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HomeMy WebLinkAboutFiscal Year 2011-2012 Year End Budget Adjustments � I �✓ t�tra�i,c-G-' Council/Agency Meeting Held Deferred/Continued to App ved ❑ Conditionally Approved ❑ Denied y Clerk' Signat Council Meeting Date December 17, 2012 Department ID Number FN 12-23 CITY OF HUNTINGTON BEACH REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Fred A Wilson, City Manager PREPARED BY: Lori Ann Farrell , Director of Finance SUBJECT: Fiscal Year 2011-12 Year End Budget Adjustments Statement of Issue: The Finance Department is currently undergoing the year-end closing process for Fiscal Year 2011-12 which began on October 1, 2011 and ended on September 30, 2012 Certain technical adjustments need to be made to reconcile the budget with actual expenditures incurred; actual grants, donations and revenues received, and, comply with auditing, actuarial, accounting or legal requirements. City Council authorization is requested to perform these reconciliations in order to close Fiscal Year 2011-12 There are sufficient donations, grants, increased revenues, and cash or fund balances to support these adjustments. Financial Impact: 1 Various Departments (Various Grant Funds): $404,600; 2 Various Departments (Special Events/School Events Funds 101 and 104): $143,700, 3 Business Improvement Districts/Strand Parking (Funds 701, 709 and 712). $274,800, 4. Public Works and Planning & Building Departments (General Fund 100). $60,000 5. Various Departments (Retiree Supplemental Fund 703)- $969,000, 6 Various Departments (Donations Fund 103)- $1,043,000; and, 7 Public Works and Non-Departmental (Transfer to Infrastructure Fund 314). $1 8 million. Recommended Action: Motion to Approve year-end adjustments to the Fiscal Year 2011-12 Budget in the Funds and by the amounts contained in Exhibit A Alternative Action(s): Do not approve the recommendation and direct staff accordingly Analysis: Technical year-end budget adjustments to the FY 2011-12 Budget are requested to: align appropriations with actual grants and donations received throughout the year; reimburse the City for costs incurred in providing services to schools and for special events; ensure compliance with the City Charter's requirement to spend 15 percent of General Fund revenue on infrastructure; contribute the full Annual Required Contribution (ARC) to the Item 22. - 1 HB -100- REQUEST FOR COUNCIL ACTION MEETING DATE: 12/17/2012 DEPARTMENT ID NUMBER: FN TBD City's Retiree Supplemental Plan, and, align appropriations in certain Funds with actual expenditures incurred through September 30, 2012 As actual expenditures cannot exceed the appropriation amounts contained in the adopted budget, adjustments are also required to ensure compliance with GAAP, GASB and other regulatory, contractual or legal requirements Please note these appropriation increases are fully offset by commensurate amounts of donations, grants, revenues or available cash or fund balances in each Fund 1 Grants: 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 2011-12 that need to be transferred into the appropriate grant funds Budget adjustments totaling $404,600 in various Funds and Departments (Exhibit A) are requested to ensure grant compliance, increase the appropriations to the level of the grant funds received, and to transfer eligible expenditures into those accounts 2. Special Events Fund and School Events Fund These Funds contains fees paid to the City for services provided to schools, and for special events such as the U S Open of Surfing The intent of these Funds is to fully recover costs incurred by the City to provide services to schools or for special events. A budget adjustment is requested in both Funds to reflect additional revenue received for City services that were provided Cost reimbursement revenue will fully support requested budget adjustments of $143,700 for the additional costs incurred by the City in providing support to the schools and to Citywide special events. 