CC - Item 4A - Mid-Year Budget AmendmentsROSEMEAD CITY COUNCIL
STAFF REPORT
TO THE HONORABLE MAYOR AND CITY COUNCIL MEMBERS
FROM JEFF ALLRED, CITY MANAGER
DATE: JANUARY 13, 2015
SUBJECT: MID -YEAR BUDGET AMENDMENTS
SUMMARY
The City Council will consider adjustments to the current Budget for the 2014 -15 Fiscal
Year. During any fiscal year, unforeseen financial needs and opportunities typically
arise which require Council approval of adjustments to projected revenues and
expenditures. At this time there are several items that will require appropriations as well
as projected revenue adjustments. The net impact of all recommended adjustments to
the General Fund operating budget are positive, reflecting more anticipated revenues
than expenditures.
Staff Recommendation:
Staff recommends that the City Council approve Resolution No. 2015 -03 approving
various appropriations for the remainder of the current fiscal year.
BACKGROUND /ANALYSIS OF OPERATING BUDGET ADJUSTMENTS
During any fiscal year unforeseen financial needs and opportunities may arise which
require City Council approval of additional appropriations. Without the additional
appropriations various auditors could have cause to make an adverse finding in the
annual audit reports, a circumstance that is certainly unwanted. Additionally, the City's
Comprehensive Annual Financial Report (CAFR) includes a comparison of budget
versus actual, and the City's actions to provide regular updates to the budget
demonstrate that careful oversight of the budget has occurred. Such actions are
important to ensure transparency and sound financial management practices.
The needed mid -year adjustments to the current operating budget include the following.
• Parks & Recreation Department. Recently two (2) full -time Recreation
Coordinator positions became vacant. The Department proposes to fill these
vacant positions as follows:
1. Refill one Recreation Coordinator position by conducting an internal
,.promotional only" competitive selection process. This action would result
in cost savings to the City for the remainder of the current fiscal year as it
will result in the promotion of an existing 3/4 time employee enabling the
elimination of one' /, time position.
ITEM NO. C\
City Council Meeting
January 13, 2015
Pace 2 of 3
2. Instead of refilling the other vacant Recreation Coordinator position at that
level, an open- competitive recruitment will be conducted for a
Management Analyst. As department staffing levels have shrunk in recent
years and Recreation Coordinators are fulfilling a direct service role, the
need for additional administrative support has become apparent. The
Management Analyst would assist the director with staff supervision and
training, program development, promotion, and evaluation, grant
procurement and oversight, budget, capital project oversight,
interdepartmental coordination /assistance, and report writing. This action
will result in additional incremental costs for the balance of the current
fiscal year.
The result of these staffing adjustments will be a net total cost savings of
$29,900 annually. This cost savings may be slightly more in the current
year due to the months between employee departure and replacement.
• Community Development Department. Due to increased workload and additional
projects in the City, the City needs to elevate the 3/< time Assistant Planner to full
time Assistant Planner. This will require an increased appropriation of $15,900.
This amount will be partially offset by increased revenues of $4,990 in Planning
Fees. (The incumbent Assistant Planner was hired in October of 2014 through an
open- competitive recruitment process with the intention and understanding that
the position would eventually be made full- time.)
• Public Works Department. The Garvey Avenue street medians will be retrofitted
with drought tolerant landscaping including new synthetic turf and river rock. This
will enhance the appearance of these medians and keep them green year round
with reductions in water consumption. This median renovation project will result in
an additional appropriation of $100,000.
• Public Safety Department. The Los Angeles County Sheriff Department (LASD)
has notified the City that as of January 1, 2015 the Liability Trust Fund amount
paid through our contract will increase from 4% to 5% resulting in a $37,000
increase for the remainder of the fiscal year.
• Human Resources Expenditures. Due to a recent personnel matter that required
investigative work and witness correspondence, the City incurred $10,000 in
additional professional /technical services.
