HomeMy WebLinkAboutAgenda 6.A 06/21/2004U.
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AG A ry
Agenda Title
Meeting Date:
' ", ii , .Ordinance Amending Ordinance No. 2179 N.C.S. to' Change
June 21, 2004
Certain, Appropriations for the Operations of the City of Petaluma
from July 1, 2003 through June 30, 2004.
Meetin6 Time ® 3:00 PM
❑ 7:00 PM.
Category (check one) ❑ Consent Calendar Public Hearing ❑ New Business
❑ Unfinished Business ❑ Presentation
Department
Director
Contact Person
Phone Number
Finance
J.D. Netter
J.D. Netter
778 -4323
Cost of Proposal $1,100,000 (see. financial impact)
Account Number Various
Amount Budgeted Not applicable
Name of Fund: General Fund,
Community Dev. Dept, Transit
Enterprise, Vehicle Replacement
Attachments to Agenda Packet `Item
1. Ordinance providing,for ;a, change, in, appropriations, including Exhibit A
2. Budget expenditures vs. actual and estimated FY end 04 with variance report B
Summary Statement
The Y Y it reviews its budget on a continual basis but historically makes recommendations for changes at
inid- ear. Major chang es in the appropriations and revenues were approved at mid -year by City Council
Ordinance No. 2179. After eleven months of operations, it has become apparent that certain other actual
expenditures will exceed appropriations -as follows:
General Fund (Community:Dev: Dept) $200,000
Transit Enterprise $45.0,000
Vehicle Replacement $450,000
Total Additional Appropriation FY 03 -04 $1,100,000
The General Fund Community Development : Department exceed budget; as the projects for fiscal year were
underestimated. Funds have, been collected for plan checking fees and other community development fees
to offset.the increased activity: Funds are collected at the beginning of the project but revenues are
not realized, in some cases, until the costs of the services are completed. At year end, traditionally,
adjustments are made to reflect revenues and cost comparisons.
The Transit Enterprise exceeded budget estimates with the difference being covered by net assets which
currently exceed $ l million dollars.
The Vehicle Replacement Fund. exceeds budget estimates as the City recently purchased new vehicles for
Public Works and other departments 'close to year end. The total amended budget is adjusted to be
$162,356,350.
The process is customary at year end to meet the terms and conditions of the 'City's Charter and to avoid a
management comment regarding budget vs. actual activity in the City's annual audit. Therefore, these year
end adjustments to the adopted budget; are required.
Recommended City Council Action /Suggested Motion
Adopt Ordinance No. N.C.S. amending Ordinance No. 2179 N.C.S. appropriating additional funds
for the remainder of fiscal year 2003 -04 and declaring an urgency so that adjustments can take effect
immediately.
Reviewed, by Finance Director:
Reviewed, y' City Attorney
Date:
Approved �_ Ci' ` Manager:
_ Date:
Date:-
T-;od ' , Da e:
.
Revision # and Date.Revised:
File Code:
#
June.10 2W4
a
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CITY OF PETALUMA, CALIFORNIA
JUNE 21, 2004
AGENDA REPORT
FOR
AN ORDINANCE AMENDING O RDINANCE NO'. 2179 N.C.S. TO CHANGE CERTAIN APPROPRIATIONS
FOR THE OPERATIONS OF THE CITY OF PETALUMA FROM JULY 1„ 2003THROUGH JUNE 30, 2004
AND DECLARING AN URGENCY.
1. EXECUTIVE SUMMARY
It is recommended that the City's appropriations for the fiscal year budget 2003 -04 be increased by
$1,100,000 to account for actual expenditures for FY 03 -04.
Based on a fiscal review of actual expenditures vs. appropriations, it has been determined that the
following appropriations must be increased;
General Fund
Community Development Department $ 200,000
Transit Operations (Capital Related) 450;000
Vehicle Replacement Fund 450,000
$ 1 , 100000
The General Fund Communi t � ' Develop merit De artment p ) exc eeded budget by $200;000 as the projects
Fund ( Communit
for FY 04 were underestimated. Funds have been 'collected for plan checking fees and other community
development fees to offset increased project activity. Funds are'col'lected at the beginning of the project
but revenues are not realized, in some cases', until the costs of the services are completed. At year end,
traditionally, adjustments are madeto reflect revenues and cost, comparisons.. It is recommended that the
Community Development Department be transferred to Enterprise Fund accounting in order to track
revenues and corresponding' expenditures for control purposes and development of fees to help offset
costs.
