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CC – Item 5A – Fiscal Year 2023-24 Mid-Year Budget Review, Adoption of Resolution No. 2024-11 Amending The FY-2023-24 Budget And Related Actions, Adoption of Resolution No. 2024-12 Amending The City of Rosemead’s Consolidated Salary ScheduleROSEMEAD CITY COUNCIL STAFF REPORT TO: THE HONORABLE MAYOR AND CITY COUNCIL FROM: BEN KIM, CITY MANAGER DATE: MARCH 26, 2024 SUBJECT: FISCAL YEAR 2023-24 MID -YEAR BUDGET REVIEW, ADOPTION OF RESOLUTION NO. 2024-11 AMENDING THE FY 2023-24 BUDGET AND RELATED ACTIONS, ADOPTION OF RESOLUTION NO. 2024-12 AMENDING THE CITY OF ROSEMEAD'S CONSOLIDATED SALARY SCHEDULE On June 27, 2023, the City Council adopted the 2023-24 Operating and Capital Improvement Program Budgets. This report summarizes the City's General Fund overall financial position for the current fiscal year through December 2023 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 $29.7 million against revenue estimates of $28.8 million. As shown in the following chart (Table 1), FY 2023-24 operating revenue budget was estimated at $2.5 million greater than the prior year (FY 2022-23) budgeted estimate. Fiscal year 2023-24 operating expense appropriations are $2.0 million more than the prior year budget. Based on year-end estimates staff anticipates revenue will exceed original estimates by nearly $1.6 million while operating expenditures will fall $1.2 million below budgeted levels. The estimated year-end surplus amounts to $3.1 million which is an increase of $2 million over original budget. AGENDA ITEM 5.A City Council Meeting — FY 2023-24 Mid -Year Budget Review March 26, 2024 Page 2 of 12 Revenue 26,317,000 TABLE 1 33% 31,526,511 Transfer In 7,398,300 00 7,398,300 FY2022-23 Rec'd 11,421200 FY 2023-24 Rec'd SUMMARY FY2022-23 YFDActivity Thru FY2022-23 FY2023-24 YFDActivey Thru Year End Total Budget Through Dec DEC Actuals Total Budget Through Dec DEC Estimate Revenue 26,317,000 8,673,000 33% 31,526,511 Transfer In 7,398,300 00 7,398,300 Approp'EV 27,652,200 11,421200 41% 25,396,756 Transfer Out 8,500,000 Revenue by Category 8,500,000 Capitallmpr 1,447,800 0°/U 1,153,887 Net Rev (Exp) (3,884,700) (2,748,200) FY 2022-23 3,874,168 REVENUE 28,837,200 7,751,800 27% 30,406,000 - - 0% - 29,618,900 12,612,700 43% 28,126,000 274,915 - 00/0 274,900 (1,056,615) (4,860,900) 2,005,100 As adopted, the City's FY 2023-24 revenue budget reflects $28.8 million in anticipated operating revenue. Year-end estimates reflect $30.4 million in operating revenue, which is $1.6 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 staffs 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 2023 is only 27% of the estimated revenue for FY 2023-24 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 lower than the same reporting period (December) in FY 2023- 24 for most categories with actual receipts $0.9 million less than the same period in the prior year. TABLE2 Tax revenue, as budgeted, represents 79% of all General Fund operating revenue followed by 9% in the Licenses and Permits category. Based on year-end projections, significant increases in the FY 2022-23 FY 2023-24 YTD YTD Revenue by Category Activity FY 2023-24 Activity FY 2022-23 Through % Rec'd FY 2022-23 Total Through % Rec'd Year End Total Budget Dec Thru Dec Actuals Budget Dec Thm Dec Estinate Taxes 21,613,800 4,720,300 22%u 23,113,678 22,718,100 4,523,768 20% 23,092,800 Intergovernmental 195,800 166,300 85% 359,045 267,700 199,458 75% 365,100 Licenses And Permits 2243,000 2,816,800 126% 4,426,648 2,557,400 1,862204 73% 3,332,200 Fetes and Forfeitures 605,300 283,700 470/6 594,978 598,300 324,888 540% 636,200 Use of Money and Property 522,600 145,700 280/. 1224,949 1,122,600 233,533 21% 1,387,500 Charges for Svcs 755,200 483,000 64% 1,192209 1,186,300 540,117 46% 1214,900 Other Revenue 381,300 57 00 15% 615004 386,800 67,816 I8% 377,300 Total - Gent Fund Operating Rev 26,317,000 8,673,000 33% 31,526,511 28,837200 7,751,784 27% 30,406,000 Transfers In 7,398,300 0% 7,398,300 TOTAL - General Fund Sources 33,715,300 8,673,000 26% 38,924,811 28,837200 7,751,784 270/. 30,406,000 Tax revenue, as budgeted, represents 79% of all General Fund operating revenue followed by 9% in the Licenses and Permits category. Based on year-end projections, significant increases in the City Council Meeting — FY 2023-24 Mid -Year Budget Review March 26, 2024 Page 3 of 12 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 11 %. 