HomeMy WebLinkAboutChanging The City's Fiscal Year 12/6/93 - PFA - CIC - Parki REQUEST FOR ACTION BY CITY COUNCIL,
REDEVELOPMENT AGENCY, PUBLIC FINANCE AUTHORITY
APPROVED BY CITY COAND IVIC IMPROVEMENT CORPORATION
DATE: December 6, 1993
crr CLERK
SUBMITTED TO: HONORABLE MAYOR AND CITY COUNC L
SUBMITTED BY: MICHAEL T. UBERUAGA, City Administrator l
PREPARED BY: ROBERT J. FRANZ, Deputy City Administrato
SUBJECT: CHANGING THE CITY'S FISCAL YEAR 9�
Consistent with Council Policy: [ X ] Yes [ ] New Policy or Exce
Statement of Issue, Recommendation, Analysis, Funding Source,Alternative Actions, Attachment 724W
STATEMENT OF OBJECTIVE: Various uncontrollable elements have evolved to make a
July 1 through June 30 fiscal year undesirable. A fiscal year ending September 30 would
provide for a more meaningful and predictable operating cycle for budgeting purposes.
RECOMMENDED ACTION:
1. (City Council Action) - Introduce Ordinance .3 9 which will:
a. Approve a one-time, fifteen month fiscal year beginning July 1, 1993 and
ending on September 30, 1994.
b. Approve the normal 12 month fiscal year to begin on October 1, 1994 and end
on September 30, 1995 with the City's fiscal year to be October through
September 30 continuing thereafter.
2. (Redevelopment Agency Action) - Adopt Resolution changing the
Redevelopment Agency fiscal year.
3. (Public Finance Authority Action) - Adopt Resolution changing the Authority
fiscal year.
4. (Civic Improvement Corporation Action) - Adopt Resolution 93—/ changing the
Corporation fiscal year.
ANALYSIS: Historically, private corporations have adopted fiscal years based upon their
workload cycle. They typically choose a fiscal year that would end during the least active
period of their annual business cycle. The City has maintained the traditional local
REQUEST FOR ACTION
BY CITY COUNCIL, REDEVELOPMENT AGENCY, PUBLIC FINANCE
AUTHORITY AND CIVIC IMPROVEMENT CORPORATION
Changing the Fiscal Year
government fiscal year that ends June 30, which is one of our busiest periods of the year.
Being a Southern California coastal community, the summer is the busiest season of our
annual operating cycle. This is when we have the highest number of employees, the
greatest number of visitors, the Fourth of July Parade, the Ocean Pacific (O.P.) Surfing
Contest, and numerous other events. By comparison, any time of year other than in the
summer would be less demanding from an operational standpoint. Therefore our fiscal
year has always been in contrast to normal business practice.
Having a fiscal year that ends September 30 will not only alleviate the above, but also will
result in more accurate revenue projections. The State's budget, which seems to have an
ever increasing impact on our City budget, is usually not adopted until July, August or
September. This year the impact on the City of the State budget will not be known until
after the November 2 election when the voters decide whether to extend the one half cent
sales tax for Police and Fire services. Therefore, the City has been required to adopt a
budget prior to having knowledge of the impact of the State budget on City finances.
With a fiscal year that begins October 1, the City would begin operations in the future
knowing (hopefully) what affect the State's actions will have on the City. Also, the County
informs us of the City's assessed property tax valuation in mid August of each year. An
October 1 fiscal year would allow for a more accurate property tax estimate prior to the
budget adoption.
Sales tax is our second largest revenue source. The Christmas quarter is the largest sales
tax quarter, but analysis of sales is not available until late April which is after staff work is
complete on the proposed budget for the fiscal year which begins July 1. The October 1
fiscal year start allows for the more critical sales tax data to be analyzed and incorporated
into our sales tax estimates.
The Federal fiscal year is from October 1 through September 30. . Status of grant
applications (such as Literacy Program funding) will be better known during the budget
process and Federal Grant receipts will match the City's fiscal year. This will make grant
accounting and working with grant auditors less time consuming.
