Loading...
CC - Item 5A - Adoption of Resolutions Approving the City's FY 2021-22 Operating Budget, CIP Budget, Financial Policies, Establishing FY 2021-22 Appropriations Limit, Amending FY 2020-21 Appropriations Limit, and Approving RHDC FY 2021-22 Annual BudgetROSEMEAD CITY COUNCIL STAFF REPORT TO: THE HONORABLE MAYOR AND CITY COUNCIL FROM: GLORIA MOLLEDA, CITY MANAGER, •0 DATE: JUNE 14, 2021 SUBJECT: ADOPTION OF RESOLUTIONS APPROVING THE CITY OF ROSEMEAD'S FY 2021-22 OPERATING BUDGET, CAPITAL IMPROVEMENT PROGRAM BUDGET, FINANCIAL POLICIES, ESTABLISHING THE FY 2021-22 APPROPRIATIONS LIMIT, AMENDING THE FY 2020-21 APPROPRIATIONS LIMIT, AND APPROVING THE ROSEMEAD HOUSING DEVELOPMENT CORPORATION FY 2021-22 ANNUAL BUDGET SUMMARY This report summarizes the City's overall financial plan for the 2021-22 Fiscal Year. The City's Operating Budget totals $35,360,800 with $25,514,200 dedicated to General Fund Operations. The Capital Improvement Program (CIP) totals $8,092,000 and provides funding to 12 new, annual, and additionally funded projects. The FY 2021-22 budget for the Housing Development Corporation is proposed at $917,400. A budget workshop was held on May 25, 2021 to present the proposed budget and answer questions. As discussed during the workshop, revenue estimates for Gas Tax and Road Maintenance and Rehabilitation funds have been updated based on new information. DISCUSSION As shown in the following chart, the City of Rosemead's Proposed Operating Budget for FY 2021- 22 is $35,360,800 with an additional $8,092,000 within the Proposed CIP. Revenue AGENDA ITEM 5.A Appropriations Capital over Revenue and and Transfers Improvement Expense Proposed Budgets Transfer In Out Program Total General Fund 25,587,500 25,514,200 60,000 13,300 Special Revenue 21,758,430 9,726,600 8,032,000 3,999,830 Internal Service _ 50,000 _ 120,000 0 (70,000)_ Total 47,395,930 35,360,800 8,092,000 3,943,130 AGENDA ITEM 5.A City Council Meeting — Approval of FY 2021-22 Budgets and Related Items June 14, 2021 Page 2 of 4 GENERAL FUND — The General Fund is balanced with a proposed budget (operating and CIP) of $25,574,200 balanced against $25,587,500 in estimated revenues. Overall, General Fund revenues are expected to exceed FY 2021-22 appropriations by $13,300. However, the estimated revenue does include $1,500,000 transferred from the American Rescue Plan Fund. This new fund was created to receive and expend funds expected as a component of the $1.9 trillion American Rescue Plan Act of which $65 billion was allocated to cities. Rosemead's allocation is approximately $17.8 million to be received over two -years. While final guidelines have not yet been published, it's clear a portion of the funds may be used to replenish revenue lost due to the pandemic which was the basis for staff's estimate. General Fund Revenue — Revenue estimates for FY 2021-22 are expected to increase 16% over the FY 2020- 21 budget. While significant reductions in revenue sources such as sales tax, transient occupancy tax, business licenses, facility rentals, and building permits were anticipated in FY 2020-21, only transient occupancy tax, facility rentals, and recreation program revenue experienced substantial drops in the current year. Sales tax revenue performed better than anticipated and is expected to increase 25% over the FY 2020-21 budget estimate, 8% over the year-end estimate. Property taxes, including Property Tax In -Lieu of VLF, also continue to increase based on assessed value of property within the City and are budgeted 6.5% higher than FY 2020-21. Overall, taxes provide 76% of Rosemead's General Fund revenue base and are anticipated to increase by 10% over the FY 2020-21 budgeted estimate. General Fund Expenditures — As proposed, General Fund appropriations are $25,514,200 for operations and $60,000 towards the Capital Improvement Program. This represents a growth rate of less than 4% over FY 2020-21 including increases in insurance premiums, certain contract service costs, and funding for the next election. The following table and chart reflect the proposed budget by department. Department Proposed Budget Legislative $ 731,900 City Clerk 1,212,300 Administration 1,464,600 Finance 738,400 General Services 989,800 Public Safety 11,097,100 Public Works 4,040,200 Parks & Recreation 3,511,400 Community Development 1,728,500 Total — General Fund $ 25,514,200 Community Legislative City Clerk Development