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 $22.7 million, and (based on preliminary information) are projected to end the fiscal year at $23.1 million, an increase of nearly $382 thousand. License and Permits category are budgeted at $2.6 million, and (based on preliminary information) are projected to end the fiscal year at $3.3 million, an increase of nearly $775 thousand. TABLE 3 Property Taxes — 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 $3.9 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 and RPTTF are trending at 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. Property Tax In -lieu — The VLF is paid annually by the vehicle owner in lieu of property taxes and is based on the vehicle's sale price. The fee for vehicles brought into California from out of state is based on the value of the vehicle at the time of initial registration in California. Based on growth in assessed value, this revenue is remitted to the City in two equal payments in the third and fourth quarter of the year. The first payment was received in January and indicates the year-end receipt will be $8.2 million, $283 thousand over the budgeted estimate and $438 thousand more than the amount received in FY 2022-23. Sales Tax — Based on projections by the City's sales tax consultant, HdL Companies, the year-end estimate is $6.9 million which is an increase of $101 thousand over the budgeted estimate and $479 thousand less than the amount received in FY 2022-23. The dollar decrease when compared to last year actuals is related to the overall slowing in the economy and is also due to an adjustment by the California Department of Tax and Fee Administration relating to an allocation of sales tax receipts that was due to a different jurisdiction. FY 2022-23 FY 2023-24 Major Taxes YTD % YTD % FY 2022-23 Activity Recd FY 2023-24 Activity Rec'd Total Through Thru FY 2022-23 Total Though Thru Year End Tax Name Budget Dec Dec Actuals Budget Dec Dec Estimate Property Taxes 3,669,000 1,339,700 37% 3,904,484 3,758,000 1,347,440 36% 3,908,200 Property Tax In Lieu/VLF 7,680,700 - 0% 7,763,925 7,919,200 - 09/. 8,201,800 Saks and Use Tax 6,505,800 2,533,200 39% 7,369,300 6,789,300 2,307,328 34% 6,890,700 Transient Occupancy Tax 2,200,000 574,000 26% 2,312,408 2,300,000 614,637 27°/u 2,314,700 Property Taxes — 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 $3.9 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 and RPTTF are trending at 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. Property Tax In -lieu — The VLF is paid annually by the vehicle owner in lieu of property taxes and is based on the vehicle's sale price. The fee for vehicles brought into California from out of state is based on the value of the vehicle at the time of initial registration in California. Based on growth in assessed value, this revenue is remitted to the City in two equal payments in the third and fourth quarter of the year. The first payment was received in January and indicates the year-end receipt will be $8.2 million, $283 thousand over the budgeted estimate and $438 thousand more than the amount received in FY 2022-23. Sales Tax — Based on projections by the City's sales tax consultant, HdL Companies, the year-end estimate is $6.9 million which is an increase of $101 thousand over the budgeted estimate and $479 thousand less than the amount received in FY 2022-23. The dollar decrease when compared to last year actuals is related to the overall slowing in the economy and is also due to an adjustment by the California Department of Tax and Fee Administration relating to an allocation of sales tax receipts that was due to a different jurisdiction. City Council Meeting — FY 2023-24 Mid -Year Budget Review March 26, 2024 Page 4 of 12 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, $2.3 million in TOT revenues were received. It is anticipated that $2.3 million will also be collection in TOT revenues this fiscal year. 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 $1.7 million is based on the FY 2022-23 year-end actuals and current receipts. Business License Fees — Based on current receipts collected through December 31, 2023, staff is anticipating an increase of $8 thousand over prior year receipts, but under the budgeted amount of $107 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 $2.0 million. Based on current receipts of nearly $1.8 million, staff estimates revenue for Building Permit/Plan Checking could reach $2.75 million by year-end. The category as a whole, is estimated to complete the year $0.8 million over the budgeted estimate. Fines and Forfeitures are estimated to complete the year at $636 thousand, more less than the budgeted $598 thousand based on current actuals. Use of Money and Property which consists of Interest Earnings, Rents and Royalties, and Facilities Rentals is estimated at $1.38 million, up from the budgeted $1.12 million based largely on an increase to actual and anticipated interest earnings from investments. Current interest earnings receipts