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HomeMy WebLinkAboutFY 2006/2007 Budget - APPROPRIATION OF SECOND TIER RESERVE � 2006 OCT -4 PM 5: 3' F*y F 1 7 0i � Council/Agency Meeting Held: Zp&Z0(. F11 U 1 1 1�1'T �.G D 7 t,C F Deferred/Continued to: *Ar)j)ro v d C dition!!A Approved U Denied %W_,b0:t i rk'sAignat Council Meeting Date: 10/16/2006 Department ID Number: AD 06-40 CITY OF HUNTINGTON BEACH REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: HONORAPLE MAYOR AND CITY OU IL MEMBERS OU SUBMITTED BY: PENE� PE ClGaFkC�Y"H-GRAF ,4CITADMINISTRATOR PREPARED BY: PAUL EMERY, DEPUTY CITY ADMINISTRATOR SUBJECT: APPROPRIATION OF SECOND TIER RESERVE Statement of issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(s) Statement of Issue: During the public hearing for the fiscal year 2006/07 budget, the City Council requested that the appropriation of second tier reserve funds be discussed at a future meeting. Funding Source: General Fund 2 nd tier reserve Recommended Action: Motion to: Do not appropriate any additional second tier reserve funds consistent with the approved fiscal year 2006/2007 annual budget. Alternative Action(s): 1. Defer appropriation of additional second tier reserve funds until mid-year, after the City's annual financial statements have been audited and the general fund balance has been determined, or 2. Direct staff to appropriate second tier reserve funds for "one time" expenditures as determined by the City Council, or 3. Direct staff accordingly. REQUEST FOR CITY COUNCIL ACTION MEETING DATE: 10/16/2006 DEPARTMENT ID NUMBER: AD 06-40 Analysis: The City of Huntington Beach has a number of financial policies (Attachment 1). One of the policies stipulates how the audited unreserved undesignated general fund balance is to be allocated. Fifty percent of the unreserved undesignated fund balance is to be placed in the 2nd tier reserve. Twenty-five percent is to be placed in the capital improvement reserve and the remaining twenty-five percent transferred to the infrastructure fund. These actual transfers are made around mid-year when the city's accounting records have been closed and audited by independent Certified Public Accountants. After the 2004/05 audited financial statements were completed, and the financial policy transfers were made, the 2nd tier balance was $7,352,000 of which $1,836,000 has been loaned to the PA&D fund. During the 2005/06 fiscal year, Council approved additional appropriations from the 2nd tier reserve of approximately $1.1 million. It is estimated that upon the closing of the books in mid-year, the 2005/06 2nd tier fund balance will be at least on par with the 2004/05 2nd tier balance of $7,352,000. This is the result of estimated savings in general fund and or revenues received in excess of originally anticipated of at least $1.1 million. The approved budget for 2006/07 authorized $894,000 of the 2nd tier reserve to be used towards the Heil pump station. This leaves an estimated 2nd tier fund balance of $6,458,000 at the time of budget adoption (Attachment 2). As mentioned, the actual 2nd tier amount for the fiscal year just ended will not be known until staff has made all closing and adjusting entries, prepared the city's financial statements, and the audit of those statements have been completed for the fiscal year ending September 30, 2006. The City Council, at the September 5, 2006 budget public hearing, directed staff to return in October with a discussion of the appropriation of 2nd tier funds. The Council requested information on a number of issues relative to funding challenges and recommendations to address these issues. The following discussion delineated by those activities with one-time expenditures versus on going expenses addresses each of the issues raised. One-Time Expenditures Residential Pavement Overlay The residential pavement overlay program has a current backlog of $1,965,000. This backlog consists of streets that are in a state of disrepair that necessitates an overlay of the streets in lieu of a slurry seal application. With the appropriation and expenditure of $1,965,000 in fiscal year 2006/07 this backlog will be eliminated. Tree Petition Streets The current tree petition list contains 82 street segments with 1,660 impacted properties. Based on recent bid activity, it is estimated that the cost per residential lot is $8,500. The adopted fiscal year 2006/07 Capital Improvement Program provides funding