HomeMy WebLinkAboutApprove Fiscal Year 2014/15 Mid-Year Budget AdjustmentsDept. ID FIN 15-008 Page 1 of 3
Meeting Date: 5/18/2015
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MEETING DATE: 5/18/2015,
SUBMITTED TO: Honorable Mayor and City Council Members.
SUBMITTED BY: Fred A. Wilson, City Manager
PREPARED BY: Lori Ann Farrell, Director of Finance
SUBJECT: Approve Fiscal Year 2014/15 Mid -Year Budget Adjustments
Statement of Issue:
The Finance Department is undergoing the mid -year budget review for the fiscal year that began on
October 1, 2014. Departments have requested adjustments to their budgets to: ensure there are
sufficient appropriations to expedite the hiring of critical public safety personnel; expend actual.
revenue received in restricted funds; and address capital facilities needs.
Financial Impact:
1. General Fund (Fund 100) budget adjustments totaling $215,700 are requested for the following
City Departments: Fire ($1454000); City Treasurer ($20,700); and, Non -Departmental ($50,000).
2. The Library Services Department is requesting a budget adjustment of $100,000 in the Library
Development Impact Fee Fund (Fund 229).
3. The Planning and Building Department is requesting a budget adjustment in the amount of
$30,000 for the Historic Wintersburg Preservation Fund (Fund 126) for costs related to
preservation planning efforts.
4. The Downtown BID (Fund 710) requires a minor budget adjustment of $3,500.
There are sufficient revenues, available cash, and/or fund balances to support the above
adjustments.
Recommended Action:
Approve mid -year budget adjustments to the FY 2014/15 Revised Budget in the Funds and by the
amounts contained in Attachment 1.
Alternative Action(s):
Do not approve the recommended actions and direct staff accordingly.
Analysis:
The FY 2014115 Budget was adopted by the City Council on September 2, 2014, for the fiscal year
beginning October 1, 2014. The Finance Department has compiled numerous recommended
budget adjustments to cover additional costs and/or provide appropriations necessary to expend
funds that have been received for specific purposes. The City is experiencing a slight revenue
improvement that can sufficiently cover appropriations requested to address these pressing needs
in the General Fund. The Other Funds adjustments will be supported by available revenue or fund
balances within each distinct Fund, as needed.
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Dept. ID FN 15-008 Page 2 of 3
Meeting Date: 5/18/2015
General Fund (100)
General Fund budget adjustments are requested for the Fire, City Treasurer, and Non -
Departmental Departments totaling $215,700 as outlined below. There are sufficient General Fund
revenues to offset these requested increases.
a) City Council approval is requested for an additional $95,000 in the Fire Department's Marine
Safety Division for additional temporary staffing costs incurred due to warmer than anticipated
weather. The supplemental staffing was needed to operate additional lifeguard towers due to the
increase in beach visitors during the warmer winter weather in Southern California.
b) The Fire Department's Marine Safety Division is also requesting a budget appropriation of
$50,000 for the Junior Lifeguard Program. An increase in Junior Lifeguard Program fees was
approved by the City Council on December 16, 2013, to help offset increased program costs,
including improved oversight of participants to meet industry standards for instructor to student
ratios, currently at 20 to 1. The number of registered participants has increased for the 2015
Summer Program thereby further necessitating a staffing enhancement to provide adequate
instructor to student ratios.
c) A budget adjustment is requested for the City Treasurer Department in the amount of $20,700.
Of this amount, $6,100 is for a technical correction to add the auto allowance benefit that was
mistakenly omitted from the FY 2014/15 Adopted Budget. The remaining $14,600 is for a
Department Services Specialist part-time position. This position will assist the City Treasurer with
a number of tasks including, but not limited to: credit analysis to ensure ongoing credit quality of
investments; research current government statutes/regulations of investment securities;
accounting practice updates relevant to investment reporting; analysis of economic/market
information and creation of charts/graphs to be utilized by the City Treasurer; and, creation of
relevant reports from Sympro Investment Software including general ledger monthly entries,
monthly investment reports and various analytical reports.
d) Non -Departmental is requesting an additional budget appropriation of $50,000 for the Sales Tax
Rebate Agreement with Pinnacle. In the first quarter of FY 2014/15, Pinnacle Petroleum's sales
were significantly higher than anticipated resulting in increased revenue and sales tax generation
for the City. As a result, there is an additional projected expenditure of $50,000 for the City
under the terms of the Sales Tax Sharing Agreement with Pinnacle Petroleum.