are nearly $88 thousand greater than the same period one year ago. As of January 31", 2024 interest earnings amounted to $417 thousand, and anticipated interest earnings for the fiscal year for the General Fund amounts to $1 million. The projected interest earnings of $1 million represent a $153 thousand increase over earnings of $846,785 for fiscal year 2022-23 and a $996 thousand increase over interest earnings of $3,700 for fiscal year 2021-22. Charges for Services is the category that remains most impacted by the pandemic but has seen a strong recovery. Parks and Recreation revenue is budgeted at $667 thousand and at mid -year point has already received 392 thousand or 59% of budget. Staff estimates that by year-end, revenue will reach nearly $940 thousand. Year-end revenue estimates are more 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 estimated to end the year at $1.2 million. City Council Meeting — FY 2023-24 Mid -Year Budget Review March 26, 2024 Page 5 of 12 Other Revenue is a catch-all category for miscellaneous type revenue with a budget estimate of $387 thousand. The largest sources within this category is the crossing guard reimbursement budgeted at $141 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 HDC and SA each year. Overall, the category is estimated to complete the right around the budgeted estimate. APPROPRIATIONS / EXPENDITURES At six months into the Fiscal Year (December 31, 2023), 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 31' by category are within an acceptable range of year-to-date expenditures in relation to the total appropriation for the year. TABLE 4 • Salary and Benefits — These costs are 45% expended at 50% of the year due to vacancies and budgeted step increases due later in the fiscal year. It is anticipated that expenditure in this category will remain within the budgeted amount by year end. • Operations — Expenditures in the `Operations' category are also below the 49% level and lower, percentage wise when compared actuals amounts, during the same the same time period last year. • Contract Police Services — The year-to-date total for Contract Police Services represents 5 months of billings at December 30, 2023, and on target to meet the budgeted amount. • Utilities / Insurance / and Allocation — The actuals for this category in the current fiscal year is 25% when compared to budget, representing a decrease from the 30% in the preceding year. Comparatively flat with actuals from the same period in the prior year. However, staff has already observed and is anticipating increases in insurance premiums and utility costs (gas, water, etc.). • Canital Assets / Capital Improvement Program — The current expenditures in this account largely relate to upgrades in City Hall access control systems. FY2022-23 FY2023-24 YID % YTD FYpenses by Category Activity Recd Activity FY2022-23 Through Thor FY2022-23 FY2023-24 Through %Rec'd Year Fnd Total Budget Dec Dec Actuals Total Budget Dec Thru Dec Fsturate Salary and Benefits 9,212,500 4,005,763 7 43% 8,120,116 9,729,600 4,411,332 45% 9,136,600 Operations 6,540,000 3,664,060 r 560/- 6,291,806 6,773,500 3,307,149 49% 6,710,300 Contract Police Svcs 9,425,800 3,701,761 39% 9,022,196 10,507,800 4,260,297 41% 10,439,400 Util/ Ins / Allocations/ Other 2,143,400 638,520 r 30"/e 1,754,901 2,482,900 622,569 25% 1,830,000 Capital Assets/Projects 1,778,300 175,122t op 1,361,625 406,015 154,922 38% 274,900 29,100,000 12,185,226 42% 26,550,644 29,893,815 12,756,269 r 430/- 28,391,200 • Salary and Benefits — These costs are 45% expended at 50% of the year due to vacancies and budgeted step increases due later in the fiscal year. It is anticipated that expenditure in this category will remain within the budgeted amount by year end. • Operations — Expenditures in the `Operations' category are also below the 49% level and lower, percentage wise when compared actuals amounts, during the same the same time period last year. • Contract Police Services — The year-to-date total for Contract Police Services represents 5 months of billings at December 30, 2023, and on target to meet the budgeted amount. • Utilities / Insurance / and Allocation — The actuals for this category in the current fiscal year is 25% when compared to budget, representing a decrease from the 30% in the preceding year. Comparatively flat with actuals from the same period in the prior year. However, staff has already observed and is anticipating increases in insurance premiums and utility costs (gas, water, etc.). • Canital Assets / Capital Improvement Program — The current expenditures in this account largely relate to upgrades in City Hall access control systems. City Council Meeting — FY 2023-24 Mid -Year Budget Review March 26, 2024 Page 