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. These adjustments are separated by funding source and the accounts are identified as either revenue or expenditure accounts.
Sales Tax is the City's largest revenue source. The revised adopted FY 2019-20 budget for Sales Tax is $21,628,000. Since the first quarter budget adjusments, staff has received revised sales tax projections. Again, the projections are favorable due to overall improved receipts and the discovery and audit of sales tax receipts. Avenu Analytics, the City's sales tax consultant, receives a precentage of discovery as well as a percentage of the corrected returns they process. For this adjustment, Avenu's percentage totaled $43,267 while generating approximately $414,176 in immediate and ongoing revenue for the City. Staff is proposing to conservatively increase the sales tax budget by $1,916,500, bringing the revised budget to $23,544,500 as presented at the Budget Update to City Council on Feburary 18, 2020.
Staff is requesting City Council authorization to write-off $47,255 in uncollectible invoices related to Driving Under the Influence (DUI) and Booking Fees. Finance staff has diligently sought payment, but with no success and have sent these invoices to a collection agency. Under General Accepted Accounting practices, revenues are recognized when accrued. In these cases, when fees are granted by the courts. However, these invoices have a low rate of collection. Since these invoices have been recognized as revenues in a prior period, they must now be categorized as an expense.
Included also in these adjsutments is the 2021-2029 Housing Element Update and Associated Envirnomental Needs Assessment, approved by the City Council on August 20, 2019. The funding source of the update comes from General Plan Maintenance Fund (120) - $51,000 and the Housing Successor Fund (280) - $34,000. The total cost of the update is $85,000.
Due to continuing staff attrition, departments have had the opportunity to take a look at their operations. In Community Services, staff is proposing to change the full-time Senior Community Services Supervisor assigned to Fitness/Wellmess Program to a full-time Community Services Supervisor, lower the assigned Community Services Specialist II to a Community Services I, and elminate the part-time Community Services Specialist I (1,248 hours). However, the Fitness/Wellness Division intends to increase the number of hours assigned to the Senior Community Services Leader from 1,248 to 1,508. This is an increase of 260 hours annually. With the overall savings realized from the Fitness/Wellness Division, the Department intends to upgrade the Community Services Specialist II assigned to Special Events to a Community Services Supervisor. In addition, the Department would like to upgrade the Community Services Specialist I, assigned to the Brea Gallery, from part-time (1,872 hours) to full-time. These actions lower the affected Community Services FTEs (full-time equivalents) from 4.87 to 4.73 and lowers the overall annual budget by approximately $75,565. The approximate savings for the remainder of FY 2019-20 is $22,736.
On October 15, 2019, the City Council approved the allocation of $250,000 from the Housing Successor Fund (250) for the City's contribution toward construction costs for the Placentia and Buena Park Navigation Centers. It also approved $60,668 (of which $50,000 was previously allocated) toward programs costs. Thus, the total budget adjustment related to program costs from the Affordable Housing Trust Fund (270) is $10,668.
Lastly, on July 16, 2016, the City Council authorized the Issuance and Sale of the 2019 Water Revenue Refunding Bonds to Refinance the Outstanding 2009 and 2010 Water Revenue Bonds. The sale was completed in August of 2019 and the included budget adjustments reflect associated revenues totaling $27,519,222 as well as the expendtiures of $30,875,518. The difference of $3,356,296 was paid through cash on hand with the fiscal agent and the bond reserve funds of the refunded bonds.
For Capital Improvement Projects #7703 - Street Name Sign Replacements and #7212 - Illuminated Street Name Sign Upgrade, staff is requesting a total of $62,000 in additional funding from the Gas Tax Fund (220) for these projects. In addtion, the Fixed Asset Replacement Fund (182) is recommended to fund an additional $10,000 for CIP #7702 - Regulatory Sign Replacement. Additionally, staff is requesting to reallocate funding among three Water Utility Fund projects: #7311 - Puente Street Improvements from Imperial Highway to Lambert Road, an increase of $494,000; #7453 - Gemini Avenue and Titan Way Improvements, a reduction of $704,000 and #7464 - Puente Street Improvements from Briarwood to Imperial Highway, an increase of $210,000.
The Capital Improvement Program Budget adjustments in CIP - Exhibit A consists of an overall increase in expenditures of $72,000 and a corresponding adjustment to transfers-in as follows:
| Fixed Assest Replacement Fund (182) |
$10,000 |
| Gas Tax Fund (220) |
62,000 |
| Water Utility Fund (420) |
- |
| |
|
| TOTAL |
$72,000 |
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The City Operating Budget adjustments for the General Fund (110) in Exhibit A, resulted in an increase in revenues and transfers-in of $1,967,605 and an increase in expenditures of $267,440, for a net General Fund increase in revenues and transfers-in over expenditures of $1,700,165. The City Operating Budget adjustments for all funds resulted in an increase in revenues and transfers-in of $29,532,846 and an increase in expenditures and transfers-out of $31,689,115 for a net increase in expenditures and transfers-out of $2,156,269.
The Capital Improvement Program Budget adjustments resulted in an increase in expenditures of $72,000 and corresponding adjustments to transfers-in.
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