for two additional street segments. To effectuate repairs to the next seven streets on the petition list, an allocation and expenditure of an additional $1,000,000 would be necessary. This would bring the petition list down to 75 street segments. -2- 10/4/2006 4:31 PM REQUEST FOR CITY COUNCIL ACTION MEETING DATE: 10/16/2006 DEPARTMENT ID NUMBER: AD 06-40 Storm Drain Improvements The adopted fiscal year 2006/2007 includes the allocation of$1,950,000 for phase one of the Heil Pump Station project. These funds consist of $894,000 of 2nd tier reserve and $1,056,000 from the Infrastructure Fund. Phase one of the Heil Station Rebuild consists of property acquisition and design/environmental activities. The total project cost is estimated at $9,800,000, including the funds currently allocated. Additional resources dedicated to construction will be required prior to awarding a construction contract tentatively scheduled for fiscal year 2008/09 pending funding availability. This project is identified as the number one priority storm drain improvement. Energy Efficiency Assessment The City has retained the services of Kurt J. Kammerer and Associates (KJK & Associates) to perform an Energy Efficiency Assessment of 13 major city facilities. The consultant has submitted a preliminary report which identifies $790,000 in improvements that would enhance the energy efficiency of our facilities. In addition, over $250,000 of those expenses may be eligible for Southern California Edison rebates. The Assessment calculates a payback on these improvements of 3.1 years; in other words, we could realize energy cost savings to offset the capital outlay with incentives 3.1 years after implementation. Staff is awaiting the final report from KJK and Associates. Upon receipt of the report, staff will develop an implementation plan with recommendations for the implementation of the identified upgrades, including those that can be completed with existing resources and those that will require additional appropriation. It is anticipated that this implementation plan will be available in the New Year. Sister City Anniversary 2007 marks the 25t anniversary of the City Sister Program with Anjo, Japan. A delegation of 25 adults from Anjo is anticipated to visit July 2nd, 3rd and 4th of 2007. This is in addition to the usual youth delegation that will be visiting at the same time. In addition, the City will be sending a delegation to Anjo in April 2007. These two events will generate a need for additional, one-time expenses for the City Sister Program. Currently the annual budget for this program is $10,000. To meet the needs of this one-time expense, an additional $6,000 is required. These additional funds will be used for appropriate gifts to Anjo and provide the Anjo delegation of adult guests with a council reception, protocol class, translators, meals and other associated costs. Downtown Street Improvements A question was raised relative to the specific scope of the $2.5 million project in the approved fiscal year 2006/07 CIP for downtown streets, alleys and curb, gutter, sidewalk project. The following segments will be completed in the order shown, as funding allows, up to $2.3 million: Streets Limits 1. Olive Street 6th to 1St -3- 10/4/2006 4:31 PM REQUEST FOR CITY COUNCIL ACTION MEETING DATE: 10/16/2006 DEPARTMENT ID NUMBER: AD 06-40 2. Walnut Street 6th to 1St 3. Lake Street Palm to Orange 4. Pecan Street 6th to Acacia 5. Orange Street 6th to 2nd 6. Main Street Palm to Acacia 7. 2"d Street Orange to PCH 8. Acacia Street 7th to Lake Street Alley 9. 3rd Street Walnut to Orange Two alley segments between 2nd Street and 3rd Street from Walnut Street to Orange Street have been identified as most in need of repair. Cost estimates are based on recent bids, and $200,000 has been allocated to repair both alley segments. Central Park Restroom Doors In response to the issue of the lack of restroom doors in Central Park, Public Works personnel has initiated the fabrication of these doors with installation scheduled for January 2007. The total cost is approximately $6,000 and budgeted resources are available in the Public Works operating budget. On Going Expenses Graffiti Abatement Using funds appropriated by the City Council in mid-fiscal year 2005/06 the Public Works Department retained a contractor in August 2006 to supplement full time staff to address the backlog of removals and provide abatement on private property. Staff