6 of 12 As shown in Table 5, the majority of departments also spent less than 50% for the 6 month period. It is expected that the majority of departments will operate at or below their allocated budgets by the end of the year, and that the final expenditures for the general fund will be significantly lower than the budgeted amount. Table 5 FY 2022-23 FY 2023-24 FY 2022-23 YTD Activity FY 2023-24 YTD Activity Budget&Expenditures by Total Through %Ezp'd FY 2022-23 Total Through %Exp'd Year End Department Bud et Dec Thru DEC Actuals Bud et Dec Thru Dec Estimate City Council/Commissions 442,900 194,700 44% 427,241 464,500 195,401 42% 427,900 City Attorney 349,600 53,000 15% 242,645 349,600 128,848 r 37% 318,500 City Clerk 1,133,200 993,800 88% 1,128,252 1,299,700 891,203 69% 1,105,600 Administration 11594,900 638,700 40% 1,242,380 1,458,700 684,367 47% 1,358,400 Finance 962,600 420,400 44% 865,419 1,002,200 501,502 50% 1,002,200 General Services 1,423,500 461,800 32% 960,618 1,145,200 582,996 51% 1,145,200 Public Safety 11,495,300 4,511,500 39% 10,859,999 12,897,900 5,191,272 40% 12,650,000 Public Works 4,407,100 1,663,600 38% 3,954,745 4,566,600 1,713,087 38% 4,004,300 Parks & Recreation 3,952,600 1,526,600 39% 3,484,761 4,030,500 1,868,303 46% 3,826,500 Community Development 1,890,500 808,700 43% 2,230,696 2,404,000 855,714 36% 2,277,700 TOTAL - GF Ope rating 27,652,200 11,272,800 41% 25,396,756 29,618,900 11,272,800 38% 28,116,300 Capital Outlay 1,447,800 148,400 10% 1,153,887 274,915 - 0% 274,900 TOTAL - General Fund 29,100,000 11,421,200 39% 26,550,643 27,712,200 11,421,200 41% 28,391,200 • City Attorney — Expenditures for the City Attorney are currently at 37% compared to 15% during the same time period last fiscal year, due largely to the timing of payments. By the end of the fiscal year, departmental expenditures are anticipated to remain within the budgeted amount. • CityClerk —The City Clerk's Office is currently 69% expended as of December 31st, owing to the payment of insurance premiums mentioned earlier. As shown in the Chart, the Department was also 88% expended at this point in the previous fiscal year, for the same reasons. This year's budget includes $120,000 in election -related costs. With the exception of a few expenses, the City was able to save the majority of the costs because the incumbent Council members were unopposed, thus not requiring most of the election cost normally paid to the County. • Public Works — Department expenditures for Public Works are currently at 38% and last year was 38% for the same time period last fiscal year. It is anticipated that the department will complete the fiscal year with a budget savings. • Parks and Recreation — The department is recovering well from the impacts of the pandemic. As shown, department expenditures are at 46% at December 31 which is an increase when compared to 39% prior year. It is anticipated that the department will complete the year well within the budgeted amount. City Council Meeting — FY 2023-24 Mid -Year Budget Review March 26, 2024 Page 7 of 12 Community Development — Expenses for Community Development reflect 36% expended at the mid -point, however, this is not indicative of how the year is anticipated to finish. It is anticipated that the department will complete the year well within the budgeted amount. 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. 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". RECOMMENDED STAFFING CHANGES Included in the FY 2023-24 Operating Budget is funding for 72 full-time positions, four 3/4 -time positions, 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. The following positions are being requested at this time due to the beneficial impacts of expedited hiring. Public Safety — This current fiscal year, the Public Safety division's Administrative Analyst was transferred to the City Manager's Office to better support purchasing activities for all City departments. Since that time, the Public Safety division at the Public Safety Center has been without that position and has filled the position with multiple part-time employees. Rosemead's Public Safety Department offers a wide range of safety and security services and is responsible for overseeing animal control services, managing dog licenses, handling administrative tasks, and in support of city events. This position plays a crucial role in maintaining public safety, enforcing animal -related regulations, and ensuring the efficient functioning of administrative processes. The Public Safety Department is proposing the addition of one (1) full-time Administrative Assistant position which would be a lower level position in terms of salaries and benefits cost as compared to the division's previous budgeted