e) In addition, Non -Departmental will be expending an estimated $41,400 for Phase I of the
reconfiguration and retrofit of the City Attorney Department's office space. Phase I of the
Department's reconfiguration will increase public access and transparency with a redesigned
waiting area. The reconfiguration will also provide additional and much needed file
documentation and storage space for easy access to legal and related documents which were
previously housed in multiple locations. New cubicle workstations will be more versatile and
adaptable allowing the transformation of work spaces to facilitate greater team building,
conferencing areas and City-wide collaboration. Additional appropriation is not needed at this
time as this project will be funded from existing appropriations in Non -Departmental from savings
in unemployment insurance expenses. The second phase of the office reconfiguration will be
evaluated in the context of the FY 2015/16 Proposed Budget for. Capital Improvement Projects.
f) Due to budget reductions over the past several years, duties that were previously performed by
City personnel have been greatly curtailed or eliminated. Recently City staff has identified a
growing problem with unlicensed vendors conducting business on the beaches and waterways
within the City's limits. This has included, but is not limited to, individuals conducting surfing,
wind surfing and kayaking lessons. This is causing issues for licensed businesses and makes it
difficult for the City to regulate these types of activities and help ensure the safety of the public.
Item 3. - 2 HB -30-
Dept. ID FN 15-008 Page 3 of 3
Meeting Date: 5/18/2015
In addition, many of these businesses are likely operating without proper liability insurance
potentially placing the public at risk. Staff has also identified some lower level quality of life
concerns which peak in the summer season. Issues such as bridge jumping, illegal animal
feeding, and other civil violations of the Huntington Beach Municipal Code become lower
priorities for police officers and sometimes go unaddressed. As such, staff recommends the
creation of five, seasonal, Police Community Liaison part-time positions within the Police
Department to address the unlicensed vendors along the coast; assist with parking enforcement;
enforce vacation rental guidelines; open or close some of the park and beach parking lots; and,
assist with other minor civil violations of the Municipal Code. The cost of this enhanced staffing
for the Memorial Day through Labor Day peak summer period is approximately $48,000. A
budget adjustment is not being requested at this time as it is anticipated the Police Department
can absorb this cost within its overall FY 2014/15 General Fund Budget. .
Library Development Impact Fee (229)
On June 18, 2012, the City Council approved Ordinance No. 3945, which amended the Huntington
Beach Municipal Code by adding Chapter 17.67 relating to Library Development Impact Fees. The
new code allows fees collected to fund the expansion of library space and the number of library
collection items. FY 2014/15 fees in the amount of $111,379 have been collected to date. As a
result, the Library is requesting budget appropriation of $100,000 from the Library Development
Impact Fee Fund (229) to purchase additional materials for the library collection. There is no
General Fund impact associated with this request.
Office of Business Development Funds (710)
The Business Improvement Districts (BID) Funds contain revenue received and expenses incurred
for the City's Business Improvement Districts. The Downtown BID (710) is requesting a small
budget adjustment of $3,500 to reconcile the budget with the current estimated revenue projections
and expenses. There is no General Fund impact associated with this request.
Historic Wintersburg (126)
The Planning and Building Department is requesting a budget adjustment of $30,000 for the
Historic Wintersburg Preservation Fund (126). The Historic Wintersburg Preservation Task Force
approved the creation of a fund in the amount of $30,000 for the Urban Land Institute to conduct a
study related to preservation planning for Historic Wintersburg. This budget adjustment is fully
supported by actual revenues received and available fund balance in Fund 126. There is no
General Fund impact associated with this request.
Environmental Status:
Not Applicable.
Strategic Plan Goal:
Strengthen economic and financial sustainability.
Enhance and maintain public safety.
Improve quality of life.
Attachment(s):
1. Attachment 1 - Fiscal Year 2014/15 Recommended Mid -Year Adjustments.
HB -31- Item 3. - 3
ATTACHMENT I
Recommended Mid -Year Budget Adjustments by Fund:
Fund No
Fund Name
Appropriation
Dept
100
General Fund
$ 95,000
Fire/Marine Safety
100
General Fund
$ 50,000
Fire/Marine Safety
100
General Fund
$ 20,700
City Treasurer
100
General Fund
$ 50,000
Non -Departmental (OBD)
$ 215,700
OTHER FUNDS
Fund No Fund Name Appropriation Dept
229 Library Development Impact Fee $ 100,000 Library Services
126 Historic Wintersburg Preservation $ 30,000 Piannning & Building
$ 130,000
IMPROVEMENTBUSINESS
Fund No Fund Name Appropriation D•.
3,500
Item 3. - 4 H -2-