is currently assessing the full time staff needed to respond to public and private property abatement and developing abatement support programs using such resources as volunteers, court referrals and organized community events. In addition, staff is developing a means for comprehensive reporting of vandalism activity and locations so that needed removals can be more quickly identified and handled. Staff is estimating that this evaluation period will take six months with a comprehensive report and recommendation available in March 2007. Bridge Assessments Public Works staff has completed a request for proposal for a city-owned bridge assessment. A professional engineering firm will be retained to complete the following activities: o Prepare evaluation and ranking procedure to identify and prioritize preventative maintenance projects including cost estimates and maintenance schedules o Review existing Caltrans inspection records and assessments o Provide preliminary structural analysis o Identify and prepare a database for bridges potentially eligible for state or federal funding programs o Develop a preventative maintenance plan -4- 10/4/2006 4:31 PM REQUEST FOR CITY COUNCIL ACTION MEETING DATE: 10/16/2006 DEPARTMENT ID NUMBER: AD 06-40 It is estimated that this assessment will cost $200,000. Funds have been allocated in the FY 2006/07 CIP to complete this assessment. Beach Restroom Cleaning The beach restrooms are thoroughly cleaned daily during the graveyard shift. This includes washing down the walls, floors, sinks and toilets with the appropriate cleaners. During the peak season, the restrooms are also spot cleaned three times a day and restocked. In the off-season the spot cleaning is done once a day. This level of maintenance has been in place for the past year and is again funded in the approved fiscal 2006/07 adopted budget. In order to enhance that service level to allow a second thorough cleaning at mid-day throughout the year, an additional allocation of $64,400 for contractual services would be necessary. Main Street Promenade Parking Structure Restrooms The Main Street Promenade Parking Structure restrooms, like the beach restrooms, are thoroughly cleaned daily by the beach staff working the graveyard shift. These restrooms are spot cleaned and restocked three times daily during the peak season and once a day in the off-season. Like the beach restrooms, the parking structure restrooms were increased to this level of service last year and funding is again included in the approved fiscal year 2006/07 adopted budget. The City Council currently has an ad-hoc committee studying Main Street for a potential trial closure as well as associated challenges relative to parking, cleanliness and other activities. The efforts of the committee will result in recommendations to the City Council for service levels as it relates to restroom cleaning as well as the number of available restroom facilities. The committee is currently scheduled to report their recommendations to the City Council in November 2006. Main Street Sidewalk Cleaninq Effective fiscal year 2005/06, the Main Street sidewalk cleaning was enhanced to steam cleaning weekly during the peak period between Memorial Day and Labor Day for the first two blocks and twice monthly for blocks three and four. During the off-season the first two blocks of sidewalks are cleaned twice monthly and the third and fourth block are cleaned monthly. This enhanced level of service is included in the adopted 2006/07 budget. Consistent with the Main Street Parking structure restrooms cleaning frequency, the service levels for the downtown are currently being reviewed by the City Council ad-hoc committee. Included in the evaluation/recommendations will be a discussion of the opportunities to purchase equipment for use by either city staff or the Downtown Business Improvement District for downtown cleaning. Recommendations to the City Council on any service level enhancements are scheduled for presentation to the City Council in November of 2006. -5- 10/4/2006 4:31 PM REQUEST FOR CITY COUNCIL ACTION MEETING DATE: 10/16/2006 DEPARTMENT ID NUMBER: AD 06-40 Beach Maintenance Beach maintenance requirements have continued to be challenged due to the changing activity levels as a result of the city becoming a year round destination. In the past year and a half the City Council has added three full time positions as well as $70,000 for contractual and