HomeMy WebLinkAbout65A - CARRYOVER FUNDING TO FYREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
SEPTEMBER 17, 2019
TITLE:
APPROVE APPROPRIATION ADJUSTMENTS
FOR CARRYOVER UNSPENT AMOUNTS
FROM FISCAL YEAR 2018-19 TO FISCAL
YEAR 2019-20 AND APPROPRIATE $4.0
MILLION OF ADDITIONAL REVENUE FOR
FISCAL YEAR 18-19
(STRATEGIC PLAN NO.4, 1)
CITY MA AGER
RECOMMENDED ACTION
CLERK OF COUNCIL USE ONLY:
❑ As Recommended
❑ As Amended
❑ Ordinance on 151 Reading
❑ Ordinance on 2n° Reading
❑ Implementing Resolution
❑ Set Public Hearing For
CONTINUED TO
FILE NUMBER
Approve an Appropriation Adjustment to reduce the FYI 8-19 budget for unspent amounts
to be carried over to FYI 9-20.
2. Approve an Appropriation Adjustment to increase the FY19-20 budget for amounts carried
forward from FYI 8-19.
3. Approve an Appropriation Adjustment to move FY 19-20 budget in the Addressing
Maintenance Enhancing Services (AMES) fund, from the Reserve Appropriations account
to the appropriate accounts for expenditure.
4. Approve an Appropriation Adjustment in the amount of $4.0 million based upon the
availability of Revenue within the General Fund (Fund 011) as follows: Roadway
Maintenance ($2.0 million) for expenditure during FY 2018-19, Quality of Life Team (QOLT)
to be carried to FY 19-20 for expenditure ($1.0 million), and additional Youth Spending via
a transfer to the Cannabis Public Benefit Fund for expenditure during FY 19-20 ($1.0 million)
DISCUSSION
Carryover budgets from FY 18-19
It is common for a City to budget for non -recurring (one-time) expenditures, such as construction
projects, which are not completed by the close of the fiscal year on June 30. When this happens,
the City Council may 'carryover" the unspent budget from one fiscal year to the next to provide
resources for project completion. We do not request carryover for recurring operating budget
amounts, as each annual budget already includes provision for operational expenses.
65A-1
Appropriation Adjustments to Carryover Unspent Amounts from FY18-19 to FYI 9-20
September 17, 2019
Page 2
The City Council adopts a budget one year at a time, and the City's Charter requires City Council
approval for appropriation adjustments. Increasing the current year budget for unspent amounts
carried over from the prior year constitutes an appropriation adjustment.
A list of requested carryovers is attached to this report (Exhibit 1). The list includes the account,
description, amount, and expenditure status. All requests on the list were discussed with City
departments and vetted to ensure funds are available and the allocation is non -recurring.
Each request on the list includes the amount available one month after the end of FYI 8-19. Staff
will continue paying FYI 8-19 invoices through September, and will continue reconciling FY18-19
accounts through October. The FY18-19 ledger will not be final and closed until the financial
statements have been audited in November. Therefore, the requested carryovers are "maximum"
amounts. The actual amounts processed for carryover will be limited to the available budget once
the FYI 8-19 ledger is closed (Exhibit 2).
Additionally, a list of projects has been attached (Exhibit 3) for unspent items in the AMES
(Addressing Maintenance Enhancing Services) Fund. The FYI 9-20 budget already includes an
allocation to re -budget unspent monies; however, that allocation was placed in "Reserve for
Appropriations" (Reserve). Staff requests an appropriation adjustment to move the unspent project
allocations from the "Reserve" account to the appropriate accounts for expenditure.
Unanticipated Revenue - FYI 8-19 Revenue and proposed reclassification/transfers
The FY18-19 books have not yet been closed and audited. However, actual receipts to date
indicate the General Fund will receive at least $4.0 million more revenue than budgeted for FYI 8-
19. Additional revenue includes but not limited to the following: $2.0 million of tax increment
distributed from the Redevelopment Property Tax Trust Fund (primarily related to interest savings
from the 2018 tax allocation bond refunding), $1.6 million of various planning and building fee
revenue(s), and $0.4 million from paramedic services charges (Exhibit 4).
Due to the public demand for service, at this time staff recommends conservatively appropriating
$4.0 million (Exhibit 4) of the additional revenue as follows:
Amount to Appropriate Program to be funded
• $2.0 million Roadway maintenance
• $1.0 million Additional youth spending set -aside in the Cannabis
Public Benefit Fund
• $1.0 million Quality of Life Team (QOLT) activities
Once the books are closed and audited, the City Council may review the General Fund balance to
determine if any additional amounts should be appropriated.