The City usually adopts rate and fee increases at the beginning of the fiscal years. Several
of these have the greatest impact during the summer. For example, water consumption is
greatest during the summer months. Therefore, a rate increase in the summer results in a
larger dollar increase in the average bill with often a short time period for residents to plan
for the higher cost. A new fiscal year beginning October 1 will allow such increases to be
implemented during a lower usage season, which will allow the public to plan for and adapt
to the higher rates prior to the higher volume periods.
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REQUEST FOR ACTION
BY CITY COUNCIL, REDEVELOPMENT AGENCY, PUBLIC FINANCE
AUTHORITY AND CIVIC IMPROVEMENT CORPORATION
Changing the Fiscal Year
The City Charter, Section 600, allows for a change in designating the City's fiscal year by
adoption of an ordinance.
FUNDING SOURCE: Not applicable.
ALTERNATIVE ACTIONS:
1. Change the City's fiscal year to the calendar year.
2. Change the City's fiscal year to end on any other calendar month.
ATTACHMENT: Ordinance and Resolutions
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'i
RESOLUTION NO. 7
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
HUNTINGTON BEACH FINANCING AUTHORITY CHANGING THE
FISCAL YEAR FOR THE FINANCING AUTHORITY.
The Huntington Beach Financing Authority now convenes for the purpose of passing
Resolution No. 93-1, changing the fiscal year for the Authority.
WHEREAS, the Financing Authority will have better knowledge of state actions that
affect the Authority and city revenue during budget planning by adopting a later fiscal year and
the City Council has changed the fiscal year of the city by Ordinance No. 3199.
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Huntington
Beach Financing Authority as follows:
1. That fiscal year 1992/93 will occur July 1, 1992 through June 30, 1993.
2. A one-time, 15-month fiscal year will begin on July 1, 1993, and will end on
September 30, 1994.
3. A normal, 12-month fiscal year will begin on October 1, 1994, and end on
September 30, 1995.
4. Continuing thereafter, the Financing Authority's fiscal year will begin on October 1,
and end on September 30.
PASSED AND ADOPTED by the Board of Directors of the Huntington Beach Financing
Authority at a regular meeting thereof held on the 6th day of December 1993.
Chairman
ATTEST:
OF
APPROVED AS TO FORM:
Secretary
Authority AttbfKe
REVIEWED AND APPROVED:
IN A P
Exe66tive Director
eputy Exe uti a Dir ctor/Chi of
Administrative Services
1
3/resolut/finance/12/01/93
Res. No. 7
STATE OF CALIFORNIA )
COUNTY OF ORANGE )
CITY OF HUNTINGTON BEACH )
I, CONNIE BROCKWAY, Secretary of the Huntington Beach
Public Financing Authority of the City of Huntington Beach, California
DO HEREBY CERTIFY that the foregoing resolution was duly adopted by the
Public Financing Authority of the City of Huntington Beach at a special meeting
of said Huntington Beach Public Financing Authority held on the 6th day of
December, 1993, and that it was so adopted by the following vote.
AYES: Directors:
Silva, Bauer, Robitaille, Moulton-PatfPrGnn, w;nr-h,-11 , Lp pzig, Sullivan
NOES: Directors:
None
ABSENT: Directors:
None
Secretary of the HuntingtdK Beach
Public Financing Authority of the
City of Huntington Beach, California
RESOLUTION NO. 93-1
A RESOLUTION OF THE CIVIC IMPROVEMENT CORPORATION OF
THE CITY OF HUNTINGTON BEACH CHANGING THE
FISCAL YEAR FOR THE CIVIC IMPROVEMENT CORPORATION.
The Civic Improvement Corporation of the City of Huntington Beach now convenes for
the purpose of passing Resolution No. 93-1, changing the fiscal year for the Civic Center
Improvement Corporation.
WHEREAS, the Civic Improvement Corporation will have better knowledge of state
actions that affect the Corporation and city revenue during budget planning by adopting a later
fiscal year and the City Council has changed the fiscal year of the city by Ordinance No. 3199.