recurrent resources to address these challenges. Service levels have increased in the area of sand sweeping and litter removal in the parking lots, ramps, stairs and the beach path. Historically the areas south of the pier were cleaned monthly and the area north of the pier was cleaned as needed. Currently cleaning is performed weekly during peak season and monthly during the off-season. To meet the continued demands, additional contract, permanent and recurrent staff resources may be necessary. Community Services staff will evaluate the overall beach maintenance operation during this upcoming fiscal year and make any service level recommendations concurrent with the budgetary process. Huntington Beach Playhouse Discussions are ongoing between Huntington Beach Playhouse representatives and city staff relative to lease rates for the theater facility at the Central Library. These discussions will result in a recommendation to the City Council on lease terms. At that time the City Council can decide to allocate any resources to offset the lease rate proposed. Strategic Plan On August 26, 2006, the City Council adopted the City's Strategic Plan Vision and Goals. Council further directed staff to return with a plan identifying the strategies and projects to implement the vision and goals in the Fall of 2006. A number of projects, including the Police Firing Range, the Heil Fire Station Relocation and the update to the Central Net Training Facility are being considered in the implementation dplan. Each of these projects has funding needs that could potentially be addressed via the 2" tier reserve. Staff recommends that the City Council not appropriate any of the 2"d tier reserve and retain the fund balance for unexpected expenditures, unforeseen economic impacts, and any state legislation that impacts local revenue. Should the City Council decide to appropriate 2nd tier reserves, it is recommended that we wait until the mid-year so we have a definitive fund balance after the closing of fiscal year 2005/06 and the Strategic Plan implementation strategy is completed. It is further recommended that any appropriations be for one-time expenses as identified in the body of the RCA and the Strategic Plan implementation strategy. Environmental Status: N/A -6- 10/4/2006 4:31 PM REQUEST FOR CITY COUNCIL ACTION MEETING DATE: 10/16/2006 DEPARTMENT ID NUMBER: AD 06-40 Attachment(s): City Clerk's . - NumberDescription1. Financial Policies 2. 2nd Tier Budget Presentation -7- 10/4/2006 4:31 PM (11) October 16, 2006 - Council/Agency Agenda - Page 11. 5. Restructure the Fourth of July Executive Board to include eleven members selected by the two Council liaisons, and direct the City Attorney to amend HBMC Chapter 2.106. Community Services Director Jim Engle gave a PowerPoint report. Extensive Council discussion ensued pertaining to Fourth of July events, board(committee structure,parking surcharges, sponsors, and location of fireworks. Motion to approve Recommended Action Nos. 1, 2, 4, and 5, approved 7-0. Motion to approve Recommended Action No. 3, as amended to increase parking rates also in parking structures to $20 on July 4, approved 6-1 (Green- No) F-2. (City Council) Appropriation of the General Fund Second Tier Reserve Communication from the City Administrator transmitting the following Statement of Issue: During the public hearing for the fiscal year 2006/07 budget, the City Council requested that the appropriation of second tier reserve funds be discussed at a future meeting. Funding Source: General Fund 2"d Reserve Recommended Action: Motion to: Do not appropriate any additional second tier reserve funds consistent with the approved fiscal year 2006/2007 annual budget. Deputy City Administrator Paul Emery gave a PowerPoint report and clarified error on slide 2,page 2. Discussion ensued amongst Council and staff regarding potential appropriations of the second tier reserve funds. Motion as amended to defer appropriations to midyear review with the exception of doubling beach restroom cleaning for$64,400 at this time. Approved 7-0. Directed staff to return with cost to increase downtown sidewalk cleaning and parking structure restroom cleaning. F-3. (City Council/Redevelopment Agency) Adopt City Council Resolution No. 2006-67 and Redevelopment Agency Resolution No. 364 Approving the Owner Participation Agreement(OPA)with Makallon Atlanta Huntington Beach, LLC (also known as Makar)for the Pacific City