HomeMy WebLinkAboutApprove Fiscal Year 2017/18 Year End Budget Adjustments andFile #: 18-467
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City of Huntington Beach
MEETING DATE: 11/5/2018
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Fred A. Wilson, City Manager
PREPARED BY: Gilbert Garcia, Chief Financial Officer
Subject:
Approve Fiscal Year 2017/18 Year End Budget Adjustments and Inter -fund Transfers; and
increase appropriations by $272,000 in the CUPA Fund (Fund 501)
Statement of Issue:
The Finance Department is currently undergoing the year-end closing process for Fiscal Year (FY)
2017/18, which began on October 1, 2017, and ended on June 30, 2018. Certain technical
adjustments and fund transfers need to be made to reconcile the budget with actual expenditures
incurred, 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 2017/18.
There are sufficient revenues, available cash, and/or fund balances to support these adjustments.
Financial Impact:
1. A transfer is requested from the audited FY 16/17 General Fund Balance (100) set -aside for
park improvements to the Infrastructure Fund (314) ($200,000);
2. A transfer is requested from the audited FY 16/17 General Fund Balance (100) set -aside for
Strategic Planning Initiatives to the Technology Fund (323) ($558,000);
3. A General Fund (100) transfer is recommended to the Infrastructure Fund (314) for capital and
hardscape improvements in public facilities and areas to enhance public safety ($100,000)1
4. Authorization is requested to transfer funds for previously approved and outstanding capital
improvement projects ($400,000) from the General Fund (100) to the Infrastructure Fund (314);
5. Authorization is requested to transfer funds for previously approved equipment replacement
items ($1.1 million) from the General Fund (100) to the Equipment Replacement Fund (324);
6. A transfer is requested from the General Fund (100) to the Retiree Supplemental Fund
($134,190) to cover actual expenses;
7. Appropriation and transfer authority of $20,187 from the General Fund (100) is requested for
Project V, OCTA Grant/Shuttle Services Fund (1243) for the grant match;
8. Authorization is requested to transfer funds from the Emergency Operations Center Fund
(238) for actual expenses incurred for Winter Storm 2017 ($173,042) to multiple Funds; and,
9. A budget appropriation increase to the CUPA Fund (Fund 501) and transfer from the General
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File #: 18-467
MEETING DATE: 11 /5/2018
Fund (100) of $272,000 is requested to reconcile the budget with actual expenditures incurred.
Recommended Action:
A) Approve the year-end inter -fund transfers for the Fiscal Year 2017/18 Revised Budget in the
Funds and by the amounts contained in Attachment 1; and,
B) Increase appropriations by $272,000 in the CUPA Fund (Fund 501) to reconcile the budget with
actual expenses incurred.
Alternative Action(s):
Do not approve the recommendation and direct staff accordingly.
Analysis:
The FY 2017/18 Budget was adopted by the City Council on September 5, 2017, for the fiscal year
beginning October 1, 2017. The Finance Department has compiled recommended budget
adjustments to cover additional costs and/or provide appropriations necessary to expend funds that
have been received for specific purposes. The City has received revenues or has set -aside prior
year fund balances that will support the requested adjustments in the General Fund. The Other
Funds adjustments will be funded by available revenue or fund balances within each distinct Fund.
As the City Council must approve all transfers between funds, as well as appropriations,
authorization is requested for the items contained in Attachment 1 for audit purposes.
General Fund (Fund 100)
General Fund transfers are requested to consolidate all prior -year funding for infrastructure
improvements, equipment replacements, and technology projects into the three new funds created in
recent years specifically for those purposes. These technical adjustments do not add new funding but
are requested in order to better track, account for and report on these discrete functions and projects.
In addition, transfers are also recommended to fund certain unanticipated yet required costs to
comply with legal requirements or ensure public safety.
FY 2016/17 General Fund Balance Set -Asides
Two inter -fund transfers are requested from previously approved and audited FY 16/17 General Fund
Balance (100) set -asides to Other Funds to consolidate funding for infrastructure and technology
projects. First, approval is requested to transfer the $200,000 General Fund (100) Balance set -aside
created at year-end in FY 16/17 for much -needed one-time playground improvements at City parks to
the Infrastructure Fund (314). Approval is also requested to transfer the $558,000 General Fund
(100) Balance set -aside created in FY 16/17 to the Technology Fund (323) for multiple technology -
related improvements identified during the City Council's Strategic Planning Retreat, including
broadband enhancements, jail intercom system, and enterprise asset management system (EAM).