NOW, THEREFORE, BE IT RESOLVED by the Civic Improvement Corporation of the
City of Huntington Beach as follows:
1. That fiscal year 1992/93 will occur July 1, 1992 through June 30, 1993.
2. A one-time, 15-month fiscal year will begin on July 1, 1993, and will end on
September 30, 1994.
3. A normal, 12-month fiscal year will begin on October 1, 1994, and end on
September 30, 1995.
4. Continuing thereafter, the Civic Improvement Corporation's fiscal year will begin on
October 1, and end on September 30.
PASSED AND ADOPTED by the Civic Improvement Corporation of the City of
Huntington Beach at a regular meeting thereof held on the 6th day of
December , 1993.
President
ATTEST:
APPROVED AS TO FORM:
fSecretary of the Corporation
C Corporation Attor l� viro/y-
REVIEWED AND APPROVED:
INI D:
d6tr r A"
Exe tive Director
eputy Executi a irector/Chie of
Administrative ervices
3/resolut/fiscal/11/26193
Res. No. 93-1
STATE OF CALIFORNIA )
COUNTY OF ORANGE )
CITY OF HUNTINGTON BEACH )
I, CONNIE BROCKWAY, Secretary of the Huntington Beach
Civic Improvement Corporation of the City of Huntington Beach, California
DO HEREBY CERTIFY that the foregoing resolution was duly adopted by the
Huntington Beach Civic Improvement Corporation of the City of Huntington
Beach at a meeting of said Huntington Beach Civic Improvement Corporation
held on the 6th day of December, 1993, and that it was so adopted by the
following vote.
AYES: Directors:
Silva, Bauer, Robitaille,moul on- a tPrson, WinrhP11 _ re;nzig, Sullivan
NOES: Directors:
None
ABSENT: Directors:
None
1i����lwv
Clerk of the Redevelopment Agency
of the City of Huntington Beach, CA
RESOLUTION NO. 246
A RESOLUTION OF THE REDEVELOPMENT AGENCY OF
THE CITY OF HUNTINGTON BEACH CHANGING THE
FISCAL YEAR FOR THE REDEVELOPMENT AGENCY.
The Redevelopment Agency of the City of Huntington Beach now convenes for the
purpose of passing Resolution No. 246, changing the fiscal year for the Agency.
WHEREAS, the Agency will have better knowledge of state actions that affect Agency
and city revenue during budget planning by adopting a later fiscal year and the City Council
has changed the fiscal year of the city by Ordinance No. 3199.
NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the City of
Huntington Beach as follows:
1. That fiscal year 1992/93 will occur July 1, 1992 through June 30, 1993.
2. A one-time, 15-month fiscal year will begin on July 1, 1993, and will end on
September 30, 1994.
3. A normal, 12-month fiscal year will begin on October 1, 1994, and end on
September 30, 1995.
4. Continuing thereafter, the Agency's fiscal year will begin on October 1, and end on
September 30.
PASSED AND ADOPTED by the Redevelopment Agency of the City of Huntington
Beach at a regular meeting thereof held on the 6th day of December 71993.
Chairman
ATTEST:
APPROVED AS TO FORM:
Agency Clerk
43AIL- zit✓
Agency Attorn
REVIEWED AND APPROVED:
INITIATED AND APPROVED:
q3
Ex tive Director
Director of Economic Development
' 1
3/resoluUfiscal/12/01/93
Res. No. 246
STATE OF CALIFORNIA )
COUNTY OF ORANGE )
CITY OF HUNTINGTON BEACH)
I, CON NIE BROawy, Clerk of the Redevelopment Agency of the
City of Htmtington Beach, California, DO HEREBY CERTIFY that the foregoing
resoluticn.was duly adopted by the Redevelopment Agency of the City of
Mmtington Beach at a meeting of said Redevelopment Agency held on the
6th day of December , 1993 , and that it was so adopted
by the following vote:
AYES: Members:
gjiva Bauer Robitaille Moulton-Patterson, Winchell, Leipzig, Sullivan
NOES: Members:
UQM
ABSENT: Members:
None
Clerk of the Redevelopmerft Agency of
the City of Mmtington Beach, Ca.
i
i
M
REQUEST FOR CITY COUNCIL ACTION
R
Date June 21 , 1993
Submitted to: Honorable Mayor and City Council
Submitted by: Michael T. Uberuaga, City Administrator
Prepared by: Robert J. Franz, Deputy City Administrat r
Subject: Changing the Ci ty's Fiscal Year
. O
Consistent with Council Policy? [ 1 Yes [X1 New Policy or Exception
Statement of Issue, Recommendation,Analysis, Funding Source,Alternative Actions, Attachments.