Project to be Located on a 31-Acre Site in the Main-Pier Sub-Area of the Huntington Beach Redevelopment Project, Consenting to Payment by the Redevelopment Agency of a Portion of the Costs of the Installation and Construction of a Regional Urban Runoff Treatment System and the Extension of Pacific View Avenue Communication from the Economic Development Director/Deputy Executive Director Statement of Issue: -The City of Huntington Beach (City), the Redevelopment Agency (Agency) and Makallon Atlanta Huntington Beach, LLC (Makar) (Participant) have negotiated an Owner Participation Agreement (OPA) for the Pacific City Project to be located on a 31-acre site in the Main-Pier sub-area of the Huntington Beach Redevelopment Project. The Pacific City Project is a 191,100 square feet mixed-use project that includes a 165 room, luxury boutique hotel, approximately 163,000 square feet of retail and 12,000 square feet of restaurant use, 516 condominium units above subterranean parking, surface parking, a 2.0-acre open space/park, public easement corridor, and other public improvements. The purpose of the OPA is to ATTACHMENT # 1 CITY OF HUNTINGTON BEACH FINANCIAL POLICIES FINANCIAL REPORTING AND ACCOUNTING STANDARDS ❑ The City's accounting system will be maintained in accordance with generally accepted accounting practices and the standards of the Government Accounting Standards Board and the Government Finance Officers Association. ❑ The annual financial report will be prepared within six months of the close of the previous fiscal year. The City will use generally accepted accounting principles in preparing the annual financial statements and will attempt to qualify for the Government Finance Officers Association's Excellence in Financial Reporting Program. ❑ The City will strive for an unqualified audit opinion. An unqualified opinion is rendered without reservation by the independent auditor that financial statements are fairly presented. ❑ The City will contract for an annual audit by a qualified independent certified public accounting firm. The independent audit firm will be selected through a competitive process at least once every five years. The contract period will be for an initial period of three years, with two one-year options. BUDGETING ❑ The budget will be prepared consistent with the standards developed by the Government Finance Officers Association and California Society of Municipal Finance Officers. In addition, a summary version will be provided to the public in a user-friendly format. ❑ The City will maintain a balanced operating budget for all funds with estimated revenues being equal to, or greater than, estimated expenditures, and with periodic City Council reviews and necessary adjustments to maintain balance. ❑ On-going revenues will support on-going expenditures. Revenues from one-time or limited duration sources will not be used to balance the annual operating budget. ❑ Support function appropriations will be placed in the department in which they are managed. GENERAL FUND BALANCE ❑ The General Fund reserve (designation) will be a minimum of seven percent (7%) of the General Fund budget. In addition, a second tier reserve will consist of the net accumulation of amounts that were in excess of the 7% reserve (designation) and remained in the General Fund after application of the financial policy that immediately follows. This second tier reserve will be used to balance fie budget fluctuations. ❑ Allocation of the audited General Fund balance in excess of the above reserves (designations) wi4t may be as follows: ■ 25 percent for capital projects (transferred to the Capital Projects Fund) ■ 25 percent for Infrastructure (transferred to the Infrastructure Fund) qW 50 percent to increase the 2"d tier reserve ❑ All supplemental appropriations from the General Fund minimum reserve that cannot otherwise be funded during the current fiscal year operating budget must meet one of the three following criteria: ■ It is an unanticipated emergency. ■ It is required to implement a Memorandum of Understanding (MOU) or a mandate. ■ It is a new expense that is offset by related revenues. ❑ Any unanticipated and unrestricted revenues received during the fiscal year will be added to the General Fund fund balance. Page 1 of 3 Updated 6/9105 CITY OF HUNTINGTON BEACH FINANCIAL POLICIES APPROPRIATION AUTHORITY ❑ The City Council is the appropriation authority for the City Budget. As required by