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CC - Item 6A - Fiscal Year 2022-23 Mid-Year Budget Review, Adopting Resolution 2023-13 Amending the FY 2022-23 Budget adn Resolution 2023-14 Amending the Consolidated Salary ScheduleROSEMEAD CITY COUNCIL STAFF REPORT TO: THE HONORABLE MAYOR AND CITY COUNCIL FROM: BEN KIM, CITY MANAGER DATE: FEBRUARY 14, 2023 SUBJECT: FISCAL YEAR 2022-23 MID -YEAR BUDGET REVIEW, ADOPTION OF RESOLUTION NO. 2023-13 AMENDING THE FY 2022-23 BUDGET AND RELATED ACTIONS, ADOPTION OF RESOLUTION NO. 2023-14 AMENDING THE CITY OF ROSEMEAD'S CONSOLIDATED SALARYSCHEDULE BACKGROUND On June 14, 2022, the City Council adopted the 2022-23 Operating and Capital Improvement Program Budgets. This report summarizes the City's General Fund overall financial position for the current fiscal year through December 2022 including a discussion on revenue sources and expenditure trends. The estimates stated within are just that, estimates, and are subject to change as the current fiscal year continues. This report will also cover recommended mid -year budget adjustments and recommended changes to the authorized position staffing list and salary schedule. SUMMARY The adopted General Fund operating budget includes appropriations of $27.7 million against revenue estimates of $27.7 million, including a $1.4 million transfer from State and Local Fiscal Recovery Funds (SLFRF). As shown in the following chart (Table 1), FY 2022-23 operating revenue (excluding the transfer in) budget was estimated at $0.7 million greater than the prior year (FY 2021-22) budgeted estimate. Fiscal year 2022-23 appropriations are $1.4 million more than the prior year budget and $3.4 million more than the FY 2021-22 actual expenditures. Based on year-end estimates staff anticipates revenue (excluding transfer) will exceed original estimates by nearly $3.4 million while operating expenditures will fall $854 thousand below budgeted levels. FY2021-22 %Recd FY 2022-23 %Redd SUMMARY FY2021-22 YFDActivity Thm FY 2021-22 FY2022-23 YrDActivity Thm Year End Total Budget Thmugh Dec DEC Actuals Total Budget Thmugh Dec DEC Esthnate Revenue 25,587,500 7,091,500 28% 27,301,500 Transfer In 1,500,000 - 00/0 - Approp/Exp 26,339,960 10,756,600 41% 24332,800 Net Rev (Exp) 747,540 (3,665,100) 2,968,700 26,317,000 8,673,000 33% 29,733,300 1,400,000 - 0% 27,712200 11,421,200 41% 26,858,000 4,800 (2,748,200) 2,875300 AGENDA ITEM 6.A City Council Meeting — FY 2022-23 Mid -Year Budget Review February 14, 2023 Page 2 of 11 REVENUE As adopted, the City's FY 2022-23 revenue budget reflects $26.3 million in anticipated operating revenue and $1.4 million from a transfer -in from the SURF Revenue Loss fund. Year-end estimates reflect $29.7 million in operating revenue, which is $3.4 million more than the budgeted revenue. The estimates are based on current receipts through December 31St, comparison to the same period in the prior year, revenue received after the mid -point, and anticipated revenue based on actual to mid -year receipts for the prior year and known events. The following narrative and projections, while accurate to the best of staff s present understanding, must be viewed as subject to reconsideration as second half receipts become known. As shown in Table 2, General Fund revenue received as of December 2022 is only 33% of the estimated revenue for FY 2022-23 at 50% of the year. This is typical due to revenue sources that are received in July and August that are accrued back to the prior fiscal year and other large revenue sources that are received on a quarterly, bi-annual, or annual basis. As reflected in Table 2, overall General Fund revenues are trending ahead of the same reporting period (December) in FY 2021- 22 for most categories with actual receipts $1.6 million more than the same period in the prior year. Table 2 Tax revenue, as budgeted, represents 78% of all General Fund operating revenue followed by 8% in the Licenses and Permits category. Based on year-end projections, significant increases in the Licenses and Permits category fee-based programs resulted in the tax category decreasing to 76% of total year-end estimates and the Licenses and Permit category increasing to 14%. Since taxes are the most significant component of the City's revenue structure, this report focuses mostly on that category as presented below with summary information for major tax categories. Overall, taxes are budgeted at $21.6 million, and (based on preliminary information) are projected to end the fiscal year at $22.5 million, an increase of nearly $883 thousand. FY 2021-22 %Rec'd FY 2022-23 %Rec'd Revenue by Category FY 2021-22 