Administrative Analyst position. Reasons for Filling the Position: 1. Public Safety: Animal control services are essential for ensuring the safety and well- being of both residents and animals within our community. A dedicated staff member is required to dispatch calls for services of various animal -related incidents promptly, including stray animals, aggressive behavior, animal bite report, and wildlife encounters, to mitigate potential risks and ensure public safety. City Council Meeting — FY 2023-24 Mid -Year Budget Review March 26, 2024 Page 8 of 12 2. Regulatory Compliance: Managing dog licenses is a fundamental aspect of animal control and in compliance with Rosemead Municipal Code for Animal License. This includes processing license applications, maintaining accurate records, preparing, and issuing letters to dog owners for non-compliance. Failure to fill this position could result in a lapse in regulatory enforcement, leading to potential safety hazards and for the city. 3. Administrative Support: In addition to animal control responsibilities, this position provides vital administrative support to the Public Safety Department. Tasks may include data entry, scheduling, filing reports, and coordinating with other city departments. Without adequate staffing, there is a risk of increased workload for existing employees, potentially compromising the efficiency and effectiveness of departmental operations. 4. Community Engagement: The individual in this role serves as a point of contact for community members seeking assistance with concerns and/or inquires related to public safety and animal -related issues. Building positive relationships with residents and addressing their concerns in a timely and professional manner is essential for fostering trust and cooperation within the community. Filling the vacant position within the Public Safety Department for animal control services, dog licenses, and administrative work is imperative for maintaining public safety, regulatory compliance, and operational efficiency. This position will provide additional coverage on Fridays and Saturdays when the Public Safety Center is open for business. The responsibilities associated with this position are integral to the well-being of our community and require dedicated staffing to ensure effective service delivery. The salary for the Administrative Assistant position ranges from $50,400 to $65,772 annually. The anticipated fully burdened salary and benefits cost for the Administrative Assistant position is anticipated to be approximately $90,000 annually, excluding any anticipated merit increases or COLAs. AMENDING THE ADOPTED SALARY SCHEDULE The City Council received a compensation adjustment via Ordinance 1020, an ordinance of the City Council of the City of Rosemead, California, amending municipal code section 2.04.010 related to Council Salaries as authorized by Senate Bill 329. Ordinance 1020 increased Council compensation that had not had an increase since 2006, from $1,118.63 monthly to $1,600 monthly. The compensation increase went into effect as of March 5`^, 2024. 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 Council salaries above and another concurrent report on tonight's Agenda. City Council Meeting — FY 2023-24 Mid -Year Budget Review March 26, 2024 Page 9 of 12 RECOMMENDED BUDGET AMENDMENTS Staff is recommending the following amendments to the FY 2023-24 Operating and CIP Budgets: American Rescue Plan Act Funds American Rescue Plan Act funds need to be obligated by the end of calendar year 2024. Obligation means an order placed for property and services and entering into contracts, subawards, and similar transactions that require payment. The need to obligate ARPA funding by the end of December 2024 prompted the Public Works Department to reevaluate the feasibility of implementing all previously approved ARPA-funded CIP projects. It was determined that the department could better achieve ARPA funding commitments by focusing on and reallocating funds to high prioritylbudget projects. Staff has reviewed the list of ARPA projects and are recommending changes in order to better meet the obligation deadline of December 31, 2024. Here are the recommended changes. Fund/Project Description Budget Current Fund Proposed Fund Rosemead Park Walking Trail $ 500,000 228ARPA 245 Street Light ZapopanPark WalkingTrail $ 420,000 228ARPA 245 Street Light Garvey Park Splash Zone Improvements $ 200,000 228ARPA 245 Street Light Rosemead Park Aquatics Center Bathroom Renovation $ 400,000 228ARPA no change Public Safety Center Upgrades $ 300,000 228ARPA no change Council Chambers Updates $ 50,000 228ARPA 510 Publ ic Facilities Record Database Management Plan GIS $ 300,000 228ARPA 505 Technology Permitting