state law, appropriations expire at the end of each fiscal year. NON-DEPARTMENTAL BUDGET ❑ The City shall maintain a non-departmental budget that is used for expenditures that do not apply to a specific department, are Citywide in nature, or shared by several departments. The Administrative Services Director and City Administrator shall be responsible for administration of this budget. OPERATION OF THE CAPITAL PROJECTS FUND ❑ The Capital Projects Fund will only be used to budget for, and construct, capital improvement projects identified in the City's five year Capital Improvement Plan. ❑ Savings from completed capital improvement projects will be retained for use on other infrastructure projects. ❑ Interest earned on idle funds in the Capital Projects Fund will be retained for use on other infrastructure projects. ENTERPRISE FUNDS ❑ An Enterprise Fund is a type of proprietary fund used to report an activity for which a fee is charged to external users for goods or services. The City will set users fees for each enterprise fund at a rate that fully recovers the direct and indirect costs of providing service. ❑ The City will adjust user fees as necessary to ensure that enterprise funds do not collect revenues at a rate in excess of the fund's operating, capital, and reserve requirements. ❑ Enterprise funds will be supported by their own rates and not subsidized by the General Fund. ❑ Enterprise funds will pay their share of overhead services provided by the General Fund. SPECIAL REVENUE FUNDS ❑ A Special Revenue Fund is used to account for the proceeds of specific revenue sources that are restricted to expenditure for specified purposes. ❑ The City Council will establish which revenues require placement into a special revenue fund. ❑ The City Council will establish which expenditures will be expensed to each special revenue fund. DEBT ISSUANCE & MANAGEMENT ❑ The City will not use long-term debt to pay for current operations. ❑ The City will strive to construct capital and infrastructure improvements without incurring debt. Debt financing will be considered for capital and infrastructure improvements when one or more of the following circumstances exist: ■ When the term of the debt does not extend beyond the useful life of the improvements; ■ When project revenues or specific resources will be sufficient to service the long-term debt; ■ When the cost of debt is less than the impact of the cost caused by delaying the project. CHARGES & USER FEES ❑ "User Fees" are fees for services that are exclusively provided by the City and cannot legally exceed the cost of the service provided nor the statutory limit (if lower). User Fees will be reviewed and/or revised periodically by the City Council. User Fees that do not recover all direct and indirect costs of service will be clearly identified and must be approved by the City Council. Page 2 of 3 Updated 6/9/05 CITY OF HUNTINGTON BEACH FINANCIAL POLICIES ❑ "Charges" are fees that have no statutory limit and typically are set at"market rates" since the public can choose to obtain these services from other sources. Charges will be reviewed and/or revised periodically by the City Council. Charges that do not recover all direct and indirect costs of service will be clearly identified and must be approved by the City Council. ❑ The City Council will be presented annually with a list of all User Fees and Charges indicating when they were last changed. ❑ Fees for infrastructure improvements required by new development will be reviewed annually to ensure that the fees recover development related expenditures. CAPITAL MANAGEMENT ❑ The City will prepare a five year Capital Improvement Plan. The plan will be developed biannually and updated annually. The Capital Improvement Plan will include current operating maintenance expenditures, funding to support repair and rehabilitation of deteriorating infrastructure, and the construction of new infrastructure projects. ❑ Prior to planning the construction of new infrastructure, the improvement's future operating, maintenance, and replacement costs will be forecast and matched to available revenue sources in the operating budget. Page 3 of 3 Updated 6/9/05 ATTACHMENT #2 nDV> -- 7-z U, "M '"A µ m d'e YH g & N "+ s,. 9, ... f f 4, ........... � f u: ........ ........ ggr� r�r" Ila 0 } m 000, gq ...'