Administration 3% 5% 7% 5% Finance �5 3% General POWs $; Recreation- , Services 14% 4% Public Works 16% Public Safety 43% City Council Meeting — Approval of FY 2021-22 Budgets and Related Items June 14, 2021 Page 3 of 4 OTHER Fur ms — The City has 20 Special Revenue funds that are restricted in their use based on the purpose for which the revenue is collected. Collectively, the funds are proposed at $9,726,600 in operating appropriations and $8,032,000 in capital improvement appropriations, offset by $21,758,430 in restricted revenue budget estimates. The City has two Internal Service funds which together, are proposed at $50,000 in revenue (transfer from the General Fund) and $120,000 in proposed expenditures for capital equipment and improvements. There is sufficient fund balance to cover the shortfall between revenue and appropriations. CHANGES SINCE THE WORKSHOP — As discussed during the Budget Workshop, new revenue estimates had been received from the League's Analyst for the Gas Tax and Road Maintenance and Rehabilitation funds. Based on the new data, the budgeted estimates have been reduced by $94,000 and $32,600, respectively. In addition, the $41,700 appropriation within the TDA Art -III fund has been removed from the original proposal as it relates to carryover appropriations rather than the proposed year. CAPITAL IMPROVEMENT PROGRAM —The FY 2021-22 Proposed CIP adds $ 8,092,000 to the current program for a total Capital Improvement Program Plan consisting of 29 projects in the amount of $44,364,383. This year's plan includes a substantial investment in the City's streets, parks, and facilities as follows: • Street Improvements $ 6,232,000 • Parks & Facilities Improvements $ 1,860,000 These new projects are funded primarily by transportation related special revenue funds, the streetlight district, and grants. Use of the streetlight fund for these projects is allowable due to the approval of Senate Bill No. 1307 which allows Rosemead to use its Street Lighting Act of 1919 revenue in accordance with Landscaping and Lighting Act of 1972 regulations. The City's lighting district is part of the 1% property ad valorem tax and not an additional assessment to city residents. Of the $44 million total CIP, $36 million is for active existing projects of which approximately $36 million remains unspent and will be carried forward to the new year. Funding for the $36 million is provided by $29 million in reimbursable income and $7 million in fund balances across eight funds. STAFFING — There are no changes to full-time positions proposed within the FY 2021-22 budget. Funding has been included to provide for step increases due within the fiscal year, the January 1, 2022 minimum wage increase, and the increase in the Ca1PERS unfunded liability payment. APPROPRIATIONS LIMIT — Article XIII -B of the California Constitution (Proposition 4 as modified by Proposition 111) limits the amount of tax revenue that can be appropriated by State and local governments in a fiscal year. A City with appropriations greater than the limit must either refund the excess tax proceeds to the taxpayers or obtain their approval to raise the limit. Adoption of a Resolution is required annually to establish the limit. The calculation is based on the prior year's limit multiplied by a factor of the change in City or County population and the percent increase in City Council Meeting — Approval of FY 2021-22 Budgets and Related Items June 14, 2021 Page 4 of 4 per capita personal income or non-residential assessed valuation. Both population and per capital income data is supplied by the State of California Department of Finance. The City's limit for 2021-22 is $54,976,824 with appropriations subject to the limit at $19,792,316. Therefore, the City of Rosemead is $36,506,794 below its appropriation limit. The FY 2020-21 Appropriations Limit was miscalculated at $52,226,576 but should have been $52,227,174. The difference is only $597 but is important since future years are based on the prior year, and it is a required component of the annual audit. An amended resolution has been prepared for City Council consideration. STAFF RECOMMENDATION It is recommended that the City Council adopt the attached resolutions approving the FY 2021-22 budgets and related actions. FISCAL IMPACT The City's FY 2021-22 Operating and Capital Improvement Program Budget (All Funds), include total revenues of $47,395,930 and