YTD Activity Thin FY 2021-22 FY 2022-23 YTD Activity Tlvu Year End Total Budget Through Dec Dec Actuals Total Budget Through Dec Dec Estimate Taxes 19,727,100 4,286,100 22% 21,539,000 21,613,800 4,720,300 22% 22,496,400 Intergovernmental 155,000 136,200 88% 357,100 195,800 166,300 85% 298,700 Licenses And Permits 2251,200 1,706,700 76% 3,127,500 2243,000 2,816,800 126% 4,156,500 Fines and Forfeitures 624,300 286,200 46% 577,600 605,300 283,700 47°/u 550,200 Use of Money and Property 343,200 121,500 350% 224,000 522,600 145,700 28% 984,600 Charges for Svcs 381,200 318,100 83% 774,200 755,200 483,000 640% 916,400 Other Revenue 605 00 236,700 39% 524,000 381,300 57,200 15% 330,500 Total - Gen'l Fund Operating Rev 24,087,500 7,091,500 29% 27,123,400 26,317,000 8,673,000 33% 29,733900 Transfers In 1,500,000 0% 1,400,000 0% TOTAL - General Fund Source 25,587,500 7,091,500 28% 27,123,400 27,717,000 8,673,000 31% 29,733,300 Tax revenue, as budgeted, represents 78% of all General Fund operating revenue followed by 8% in the Licenses and Permits category. Based on year-end projections, significant increases in the Licenses and Permits category fee-based programs resulted in the tax category decreasing to 76% of total year-end estimates and the Licenses and Permit category increasing to 14%. Since taxes are the most significant component of the City's revenue structure, this report focuses mostly on that category as presented below with summary information for major tax categories. Overall, taxes are budgeted at $21.6 million, and (based on preliminary information) are projected to end the fiscal year at $22.5 million, an increase of nearly $883 thousand. City Council Meeting — FY 2022-23 Mid -Year Budget Review February 14, 2023 Page 3 of 11 Table 3 FY 2021-22FY 2022-23 Major Taxes FY 2021-22 YTD Activity % Rec'd FY 2021-22 FY 2022-23 YTD Activity % Rec'd Year End Total Budget Through Dec Thru Dec Actuals Total Budget Through Dec Thru Dec Estimate rty Taxes 3,473,000 1,290,300 37% 3,539,800 3,652,300 1,337,200 37% 3,670,100 try Tax In Lieu/VLF 7,344,300 - 0% 7,374,700 7,680,700 - 0% 7,763,900 and Use Tax 5,759,800 2,138,400 371. 6,889,900 6,505,800 2,533,200 39% 7,299,600 lent Occ Tax 1,600,000 553,100 35% 2,097,700 2200,000 574,000 26% 2,200,000 hise Fees 1,350,000 199,800 15% 1,432,400 1,470.000 236,900 16°% 1.464,800 Property axes — Based on projections by the City's property tax consultant, HdL Companies, and a review of other components such as prior year payments, late fees, transfer taxes, and residual RPTTF (Redevelopment Property Tax Trust Fund — Successor Agency) revenue, staff estimates property taxes will complete the year at $3.67 million, slightly above the budget. The secured and unsecured estimate is provided by HdL, however, estimates for the other components are prepared by staff based on trends. Transfer tax revenue is trending below prior year receipts, while the RPTTF revenue appears that it will complete the year within the budgeted estimate, and also above prior year receipts. The RPTTF is calculated by the County based on property taxes collected within the Successor Agency areas less required payments for continuing obligations — ROPS and passthrough agreements. The amount remaining after paying obligations is then distributed to taxing agencies including a portion to the City of Rosemead. Payments are received outside of the mid -year reporting period (January and June), however, the January payment has been received and is more than the payment received one year ago. Property Tax In -lieu — Based on growth in assessed value, this revenue is remitted to the City in two equal payinents in the third and fourth quarter of the year. Although no revenue was received within the reporting period of this report, the first payment was received in January and indicates the year-end receipt will be $7.76 million, $83 thousand over the budgeted estimate and $389 thousand more than the amount received in FY 2021-22. Sales Tax — Based on projections by the City's sales tax consultant, HdL Companies, the year-end estimate is $7.3 million which is an increase of $794 thousand over the budgeted estimate and $410 thousand greater than the amount received in FY 2021-22. Current receipts are also nearly $395 thousand greater than the same period one year ago. Transient Occupancy Tax (TOT) — Receipts from TOT have been significantly impacted by the pandemic. Revenue received in both FY 2017-18 and FY 2018-19 topped $2.3 million and was budgeted to receive $2.4 million in FY 2019-20. Due to the pandemic, receipts for FY 2019-20 fell to $1.78 million and final receipts for FY 2020-21 