System (CDD & PW) $ 500,000 228ARPA no change Wireless Broadband Parks& City Facilities $ 250,000 228ARPA 510 Public Facilities City Hall Elevator and ADA Improvements $ 134,200 233SLFRF 510 Public Facilities City Hall Interior Renovations $ 450,000 233SLFRF 228ARPA Public Safety Center Upgrades $1,700,000 233SLFRF 228ARPA Additionally, the costs associated with 4.25 equivalent full-time positions must be transferred to the general fund by the end of 2024, as Treasury regulations do not classify the hiring and filling of these positions as an obligation. The positions of Human Resources Analyst, Administrative Assistant, City Engineer, Assistant Planner, and a quarter -time portion of an Accountant are the 4.25 positions. An obligation is generated for those positions solely upon the completion of the work. Moreover, the mere presence of an ARPA fund budget designated for those positions does not impose any obligation. This adjustment will be made in the fiscal year 2024-25 Budget. Also, staff is recommending changes to existing project budgets in order to meet rising cost due to inflation. Additionally, increased scope of work has been discussed but has not yet been finalized. The projects requiring additional budget are the following: City Council Meeting — FY 2023-24 Mid -Year Budget Review March 26, 2024 Page 10 of 12 Fund/Project Description New Fund Current Budget Proposed Budget Public Safety Center Upgrades 228ARPA 2,000,000 2,800,000 City Hall Interior Renovations 228ARPA 450,000 800,000 Furthermore, the staff suggests allocating $1,701,682 in ARPA funds towards the acquisition of the Hart and Marshall Street Properties, in addition to the aforementioned suggested modifications. ARPA may be utilized for the purchase of these properties in accordance with Title 1 Project language. More than 40 capital improvement projects are overseen by City staff. Staff suggests hiring a consultant to oversee the ARPA projects so that the City can fulfill its obligations by the deadline specified in the Treasury's Final Rule. The recommendation from the City staff is to appropriate $770,000 in ARPA (Fund 228) funds to pay a consultant to oversee the ARPA projects. Staff is recommending the transfer of State and Local Fiscal Recovery Funds in the amount of up to $2,284,200 to the general fund in order to support those departments that were negatively impacted by the pandemic, such as Public Safety, Parks and Recreation, Community Development, and Public Works. This adjustment will be proposed during the fiscal year 2024-25 Budget adoption process. New Avenue Street Resurfacing Project The City Council granted its approval to the project on May 9, 2023. The project details consist of the City of Monterey Park rehabilitating New Avenue alongside the border of City of Rosemead, between East Newmark Avenue and Garvey Avenue. New Avenue is a shared roadway at the centerline between the two cities. City of Rosemead staff coordinated with Monterey Park staff, and proposed to include City of Rosemead part of the roadway as part of the proposed improvements, for consistency. A reimbursement agreement with City of Monterey Park was approved by the City Council on May 9, 2023. The project consists of resurfacing asphalt concrete roadways, curb & gutter, driveway approach repairs, manhole adjustments and striping. The contract award staff report omitted to incorporate a resolution to modify the Capital Improvement Program budget. A budget amendment in the amount of $153,000, to be funded by Measure M funds, is being requested by the staff. Residential Street Resurfacing Project To better meet CDBG timeliness requirements and avoid a delinquency notice, staff recommends that the residential street resurfacing project budget be reduced by $175,000 in SB 1 (Fund 202) and increased by $175,000 in CDBG (Fund 260). This CDBG funding amount comes from the Owner -Occupied Rehabilitation SB 1(Fund 202) Original Budget Revised Program, where applicants either Residential Street Resurfacing 1,856,000 1,681,000 dropped out, did not qualify, or the project was delayed. CDBG Res (Fund Original Budget Revised Residentiall Street Resurfacing 555,467 730,467 City Council Meeting — FY 2023-24 Mid -Year Budget Review March 26, 2024 Page 11 of 12 Street Sweeping Services The Council authorized a new contract for street sweeping services in June 2023 with Sweeping Corporation of America. Total compensation for fiscal year 2023-24 amounts to $484,460. The street sweeping budget for fiscal year 2023-24 only amounted to $370,000 ($245,000 Gas Tax and $125,000 Safe Clean Water Program). An additional $115,000 in Gas Tax funding is required to cover the expenditure associated with SB 1(Fund 202) Original Budget Revised the