• Homeless Encampment Clean -up. Safety and beautification is a focus for 2014
and as a result, the City will be clearing out and cleaning up the homeless
encampment under the Garvey Bridge. Infrastructure modifications will also be
made to discourage future intrusions. Both the County and the Army Corps have
each agreed to pay an equal amount on this project. The City's portion will be
$25,000 and a budget adjustment is necessary for this project.
City Council Meeting
January 13, 2015
Page 3 of 3
Building and Public Works Permit Revenues. The City has seen increased
development over the past year and, as a result, Building Permit revenue has
increased significantly. This will result in increased projected revenue of
$178,100 to the General Fund. Also, several large infrastructure projects by SCE
and the Gas Company has resulted in large one -time fees. Therefore, Public
Works Permits revenue has increased. Projected revenues from this source are
projected to increase by $93,900 over initial projections.
• Administrative Citation Revenues. Productivity has increased recently in
Administrative Citations for code violations under the supervision of our new
Public Safety Supervisor. An increase of $20,900 to these projected revenues is
in order.
The total Additional Appropriations is $187,900 and the total Additional Revenues is
$297,890.
POTENTIAL CAPITAL EXPENDITURE FOR REAL PROPERTY ACQUISITION
In addition to the above listed adjustments to the annual operating budget, the City is
currently negotiating for the potential acquisition of real property on River Avenue for
use as a corporate yard maintenance facility for the Public Works Department.
Acquisition of real property for this purpose will enhance the organization's capabilities
to maintain the City's infrastructure and it will provide enhanced security of the City's
vehicles, equipment and other capital assets. If the City is successful in completing this
real property transaction, the Council will make a separate capital appropriation from the
unallocated fund balance of the General Fund in the amount of approximately $1.85
million.
An action to acquire real property for a corporate yard maintenance facility would be
consistent with the "Fiduciary Responsibilities Guiding Principles" listed in the Fiscal
Policies section of the City's Budget document (page 14). The pertinent principle in this
case is: Use "reserves" only for one -time expenditures or temporary stop -gap
measures. Acquisition of real property is a one -time expenditure for a public purpose.
PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process.
Prepared by
Ceti
Carolyn A. Chu
Acting Finance Director
Attachments: Resolution 2015 -03
RESOLUTION NO. 2015 -03
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD,
CALIFORNIA, APPROVING VARIOUS APPROPRIATIONS
WHEREAS, appropriations are the legal authority for a City to spend its funds, and
WHEREAS, from time to time it is necessary to amend the budget with additional
appropriations, and
WHEREAS, purchases charged to the line items requiring additional appropriations
have received prior City Council approval.
NOW THEREFORE, $187,900 is appropriated in the General Fund for Expenditures
and $297,890 for Revenues as defined below:
Expenditures
$ 15,900
101
-5105 -5005
Community Development Salaries & Benefits
$ 100,000
101
- 3030 -5330
Grounds Repair & Maint — Garvey Median Project
$ 37,000
101
- 2010 -5515
Law Enforcement- Liability costs
$ 10,000
101-
1310 -5299
Human Resources — Professional Costs
$ 25,000
101
- 3010 -5299
Prof Services — Cleaning Homeless Camp
Revenues
$ 178,100
101
- 5110 -4125
$ 93,900
101-
3035 -4130
$ 4,990
101
- 5105 -4355
$ 20,900
101
- 0000 -4635
Building Permits
Public Works Permits
Site Plan Fees
Administrative Citations — Code
The additional appropriation is made a part of the approved FY 2014 -15 Budget as though
it were a part of the initial approved budget fully set forth and the City Manager is
authorized and empowered to expend such sum for the purpose of such account, but with
no expenditure by any office or department for any item within an account shall exceed the
amount budgeted therefore without prior written approval of the City Manager.
PASSED, APPROVED AND ADOPTED this 13th day of January 2015.
ATTEST:
Gloria Molleda
City Clerk
William Alarcon
Mayor
APPROVE AS TO FORM:
Rachel Richman
City Attorney