fell further, to just $1.4 million. While the pandemic lingered in FY 2021-22, revenue started to rebound and $2.1 million was collected. For FY 2022-23, $2.2 million in TOT revenues are anticipated to be received. City Council Meeting — FY 2022-23 Mid -Year Budget Review February 14, 2023 Page 4 of 11 Franchise Fees — The largest contributors to this category (SCE and So Cal Gas) are received in the second half of the fiscal year and are not typically impacted by pandemic conditions. The year- end estimate of $1.46 million is based on the FY 2021-22 year-end actuals and current receipts. Business License Fees — Based on current receipts collected through December 31, staff is anticipating a minimal decrease of less than $7 thousand under the budgeted amount of $105 thousand. The Licenses and Permits category includes Building Permits, Plan Checking, Industrial Waste Permits, Public Works Permits, and Animal Licenses. The largest source in this category is Building Permits/Plan Checking, which is budgeted at $1.7 million. Based on current receipts of nearly $2.6 million, staff estimates revenue for Building Permit/Plan Checking could reach $3.6 million by year-end. The category as a whole, is estimated to complete the year $1.9 million over the budgeted estimate. Fines and Forfeitures are estimated to complete the year at $550 thousand, slightly less than the budgeted $605 thousand based on current actuals. Use of Money and Property which consists of Interest Earnings, Rents and Royalties, and Facilities Rentals is estimated at $985 thousand, up from the budgeted $523 thousand based largely on an increase to actual and anticipated interest earnings from investments. Current interest earnings receipts are nearly $114 thousand greater than the same period one year ago. As of January 3I't 2023 interest earnings amounted to $417 thousand, significantly surpassing prior year end total of $209 thousand. Charges for Services is the category that remains most impacted by the pandemic but is seeing some recovery. Parks and Recreation revenue is budgeted at $565 thousand and at mid -year point has received 349 thousand or 62% of budget. Staff estimates that by year-end, revenue will reach nearly $677 thousand. Year-end revenue estimates are still less than the $876 thousand received in FY 2018-19, prior to the pandemic. Overall, the category of `Charges of Services' which includes City Clerk, Community Development, Public Works, and Parks and Recreation, is budgeted at $755 thousand and estimated to end the year at $916 thousand, an improvement of $161 thousand over the budgeted number. Other Revenue is a catch-all category for miscellaneous type revenue with a budget estimate of $605 thousand. The largest sources within this category is the crossing guard reimbursement budgeted at $122 thousand, and the reimbursement from other agencies (HCD and SA) at $198 thousand. The crossing guard reimbursement is for 50% of the City's cost of the crossing guard contract service. The reimbursement from other agencies is an internal accounting process for the payment of services provided to the CDC and SA each year. Overall, the category is estimated to complete the year $51 thousand below the budgeted estimate. City Council Meeting — FY 2022-23 Mid -Year Budget Review February 14, 2023 Page 5 of 11 APPROPRIATIONS / EXPENDrruRES At the halfway point of the Fiscal Year (December 31, 2022), overall General Fund appropriations are only 41% expended as shown in Tables 4 and 5. As shown in Table 4, all actual expenditures as of December 31St by category are within an acceptable range of year-to-date expenditures in relation to the total appropriation for the year. Table 4 Expenses by Category FY2021-22 Total Budget FY2021-22 YFDActiviy Through Dec %EV'd Thru DEC FY2021-22 Actuals FY2022-23 Total Budget FY 2022-23 YFDActivky Through Dec %EV'd Thr; DEC Salary and Benefits 8,433,300 3,568,300 42°/^ 7,711,100 9,212,500 4,008,600 44°/. Dperations 5,158,050 1,699,200 33% 5,221,000 6,257,000 1,927,100 31% Contract Police Svcs 9,296,700 3,846,300 41% 8,737,500 9,425,800 3,701,800 39"/0 Ut8/ Ins / Allocations 2,360,600 1,639,700 69°/^ 2,407,000 2,426,400 1,608,700 66°/^ Capital Assets/Projects 1,091,300 3,100 0°/0 256,100 390,500 175,100 45% 26,339,950 10,756,600 41% 24,332,700 27,712,200 11,421,300 41% • Salary and Benefits — These costs are 44% expended at 50% of the year due to vacancies and budgeted step increases due later in the fiscal year. It is anticipated that expenditures in this category will remain within the budgeted amount by year end. • Operations — Expenditures in the' `Operations' category are