contract. Street Sweeping Budget 245,000 360,000 Measure W — Safe Clean Water The allocation of funds for the account responsible for financing catch basin cleaning services, a stormwater engineer contract, and the City's MS4 permit was inadvertently overlooked during the budget preparation process for fiscal year 2023-24. To cover the expenditures associated with this fund, a budget amendment in the amount of $200,000 in Measure W funds is necessary. The expenditure of $200,000 aligns with Measure W (Fund 231) Original Budget Revised the budgetary allocation that was Other Professional/Technical 200,000 authorized for the 2022-23 fiscal year. Senate Bill 1383 Special Revenue Fund A Special Revenue Fund was created this fiscal year in order to accommodate California Senate Bill (SB) 1383. Legislation in California known as SB 1383 sets reduction targets for landfill disposal of edible food and other forms of organic waste. The revenue associated with this fund is derived from Republic Services, the waste hauler of the City. An estimated $265 thousand in revenue is anticipated for the fiscal year. Fund expenditures are associated with an Administrative Analyst responsible for overseeing adherence to SB 1383. Further expenditures consist of consulting fees for the Edible Food Recovery Program and the acquisition of recovered organics. In June 2023, the budget for these expenditures was authorized by the Council; however, it remained in the General Fund. Regarding SB 1383 (Fund 234) Original Budget Revised these expenditures, staff recommends that Revenue 265,000 the Council approve the following budget Expense 179,100 transfer from the General Fund to the new General Fund (Fund 101) Original Budget Revised SB 1383 Fund. Division 3025 Expense Budget 196,100 17,000 Increased Revenue Estimates Staff is requesting the following amendments to the fiscal year 2023-24 Budget for anticipating increases in the following revenue categories: General Fund (Fund 101) Original Budget Revised Increase Property Tax in Lieu of VLF 7,919,200 8,202,000 282,800 Building permits 2,000,000 2,750,000 750,000 Use of money and property 750,000 11000,000 250,000 The overall increase in estimated General Fund revenue adjustments amounts to $1,282,800. City Council Meeting — FY 2023-24 Mid -Year Budget Review March 26, 2024 Page 12 of 12 FISCAL IMPACT The proposed additional Administrative Assistant for the Public Safety department is anticipated to cost $15,000 for the current fiscal year depending on the timing of filling the position. The annual cost of the Administrative Assistant position is anticipated to be approximately $90,000, excluding any merit increases or COLAs. For the ARPA Fund (Fund 228), the overall increase in appropriations is $4,051,682, which includes all of the fund's recommended amendments as described in this report. The adjustments to SLFRF-Revenue Loss (Fund 233) do not increase the funds' overall appropriation. There are net appropriation increases for Measure M ($153,000) and Measure W ($200,000). Appropriations relating to SB 1383 do not increase the overall appropriations for the fiscal year 2023-24 Budget. Adjustments to General Fund operating revenues amount to $1,282,800. In total, expense appropriations of the proposed adjustments to fiscal year 2023-24 Budget amounts to $4,404,682. STAFF RECOMMENDATIONS It is recommended that the City Council take the following actions: 1. Receive and file the Mid -Year Budget Review Report. 2. Approve Resolution No. 2024-11 approving budget amendments to the FY 2023-24 Operating budget, amending the Capital Improvement Program budget, and approve Resolution No. 2024-12 amending the City's authorized staffing position list, and amending the listing of salary and job classifications for full-time positions. PUBLIC NOTICE PROCESS — This item has been noticed through the regular agenda notification process. Prepared by: Bryan Chua Finance Director Attachments: A — Resolution No. 2024-11— Amending the FY 2023-24 Budget and Authorized Staffing B — Resolution No. 2024-12 — Adopting the Consolidated Salary Schedule Attachment A Resolution No. 2024-11 RESOLUTION NO. 2024-11 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD, CALIFORNIA, AMENDING THE FY 2023- 24 OPERATING AND CAPITAL IMPROVEMENT PROGRAM BUDGETS AND UPDATING THE AUTHORIZED STAFFING LIST 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 2023-24 Operating Budget and CIP budgets on June 27, 2023; and WHEREAS, the revised appropriation constitutes an update to the Fiscal Year 2023-24 budget approved pursuant to Resolution No. 2023-32 and Resolution No 2023-33; and 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 2023-24 Authorized Staffing List effective March 26, 2024 by adding