The Transit Operation exceeded budget estimates by $450;00.0 due to remodel of the facility,
underground storage tank cleanup and other capital improvements. This amount will be covered by net
assets' (retained earnings) which is currently in excess of $'1 million dollars.
The Vehicle Replacement Fund exceeded budget by approximately $450,000. This "is, due to the major
fleet purchase for public works, and ,other departments close to fiscal year end. ' This Vehicle
Replacement Fund has sufficient::nei assets to cover this expenditure.
The total revised 'budget appropriation limit is amended to be $162,356,350. The recommended
Amendment #3 and total- appropriations is shown and detailed in Exhibit A. The detail of actual vs.
budget expenditures are shown and detailed in Exhibit B, before the recommended adjustments are
made.
2. BACKGROUND
The City reviews its budget" on,.a continual basis and historically makes recommendations'for changes at
mid -year. Major changes in "the,appropriations and revenues were approved by the City Council at its
meeting of March 15; 2004 by Ordinance No.. 2179.
After eleven months of O peration, it is standard operating;procedure'. for Finance staff to, review the
.approved appropriations as compared:to actual expenditures. Any identified.expenditure in excess of
appropriation is researched and evaluated�for proper postings, clarification and approval. Once this is
accomplished, a request for increase "in the :appropriation: category is requested.
This procedure'I completed °ta avoid a "management comment regarding budget toactual activity in the
City's annual audit and to meet the legal requirements of the City's Charter.
The origina gppropriations limit approved by Ordinance,No. 2154- $157;283" ;500. `This lirri t was
increased by $972,'850, as Amendment No: I by Ordinance No. 2174. Then, at the, mid -"year budget
review, the Finance. Director recommended_ .the' appropriations limit'be increased by.$3;0.00,000. This
was approved by Ordinance No. 2179.
Finally, .at close :to year end, we are recommending a final appropriations adjustment of `$1.,1 to
offset approved, expenditures for the "fiscal ,year 2003 -04 budget year. See Exhibit A for, the details; of
the original FY 2003- 04'appropriations with approved and recommended increases since .the beginning
of the fiscal year.
3. ALTERNATIVES
The City Council could decide nofto make'4he recommended adjustments. This would,result in
potential management comments in the City's management, letter from the external auditors., °The
financial 'statements contain schedules that provide. "budget to actual" figures for Gener•al.Fund. and
Special Revenue Funds. If :these adjustments; are not made; then the presentation of schedules-will i8how
some negative positions.
4. FINANCIAL IMPACTS
At this stage, there are.r o additional firianciaL impacts. All the expenditures were, approved 'Iby the City
Council either by joint'or individual: resolution At periodic times throughout the operatiiig':year.-
Finance' Staff generally utilizes "conserv estimates,for forecasting revenues and:a more liberal .
approach in, es"timating`proj expenditure's. Unfortunately;, the projections 'are j u st esti m ates and
unknown projectssurface or emergency expenses ai7ise. Budget augmentation_ , is a standard practice. to
adjust for changes in;the economy, addition of:projects or other unknowns or later planned: events.
5. CONCLUSION
The City should,continue to monitor revenues and expenditures on a periodic basis. Each,7anuary, a
review should be completed to adjust at "mid- year for tlib major adjustments in the;operatitig;budget.
Then, in June of each year, a final review should be completed. adjusting for any revisionsnecessary
before year end closing.
OUTCOMES OR PERFORMANCE MEASUREMENTS THAT, T' WILL IDENTIFY SUCCESS OR
COMPLETION:
Attempt to budget sufficient appropriation at beginning of fiscal year to avoid major adjustments at mid-
year or fiscal year end. Avoid_ ance of management comment that addresses expenditures in excess of
budget.
