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HomeMy WebLinkAboutApprove Fiscal Year 2015/16 Year-End Budget Adjustments, IntDept. ID FN17-006 Page 1 of 3 Meeting Date: 3/20/2017 6wp�� 6 -0 -/ (&6y AAs&7oT- CITY OF HUNTINGTON BEACH REQUEST FOR. CITY COUNCIL ACTION MEETING DATE: 3/20/2017 SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Fred A. Wilson, City Manager PREPARED BY: Lori Ann Farrell Harrison, Chief Financial Officer SUBJECT: Approve Fiscal Year 2015/16 Year -End Budget Adjustments, Inter -fund Transfers and Available Fund Balance Recommendations Statement of Issue: The Finance Department is currently undergoing the year-end closing process for Fiscal Year 2015/16, which began on October 1, 2015, and ended on September 30, 2016. Certain technical adjustments and fund transfers need to be made to reconcile the budget with actual expenditures incurred and/or revenues received for certain grants and funds, and to comply with auditing, actuarial, accounting or legal requirements. City Council authorization is requested to perform these reconciliations in order to properly close FY 2015/16. There are sufficient revenues, available cash, and/or fund balances to support these adjustments. Financial Impact: A. Inter -Fund Transfers (Various Funds): Authorization is requested for inter -fund transfers totaling $2.4 million to provide seed funding for a new Technology Fund ($825,000); reduce the unfunded liability in the Workers' Compensation Fund ($400,000); and to reconcile grants and other funds with actual expenses incurred and/or revenue received ($1,209,483). Attachment 1. B. Inter -Departmental Transfers: Authorization is requested for a department -to -department transfer of $1.0 million in existing appropriations from the Public Works Department to Non - Departmental in order to better reconcile and track the Atlanta Avenue Widening project. C. Appropriation Increases (Various Funds): Appropriation increases totaling $559,122 are requested in order to reconcile the FY 2015/16 Revised Budget in various funds with actual expenditures incurred and grant awards received as reflected in Attachment 2. Recommended Action: Approve the year-end budget adjustments, transfers, and fund balance recommendations for the Fiscal Year 2015/16 Revised Budget in the Funds and amounts contained in Attachments 1 and 2. Alternative Action(s): Do not approve the recommendation and direct staff accordingly. Item 3. - 1 HB -30- Dept. ID FN17-006 Page 2 of 3 Meeting Date: 3/20/2017 Analysis: Fiscal Year 2015/16 year-end budget adjustments are requested to align appropriations in certain funds with actual expenditures incurred through September 30, 2016, as actual expenditures cannot exceed the appropriation amounts contained in the Revised Budget. Adjustments are also required to ensure compliance with GAAP, GASB and other regulatory, contractual or legal requirements. In addition, staff recommendations regarding the utilization of $1.2 million in available General Fund Balances are included. Please note these requested actions are fully offset by commensurate amounts of revenues, available cash or fund balances in each Fund. Inter -Fund Transfers (Attachment 1) General Fund (100): City Council authorization is requested to utilize preliminary FY 2015/16 year-end available General Fund Balance of $1,225,000 for the following: 1) Appropriation and transfer of $825,000 to provide seed money for a new Technology Fund (Fund 323) to help address the costs associated with the City's comprehensive and aged technology systems; and, 2) Appropriation and transfer of $400,000 into the Self -Insurance Workers' Compensation Fund (Fund 551) to help reduce the Fund's $11.8 million unfunded liability. Year-end General Fund transfers are also requested as follows: 1) $148,985 to the Affordable Housing -in -Lieu -of -Fees Fund to transfer revenue mistakenly posted to the General Fund and to comply with City Council Resolution 2007-71; 2) $19,271 to the Emergency Operations Fund to properly account for City costs associated with rainstorm related activities; and 3) $8,637 in transfers to the CDBG 2011/12 Fund and Huntington Beach Financing Authority to account for actual expenses incurred and minor debt service adjustments. 2. RORF (350): A transfer of $458,554 to the General Fund is requested to transfer Successor Agency revenues to the General Fund that can be utilized to pay for City expenses authorized by the California Department of Finance for ROPS 15-16B and 16-17A periods. 3. Debt Service - HBFA (401): The Debt Service Funds contain fees such as arbitrage and bond trustee fees that were incurred. A budget adjustment of $2,050 is requested to reconcile additional minor expenses. Sufficient fund balances are available. 4. Debt Service — Bella Terra (410): Authority is requested to transfer $128,517 from the Parking Structure - Bella Terra Fund (711) to the Bella Terra Debt Service Fund (410) based on actual special tax levy amounts assessed in FY 2015/16. 5. CalTrans Grant (878): An appropriation transfer of $247,612 from the Gas Tax Fund (207) is requested to fulfill the grant matching requirements of the CalTrans Grant Fund (878). 