also below the 50% level and marginally lower, percentage wise when compared budget amounts, than the same time period last year, however, the dollar values of expenditures is higher when comparing the year-to- date activity through December. • Contract Police Services — The year-to-date total for Contract Police Services represents only five months of billings at the mid -year point and on target to meet the budgeted amount. • Utilities/ Insurance/ and Allocation —This category is 66% expended due to the required full payment of annual insurance premiums in July each year. • Capital Assets / Capital Improvement Program — The current expenditures in this account largely relate to the Garvey Paws Dog Park. Table 5 shows that most Departments are also below 50% expended at Mid -Year. It is anticipated that most departments will complete the year within or under budget and that overall, general fund final expenditures will be well below the budgeted amount for the fund. City Council Meeting — FY 2022-23 Mid -Year Budget Review February 14, 2023 Page 6 of 11 Table 5 Budget&Expenditures by Department FY2021-22 Total Budget FY 2021-22 YTDActivity Through Dec %Ezp-d Thru Dec FY 2021-22 Actuals FY 2022-23 Total Budget FY 2022-23 YTDActivity Through Dec %Eep'd Thru Dec City Council/Commissions 427,300 180,600 42% 386,731 442,900 194,700 44% . City Attorney 304,600 215,500 71% 390,685 349,600 53,000 15% City Clerk 1,212,300 1,004,700 83% 1,212,937 1,133,200 993,800 88% Administration ICDmmunity 1,464,600 602,400 41% 1,608,981 1,594,900 638,700 40% Finance 738,400 359,300 49% 761,914 962,600 420,400 44% General Services 989,800 471,500 48% 797,522 1,423,500 461,800 32% Public Safety 11,097,100 4,629,100 42% 10,927,865 11,495,300 4,511,500 39% Public Works 4,034,050 1,607,300 40% 4,032,135 4,407,100 1,663,600 38% Parks & Rec 3,517,550 1,015,200 29% 2,398,999 3,952,600 1,526,600 39% Development 1,728,500 669,500 39% 1,752,791 1,890,500 808,700 43% TOTAL -GF Operating 25,514,200 10,755,100 42% 24,270,560 27,652,200 11,272,800 41% apital Projects 825,760 1,500 0% 62,193 60,000 148,400 247% TOTAL -General Fund 26,339,960 10,756,600 al% 24,332,753 27,712,200 11,421,200 41% • City Attorney — Expenditures for the City Attorney are currently at 15%, due largely to the timing of payments. It is estimated that departmental expenditures will be within the budgeted amount by year-end. • City Clerk— The City Clerk's Office is currently 88% expended as of December 31St, due to the payment of insurance premiums discussed above. As reflected in the Chart, the Department was also 83% expended at this same point in the previous fiscal year and for the same reason. • Public Works —Department expenditures for Public Works are currently at 38% slightly below 40% for the same time period last fiscal year. It is anticipated that the department will complete the year near the budgeted amount. • Parks and Recreation — As the department recovers from the impacts of the pandemic, the Parks and Recreation Department continues to be impacted in both lost revenue and reduced expenditures. As shown, department expenditures are at 39% at December 31, which is an improvement from the prior year but is still under budget at the mid -year point. Expenditures for FY 2021-22 completed the year at 68% of the budgeted amount. It is anticipated that the department will complete the year well within the budgeted amount. Community Development — Expenses for Community Development reflect 43% expended at the mid -point, however, this is not indicative of how the year is anticipated to finish. The lower percentage spent is due to the continued vacancy of the department director and a delay in billing from the contract building and safety services provider. Ultimately, as indicated within the revenue section, due to an anticipated increase in building revenue, the fee could increase and the department could exceed its budget by the end of the fiscal year. City Council Meeting — FY 2022-23 Mid -Year Budget Review February 14, 2023 Page 7 of 11 In summary, General Fund revenues are coming in well and are anticipated to exceed budgeted expectations, while overall expenditures are within budgeted range and anticipated to complete the year under budget. If projections are met, the General Fund will complete the year in a positive position without the approved transfer from the SLFRF Revenue Loss fund. OTHER FUNDS Although the focus of this report is the General Fund, a review of all other funds has also been reviewed and there are no concerns to report at this time. In fact, revenue sources are coming in strong, and expenditures are low