Budget adjustments are presented to the City Council periodically for review. These adjustments represent the appropriation of items previously approved by the City Council during the fiscal year, or staff recommended adjustments for City Council consideration. The recommended adjustments to the City Operating Budget are listed in Exhibit A - City. These adjustments are separated by funding source and the accounts are identified as either revenue or expenditure accounts.
During FY 2016-17, the City was fortunate to receive proceeds from the sale of two properties (340 N. Orange Ave. - former Job Center and the corner lot at 112 N. Braken Ave.) owned by the Former Redevelopment Agency, as well as the pre-payment of the lease from the Brea Gateway Center Owners. The proceeds to the City totaled $1,337,978. This revenue is available to offset additional expenditures.
At the February 7, 2017 meeting, the City Council approved a professional services agreement with PlaceWorks to prepare the Central City Core Planning Study. The funding for this study is from the General Plan Maintenance Fund (120). Since general expenses are not recorded in this fund, $218,000 is being transferred to the General Fund (110) and will be expensed in the Community Development Department's Planning Division.
An increase in the Police Services Budget is being requested for overall personnel related expenses. This includes overtime costs, which exceeded the budget by $398,250, which were primarily due to large investigations and shift coverage. During Fiscal Year 2016-17, there were four cases that required a significant amount of staffing. Two of these cases were homicide investigations, as well as a cold case homicide investigation, and a large scale investigation of criminal threats. Coverage includes leave due to injuries, illnesses, and holidays as well as scheduled vacations. Overtime is also generated due to vacancies and training. Department-wide, there were a few vacancies for a number of months and when these positions were filled, training of personnel was required. Furthermore, this adjustment includes mandatory holiday and vacation payouts and other special pays related to employee benefits, terminations and retirements, as well as disability payments. These payouts fluctuate from year to year and are often difficult to predict. Mandatory payoffs and disability pay exceeded the budget by $454,490 and $187,600 respectively. The Police Department had some budget savings (approximately $540,340) in other accounts such as full-time and part-time salaries and benefits (due to vacancies) to help offset these expenses. Therefore, the budget adjustment requested is $500,000.
The Fire Department continues to respond to mutual aid throughout California. Fortunately, Fire Administration has been diligent in seeking reimbursement from both the Federal ($51,249) and State ($83,185) Governments for costs incurred. Responses include fires in the Sierra, Sequoia, and Cleveland National Forests. Fire responses include: the Sage Fire in Santa Clarita, the Sacata Fire, the Soberanes Fire in San Benito - Monterey, the Cedar Fire, and the Holy Fire. These strike teams responses resulted in the Fire Department's Overtime Budget to incur $134,434 in costs. This cost is fully offset by reimbursements. In fact, the Fire Department is able to recuperate overhead charges which are included in these reimbursements.
Also included in these budget adjustments are overhead costs (municipal contributions) that were not included in the FY 2016-17 Budget for the Urban Runoff Fund (410) for $103,239 and the Sewer Utility Fund (430) for $173,363. These figures represent each enterprise's contribution for overhead costs incurred by the General Fund (110).
Two budget increases to the Sanitation & Street Sweeping Fund (440) are being requested. The City collected approximately $80,800 more in Franchise Fees than anticipated. In addition, the FY 2016-17 Adopted Budget included an estimated contractual increase in disposal and refuse collection costs; however, the amount was underestimated by $136,500 due to new customers, as well as higher contract rates. Sanitation & Street Sweeping Fund (440) revenues are sufficient to cover the expense.
Lastly, included in these budget adjustments is the elimination of two transfers from the Traffic Impact Fees Fund (540) to the Capital Improvement Program Fund (510). Expenditures for the Lambert Road Synchronization Project were incorrectly budgeted ($300,208) and were spent in FY 2015-16. Also, revenue for the Brea Blvd. Synchronization Project was provided through an Orange County Transit Authority (OCTA) grant ($170,400); thus, eliminating funding from the Traffic Impact Fees Fund (540). |
The City Operating Budget adjustments for the General Fund (110) in Exhibit A resulted in an increase in revenues and transfers-in of $1,564,785 and an increase in expenditures of $890,910, for a net General Fund increase in revenues and transfers-in of $673,875. As mentioned previously, this increase is due to one-time revenue received from the sale of Former Redevelopment Agency Assets. Overall, the City Operating Budget adjustments for all funds resulted in an increase in revenues and transfers-in of $1,692,637 and an increase in expenditures and transfers-out of $1,045,184 for a net increase in revenues and transfers-in of $647,453.
The Capital Improvement Program Budget adjustments in Exhibit A - CIP consists of a decrease in expenditures of $473,487 with a corresponding net decrease in revenues and transfers-in. The adjustments to revenue and transfers-in are as follows:
| General Fund (110) |
$25,525 |
| Gas Tax Fund (220) |
$35,173 |
| Traffic Impact Fees Fund (540) |
($439,075) |
| Other County Grants |
($61,600) |
| Federal Grants |
($33,510) |
| Total |
($473,487) |
|