Funds were set -aside from fiscal year-end savings to be used specifically for these purposes. No
new funding is requested. City Council approval is solely requested to transfer these amounts to the
Other Funds.
Prior Year Encumbrances for Infrastructure and Equipment
City Council authorization is also requested to transfer funds appropriated in prior years for capital
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File #: 18-467 MEETING DATE: 11/5/2018
improvement projects ($400,000) that are still outstanding to the Infrastructure Fund (314).
Authorization is also requested to transfer funds appropriated in prior years for equipment
replacement items ($1.1 million) that are still outstanding to the Equipment Fund. No new funding is
associated with this request. These transfers will facilitate the tracking of approved items and
ensures compliance with the City's Infrastructure Charter requirement that 15 percent of General
fund revenues be allocated to infrastructure spending based on a five-year rolling average.
Reconciliation of Funding to Actual Expenses
In addition, a General Fund transfer of $100,000 to the Infrastructure Fund (314) is requested to
address various capital maintenance, hardscape and other improvements to public facilities and
public areas required to address challenges related to homelessness. This transfer is funded from
savings in the Non -Departmental budget and will not require additional funding. Further, a transfer
of $134,190 is requested to the Retiree Supplemental Fund to cover unanticipated yet legally
required expenses.
OTHER FUNDS
2017 Winter Storm Fund (238)
City Council authorization is requested to appropriate and transfer funds received from the 2017
Winter Storm Fund (238) for expenditures incurred in FY 2016/17 to the following funds: $10,308 to
the Refuse Collection Service Fund (Fund 504); $10,929 to the Water Fund (Fund 506); and,
$151,805 to the General Fund (Fund 100). Actual revenues from FEMA and CaIOES were received
in FY 2017/18.
OCTA Grant/Shuttle Service Fund (1243)
The Public Works Department is requesting an appropriation and transfer of $20,187 from the Air
Quality Fund (201) to the OCTA Grant/Shuttle Service Fund (1243) to reconcile FY 2016/17
expenditures and provide the required local match.
CUPA Fund (501)
City Council authorization is requested to increase appropriations by $272,000 and transfer funds
from the General Fund to the CUPA Fund (501) to reconcile the budget with actual expenditures
incurred in the CUPA Fund. There are sufficient FY 2017/18 savings in the Fire Department's
General Fund budget to fully offset this request.
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.
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Enhance and Maintain City Service Delivery.
Attachment(s):
Fiscal Year 2017/18 Inter -Fund Transfers and Appropriation Adjustment
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ATTACHMENT 1
Fiscal Year 2017/2018 Inter -Fund Transfers
Department
From Name
Amount
To Fund Name
Non -Departmental
100 General Fund
$
200,000
314 Infrastructure Fund/Park Improvements
Non -Departmental
100 General Fund
$
558,000
323 Technology Fund/Strategic Planning
Subtotal Balance Set -Aside
$
758,000
Non -Departmental
100 General Fund
$
400,000
314 Infrastructure Fund/Prior Year CIP
Non -Departmental
100 General Fund
$
1,093,570
324 Equipment Fund/Prior Year Equipment
Subtotal Prior Year Items
$
1,493,570
Non -Departmental
100 General Fund
$
100,000
314 Infrastructure Fund/Capital Improvements
Non -Departmental
100 General Fund
$
134,190
702 Retiree Insurance Fund
Non -Departmental
100 General Fund
$
272,000
501 CUPA
Subtotal
$
506,190
Non -Departmental
238 Emergency Operations Ctr
$
10,308
504 General Fund
Non -Departmental
238 Emergency Operations Ctr
$
10,929
506 General Fund
Non -Departmental
238 Emergency Operations Ctr
$
151,805
100 General Fund
Public Works
201 Air Quality Fund
$
20,187
1243 OCTA Grant/Shuttle Service
Subtotal
$
193,230
Total
$
2,950,990
489