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Agenda Item 30.
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| City Council Meeting |
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| Subject: |
| Budget Adjustments to the City Operating and Capital Improvement Program Budgets for Fiscal Year 2016-17 |
| RECOMMENDATION |
| Adopt the attached resolutions appropriating funds to adjust the Fiscal Year 2016-17 City Operating and Capital Improvement Program Budgets. |
| BACKGROUND/DISCUSSION |
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 City - Exhibit A. These adjustments are separated by funding source and are identified as either revenue or expenditure accounts.
At the November 15, 2016 Study Session, the City Council received a budget update (Check-in) from staff. During this update, Council agreed to move forward with charging the Community Facilities Districts (CFDs) of Blackstone, La Floresta, and Summerwind their share of fire related services as outlined in the formation documents. These additional services were mainly the result of fully staffing Fire Station No. 4, which primarily responds to these CFDs. In years past, these costs have been absorbed by the General Fund (110) since funding was not available, but will now be charged to the appropriate districts (Blackstone (360) - $502,924; La Floresta (361) - $142,721; and Summerwind (362) - $33,981). This total adjustment is $679,626.
Through attrition, staff has had the opportunity to restructure and identify budget savings through the Brea Engagement Stragetic Team (B.E.S.T.) and the Vacancy Review Board (VRB). One of these changes is in the Emergency Preparedness function. This change was outlined in the staff report submitted to City Council on January 17, 2017. There were a number of other personnel changes that were discussed and approved but do not require FY 2016-17 budget adjustments. These savings will be included in the year-end estimates as well as the FY 2017-19 Biennial Budget. This total budget adjustment of $82,451 reflects the transfer of this function from Police Services to Fire Services.
The Fire Department continues to respond to mutual aid throughout California. Fortunately, Fire Administration has been diligent in seeking reimbursement from both the Federal ($29,748) and State ($49,974) Governments for costs incurred. Responses include fires in the Angeles and San Bernardino National Forests, Kern County, and San Luis Obispo. Fire responses include: the Sand Fire, the Blue Cut Fire (Glen Helen Regional Park), the Deer Fire, and the Chimney Fire for San Luis Obispo. These strike teams responses resulted in the Fire Department's Overtime Budget to incur approximately $69,300 in costs. This cost is fully offset by reimbursements. In fact, the Fire Department is able to recuperate overhead charges in addition to these costs.
Also included in these budget adjustments is the purchase of encryption software to allow encrypted frequencies on all fire radios, as well as the purchase of additional radios and equipment ($115,000) that was not included in the 2015 Public Safety Radio Equipment and Lease Financing. Funding will come for the Public Safety Augmentation Fund (172). A staff report is currently being submitted to the City Council by the Fire Department and will coincide with these budget adjustments. Fund 172 will also provide funding for the additional money needed for the Computer Aided Dispatch (CAD) and Records Management System (RMS) project. This appropriation was approved by the City Council on November 15, 2016.
Lastly, there are a number of budget adjustments related to vehicle overhead charges. A majority of these adjustments simply involve transferring the charges to the appropriate fund and program and some charges were over estimated during budget submittal. Overall, for the Equipment and Vehicle Maintenance Fund (480), there is a decrease of revenues and transfers-in of $155,748. This is offset by a decrease in expenditures of $106,110 for a net decrease in revenues and transfers-in of $49,638. |
| COMMISSION/COMMITTEE RECOMMENDATION |
| The attached FY 2016-17 budget adjustments were reviewed by the Finance Committee on January 31, 2017, and recommended for approval. |
| FISCAL IMPACT/SUMMARY |
The City Operating Budget adjustments for the General Fund (110) in Exhibit A resulted in an increase in revenues and transfers-in of $762,295 and an increase in expenditures of $48,806, for a net General Fund increase in revenues and transfers-in of $713,489. Overall, the City Operating Budget adjustments for all funds resulted in an increase in revenues and transfers-in of $605,547 and an increase in expenditures and transfers-out of $1,009,944, for a net increase in expenditures and transfers-out of $403,397.
The Capital Improvement Program Budget adjustments in CIP - Exhibit A consists of an increase in expenditures of $100,000.
| Gas Tax Fund (220) |
$100,000 |
| Total |
$100,000 |
The Gas Tax Fund (220) has sufficient funds available to cover this increased cost. |
| RESPECTFULLY SUBMITTED: |
William Gallardo, City Manager
Prepared by: Faith Madrazo, Revenue & Budget Manager
Concurrence: Cindy Russell, Administrative Services Director |
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