STATEMENT OF OBJECTIVE: Various uncontrollable elements have evolved to make a
July 1 through June 30 fiscal year undesirable. A fiscal year ending
September 30 would provide for a more meaningful and predictable operating cycle
for budgeting purposes.
RECOMMENDED ACTION:
Introduce Ordinance v�!9 f which will :
1 . Approve a one-time, fifteen month fiscal year to begin on July 1 , 1993
and ending on September 30, 1994.
2. Approve the normal 12 month fiscal year to begin on October 1 , 1994 and
end on September 30, 1995 with the City' s fiscal year to be October 1
through September 30 continuing thereafter.
ANALYSIS: Historically private corporations have adopted fiscal years based
upon their workload cycle. They typically choose a fiscal year that would end
during the least active period of their annual business cycle. The City has
maintained the traditional local government fiscal year that ends June 30th,
which is one of our busiest periods of the year. Being a Southern California
coastal community, the summer is the busiest season of our annual operating
cycle. This is when we have the highest number of employees, the greatest
number of visitor's, the ,Fourth of July Parade, the Ocean Pacific (O.P.) Surfing
Contest, and numerous other events. By comparison, any time of year other than
in the summer would be less demanding from an operational standpoint.
Therefore, our fiscal year has always been in contrast to normal business
practice.
Having a fiscal year which ends September 30 will not only alleviate the above,
but also will result in more accurate revenue projections. The State' s budget,
which seems to have an ever increasing impact on our City budget, is usuallyjnot
adopted until July, August or September. Therefore, the City has been required
to adopt a budget prior to having knowledge of the impact of the State budget on
City finances. With a fiscal year that begins October 1 , the City will begin
operations knowing what affect the State' s actions will have on the City. Also,
P10 5/85
' REQUEST FOR CITY COUNCIL ACTION
Changing the Fiscal Year for Ending June 30 to Ending September 30
h
the County informs us of the City' s assessed property tax valuation in mid
August. Property tax is the City' s single largest and most complex revenue
source. Revenues derived from these assessments are not received prior to
November. An October 1 fiscal year would allow for a more accurate property tax
estimate prior to both the budget adoption and receipt of the applicable
property tax revenue.
Sales tax is our second largest revenue source. The Christmas quarter is the
largest sales tax quarter, but analysis of sales is not available until late
April which is after staff work is complete on the proposed budget for the
fiscal year which begins July 1 . The October 1 fiscal year start allows for the
more critical sales tax data to be analyzed and incorporated into our sales tax
estimates.
The Federal fiscal year is from October 1 through September 30. Status of grant
applications will be better known during the budget process and Federal Grant
receipts will match the City' s fiscal year. This will make grant accounting and
working with grant auditors less time consuming.
The City usually adopts rate and fee increases at the beginning of the fiscal
years. Several of these have the greatest impact during the summer. For
example, water consumption is greatest during the summer months. Therefore, a
rate increase in the summer results in a larger dollar increase in the average
bill with often a short time period for residents to plan for the higher cost.
The new fiscal year will allow such increases to be implemented during a lower
usage season, which will allow the public to plan for and adapt to the higher
rates prior to the higher volume periods.
The City Charter, Section 600, allows for a change in designating the City' s
fiscal year by adoption of an ordinance.
FUNDING SOURCE: Not applicable.
ALTERNATIVE ACTIONS:
1 . Change the City' s fiscal year to the calendar year.
2. Change to City' s fiscal year to end on any other calendar month.
ATTACHMENT: Ordinance
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WPADSERT:1473