for the majority of the special revenue funds. There are, however, a few items require budget amendments that are reflected later in this report under "Recommended Budget Amendments". CIP CARRYOVER NUMBERS In accordance with the Comprehensive Financial Policies approved along with the adoption of the annual budget, budgeted amounts for Capital Improvement Program (CIP) budgets carry forward into the next fiscal year unless the project is complete or otherwise removed from the CIP. These carryovers represent previously approved, but unspent, appropriations and may carry forward multiple years until the project is either complete or the appropriation is released. The appropriations to be carried forward are for 22 CIP projects, accounted for within 11 funds, for a total continuing obligation of $39.8 million. The following charts show both the continuing obligation by project name and funding source of the continuing projects. Table 6 21029 Street SR25 Sidewa l k Gap Closure -Delta Ave $ 1,124,096 21030 Street Walnut Grove Ave Resurfacing(Phase ll) 688,500 21031 Street Valley Blvd Resurfacing Project(Phase1&II) 3,092,300 24010 Street Sidewalk ADA Master Plan 55,000 24013 Street Mission Drive Pedestrian Hybrid Bea con System 388,050 28008 Street ADA Curb Ramps 60,000 43009 Street Wa l nut Grove Street Ught Instal Iati on 381,906 43010 Street Citywide Arterial Street Improvements 4,987,000 49014 Street Wa l nut Grove Ave/1-10 Freeway Ramp l mprovements 5,988,000 49015 Street Rosemead Adaptive Traffic Project 8,963,899 49016 Street Rosemead Traffic Signal Improvements 5,981,623 49017 Street Rosemead Blvd/1-10 Freewy Ramp l mprovements 5,920,474 31020 Parks/Facil Public Safety Center Upgrades (Design only) 25,655 31023 Parks/Facil Garvey Park Main Office Renovab on 200,000 39002 Parks/Facil Picnic Shelter Roof Replacement 75,000 39003 Parks/Facil Rosemead Park Restroom Renovation 330,601 39004 Parks/Fa ciI U ghti ng Upgra de at l es s Gon za l ez Sports Compl ex 100,000 39006 Parks/Facil Roof Repai rs at Garvey Park Main Office &Gym 400,000 39007 Parks/FaciI Res u rfa ci ng of the Ga rvey Pa rk Tenn1 s Cou its 50,000 41022 Parks/Facil Dog Park at Garvey Park 501,607 41023 Parks/Facil PI a ygrou nd Equ i lament Repi (Ga rvey& Ros emea d Pa rks) 300,000 49011 Other Storm Water Catch Basin Upgra de 200,000 Totals - Carryover Appropriations $39,813,710 City Council Meeting — FY 2022-23 Mid -Year Budget Review February 14, 2023 Page 8 of 11 Table 7 101 General Fund $ 436,887 201 Gas Tax 547,000 202 RMRA 1,829,800 220 Prop 2,136,000 225 Mea sure 1,991,001 226 Measure 2,687,000 229 Measure R Capital 26,853,995 231 Measure W 200,000 232 Grant(HSIP) 1,876,425 245 Street Light District 925,000 260 CDBG 330,601 Total Fund Obligations $39,813,710 RECOMMENDED STAFFING CHANGES Included in the FY 2022-23 Operating Budget is funding for 68 full-time positions, four 3/4 -time positions (3.00 FTE), and various part-time employees. As part of staff s continual evaluation of department operations and efficiencies, staff began examining staffing levels in preparation of the proposed FY 2023-24 budget. In addition, at the January I0a', 2023 Council Meeting, as indicated during the approval of the FiberCity license agreement, staff discussed requiring additional resources to review and approve construction plans/permits and perform construction inspections and coordination relating to the FiberCity implementation. The following positions are being requested at this time due to the beneficial impacts of expedited hiring. Public Works — The Public Works Department is requesting the addition of two positions to assist in the implementation of FiberCity. According to the assessment of the staff, the current staffing levels are insufficient to support the delivery of FiberCity without significantly impacting engineering operations and services. The City would require the addition of one (1) full-time Associate Engineer and one (1) full-time Public Works Inspector to adequately support the implementation of FiberCity based on the scope of work to support delivery of FiberCity and information gathered during outreach to cities currently implementing FiberCity. The costs for these positions are based on the actual number of hours worked to support the delivery of FiberCity, and SiFi will reimburse the City through monthly invoices. There may be times during the FiberCity implementation when the Associate Engineer and Public Works Inspector are not providing support. During these periods, both positions will provide engineering and construction management and inspection (CMCI) services for the delivery of Capital