total expenditures of $43,452,800. The Rosemead Housing Development Corporation's FY 2021-22 Operating budget is proposed at $917,400 in both revenue estimates and appropriations. PUBLIC NOTICE PROCESS This item has been noticed through the regular agenda notification process. Prepared by: Paula Chamberlain, Interim FinanceDirector Attachments: A -- Resolution No. 25 — Adopting the City's FY 2021-22 Operating Budget Exhibit A — Schedule of Appropriations B — Resolution No. 26 --- Adopting the City's FY 2021-22 CIP Budget C — Resolution No. 27 --- Amending the FY 2020-21 Appropriations Limit Exhibit A — Appropriations Limit D -- Resolution No. 28 — Adopting the FY 2021-22 Appropriations Limit Exhibit A — Appropriations Limit E — Resolution No. 03 of the RHDC — Adopting the FY 2021-22 Budget Attachment A Resolution No. 2021-25 Attachment A RESOLUTION NO. 2021-25 RESOLUTION OF THE COUNCIL OF THE CITY OF ROSEMEAD ADOPTING THE CITY'S OPERATING BUDGET AND FINANCIAL POLICIES FOR THE 2021-22 FISCAL YEAR WHEREAS, appropriations are the legal authority for a City to spend its funds; and WHEREAS, the City Council was presented with a FY 2021-22 Proposed Budget at its May 25, 2021 Budget Workshop. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ROSEMEAD, DOES HEREBY RESOLVE, DECLARE, DETERMINE, AND ORDER AS FOLLOWS: Section 1. That certain document entitled "City of Rosemead Annual Budget for Fiscal Year 2021-22", a copy of which is on file in the office of the City Clerk and on the City's Web Site, which may hereafter be amended by the Council, is hereby approved as the operating budget for the City of Rosemead for the Fiscal Year 2021-22. Section 2. The proposed operating budget for the City of Rosemead is hereby approved and adopted in the amount of $35,360,800. Appropriations for the General Fund are approved at the department level, with all other funds approved at the fund level. The approved appropriations for all operating funds are contained in Exhibit A attached hereto, and incorporated herein by this reference. Section 3. The Director of Finance, with the approval of the City Manager, is hereby authorized to transfer appropriations as needed from savings available in any department/object account in the budget to other accounts within the same fund to meet overall budget requirements provided the fund is within the approved budget by the City Council. Section 4. That any subsequent Council action prior to June 30, 2021 that has the effect of amending the approved FY 2021-22 Operating Budget will be reflected in the final FY 2021-22 budget document without additional or separate Council action. Section 5. In the case of fee-based programs, if the revenues for such programs exceed the amount budgeted, the City Council hereby authorizes the Finance Director, upon approval of the City Manager, to allow program expenditures to exceed appropriations of said program in the same amount of the increased revenue until amended by the City Council. A semi-annual report shall be made to the Council describing each such action with revisions to the revenue estimate and corresponding appropriation made by a resolution of the City Council. Section 6. Pursuant to the provisions of Section 37208 of the California Government Code, the Council, payroll checks and checks drawn in payment of demands approved by the Finance Director as conforming to the budget as approved by Council resolution, need not be audited by the legislative body prior to payment. Section 7. The City Council hereby adopts the Comprehensive Financial Policies of the City for Fiscal Year 2021-22, as included in the FY 2021-22 City of Rosemead Proposed Budget and without modification, in the FY 2021-22 Adopted Budget as part of this resolution. Section 8. 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 14th day of June, 2021. Polly Low, Mayor APPROVED AS TO FORM: ATTEST: Rachel Richman, City Attorney Ericka Hernandez, City Clerk Exhibit A City of Rosemead FY 2021-22 Adopted Operating Budget General Fund by Department noo City Council/ Commissions/ City Attorney 731,900 1115 City Clerk 1,212,300 12o5 Administration 1,464,600 13o5 Finance 738,400 1325 General Services 989,800 2000 Public Safety 11,097,100 3000 Public Works 4,040,200 4000 Parks & Recreation 3,511,400 5000 Community Development 1,728,500 231 Total - General Fund 25,514,200 Internal Service Funds 505 Technology Replacement 120,000 Total 120,000 Total - Operating Budget 35,360,800 Special Revenue Funds 201 Gas Tax 780,500 202 Road Maintenance & Rehabilitation 206,600 215 Prop A 1,467,300 220 Prop C 88,500 225 Measure R 137,300 226 Measure M 43,700 228 American Rescue Plan 1,500,000 230 AQMD 10,100 231 Clean Water Program 502,500 232 Other Grants 80,000 245 Street Lighting District 800,100 260 CDBG 1,974,600 275 HOME Grant 2,13 5,400 Total 9,726,600 Internal Service Funds 505 Technology Replacement 120,000 Total 120,000 Total - Operating Budget 35,360,800 Attachment B Resolution No. 2021-26 Attachment B RESOLUTION NO. 2021-26 RESOLUTION OF THE COUNCIL OF THE CITY OF ROSEMEAD ADOPTING THE CITY'S CAPITAL IMPROVEMENT PROGRAM (CIP) BUDGET FOR THE 2021-22 FISCAL YEAR WHEREAS, appropriations are the legal authority for a City to spend its funds; and WHEREAS, the City Council was presented with a FY 2021-22 Proposed Capital Improvement Program Budget at its May 25, 2021 Budget Workshop, NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ROSEMEAD, DOES HEREBY RESOLVE, DECLARE, DETERMINE, AND ORDER AS FOLLOWS: Section 1. The proposed FY 2021-22 Capital Improvement Program budget for the City of Rosemead is hereby approved and adopted in the amount of $8,092,000. Section 2. The amount of all projects within the Capital Improvement Program, excluding annual programs and the FY 2021-22 additions, is confirmed at $36,172,383. Any remaining appropriations from prior projects not in the current carryover listing within the FY 2021-22 document are hereby released. Section 3. Any changes to project budgets, including funding sources, within the CIP must be authorized by City Council resolution. Section 3. Project balances remaining at June 30, 2021 for confirmed projects will be carried forward to FY 2021-22. The Finance Director is authorized to bring forward appropriate balances to be reaffirmed by City Council resolution with the first quarter report. Section 4. That any subsequent Council action prior to June 30, 2021 that has the effect of amending the approved FY 2021-22 Capital Improvement Program Budget will be reflected in the final FY 2021-22 budget document without additional or separate Council action. Section 5. 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 14th day of June, 2021. Polly Low, Mayor APPROVED AS TO FORM: ATTEST: Rachel Richman, City Attorney Ericka Hernandez, City Clerk Attachment C Resolution No. 2021-27 Attachment C RESOLUTION NO, 2021-27 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD, CALIFORNIA, ADOPTING AN AMENDED APPROPRIATIONS LIMIT FOR THE FISCAL YEAR 2020-21 WHEREAS, Article XIII -B of the Constitution of the State of California provides that total annual appropriations subject to limitation of the City shall not exceed the appropriations limit of the City for the prior year as adjusted for annual adjustment factors; and WHEREAS, Section 7910 of the Government code of the State of California directs the governing body of each local jurisdiction to establish its appropriations limit by resolution each year; and WHEREAS, the governing body of each local jurisdiction must select the annual adjustment factors to be used in determining the appropriations limit pursuant to Article XIIIB of the State Constitution. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ROSEMEAD, DOES HEREBY RESOLVE, DECLARE, DETERMINE, AND ORDER AS FOLLOWS: SECTION 1. The City Council hereby elects the change in the California per capita personal income as the cost of living adjustment factor and the annual population change for the City of Rosemead as the population adjustment factor. SECTION 2. The appropriations limit fiscal year 2020-21 is hereby set at $52,227,174, as detailed in the attached Exhibit A. which is hereby made a part of this Resolution. SECTION 3. The City reserves the right to adjust or amend the appropriations limit based upon the use of alternative growth factors as authorized by Proposition 111 if such changes or revisions would result in a more advantageous appropriations limit, now or in the future. SECTION 4. 