7. RECOMMENDATION
Adopt the Amending Ordinance utilizing" the "urgency" method so: that these expenditures can take
effect immediately.
S:/budget/budgetWbudget revisions /agenda bill for P amending ordinance
i
Introduced
By Councilmember
ORDINANCIE NO
Seconded
AN ORDINANCE AMENDING ORDINANCE NO. 2179 N.C.S. TO CHANGE CERTAIN
APPROPRIATIONS FOR THE OPERATION OF THE CITY OF PETALUMA FROM JULY 1,
2003 TO JUNE 30, 2004 AND DECLARING AN URGENCY
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF PETALUMA AS FOLLOWS:
Section 1. Ordinance No. 2179 N.C:S. is hereby amended for`the fiscal year beginning July 1, 2003
through June 30, 2004 in the, amounts as set in the attached Exhibit A, Amendment #3 and Amended
Budget 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 fmds and determines that the,amount of appropriations provided
hereby does not exceed the estimated `revenue, other sources and available fund balances in the amounts
set in Exhibit A, which will be on file with the City Clerk, for the fiscal year ending June 30, 2004.
Section 3. All ordinance or parts of ordinances in conflict herewith are hereby repealed.
Section 4. The City Cleric be, and she 'is hereby directed to post /publish this ordinance for the period
and in the manner required by the City Charter.
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 shall take effect and be in force from and
after its final passage by unanimous vote of the members'ofthe City Council present at the time of its
adoption. The reason for the urgencyis so that the regular operations and projects, particularly those
relating to the protection of public peace, health and safety, authorized to be performed may be properly
scheduled over the period without delays, which would reduce the protection of the public peace, health
and safety.
INTRODUCED, ADOPTED AND; ORDERED posted/published this day of , 2004
by the following vote:
I
II�
CITY OF PETALUMA, CALIFORNIA
APPROPRIATIONS, -- JULY 1, 2003 THROUGH JUNE 30, 2004
Amendment No. 3
Exhibit A
cny Manager
397,850
397,850
Animal Control
694;300
General Plan
660;700
-
694;300
GIS
167200
660,700
Information Services
797,200
-
167,200
Human Resources
2;004;700
-
797,200
General Fund Portion
346,700
_
_•
-
2,004,700
Workers' Compensation
,1,070,250
-
346;700
1,070,250
Employee Benefits
587,750
•
587,750
Finance
General Fund Portion
4,122;000
1,786,500
-
-
450,000
4,572,000
RiskManagement - Liability
1,093;550
-
1,786,500
General Services
341,950
_
-
1,093,550
Vehicle 8 Equipment Replacement
900,000 ,
450,000
341,950
1,350,000
Police
Fire and Ambulance
11,935,300
-
11,935,300
General Fund Portion
9,030,350
6,348,500
�•
-
r
9,030,350
Ambulance Enterprise
2,681,856
-
-
6;348,500
Community Development
2;056,450
-
-
200,000
2,681,850
2,256,450
CDBG and Housing
5,990,700
-
5,990,700
.Public Facilities & Services
8,876,700
(234,150)
450,000
9,092,550
General Fund Portion
3,411;700
59,850
-
3,471;550
Street Maintenance - Non General Fund
2,612,000
-
-
-
2,612,000
Gas Tax
418,500
(294;000)
-
-
124,500
Airport
997,550
-
-
-
997,550
Transit
Parks 8 Recreation
1,436,950
4,426,450
450,000
1,886,950
General Fund Portion
3.515,500
-
-
4,426,450
Child Care
-
-
3,515,500
Marina
425,850
-
-
425,850
Landscape ASSmt. Districts
485,100
-
-
-
485,100
General Fund Appropriation Contingency
-
687,000
-
-
687,000
Water Resources 8- Conservation
18,467,900
-
-
18,467,900
Water Utility
10,354,850
-
-
-
10,354,850
Wastewater Utility
.8,113,050
-
-
8,113,050
Flood Mitigation
.. -
-
-
-
..... ....
