation Impact Fees (43,000)', 43,000 Special Revenue 2160' 21600 69910 E Public Works CIP (43,000);, 43,000 ''CIP 3160! 31600 54151 E c00501204-30300 (43,000) (86,000)!' 43,000 R Public Works CIP (200,000) (200,000) CIP 3160 31600' 49910 F c1 61 01 309-021 60 Channelization Lakeville & Pine View Way Public Works CIP _ (139,000) (139,000) CIP 3140' 31400 49920'F c16101309-02260 Traffic Mitigation Impact Fees (200,000), 200,000 Special Revenue 2160' 21600 69910'E Public Works Grants (139,000):- 139,000 Special Revenue 2260 22600 69920'E Public Works CIP (339,000)' 339,000 CIP 3160 31600' 54151 E c16101309-30600 (339,000) (678,000)% 339,000 S Public Works CIP (45,000) (45,000)CIP 3160 31600 49920:F c16101519-02270 Rivertrail - 101/Crossing Developer Contributions (45,000)] 45,000 ;Special Revenue 2270 22700 69920 E Public Works CIP (45,000)' 45,000 !CIP 3160' 31600', 54151'E c16101519-30600' (45,000)' (90,000) 45.000 T Public Works CIP (125,000) (125,000) CIP 3160 31600 49910:F c16501602-02520 Downtown Pedestrian ADA Improvements TOT (125,000),, 125,000 Special Revenue 2520 25200' 699101E Public Works CIP (125,000) 125,000 CIP 3160' 31600' 54151; E c16501602-30600 (125,000)1 (250,000) 125,000 U Public Works CIP (147,000) (147,000) CIP 3160 31600 44220 F c16301413-44220 Capri Creek Recontouring & Terracing Public Works CIP (625,000) (625,000) CIP 3160': 31600' 499201F c16301413-02260 Public Works Grants (625,000)1 625,000 Special Revenue 2260 22600' 69920:E ,Public Works Cl P (772,000); 772,000 CIP 3160 31600 54151 E 06301413-30600, (772.000)1 (1.397.000)1 625.000 M 19 Detailed FY 16/17 Mid -Year Budget Adjustments Exhibit A' accountstrin project string Ref fund name Revenue Expenditures amount Fundgroup fund cost ctr object Type (if applicable) revision purpose V Public Works CIP (1,075,000)': (1,075,000) CIP 3160 31600 442201F ,c16301518-44220 Old Corona Rd. Water Quality Mitigation Public Works CIP (1,075,000) 1,075,000 CIP 3160 31600 54151!E c16301518-30600 (1,075,000) (1,075,000)', W Public Works CIP (65,000) (65,000) CIP 3160 31600 44220 F Washington Creek Reapir & Enhancement Public Works CIP (5,000) (5,000) CIP 3160: 31600 49910 F 0 6301 41 7-021 55 Storm Drainage Impact Fees (5,000) 5,000 Special Revenue 2155, 21550 69910 E Public Works CIP (70,000) 70,000 CIP 3160 31600 54151 1 E c16301417-54151 (70,000)', (75,000) 5,000 X Facilities CIP (133,000) (133,000) CIP 3110 31100 49910' F c16201304-02520 Community Center Interior Repairs TOT (133,000); 133,000 Special Revenue 2520: 25200' 699101E Facilities CIP (133000)' 133,000 'CIP 3110 31100 541511E c16201304-30600 (133,000), (266,000) 133,000 Y WW CIP (681,000)' (681,000) CIP 6690, 66999 49910"F c66401416-66100'Tertiary Filtration System Expansion Waste Water Admin (681,000) 681,000 ( Utility 6600 66100 69910 E WW CIP (681,000) 681,000 CIP 66901 66999' 54110 E c66401416-30300 (681,000): (1,362,000) 681,000 Z WW CIP (8,702,000), (8,702,000)' CIP 6690 66999' 49910IF c66501305-66100 Ellis Creek Solids Handling Upgrades Waste Water Admin (8,702,000) 8,702,000 Utility 6600' 66100 69910':E WW CIP (8,702,000) 8,702,000 CIP 6690 66999' E c66501305 -various (8,702,000) (17404,000)' 8,702,000 AA ':WW CIP (2,080,000) (2,080,000) CIP 6690 66999' 49910 F c66401314-66100 Petaluma Blvd. S Sewer Trunk Main Waste Water Admin (2,080,000) 2,080,000 Utility 6600 66100 6991011E WW CIP (2,080,000); 2080,000 'CIP 6690 66999' 541511E c66401314-30600 (2,080,000)', (4,160,000) 2080,000 AB 'WW CIP (370,000) (370,000), CIP 6690 66999 49910F c66101627-66100 Ellis Creek Bridge Waste Water Admin (370,000) 370,000 Utility 6600 66100 69910 E WW CIP (370,000)1 370,000 :CIP 6690 66999 54151 E c66101627-30600 (370,000); (740,000), 370,000 AC Facilities CIP (94,000) (94,000) CIP 3110 31100 49910 F c11201705-02520 Police Dept HVAC Replacement TOT (94,000), 94,000 Special Revenue ! 2520: 25200' 699101E Facilities CIP (94,000)', 94,000 ,CIP 31101 311001 54151 E c11201705-30600 (94,000)', (188,000)' 94,000 AD Water CIP (34,000) (34,000) CIP 67901 67999 49910 F c67501405-67100 Oak Hill Reservoir Roof Replacement Water Admin (34,000) _ 34,000 Utility 6700 67100 69910! E Water CIP (34,000), 34,000 :CIP 6790! 67999 _ 54150 E c67501405-30600 (34,000)Ii (68,000),, 34,000 _ AE, Water CIP (72,000) (72,000) CIP 6790 67999 49910 F c67501007-67100 Hardin and Manor tanks Water Admin (72,000)!, 72,000 !Utility 6700' 67100: 699101E ;Water CIP (72,000)1 72,000 ''CIP 6790' 67999' 5411011E Ic67501007-303001 (72,000)! (144,000) 72,000 19 Detailed FY 16/17 Mid -Year Budget Adjustments E)diibit A account string project string Ref fund name Revenue F2Renditures amount Fundgroup fund cost ctr object Type (if applicable) revision purpose NET CHANGE TO FUND BALANCES (11,852,925)'' (23,832,006) 11,979,081 Detailed FY 16/17 Mid -Year Budget Encumbrances 6diibit A account strina FA project string Ref !fund name Revenue Expenditures amount Fundgroup fund cost ctr object Type (if applicable) lrevision purpose Encumbrances & Designated Reserves EncAWaste Water Ellis Creek Operations 101,100 (101,100) Utility 6600 66700 62210 Roll forward FY 2016 budget for purchase of Aquatic Plant Harvester and Chevy Silverado 101,100' (101,100) Truck. Equipment was delivered in August 2016. EncB' City Attorney 3,100 (3,100) General Fund 1100 11310 53010 Roll forward FY 2016 budget for purchase of supplies. Supplies were received in June 3,100 (3,100) 2016 as were the invoices. Payment, however, was posted to FY 2017. General Fund 600,000 (600,000) General Fund 1100 various Designated and committed reserves to be used for employee compensation 600.000 (600,000) General Fund 164,000 (164,000) General Fund 1100 11800 69910 Designated and committed reserves to be used for the Payran UST project _ 164,000 (164,000)' ENCUMBRANCES & DESIGNATED RESERVES 868.200 (868.200) FA