6. HUD Senior Center (994): Authorization is requested to transfer eligible grading expenses amounting to $108,956 incurred for the Senior Center in Central Park to the Senior Center Development Fund (319) to maximize bond reimbursement. Inter -Departmental Transfers (Attachment 1) Infrastructure Fund (314): City Council authorization is requested to transfer an appropriation of $1.0 million between departments, from Public Works to Non -Departmental for the Atlanta Widening Project to better track project expenses. This action has a net neutral fiscal impact. HB -3 1 - Item 3. - 2 Dept. ID FN17-006 Page 3 of 3 Meeting Date: 3/20/2017 Appropriation Adjustments (Attachment 2) General Fund (100): A budget adjustment of $418,319 is requested for the Fire Department to true -up the budget for extra overtime costs incurred as a result of Strike Team deployments. This action has a net neutral fiscal impact as the City has already been reimbursed for these expenses. Other Grants and Funds (Various): The City applies for and receives grants throughout the year, even after the City's annual budget has been adopted. For example, new grants become available mid -year as the State's fiscal year starts July 1st, nine months after the City's annual budget is adopted. As such, numerous Federal, State, and County grants have been received and expenses have been incurred in FY 2015/16 that need to be reconciled to the amounts received and expenditures incurred in the respective grant/other fund. Fire JPA Fund (704): An appropriation increase of $78,000 in Fund 704 - Fire JPA for capital improvements at the Training Center as approved by the JPA Board is requested. 2. Hotel/Motel BID Fund (709): Increased appropriations of $34,967 in Fund 709 — Hotel/Motel BID for revenues received that exceeded projections is requested. 3. Fourth of July Parade (204): An appropriation increase of $10,000 is requested to true -up the budget for actual costs incurred for the Fourth of July event. 4. CDBG 11/12 Fund: Appropriation increases of $6,590 are requested to true -up the budget for CDBG program funds received and expended by the City for that specific grant year. 5. Specific Events (101): An appropriation increase of $6,000 is requested to cover additional personnel costs incurred for the Huntington Beach Air Show held on October 21 - 23, 2016. 6. Sustainable Business Programs Fund (1234): An appropriation increase of $4,907 in the Sustainable Business Certification Program is requested to increase appropriations to the level of the grants and/or funds received, and to transfer eligible expenditures into the Fund. 7. UASI/OCIAC Fund (909): A minor increase of $339 is requested to meet a match requirement. Environmental Status: Not Applicable. Strategic Plan Goal: Improve Quality of Life. Enhance and Maintain Infrastructure. Strengthen Economic and Financial Sustainability. Enhance and Maintain Public Safety. Enhance and Maintain City Service Delivery. Attachment(s): 1. Fiscal Year 2015/16 Inter -Fund Transfers and Inter -Departmental Transfers. 2. Fiscal Year 2015/16 Appropriation Adjustments. Item 3. - 3 HB -32- Department Non -Departmental Non -Departmental Non -Departmental Public Works Non -Departmental Non -Departmental Community Services Office of Business Dev Various Office of Business Dev Office of Business Dev Various Non -Departmental ATTACHMENT 1 Fiscal Year 2015/2016 Inter -Fund Transfers From Name Amount To Fund Name 100 General Fund $ 825,000 323 Technology Fund 100 General Fund $ 400,000 551 Workers' Compensation Subtotal* $ 1,225,000 350 RORF Fund $ 458,554 100 General Fund 207 Gas Tax Fund $ 247,612 878 CalTrans Grants Fund 100 General Fund $ 148,985 217 Housing in Lieu Fees 410 Debt Svc: Bella Terra $ 128,517 711 Parking Structure -Bella Terra 994 HUD Senior Center $ 108,956 319 Senior Center Development 1220 Home Program Fund $ 66,240 852 Home Program Fund 100 General Fund $ 19,271 238 Emergency Operations 854 Home Program Fund $ 15,814 1220 Home Program Fund 233 Housing Res. Receipts $ 6,897 1220 Home Program Fund 100 General Fund $ 6,587 962 CDBG 11/12 Fund 100 General Fund $ 2,050 401 Debt Svc: HBPFA Subtotal Total � 1.209.483 $ 2,434,483 Fiscal Year 2015/2016 Inter -Departmental Transfers Fund Fund # From Department: Amount To Department: Infrastructure Fund 314 Public Works 1,000,000 Non -Departmental *Note: Staff recommends if additional funds become available above the $1.2 million in preliminary fund balance identified, that the additional funds be placed in the Section 115 Trust Reserve to help reduce pension liabilities. If the reverse occurs, and audit adjustments must be made by March 31, 2017 that reduce preliminary available fund balance, staff recommends the commensure reduction of the Workers' Camp Fund transfer of $400,000. HB -33- Item 3. - 4 ATTACHMENT 2 FY 2015/2016 Appropriation Adjustments Appropriation Fund No. Fund Name Department Adjustment 100 General Fund Fire 418,319 704 Fire JPA Fund Fire 78,000 709 Hotel/Motel BID Fund Non -Departmental 34,967 204 4th of July Fund Community Services 10,000 962 CDBG 11/12 Fund Office of Business Dev 6,590 101 Specific Event Fund Office of Business Dev 6,000 1234 Sustainable Business Fund Office of Business Dev 4,907 909 UASI/OCIAC Fund Police 339 Tota I $ 559,122 Item 3. - 5 xB -.34-