one (1) full-time equivalent Administrative Assistant (monthly salary range of $4,200 — $5,481). SECTION 2. That the City Council hereby approves the following budget adjustments to various capital projects within ARPA (Fund 228). ARPA(Fund 228) Original Budget Revised Operating Budget 402,500 402,500 Rosemead Park Walking Trail 500,000 - Zapopan Park Walking Trail 420,000 - Garvey Park Splash Zone Improvements 200,000 - RosemeadParkAquaticsCenterBathroomRenovation 400,000 400,000 Public5afety Center Upgrades 300,000 2,800,000 Council Chambers Updates 50,000 - Record Database Management Plan GIs 300,000 - Permitting System (CDD &PW) 500,000 500,000 Wireless Broadband Parks & City Facilities 250,000 - City Hall Interior Renovations - 800,000 Hart and Marshall Street Properties - 1,701,682 Consultant - CIP Project Manager 770,000 Total Operating and CIP Budget 3,322,500 7,374,182 SECTION 3. That the City Council hereby approves the following budget adjustments to include various capital projects within Street Light District (Fund 245). Street Light District (Fund 24S) Original Budget Revised Total Operatingand CIP Expense Budget 3,384,951 3,384,951 Rosemead Park Walking Trail - 500,000 Zapopan Park Walking Trail - 420,000 Garvey Park Splash Zone Improvements - 200,000 Total Operating and CIP Budget 3,384,951 4,504,951 SECTION 4. That the City Council hereby approves the following budget adjustments to include various capital projects within Public Facilities (Fund 510). Public Facilities (Fund 510) Original Budget Revised Total CIP Expense Budget 1,820,333 1,820,333 Council Chambers Updates 50,000 Wireless Broadband Parks & City Facilities 250,000 City Hall Elevator and ADA Improvements 134,200 Total CIP Budget 1,820,333 2,254,533 SECTION 5. That the City Council hereby approves the following budget adjustment include the Record Database Management Plan GIS within Technology (Fund 505). Technology (Fund 505) Original Budget Revised Total Expense Budget 50,000 50,000 Record Database Manaeement Plan GIS 300.000 Total Budget 50,000 350,000 SECTION 6. That the City Council hereby approves the following budget adjustment to include the New Avenue Street Resurfacing Project within Measure M (Fund 226). Measure M (Fund 226) Original Budget Revised Total Expense Budget 3,125,500 3,125,500 New Avenue Street Resurfacing Project 153,000 Total Budget 3,125,500 3,278,500 SECTION 7. That the City Council hereby approves the following budget adjustment to the Residential Street Resurfacing Project within CDBG (Fund 260). CDBG (Fund 260) Original Budget Revised Residential Street Resurfacing 555,467 730,467 SECTION 8. That the City Council hereby approves the following budget adjustment to the street sweeping budget within SB 1 (Fund 202). SB 1(Fund 202) Original Budget Revised Street Sweeping Budget 245,000 360,000 SECTION 9. That the City Council hereby approves the following budget adjustment to the Other/Professional/Technical budget within Measure W (Fund 231). Measure W (Fund 231) Original Budget Revised Other Professional/Technical - 200,000 SECTION 10. That the City Council hereby approves the following budget adjustment various revenue categories within General Fund (Fund 101). General Fund (Fund 101) Original Budget Revised Property Tax in Lieu of VLF 7,919,200 8,202,000 Building permits 2,000,000 2,750,000 Interest Earnings 750,000 1,000,000 SECTION 11. 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 26th day of March 2024. Steven Ly, Mayor Q•]TAa013 IK6303 '7� . iM1111 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. 2024-11 was duly adopted by the City Council of the City of Rosemead, California, at a regular meeting thereof held on the 26`h day of March, 2024, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: Ericka Hernandez, City Clerk Attachment B Resolution No. 2024-12 RESOLUTION NO. 2024-12 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 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 approved Ordinance 1020 on September 26, 2023 increase Council compensation that had not had an increase since 2006, from $1,118.63 monthly to $1,600 monthly; and WHEREAS, the City Council wishes to amend the Citywide Salary Schedule for Fiscal Year 2023-24, previously adopted by City Council Resolution No. 2023-55 on September 12, 2023 which set forth the salary scales/ranges for all City of Rosemead employee classifications; and WHEREAS, Exhibit A includes the Citywide Salary Schedule with the amendment to City Council salary. NOW THEREFORE, BE IT RESOLVED that hereby adopt 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 2023-24 effective March 5h, 2024. PASSED, APPROVED, AND ADOPTED this 26"' day of March, 2024. 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