3. Business Improvement Districts/Strand The BID and Strand Parking Funds contain revenue received and expenses incurred for the City's Business Improvement Districts and the Strand Parking structure. A budget adjustment is requested to reconcile the budget with actual revenue received and expenses incurred 4. General Fund- The environmental impact review (EIR) cost in the amount of$60,000 for the proposed skateboard park project approved by the City Council on September 19, 2011 originally requested appropriations and funding from the Park Acquisition and Development (PAD) Fund (209) Upon further review, it has been determined that the EIR expenses do not qualify as eligible expenses under the PAD Fund since the $60,000 was a negotiated reimbursement from the Huntington Beach Union High School District for demolition of the Huntington Beach High School skate park and did not originate from park development fees. As such, City staff is requesting authorization to appropriate $60,000 in the General Fund to reimburse the Planning and Building and Public Works Departments ($45,000 and $15,000 respectively) for costs incurred. There is sufficient revenue in the General Fund to support this cost 5 Supplemental Retirement Fund (703): The Retiree Supplemental Plan Fund (703) is a Fiduciary Fund that accounts for contractually required payments to retirees under the City's Supplemental Retirement Plan While this plan is a closed plan whose benefits have not been offered to employees hired after 1999, the City must still contribute an actuarially determined amount to this Fiduciary Fund each year. The City's Annual Required Contribution, or ARC, pays for the supplemental benefit to the xB -101- Item 22. - 2 REQUEST FOR COUNCIL ACTION MEETING DATE: 12/17/2012 DEPARTMENT ID NUMBER: FN TBD City's eligible retirees, costs associated with administering the plan, and contributions towards the Plan's unfunded actuarial accrued liability Based upon the most recent actuarial valuation prepared by the City's independent actuaries, Bartel & Associates, a $969,000 true-up payment needs to be made to the plan for FY 2011-12 to meet the full ARC payment under Governmental Accounting Standards Board (GASB) Statement No 27 "Accounting for Pensions by State and Local Governmental Employers." The preliminary estimated ARC payment contained in the FY 2011-12 Adopted Budget totaled $3 7 million The most recent actuarial valuation, which performs a full reconciliation of the plan's discount rate, assets, liabilities, participants and market value, revised the required ARC payment to $4 6 million Please note the Plan is only 43 percent funded, hence, every additional contribution will assist in improving its funded status and reducing the Plan's unfunded liability which is currently estimated at $36 7 million. The funding for the $969,000 additional FY 2011-12 payment will be spread proportionately throughout the City's departments and funds including the City's General Fund The FY 2011-12 General Fund budget can absorb this cost due to personnel savings that have been achieved citywide throughout the City's multiple departments due to the City's hiring freeze 6. Donations: Various City departments receive donations from private parties to fund specific City services, events, programs or supplies For example, Library donations assist in paying for temporary staffing at the City's libraries. These donations are received and expended as per the requirement of the donating party Since donations are in most cases voluntary, it is difficult to predict the amounts received and for which purposes Therefore, the Donations Fund (Fund 103) captures all the revenue received and expenses incurred for each type of donation, by Department, to provide for the most accurate accounting An appropriation increase is requested in the Donations Fund to fully account for donations received and expended throughout City departments in FY 2011-12 totaling $1,043,000. 7. Infrastructure Fund: The City Charter requires that the City spend 15 percent of General Fund revenue received on its infrastructure each year, as measured by a 5- year rolling average To ensure compliance with this requirement, City Council authorization is requested to transfer $1 8 million to the Infrastructure Fund (Fund 314) from the General Fund (Fund 100) in FY 2011-12 Primarily due to the five year rolling average calculation, as required by the City Charter, the unaudited actual expenditures of$28 0 million in FY 2011-12 are not sufficient to meet the requirement in FY 2012-13 Budgetary savings in the Public Works Department currently totaling $1.041 million, primarily due to salary savings associated with vacant positions will comprise the majority of the transfer to the Infrastructure Fund The remaining $787,000 is associated with the budgetary savings in the Non-Departmental Budget associated with the Heil Pump Station Project that has been temporarily