CC - Item 3I - Interim Budget AmendmentsROSEMEAD CITY COUNCIL
AW
STAFF REPORT
TO: THE HONORABLE MAYOR AND CITY COUNCIL
FROM: JEFF ALLRED, CITY MANAGER
DATE: JANUARY 22, 2013
SUBJECT: INTERIM BUDGET AMENDMENTS
SUMMARY
During the fiscal year unforeseen financial needs and opportunities may arise which
require Council approval of additional appropriations. Without them various auditors
could make an adverse finding in the annual audit reports. Additionally, our Consolidated
Annual Financial Report provides a comparison of budget verses actual, and providing
regular updates to the budget to demonstrate that careful oversight of the budget has
been undertaken is important for transparency and sound financial practice.
At this time there are several budget clean -up items that need to be made to adjust for
revenues and expenditures that were unanticipated in the original budget. The net of all
adjustments are positive for the General Fund reflecting more anticipated revenue than
expenditures. A detailed explanation of each adjustment is provided in the Analysis
section of this report.
Staff Recommendation
Staff recommends that the City Council approve Resolution No. 2013 -05 "A Resolution
of the City of Rosemead Approving Various Appropriations."
ANALYSIS
Appropriations provide the authority for a government to spend money. In their absence
the City's auditors may make an adverse finding which could contribute to a qualified audit
opinion, a circumstance that is certainly unwanted.
• As the City Council is aware, the CDBG funding for the City was significantly
reduced in FY 2012 -13. In the original FY 2012 -13 budget, certain costs related
to Code Enforcement for their case tracking CRM software was included in the
CDBG budget; however, the CDBG funds are not available and these costs,
totaling $9,200, need to come from the General Fund. Additional Code
Enforcement and Public Safety related costs for supplies and uniforms have also
been incurred during to fiscal year which require a budget increase of $5,600. A
ITEM NUMBER
City Council Meeting
January 22, 2013
Page 2 of 3
reduction of $20,0000 to the CDBG budget will also be made to reflect the
reduction in funding. Administrative Citations have also proven to be an effective
tool for Public Safety, and both revenue collected and processing costs will exceed
current budgets. While actual revenue collected will more than cover the costs
incurred, an offsetting increase of $20,000 for both line items has been
recommended.
• On November 13, 2012 the City Council approved an increase for the field lighting
project at Rosemead Park in the amount of $140,400 from the Lighting Fund.
These funds will be added to budget to account for the expanded and improved
project.
• Emergency Preparedness is a focus for 2013 and SCE has contributed $2,500 to
the City for Emergency Preparedness training in conjunction with SCE staff. A
budget adjustment is necessary to increase the existing expenditure authority for
Emergency Preparedness by this amount.
• As a result of a recent lawsuit that was filed by 47 cities in Los Angeles County, a
large reduction in property tax administration fees previously charged by the
County to each cities has been realized. For FY 2012 -13 the City of Rosemead's
administration fees has been reduced by $85,000. An increase to the revenue
budget to reflect this increase will be made.
• Despite the State's elimination of VLF funding in FY 2011 -12, cities in California
are entitled to a portion of any excess revenue collected at the end of each fiscal
year if an surplus exists. The City did not include any anticipated revenue from
VLF in FY 2012 -13 due to the belief that the State would keep all the funds;
however, the City did receive $29,000 in VLF revenue from the State. A budget
adjustment will be made to reflect this unanticipated revenue.
• The City has incurred an increase in legal costs of approximately $125,000 due to
a lawsuit filed against the City from Ms. Tammy Gong. While the City has been
successful in having this case dismissed by the Judge, there was significant staff
and attorney time spent to defeat this lawsuit.
During the development of the FY 2012 -13 Budget, it was unclear if the State's
Department of Finance was going to honor the Operating and Ground Lease
contracts between the Rosemead Housing Development Corporation and the City
as part of the dissolution of redevelopment. The City has been informed that these
contracts will be honored as enforceable obligations and the City will be able to
collect the Ground Lease revenue from the Rosemead Housing Development
Corporation. This will result in an increase of $183,400 to the General Fund.
City Council Meeting
January 22, 2013
Page 3 of 3
PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process.
Submitted by:
Matthety E. Hawkesworth
Assistant City Manager /Finance Director
Attachment: Resolution No. 2013 -05 "A Resolution of the City of Rosemead Approving Various
Appropriations"
RESOLUTION NO. 2013 -05
A RESOLUTION OF THE CITY OF ROSEMEAD APPROVING VARIOUS
APPROPRIATIONS
WHEREAS, appropriations are the legal authority for a City to spend its funds; and
WHEREAS, from time to time it is necessary to amend the budget with additional
appropriations; and
WHEREAS, purchases charged to the line items requiring additional
appropriations have received prior City Council approval.
NOW THEREFORE, $162,300 is appropriated in the General Fund for
Expenditures and $297,400 for Revenues as defined below:
Expenditures
$9,200
$2,000
$20,000
$3,000
$600
$125,000
101- 2015 -5605
101 - 2015 -5655
101- 2015 -5299
101 - 2005 -5605
101- 2005 -5655
101 -1120 -5205
Code Enforcement Supplies
Code Enforcement Uniforms
Administrative Citation Processing
Public Safety General Supplies
Public Safety Uniforms
Legal Fees
Revenue
$85,000 101- 0000 -4005
$29,000 101- 0000 -4220
$183,400 101- 0000 -4710
Property Tax
VLF
Rents
The Lighting Fund $140,400 (245- 0000 -5960) for Lighting Project at Rosemead Park.
The additional appropriation is made a part of the approved FY 2012 -13 Budget as though
it were a part of the initial approved budget fully set forth and the City Manager is
authorized and empowered to expend such sum for the purpose of such account, but with
no expenditure by any office or department for any item within an account shall exceed
the amount budgeted therefore without prior written approval of the City Manager.
PASSED, APPROVED and ADOPTED this 22 day of January 2013.
Sandra Armenta, Mayor
ATTEST:
Gloria Molleda, City Clerk