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 14th day of June, 2021. APPROVED AS TO FORM: Rachel Richman,- City Attorney Polly Low, Mayor ATTEST: Ericka Hernandez, City Clerk Exhibit A City of Rosemead Appropriations Limit FY 2020-21 a) Prior Year Appropriations Limit b) Adjustment Factors _ 1) Population Change* 2) Cost of Living ** 3) Combined Adjustment Factor c) Adjusted Limit d) Alterations e) Appropriations Limit - Current Year Percent Ratio 0.30% 1.0030 3.73% 1.0373 APPROPRIATIONS SUBJECT TO LIMITATION a) Proceeds of Taxes b) Exclusions c) Appropriation Subject to Limitation d) Appropriation Limit - Current Year e) Under (Over) Limit Amount $ 50,198,555 1.0404119 $ 52,227,174 0 $ 52,227,174 $ 17,700,388 0 $ 17,700,388 $ 52,227,174 $ 34,526,786 Sources: * Annual Percent Change in Population City of Rosemead -Provided by CA Dept of Finance ** Price Factor: Per Capita Personal Income -Provided by CA Dept of Finance Computations based on the 2021-22 Adopted Budget Attachment D Resolution No. 2021-28 Attachment D RESOLUTION NO, 2021-28 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD, CALIFORNIA, ADOPTING AN APPROPRIATIONS LIMIT FOR THE FISCAL YEAR 2021-22 WHEREAS, Article XIII -B of the Constitution of the State of California provides that total annual appropriations subject to limitation of the City shall not exceed the appropriations limit of the City for the prior year as adjusted for annual adjustment factors; and WHEREAS, Section 7910 of the Government code of the State of California directs the governing body of each local jurisdiction to establish its appropriations limit by resolution each year; and WHEREAS, the governing body of each local jurisdiction must select the annual adjustment factors to be used in determining the appropriations limit pursuant to Article XIIIB of the State Constitution. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ROSEMEAD, DOES HEREBY RESOLVE, DECLARE, DETERMINE, AND ORDER AS FOLLOWS: SECTION L The City Council hereby elects the change in the California per capita personal income as the cost of living adjustment factor and the annual population change for the City of Rosemead as the population adjustment factor. SECTION 2. The appropriations limit fiscal year 2021-22 is hereby set at $54,976,824, as detailed in the attached Exhibit A, which is hereby made a part of this Resolution. SECTION 3. The City reserves the right to adjust or amend the appropriations limit based upon the use of alternative growth factors as authorized by Proposition 111 if such changes or revisions would result in a more advantageous appropriations limit, now or in the future. SECTION 4, 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 14th day of June, 2021. Polly Low, Mayor APPROVED AS TO FORM: ATTEST: Rachel Richman, City Attorney Ericka Hernandez, City Clerk Exhibit A City of Rosemead Appropriations Limit FY 2021-22 a) Prior Year Appropriations Limit b) Adjustment Factors 1) Population Change* 2) Cost of Living ** 3) Combined Adjustment Factor Percent Ratio -0.44% 5.73% 0.9956 1.0573 c) Adjusted Limit d) Alterations e) Appropriations Limit - Current Year APPROPRIATIONS SUBJECT TO LIMITATION a) Proceeds of Taxes b) Exclusions c) Appropriation Subject to Limitation d) Appropriation Limit - Current Year e) Under (Over) Limit Amount $ 52,227,174 1.05264788 $ 54,976,824 0 $ 54,976,824 $ 19,792,316 0 $ 19,792,316 $ 54,976,824 $ 35,184,507 Sources: * Annual Percent Change in Population City of Rosemead - Provided by CA Dept of Finance ** Price Factor: Per Capita Personal Income -Provided by CA Dept of Finance Computations based on the 2021-22 Adopted Budget Attachment E Resolution No. 2021-03 RHDC Attachment E RESOLUTION N0.2021-03 RHDC A RESOLUTION OF THE ROSEMEAD HOUSING DEVELOPMENT CORPORATION ADOPTING THE ANNUAL BUDGET FOR FISCAL YEAR 2021-22 WHEREAS, a proposed annual budget for the Rosemead Housing Development Corporation for the Fiscal Year commencing July 1, 2021 and ending June 30, 2022 was submitted to the Housing Development Corporation Board of Directors for its review and consideration and the proposed annual budget is on file in the Corporation Secretary's office. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ROSEMEAD SITTING AS THE ROSEMEAD HOUSING DEVELOPMENT CORPORATION COMMISSION, DOES HEREBY RESOLVE, DECLARE, DETERMINE, AND ORDER AS FOLLOWS: SECTION 1. The 2021-22 Annual Budget for the Rosemead Housing Development Corporation is hereby adopted in the amount of $917,400. SECTION 2. The Corporation Secretary shall certify to the adoption of this resolution and hereafter the same shall be in full force and effect. PASSED, APPROVED, AND ADOPTED this 14th day of June, 2021. Polly Low, Mayor APPROVED AS TO FORM: ATTEST: Rachel Richman, City Attorney Ericka Hernandez, City Clerk