• 0,NIXON �� q P F f/ ASS"000 3�ez 0 f Q89 h� IP r� a 4 ?6l0 '0 � ` _-�5 s o � m 00 4 00, 74- ✓�rf WK 1 8 2-0000I zc R"a z - ! ✓/ w � Prr � es �rvec ier 511 n ue N Z , r . M � yRaw- II C ?a j ry "Ali w, ..... an%,F 1 71, ` .. M / .. - -. .-.. _. - ._._. - ,. RCA ROUTING SHEET INITIATING DEPARTMENT: Administration SUBJECT: Appropriation of Second Tier Reserve COUNCIL MEETING DATE: October 16, 2006 RCA ATTACHMENTS STATUS Ordinance (w/exhibits & legislative draft if applicable) Attached ❑ Not Applicable ❑ Resolution (w/exhibits & legislative draft if applicable) Attached ❑ Not A plicable ❑ Tract Map, Location Map and/or other Exhibits Attached ❑ Not Applicable ❑ Contract/Agreement (w/exhibits if applicable) Attached ❑ (Signed in full by the City Attorney) Not Applicable ❑ Subleases, Third Party Agreements, etc. Attached ❑ (Approved as to form by City Attorney) Not Applicable ❑ Certificates of Insurance (Approved by the City Attorney) Attached ❑ Not Applicable ❑ Fiscal Impact Statement (Unbudgeted, over $5,000) Attached ❑ Not Applicable ❑ Bonds (If applicable) Attached ❑ Not A plicable ❑ Staff Report (If applicable) Attached ❑ Not Applicable ❑ Commission, Board or Committee Report (If applicable) Attached ❑ Not Applicable ❑ Findings/Conditions for Approval and/or Denial Attached ❑ Not Applicable ❑ EXPLANATION FOR MISSING ATTACHMENTS REVIEWED RETURNED FORWARDED Administrative Staff Deputy City Administrator Initial Q� City Administrator Initial City Clerk ( ) EXPLANATION FOR RETURN OF ITEM: (Below Use Only) RCA Author: PE APPROPRIATION OF SECOND TIER RESERVE City Council Meeting October 16, 2006 Financial Policy Allocation of the audited General Fund balance in excess of the seven percent reserve may be as follows: . 25 percent for capital projects • 25 percent for Infrastructure • 50 percent to increase the 2nd tier reserve /Q /6l°6 D/ � �.. .:: / 1400�000 '.'fir A2iq y�, Q „/•ii�G��$ !/ d � f, r 3 0 O0f000kA / r ' , M 0©f! IT m i o:- Al aSBTY Ztii�TlS@* rl s /r66 , 14 a a ��i1V�,VU / G�//" ��#EA��r`L,����,../frr,•'. r_,,..•.f• i'��/ � ,;,,, ,,,,.. APPROPRIATION OF SECOND TIER RESERVE One-Time Expenditures - Residential Pavement Overlay - Current backlog of$1,950,000 - Tree Petition Streets - 80 Street Segments Unfunded - Storm Drain Improvements - Allocation of$894,000 from 2nd tier reserve - Energy Efficiency Assessment . Final Report and Implementation Plan pending 2 APPROPRIATION OF SECOND TIER RESERVE One-Time Expenditures (Cont.) . Sister City Anniversary . 25t" Anniversary - $6,000 for one time expenses . Downtown Street Improvements . $2.5 million budgeted in FY 2006/07 . Central Park Restroom Doors . Scheduled for Installation in January 2007 APPROPRIATION OF SECOND TIER RESERVE On Going Expenses . Graffiti Abatement . Comprehensive report available in March 2007 . Bridge Assessments . $200,000 budgeted in FY 2006/07 for assessment . Beach Restroom Cleaning . Enhancements estimated at $64,400 . Main Street Promenade Parking Structure Restrooms . Recommendations of Ad-Hoc Committee scheduled for November 2006 3 APPROPRIATION OF SECOND TIER RESERVE rOn Going Expenses (Cont.) . Main Street Sidewalk Cleaning . Recommendations of Ad-Hoc Committee scheduled for November 2006 • Beach Maintenance . Annual service level review concurrent with budget process • Huntington Beach Playhouse . On-going discussions with Playhouse representatives APPROPRIATION OF ,., SECOND TIER RESERVE IFIF Strategic Plan . On August 26, 2006, the City Council adopted the City's Strategic Plan Vision and Goals. • Council directed staff to return with a plan identifying the strategies and projects to implement the vision and goals in late 2006. 4 APPROPRIATION OF SECOND TIER RESERVE OWN Strategic Plan Projects include: • Police Firing Range • Heil Fire Station Relocation and the update to the Central Net Training Facility are being considered in the implementation plan • Each of these projects has funding needs that could potentially be addressed via the 2nd tier reserve. APPROPRIATION OF SECOND TIER RESERVE Staff Recommended Action Do not appropriate any additional second tier reserve funds consistent with the approved fiscal year 2006/2007 annual budget. Alternative Action(s): ,. Defer appropriation of additional second tier reserve funds until mid-year, after the City's annual financial statements have been audited and the general fund balance has been determined, or 2. Direct staff to appropriate second tier reserve funds for "one time" expenditures as determined by the City Council, or a. Direct staff accordingly. 5 The End 6