delayed due to a delay in the receipt of matching grant funds In transferring these funds to the Infrastructure Fund, we can assure these funds are spent on the City's infrastructure as originally intended Item 22. - 3 HB -102- REQUEST FOR COUNCIL ACTION MEETING DATE: 12/17/2012 DEPARTMENT ID NUMBER: FN TBD Environmental Status: N/A Strategic Plan Goal: Improve Long-Term Financial Sustainability Enhance Economic Development Improve the City's Infrastructure Maintain Public Safety Attachment{s): • bescription 1 Exhibit 1 — FY 2011/12 Recommended Budget Adjustments by Fund HB -103- Item 22. - 4 ATTACHMENT # 1 EXHIBIT A Revised FY 2011/2012 Year-End Budget Appropriation Request GRANTS Fund No Fund Name Appropriation Dept 802 UASI FY 11/12 $ 94,100 Fire/Police 807 Energy Efficiency $ 25,000 Various 909 UASI/OCIAC Program $ 12,000 Police 950 Office of Traffic Safety 10/1 l $ 900 Police 964 OCATT Program $ 12,600 Police 967 ABC Grant 11/12 $ 400 Police 838 Jail Training Grant $ 11,300 Police NEW OC Real Estate Fraud Trust $ 25,000 Police NEW OCDE Task Force $ 100,000 Police NEW Human Trafficking $ 50,000 Police NEW AB 109 Public Safety Realignment $ 73,300 Police $ 404,600 SPECIAL EVENTS/SCHOOL EVENTS FUNDS Fund No Fund Name Appropriation Dept 101 Special Events $ 140,000 Community Services 104 School Events $ 3,700 Police $ 143,700 BUSINESS IMPROVEMENT DISTRICT/STRAND FUNDS Fund No Fund Name Appropriation Dept 701 BID -Auto $ 45,100 Economic Development 709 BID -Hotel/Motel $ 95,500 Economic Development 712 Parking Structure - Strand $ 134,200 Economic Development $ 274,800 GENERAL FUND Fund No Fund Name Appropriation Dept 100 General Fund $ 60,000 Planning& Bldg/PW PA&D FUND TO THE GENERAL FUND Fund No Fund Name Transfer-In Dept 100 General Fund $ 75,000 Community Services RETIREE SUPPLEMENTAL FUND Fund No Fund Name Appropriation Dept 703 Retiree Supplemental $ 969,000 All DONATIONS FUND Fund No Fund Name Appropriation Dept 103 Donations Fund $ 1,043,000 Various INFRASTRUCTURE FUND Fund No Fund Name Transfer-In Dept 314 Infrastructure Fund $ 1,828,800 Public Works Esparza, Patty From. Farrell, Lori Ann Sent: Monday, December 17, 2012 3 21 PM To: Flynn, Joan, City Clerk Agenda Cc: Wilson, Fred, Hall, Bob Subject: FW <FYI> Exhibit I for FY 11 12 YE Appropriation REV xlsx Attachments Exhibit I for FY 11 12 YE Appropriation REV pdf Hi, Please see the revised Exhibit A attached herein for Item#22 on tonight's City Council agenda, "Fiscal Year 2011-12 Year End Budget Adjustments" Please distribute this revised attachment to the City Council for Item#22 Thanks, Lori Ann Farrell Director of Finance City of Huntington Beach (714) 536-5225 loriann.farrell(awurfcity-hh.ors From: Molina-Espinoza, Carol Sent: Monday, December 17, 2012 3:08 PM To: Farrell, Lori Ann Subject: <FYI> Exhibit I for FY 11 12 YE Appropriation REV xlsx Lori Ann, Attached is the revised Exhibit I for FY 11/12 Year-End Budget Appropriation Adjustments Thanks) Carol Molina-Espinoza,MPA Budget Manager City of Huntington Beach (714)374-1526 SUPPLEM N 1 AL CommUrvrcNATroN Meeting Deter_ 1 Agenda item 1 EXHIBIT A FY 2011/2012 Year-End Budget Appropriation bequest GRANTS Fund No Fund Name Appropriation Dept 802 UASI FY 11/12 $ 94,100 Fire/Police 807 Energy Efficiency $ 25,000 V rious 909 UASUOCIAC Program $ 12,000 Police 950 Office of Traffic Safety 10/11 $ 900 Police 964 OCATT Program $ 12,600 Police 967 ABC Grant 11/12 $ 400 Police 838 Jail Training Grant $ 11,30 Police NEW OC Real Estate Fraud Trust $ 25,0 0 Police NEW OCDE Task Force $ 10 ,000 Police NEW Human Trafficking $ 0,000 Police NEW AB 109 Public Safety Realignment $ 73,300 Police V$ ,�' 404,600 SPECIAL EVENTS/SCHOOL EVENTS FUNDS Fund No Fund Name Appropriation Dept 101 Special Events $ 140,000 Community Services 104 School Events $ 3,700 Police $ 143,700 BUSINESS IMPROVEMENT DISTRICT/STRAND FUNDS Fund No Fund Name A/ Appropriation Dept 701 BID -Auto $ 45,100 Economic Development 709 BID-Hotel/Motel $ 95,500 Economic Development 712 Parking Structure- trand $ 134,200 Economic Development $ 274,800 GENERAL FUND Fund No Fund Nam Appropriation Dept 100 General F nd $ 60,000 Planning& Bldg/PW RETIREE SUPP MENTAL FUND Fund No Fund ame Appropriation Dept 703 Retiree Supplemental $ 969,000 All DONATIONS FUND Fund No and Name Appropriation Dept 103 Donations Fund $ 1,043,000 Various IN STRUCTURE FUND Fu No Fund Name Transfer-In Dept 314 Infrastructure Fund $ 1,828,800 Public Works HB -105- Item 22. - 6