CapltalimpmvemenEPcograms '.'.'.'.'. '-
-
' '
-
... ...:'. ..
5,592,000
3000,000'
8,592,000
- Transporation Projects
174,000
-
174,000
Street Maintenance and :Reconstruction
5,047,000
3,000,000
8,047,000
Community. Facilities
371,000
-
-
371,000
Perks 8 Recreation
2;756,000
-
-
2,756,000
:. Water :. :.;.;:;:;:.: •:::.: :.: •:`::: i.. .'. •..::..` :.:.:...:.:.:
.............................
331213;000
626,000 ,
-
-
33,839A00
Water Ufllity
7;395;000
626;000
-
-
8,021,000
Water Pollution Control
23,899,000
-
-
23,899,000
Surface Water Management
1,919,000
-
-
1,919,000
Debt
Trusts
.33,400
_
-
33,400
Transient Occupancy
522,100
-
sz2,loo
Lucchessi Reservation of-Soccer Fields
_
Allowance for Retirements
400,000
(400,000)
_
Transfers Out
13;103,500
-
- -
-
13,103,500
Petaluma Community Development Commission
31,085;650
294,000
-
31,379,650
TOTAL DEPARTMENTS $
157;283,500 $
972,850 $
3 000 000 $
1,100,000 $
162,356
j
General Fund $
33,18111 $
` 746,850 $
- $
200,000 $
34,135,600
Spectal,Revenue Funds:
28;013,900
(294,000)
-
27,719,900
Comm; Development Block Grant
,548,300
-
-
-
548;300
Home -Begin Grants
4,256;300
-
4,256,300
Gas Tax
1,468;500
(294,000)
-
1,174,500
Landscape Maint. Districts
.235,100
-
-
-
235.106
Supplemental Law Enforcement; Svcs.
110.000
-
-
110,000
Asset,Seizure
25,000
-
-
-
25,000
Transient Occupancy -
1,022,100
-
-
1,022,100
Park Development
2,483,000
-
-
2,483,000
Flood Surface Water impact
1;946;000
-
-
-
11946,000
Housing -in -Lieu
1,186,100
-
1,186,100
Community Facilities Fees ,
1,654,400
1,654,400
Traffic Mitigation
6,169,100
-
-
6,169,100
Animal Svelter Donations
15.000
-
-
15,000
Street Maintenance
1,848,000
-
1,648,000
Street Reconstruction
5,647,000
-
-
5,047,000
Child Care
Turning Basin
Debt Service
-
_
Enterprise Funds:
58,757,100
626,000
-
-
450,000
59;933,100
Water Utility
18,684;950
626,000
-
19,310,850
Water Pollution Control
34,148,050
-
-
34,148;050
Public Transportation
1,545;950
- -
450,000
1,995,950
Airport
997,550
-
997,550
Ambulance
2,681,950
-
_
-
2,681,850
Marina
699;850
-
698;850
Internal Service Funds:
5,190,700
.(400,000)
450,000
5,240,700
Information Services
797;200
-
-
- -
797,200
Employee Benefts
987,750
(400,000)
-
-
587,750
Workers'Compensalion
1,070,250,
-
-
1,070,250
Risk Management
1,083,550
� -
-
-
1,093,550
General Services
341,950
-
•.
-
341,950
Vehicle and Equipment Replacement
.900,000
-
450,000
1,350,000
Trust Funds
1,047,400
_
-
1,047,400
Petaluma Community Development Commission
.31,085,650
294;000
3,000;000
34,379,650
TOTAL FUNDS $
157,283,500 $
972;850 1
3,000,000 S
1,100,000. $
162,356,350
0
filename: s:\accountant \lcinde\excel \budget \03 -04 \yeadj
CITY OF'PETALUMA
BUDGET TO ACTUAL YE ADJUSTMENT
GENERAL,FUND,
6/3/0/04
Exhibit B
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i<.
budget
actual 5/22 _
OS encum.
est YE bal
est total actual.
variance
1`110
242,800
201;416
'20L,416
41,384
1120
-
2,858
2 1 858
(2,858)
38,526
1210
168;700
1;68,105
168 1.05'
595
1220
162,850
116,7
116,724
46,126
46,721
1310
384;700
,275,662
1,275
276,937
107,763
2010
532850
263,523
263;523
269,327
2620
1,135,700
388,397
388;397
747,303
3010'
679,300.