Improvement Program (CIP) projects for the city. Currently, the Public Works Department relies primarily on consultants to provide engineering services, such as the preparation of construction bid documents (plans, specifications, and estimates), and CMCI services. The addition of the proposed positions will enable Public Works to perform engineering and CMCI services in-house, resulting in cost savings by reducing the city's reliance on consultant services, which are typically more expensive than city staff salaries. Staff performed a cost evaluation that included a salary survey of full-time staff from surrounding cities and a market value survey of consultant hourly rates for the Associate Engineer and Public Works Inspector positions in order to City Council Meeting — FY 2022-23 Mid -Year Budget Review February 14, 2023 Page 9 of 1 I confirm the cost savings. Based on the results of a salary survey, the recommended salary range for an Associate Engineer is $7,186 to $9,377 per month, with an annualized fully burdened cost of $140,700 to $175,000. The recommended salary range for a Public Works Inspector is $5,421 to $7,075 per month, with an annualized fully loaded cost of $112,000 to $138,000. The associated costs may be directly funded through the CIP budget's various special revenue and grant funds. Based on the cost analysis, using full-time City employees as opposed to consultant services results in an approximate $220,000 annual savings. At the beginning of the FiberCity project, both the Associate Engineer and Public Works Inspector will be hired. In addition, once the FiberCity project is complete, these positions will be able to provide in-house engineering and CMCI services to deliver current and future CIP projects, and their salaries may be covered by the CIP budget. Finance — The Finance Department is requesting the ability to under -fill its vacant Senior Accounting Specialist with an entry-level Accounting Specialist position. There is currently no Accounting Specialist position on the salary schedule and this change will not result in an increase in Finance Department full-time equivalent positions. The resulting change would provide the ability to fill the currently vacant Senior Accounting Specialist position with an entry-level Accounting Specialist. The change would also provide an annualized savings of up to $18,600. Based on salary survey results, the range for this position is recommended at $4,107 - $5,359 per month. Community Development — The Community Development Department is requesting the addition of position step levels to their part-time Administrative Intern position. Currently, on the salary schedule for part-time positions, the Administrative Intem position only has 1 step which is at the hourly rate of $15.50 per hour. The recommended change would allow for additional steps at 5% increments similar to that of other part-time positions. This would allow the department to provide merit increases to those employees in the Administrative Intern position. In addition, this would allow the City to be more competitive when recruiting for the position in the future. The resulting change will have a cost impact of $500 for the remainder of the fiscal year, and an annual fully burdened cost impact of $2,000. AMENDING THE ADOPTED SALARY SCHEDULE California Code of Regulations (CCR) Section 570.5 and amendments to 571(b) require a consolidated Salary Schedule which shows all City classifications and salary ranges for purposes of determining eligible salary compensation for retirement be publicly available. To meet this requirement, a separate staff report has been prepared to include the three positions above and another concurrent report on tonight's Agenda. City Council Meeting — FY 2022-23 Mid -Year Budget Review February 14, 2023 Page 10 of 11 RECOMMENDED BUDGET AMENDMENTS Staff is recommending the following amendments to the FY 2022-23 Operating and CIP Budgets: Proposition A and Proposition C Funds Decrease appropriations in the Proposition A Fund in the amount of $455,000 and increase appropriations in Proposition C funds in the amount of $455,000 for Dial -A -Ride and Rosemead Explorer transportation cost. Dial -A -Ride and 215 Adopted Budget Transfer Budeet to Other Funds 1.353.000 1.422.500 (455.000) Amended Budget 1.353.000 . 