CC - Item 6A - Fiscal Year 2019-20 Mid-Year Budget Review l--iE M F
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ROSEMEAD CITY COUNCIL
CIVIC PRIDE STAFF REPORT
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TO: THE HONORABLE MAYOR AND CITY COUNCIL
FROM: GLORIA MOLLEDA, CITY MANAGER,.,6, 0
DATE: MARCH 24, 2020
SUBJECT: FISCAL YEAR 2019/20 MID-YEAR BUDGET REVIEW
SUMMARY
The City Council will consider amendments to the Fiscal Year (FY) 2019/20 Adopted Budget.
During the fiscal year, unforeseen financial needs and opportunities arise which require Council
approval and amendments to the Fiscal Year Adopted Budget, and the Council has already
approved several amendments listed on Exhibit A. At this time, there are several additional
items that require Council approvals and budget amendments.
STAFF RECOMMENDATION
It is recommended that the City Council:
1. Receive and file the Mid-Year Budget Review and related reports; and
2. Approve Resolution No. 2020-07, approving various appropriations, fund transfers and
budget amendments.
BACKGROUND
1. On June 11, 2019, the City Council approved the FY 2019/20 Operating and Capital
Improvement Budget.
2. Between July 1, 2019 and March 1, 2020, the City Council approved various budget
adjustments and transfers which are included in Exhibit A.
3. Two other Departments are requesting the City Council to approve budget adjustments and
amendments for continuing operations and unanticipated programmatic changes as outlined
in greater detail later in this report.
4. The 2019/20 Fiscal Year began with a projected fund balance of$20.2 million or 81.3% per
the FY 2019/20 Adopted Budget Revenues. To date, the City has a net draw down of
AGENDA ITEM 6.A
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City Council Meeting
March 24,2020
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$205,400 or 1.01% of the unassigned general fund balance after the City Council's approved
net amendments (both revenue and appropriations), and the new projected general fund
balance is $20 million or 80.5% of projected general fund revenues. The resulting fund
balance is made up of two components per the City's General Fund Reserve Policy: 1) 31%
of each fiscal year's general fund revenues is committed to maintain a General Fund Reserve
and 2) the rest constitutes unassigned fund balance, which is available for spending at the
City Council's discretion.
ANALYSIS
During any fiscal year, unforeseen financial needs and opportunities may arise, which require
City Council's approval of additional appropriations, revenues and/or transfers. The needed
mid-year adjustments to the current operating budget including the following:
• Parks and Recreation: Staff is requesting to purchase a new Replacement of the T Style
Strainer with Basket at the Rosemead Aquatic Center. A new pump was recently installed at
the Rosemead Aquatic Center and the existing strainer and basket are not compatible with the
new pump system. Staff is requesting to increase the Facilities Repair & Maintenance
account(101-4015-5340) by $6,000 from unallocated General Fund appropriations.
• Parks and Recreation: Staff is requesting to increase the class instruction account and the
class instruction revenue account to accommodate programmatic changes in the Department.
Council originally approved a $100,000 budget for Class Instruction costs, which is used to
pay for the Rosemead Rapids Swim Team Coach. During the current fiscal year,the City has
paid the instructor approximately $84,000; however, the City has already generated
approximately $119,000 in revenues to date with another 3 months to go until the end of the
fiscal year with an anticipated total revenue of approx. $150,000. Staff is requesting to
increase the Class Instruction account (101-4015-5505) by $50,000 to $150,000 to offset the
increase in costs of instruction.
• Parks and Recreation: Staff is requesting the replacement of the HVAC System in the snack
bar at Rosemead Park. The current system in the snack bar does not function properly. The
system has been recommended to be replaced after a routine maintenance check earlier this
year. Staff is requesting to increase the Facilities Repairi& Maintenance account (101-4015-
5340)by $1,600 from unallocated General Fund appropriations.
• Finance: Staff is requesting a line-item transfer from Salaries and Wages account to Other
Professional and Technical Services to provide funding for professional consulting
agreements to handle finance related matters until a permeant Finance Director is selected.
Staff is requesting to transfer $120,000 from the Salaries and Wages account (110-1305-
5005) to the Other Professional and Technical Services account (101-1305-5299) to cover
these expenses. No new funds are being requested at this time.
City Council Meeting
March 24,2020
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APPROPRIATION REQUESTS:
General Fund appropriations requested is a total of$57,600. The new net total with all requests
approved tonight and previously by the City Council is $263,000.
Also, as a result of preciously approved Council Items earlier in this fiscal year, the following
Special Funds are affected:
• Measure R for$25,000 (see Attachment A)
• Proposition A for$232,091 (see Attachment A)
• Measure R, Proposition A, Proposition C and Gas Tax for$6,600 (see Attachment A)
REVENUES REVISION REQUESTS:
General Fund revenue adjustments requested is a total of $50,000. The total with all requests
approved tonight and previously by the City Council is $238,421.