568,137
23
568,160
111,140
3020
308;1'00
211,203
211,263
.96,897
3030
346;700
229,572
229;572
117,128
'3040
160,505
1.56,891
156
3,614
3110
1367;700
635,315
635;315
732,385
3120
41.1,,200
356;391
356 ; 391
54;809
3130
356
212,625
212,625
143
931,019
4000,
1,326 ;500
1,262,355
1,700
115,000
1,379;055
(52,555)
4010
127950
167,503
167,503
(39;553)
4020
273;500
192,876
192,876
.80624.
_4030
1,162,800
925,980
85;000
1,010;980
151,820
4040,
332,650
190,636
15
190,651
14,1,999
4050
-
18,211
18;211 "
(18,211)
4060
126,000
198,749
1,116
199;865
(73,865)
4070
744
763;021
23
70,000
833;044
(88,494)
4080
6;907;900
6,002;527
206
550;000
6,552,733
355
4090
424,850
343,382
343,382
81;468'
4100
508,600
463,257
463
45,343
583;743
5000
' 501,150
407;707
40,7707
93,443
5010
11;900
102•
102
1`1,798
5020
280;350
339;570
239
40,780
5030
109,30Q
110,632.
1
116,633.
(1,333)
5040'
5,497,100
4,577,799
3,859
420,000
5;001
495,442
640,130
6000
803,100'
984;851
*
338;000
1,322
(519.751)
6010
96,050
83,163
83;763
12;287
6020
416,550
396;306
2;150
398,456
18,094
6030
6040
296,250
444,500,
168,200
168;200
128,050
282;871'
282;871
161,629
(199:(191)
7001
690 ; 450
533;079
f
533;079
157,371
7010
.18;250
60;455
60,4 1 55
(42,205)
7011
182,1.50
195,815
435
196;250
(14,100)
7012
13,176
13;176
(13,176)
7013
2,712•
2,712
(2,7.12)
7014
43;200
86,229
86;229
(43
7015
. 7
688'
688
(688)
7017
1,540;300
- 1,389,543
21,711
1,411,254
129,046
Exhibit B
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i<.
filename: s:\accountant \]cinde \excel \tiudget \03- 04 \yeadj .
CITYOF.PETALUMA
'BUDGET TO ACTUAL YE ADJUSTMENT
GENERAL FUND
6/3/0/04
Exhibit B
budget
actual 5/22
OS encum est YE`bal
est total actual
variance
7018
120,550
115,601
4;254
1,19,855
'695
7019
-
516
516
516
7020
874
874
(874)
7021
-
14;571
14,571
(14;571)
7022
6,738
5.1,935
51,935
(45,197)
7112
108,550
6,479
6,479
102,071
7113
3,758
28,664
28,664
(24,906)
7115
244,800
270,729
270,729
(25;929)
7130
100,500
115,506
115,506
(15,006)
7140
136,200
34,363
34,363
101,837
7141
-
9,073
9,073
(9
7143
-
14,493
14,493
(14;493)
7144
-
7,082
7,082
(7;082)
7145
-
4,971
4,971
(4
7150
211,150
124;877
124;877
86
7160
-
24,386
24,386
(24,386)
7161
116,000
67,403
67,403
48,597
7162
-
2,089
2,089
(2,089)
7190
1,321
1,321
(1,321)
7191
-
4,418
4,418
(4,418)
7192
3,400
22,739
22,739 _ (19;339)
295,809
8000
849,800
774,578
813
775,391
74,409
8010
409,000
184,887
27
184 ; 914
224,086
8020
167,200
133,578
133,578
33,622
8030
-
3,093
3,093
(3,093)
8031
376,100
294,968
294,968
81,132
8032
-
60,370
60,370
(60,370)
8033
-
1,661
1,661
(1,661)
8034
-
7,433
7;433
(7,433)
8035
-
5,095
5,095
(5,095)
8036
-
19,039
19,039
(19,039)
8037
-
7,363
7,363
(7,363)
8038
-
7,988
7,988
(7;988)
8050
262,250
219,338
219,338
42;912
8051
-
180
180
(1;86)
8052
4,000
2
2,310
1;690
8060
223;200
1'81,396
5,608
187,004
36
8061
-
12,279:
12,279
(12,279)
8062
458,100
367,994
367,994
90,106
8063
426;450
482,247
18,900
501,147
(74,697)
8070
8,050
49,716
49,716 (4;1,666)
343,289.