96-1-500 Proposition C (F220) Revenue Approp 220 Adopted Budget 1.104.500 1356.500 Dial-94tide& Rosemead F]pbrer 45UM Amended Budget 1.104.5no 1.811.500 Rosemead Explorer cost normally reside in the Proposition A fund. Staff was notified by Metro that certain Proposition C funds were at the risk of lapsing. Staff received approval from Metro to shift these transportation cost from Proposition A funds to Proposition C funds to help avoid the lapsing of funds. FISCAL IMPACT The budgets for existing Capital Improvement Program (CIP) being carried forward to FY 2022- 23 have been authorized in prior years and carry an obligation of fund balance within the Annual Comprehensive Financial Report. For this fiscal year, the overall recommended changes to staffing and salary schedule will have a minimal fiscal impact and will be absorbed by the department's current budgets. The two requested positions in Public Works for the FiberCity project would result in a cost increase for the City once the project is completed, as reimbursements from SiFi for the two positions would cease. However, using full-time City employees as opposed to consultant services would result in a savings of approximately $220,000 per year and the remaining cost related to the Public Works positions would be funded by special revenue funds for capital projects. The adjustments to Proposition A and Proposition C budgets are a transfer of budgets only, so there is no net increase in overall appropriations. Therefore, the adoption of the attached resolution will not result in an increase in appropriations for the current fiscal year. STAFF RECOMMENDATIONS It is recommended that the City Council take the following actions: 1. Receive and file the Mid -Year Budget Review Report. 2. Adopt Resolution No. 2023-13 approving budget amendments to the FY 2022-23 Operating budget, amending the Capital Improvement Program budget, and amending the City's authorized staffing position list, and Resolution No. 2023-14 amending the listing of salary and job classifications for both full-time and part-time positions. City Council Meeting — FY 2022-23 Mid -Year Budget Review February 14, 2023 Page 11 of 11 PUBLIC NOTICE PROCESS — This item has been noticed through the regular agenda notification process. Prepared by: X- - if Bryan Chua Finance Director Attachments: A — Resolution No. 2023-13 Amending the FY 2022-23 Budget and Authorized Staffing B — Resolution No. 2023-14 — Adopting the Consolidated Salary Schedule Attachment A Resolution No. 2023-13 RESOLUTION NO. 2023-13 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD, CALIFORNIA, AMENDING THE FY 2022-23 OPERATING AND CAPITAL IMPROVEMENT PROGRAM BUDGETS AND UPDATING THE AUTHORIZED STAFFING LIST AND UPDATING THE LISTING OF SALARY AND JOB CLASSIFICATIONS FOR FULL-TIME AND PART-TIME POSITIONS WHEREAS, a fiscal review is a prudent method to ensure that the City maintains a healthy financial structure; and WHEREAS, the City routinely adjusts fiscal year revenue estimates and appropriations throughout the fiscal year; and WHEREAS, the City routinely amends the Authorized Staffing List, and Authorized Full - Time and Part -Time Salary Ranges and Job Classifications; and WHEREAS, the City Council adopted the FY 2022-23 Operating Budget and CIP budgets on June 14, 2022; and WHEREAS, the revised appropriation constitutes an update to the Fiscal Year 2022-23 budget approved pursuant to Resolution No. 2022-38. WHEREAS, the City Council has reviewed the Mid -Year Budget Report. NOW THEREFORE, BE IT RESOLVED, by the City Council of the City of Rosemead, California, as follows: SECTION 1. That the City Council amends the 2022-23 Authorized Staffing List effective February 15, 2023 by adding the position of Associate Engineer (monthly salary range of $7,186 — $9,377) and Public Works Inspector (monthly salary range $5,421 — $7,075). Adopted Amended 2022-23 2022-23 Public Works Public Works Director 1 1 Administrative Assistant 1 1 Administrative Specialist 1 1 Associate Engineer 1 City Engineer 1 1 Facilities Technician 1 I Maintenance Lead Worker 5 5 Maintenance Worker 10 10 Public Works Fiscal and Project Manager I I Public Works Inspector 1 Public Works Manager 1 1 22 24 All City De partme nts 68 70 SECTION 2. That the City Council amends the 2022-23 Authorized Full -Time Employees Salary Ranges and Job Classifications effective February 15, 2023 by adding the position of Accounting Specialist (monthly salary range of $4,107 — $5,359). SECTION 3. That the City Council amends the 2022-23 Authorized Part -Time Employees Salary Ranges and Job Classifications effective February 15, 2023 by amending the wages of the Administrative Intern position to the following: Administrative Intern 15.5000 16.2750 17.0888 17.9432 18.8403 SECTION 4. That the City Council authorizes the carry forward of appropriations for projects approved in prior fiscal years but have remaining project funds as follows: 21029 Street