FISCAL IMPACT
Staff projects a minor impact in General Fund balance changes. Staff projects a gross impact in
General Fund expenditures dollars for all the previous Council approved requests and
adjustments in this report of $451,421 with a new General Fund Appreciation increase to
$24,343,121. Additionally, staff projects an increase in General Fund Additional Revenues of
$238,421 resulting in a General Fund revenue increase of$ 25,101,321 and a negative General
Fund balance to date of$213,000 or a negative net impact of approximately 1%.
STRATEGIC PLAN IMPACT—None
PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process.
Prepared by:
Tess Anson, Finance Manager
Scott Miller, Financial Consultant
Attachment A: Revenue, Expenditure Budget Summary Report
Attachment B: Resolution No. 2020-07
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Attachment A
Revenue, Expenditure Budget Summary Report
ATTACHMENT A
CITY OF ROSEMEAD
MID-YEAR BUDGET ADJUSTMENTS APPROVED BY CITY COUNCIL.
FY 2019-20
Date of Approval
from City Council Department Amount Explanation
General Fund
Revenue
11/12/2019 City Clerk 28,421.00 Census 2020 Outreach Efforts
12/10/2019 Planning 160,000.00 Reimbursement from HCD(State)for the SB2 Planning Grant
Total $ 188,421.00
Expenditure:
6/11/2019 Public Works $ 85,000.00 Landscape Maintenance Services Contract Award
7/23/2019 City Administion 3,000.00 City Wide Salary Range Adjustments to various classifications
Planning 8,900.00 City Wide Salary Range Adjustments to various classifications
Public Works 7,520.00 City Wide Salary Range Adjustments to various classifications
Parks&Recreation 22,980.00 City Wide Salary Range Adjustments to various classifications
10/8/2019 Public Safety 10,000.00 Coyote Management Plan 2019
10/8/2019 City Clerk 68,000.00 Additional Funds for General Municipal Election
Assignment of Freeway Corridor Mixed-Use Overlay Zone and CEQA
12/10/2019 Planning 160,000.00 Analysis/Report Contract to RRM Design Group
11/12/2019 City Clerk 28,421.00 Census 2020 Outreach Efforts
Total $ 393,821.00
Other Funds
6/11/2019 City Council 25,000.00 Forming a Joint Powers of Authority for Light Rail Transit(Measure R)
2/25/2020 Public Works 232,091.00 Purchase of two transit buses(Prop A)
City Wide Salary Range Adjustments to various classifications(Gas
7/23/2019 Public Works 6,600.00 Tax,Prop A&C,and Measure R)
$ 263,691.00
Transfers
Professional Services Agreement for City Engineering,Traffic
2/11/2020 Public Works 294,000.00 Engeering and General Engineering Services
Elimination of the Housing Coordination position and creation of
12/10/2019 Human Resources 5,951.00 Management Analyst for Human Resources
Elimination of the Housing Coordination position and creation of
12/10/2019 Public Works 103,500.00 Management Analyst for Public Works
Total $ 403,451.00
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Attachment B
Resolution No. 2020-07
RESOLUTION NO. 2020-07
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ROSEMEAD, CALIFORNIA,APPROVING VARIOUS
APPROPRIATIONS,TRANSFERS AND ADJUSTMENTS FOR
FISCAL YEAR 2019-20
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 or adjustments; and
WHEREAS, certain budget changes including additional appropriations and transfers have
received prior City Council approval.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ROSEMEAD, DOES
HEREBY RESOLVE, DECLARE, DETERMINE, AND ORDER AS FOLLOWS:
SECTION 1. A $451,421 General Fund budget appropriations increase and a $238,421
General Fund budget revenue increase for the FY 19-20 General Fund Budget (comprising all
previously approved Council Adjustments and today's requested adjustments) and for all previously
approved Council Adjustments to Special Funds as outlined in Attachment A of this report.
These additional appropriations, transfers and budget adjustments outlined in this report are made a
part of the approved FY 2019-20 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 sums 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.
SECTION 2. The City Clerk shall certify to the adoption of this resolution and hereafter the
same shall be in full force and effect.
PASSED, APPROVED,AND ADOPTED this 24th day of March 2020.
Margaret Clark, Mayor
APPROVED AS TO FORM: ATTEST:
Rachel Richman, City Attorney Ericka Hernandez, City Clerk
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) §
CITY OF ROSEMEAD )
I, Ericka Hernandez, City Clerk of the City Council of the City of Rosemead, California, do hereby
certify that the foregoing City Council Resolution No. 2020-07, was duly adopted by the City
Council of the City of Rosemead, California, at a regular meeting thereof held on the 24th day of
March, 2020,by the following vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
Ericka Hernandez, City Clerk