*
encumbrances
for contracts 'excluded ',because the payments won't occur until
next fiscal year,
and the majority
Will be covered by "fee for service
revenue.
Exhibit B
filename: s:\accountant \]cinde \excel \budget \03 -04 \yeadj
CITY OF PETALUMA
"BUDGET TO ACTUAL YE ADJUSTMENT
PROPRIETARY FUNDS.
6/3/0/04
Exhibit B
ouaget
actual i12
US; encum
est YE bal
est total actual
variance
6100
3296
498350
386,625
80,953
35,000
502,578
(4,228)
3297
359,100
351,407
7,327
32,000
390,734
(31,634)
3298
140,100
63,586
63,586
76,514
3299
135,500
63,175
63,175
72,325
112,977
6200
2,685,850
1,571,922
15,000
1,586,922
1,098,928
6300
698,850
177,333
-
177,333
521,517
Qf+,
6400
3397
1
1,152,766
2,718
105,600:
1,260,484
(91,084)
3398
376;5
314,328
-
314,328
62,222
3399
109,000
374,999
115,945
490,944
(381,944)
(410,806)
6510
8200
5,285,700
3
138,470
3,354,948
1,930,752
®
8210
8220
247,250
133,461
3,948
137,409
109,841
574,350
171636
171,636
402,714
8221
651;450
319,175
30
319,205
332,245
8230
1,354,300
934,945
-
934,945
419,355
8299
24,025,000
3,601,064
3
6,867,208
17,157,792
20,352,699
6520
8300
2,972,400
.1,803,212
3,036
1,806,248
1,166,152
8310
375,200
182,678
-
182,678
192,522
8320
490,650
315,536
12,051
327,587
163,063
8330
74,100
46,793
-
46,793
27,307
8340
45;600
16,673
-
16,673
28,927
8350
4,750;45
3,320,400
39
1,500,000
4,820,439
(69,989)
8360
.1
1
33,372
-
1,084,567
558,833
8370
3,050
50
-
50
3,000
,8399
7,895,000
1,970,972
3,124,814
- 5
2,799,214
11,574,573
3,702,877
7100
3310
381
271,119
271,119
109,881
3311
131;250
108,192
v -
108,192
23,058
3312
10,000
36,902
-
-
36,902
(26,902)
3313
50,000
22,946
22,946
27,054
3314
45,500
8,783
8,783
36,717
447,942
169,808
7200
3320
52,750
62,502
6,000
68,502
(15,752)
3321
196,250
128,817
128,817
67,433
3322
92,950
88,781
88,781
4,169
286,100
55,850
Exhibit B
filename: s:\accountant \Jcinde \excel \budget \03 -04 \yeadj
CITY OF PETALUMA
BUDGET TO ACTUAL YE ADJ[ TMENT
PROPRIETARY FUND'S
6/3/0/04
budget actual 5/22 ,OS emum est YE bal est,total actual. variance
7300 3330 797;200 550,752 1 563;227 233,973
7400 3340 2,093;550 897;343 897,343 1,196,207
V 3350 1,130,000 358- 833 382,446 7.41,279 408,721
3351 46,100 3;883 246 897,343! (851,243)
P'
p _
1,638;622 (442,522)
7600 :3360 320,250 742,547 7,050 749,59,7,' (429342)
3361 750,000 334 334 749;666'
749 320,319
..