SR2SSidewaIkGap Closure -Delta Ave $ 1,124,096 21030 Street Wa I nut Grove Ave Resurfacing (Phase 11) 688,500 21031 Street Valley Blvd Resurfacing Project (Phase 1& II) 3,092,300 24010 Street Sidewalk ADA Master Plan 55,000 24013 Street Mission Drive Pedestrian Hybrid Beacon System 388,050 28008 Street ADA Curb Ramps 60,000 43009 Street Walnut Grove Street Light Installation 381,906 43010 Street Citywide Arterial Street Improvements 4,987,000 49014 Street Walnut Grove Ave/1-10 Freeway Ramp Improvements 5,988,000 49015 Street Rosemead Adaptive Traffic Project 8,963,899 49016 Street Rosemead Traffic Signal Improvements 5,981,623 49017 Street Rosemead Blvd/1-10 Freewy Ramp Improvements 5,920,474 31020 Parks/Facil Public Safety Center Upgrades (Design only) 25,655 31023 Parks/Facil Garvey Park Main Office Renovation 200,000 39002 Parks/Facil Picnic Shelter Roof Replacement 75,000 39003 Parks/Facil Rosemead Park Restroom Renovation 330,601 39004 Parks/Facil Lighting Upgrade at Jess Gonzalez Sports Complex 100,000 39006 Parks/Facil Roof Repairs at Garvey Park Main Office & Gym 400,000 39007 Parks/Facil Resurfacing of the Garvey Park Tennis Courts 50,000 41022 Parks/Facil Dog Park at Garvey Park 501,607 41023 Parks/Facil Playground Equipment Repl (Garvey & Rosemead Parks) 300,000 49011 Other Storm Water Catch Basin Upgrade 200,000 Tota I s - Carryover Appropriations $39,813,710 SECTION 5. That the City Council hereby approves that transfer of budget in the amount of $455,000 from Proposition A Fund to Proposition C Fund. Proposition A (F215) Revenue Approp 215 Adopted Budget 1,353,000 1,422,500 Transfer Budget to Other Funds (455,000) Amended Budget 1,353,000 967,500 Proposition C (F220) Revenue Approp 220 Adopted Budget 1,104,500 1,356,500 Dial -a -Ride & Rosemead Explorer 455,000 Amended Budget 1,104,500 1,811,500 SECTION 6. The City Clerk shall certify to the passage and adoption of this resolution, and it shall thereupon be in full force and effect. PASSED, APPROVED, AND ADOPTED this 14th day of February 2023. APPROVED AS TO FORM: Rachel Richman, City Attorney Sean Dang, Mayor ATTEST: Ericka Hernandez, City Clerk CERTIFICATION 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. 2023-13 was duly adopted by the City Council of the City of Rosemead, California, at a regular meeting thereof held on the 14'x' day of February, 2023, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: Ericka Hernandez, City Clerk Attachment B Resolution No. 2023-14 RESOLUTION NO. 2023-14 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD, CALIFORNIA, AMENDING THE COMPREHENSIVE SALARY SCHEDULE TO MEET THE CALIFORNIA CODE OF REGULATIONS TITLE 2, SECTION 570.5 AND 571 TO REFLECT APPROVED RATES FOR ALL FULL-TIME EMPLOYEES OF THE CITY OF ROSEMEAD WHEREAS, the City Council has the authority to create, classify and design salary scales/ranges for all City of Rosemead employee positions; and WHEREAS, California Code of Regulation (CCR) Title 2, Section 570.5 and amendment to CCR Section 571 requires a consolidated Salary Schedule that is publicly available showing all City classifications and salary ranges; and WHEREAS, the City Council wishes to meet the requirements of these regulations by adopting a Salary Schedule, which sets forth the salary scales/ranges for all City of Rosemead employee classifications; and WHEREAS, the City Council wishes to amend the Citywide Salary Schedule for Fiscal Year 2022-23, previously adopted by City Council Resolution No. 2022-41 on June 14, 2022 which set forth the salary scales/ranges for all City of Rosemead full-time employee classifications; and WHEREAS, Exhibit A includes the Citywide Salary Schedule with the addition of the new full-time classifications of Accounting Specialist, Associate Engineer, and Public Works Inspector. NOW THEREFORE, BE IT RESOLVED that hereby adopts the Salary Schedule for all City of Rosemead employee classifications as set forth in the attached Exhibit A to reflect the new salary rates for Fiscal Year 2022-23 effective February 15`h, 2023. PASSED, APPROVED, AND ADOPTED this 14`x' day of February, 2023. Sean Dang, Mayor APPROVED AS TO FORM: ATTEST: Rachel Richman, City Attorney Ericka Hernandez, City Clerk CERTIFICATION 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. 2023-14 was duly adopted by the City Council of the City of Rosemead, California, at a regular meeting thereof held on the 14`h day of February, 2023, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: Ericka Hernandez, City Clerk Qm� N mmpp c r Y ry T ry p n d dry N Xm i W 2 c a � riOi n v 0 0 a O u U N U m O No 1 � N 0 Ea Z d w va � � u � w N M N N N O N } LL O ii 3