Each year, the City is required to spend General Fund money for roadway maintenance in order to
receive restricted revenue for street projects. In addition, there is public demand for various streets
to be immedidately repaired. Staff recommends reclassifying up to $2.5 million of FY18-19
roadway expenditures from the Gas Tax Fund to the General Fund to ensure the City has met its
65A-2
Appropriation Adjustments to Carryover Unspent Amounts from FY18-19 to FY19-20
September 17, 2019
Page 3
spending obligation. In turn, the unused Gas Tax revenue will be available for high priority street
repair during FYI 9-20. With the $2.0 million appropriation requested above, the General Fund will
have sufficient budget to reclassify up to $2.5 million in Street Repair expenditures (Gas Tax —
Fund 029 and Select Street Construction — Fund 059 funds).
The City Council established a Cannabis Public Benefit Fund to spend one-third of adult -use and
commercial cannabis tax revenue on youth programs, and one-third on enforcement. Ordinance
No. NS-2959 requires contributions to the Public Benefit Fund beginning in FYI 9-20. To date, the
City has collected $4,615,664 of FY18-19 tax revenue for adult -use and related commercial
business activities, which was programmed for General Fund purposes. One-third of that tax
revenue is $1,538,555. The City Council may consider using a portion of the unexpected General
Fund revenue outlined above to make an additional FY 19-20 contribution of $1.0 million to the
Cannabis Public Benefit Fund, for youth spending.
There is a public desire for more efforts to address the impacts of homelessness. Staff
recommends appropriating $1.0 million from the unexpected revenue for FYI 9-20 QOLT efforts.
STRATEGIC PLAN ALIGNMENT
Approval of this item supports the City's effort to meet Goal #4 — City Financial Stability, Objective
#1 — Maintain a stable, efficient and transparent financial environment.
FISCAL IMPACT
Carryover Appropriation FY 2018-19 to FY 2019-20
There is no net fiscal impact associated with this action related to carryover of unspent
appropriations. The previously authorized expenditures will simply be spent in a later period, which
only affects the timing of cash flow.
Appropriation Adjustment
Upon Council Approval, the following budgets will
20 (Exhibit 3 & 4):
FY 2018-19
Fund / Department
• AMES — Fund 050
Funding Source:
General Fund / Miscellaneous
Appropriate to:
• General Fund / Public Works Budget
• General Fund / Community Development
• General Fund / Public Works
be augmented during FY 2018-19 and FY 2019-
Amount Activity
$1.9 million re -appropriate budget
$4.0 million Available Revenue
$2.0 million Street Repair
$0.5 million Homeless - QOLT
$0.5 million Homeless - QOLT
65A-3
Appropriation Adjustments to Carryover Unspent Amounts from FY18-19 to FY19-20
September 17, 2019
Page 4
FY 2019-20
• Transfer from the General Fund (Fund 011) to the Cannabis Public Benefit Fund (Fund 012)
- $1.0 million and appropriate $1.0 million to PRCSA Youth Services
Kathryn Dow s, CPA
Executive Director
Finance and Management Services Agency
Exhibits 1: List of requests to carryover unspent appropriations
Exhibits 2: List of requests to carryover unspent appropriations by fund
Exhibits 3: List of AMES projects with projected completion dates
Exhibits 4: Appropriation Adjustment and Transfer during FY 2018-19 and FY 2019-20
65A-4
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65A-
EXHIBIT 2
Preliminary List of Carry Forwards By Fund
FY18-19 Balances to FY19-20
As of August 2019
Fund I Fund Name
O11
GENERAL FUND
029
SPECIAL GAS TAX
032
MEASURE M-STREET CONSTRUCTION
034
NEW TRANSPO SYS IMPR AREA E
035
NEW TRANSPO SYS IMPR AREA
051
CAPITAL OUTLAY FUND
052
STRATEGIC PLAN PROJECTS
055
SEWER CONNECTION FEE
056
SANITARY SEWER SERVICE
057
FED CLEAN WATER PROTECTION ENT
059
SELECT STREET CONSTRUCTION
O60
WATER REVENUE
067
REGIONALTRANSP CENTER
O69
SANITATION FUND
070
EQUIPMENT REPLACEMENT
124
ORANGE COUNTY GRANTS
125
OES UASI
127
D.O-I. GRANT FUND
130
HOME PROGRAM FEDERAL GRANT
135
COMMUNITY DEV BLOCK GRANT
147
FEDERALAID SAFETY PROGRAM
148
TRAFFIC SYSTEM MGMT GRANT
165
OFFICE OF SAFETY GRANT
169
RECREATION GRANTS FUND
312
RESIDENTIAL DEVELOP DISTRICT
403
SCAG GRANTS
405
FEDERAL HOPWA PROGRAM GRANT
417
CDA INCLUSIONARY HOUSING FEE
Budget
Expenditures I
August 2019
I Carry Forward
280,910,936
258,676,053
22,234,883
1,126,400
16,560,070
9,163,390
7,396,680
1,546,600
33,107,338
13,997,707
19,109,631
15,278,300
795,348
506,602
289,746
288,746
1,589,036
564,071
1,024,965
1,024,965
3,864,471
5,812,447
(1,947,976)
31,400
2,522,456
2,016,416
506,040
12,500
7,974,478
187,158
7,787,320
7,391,600
8,115,693
7,060,851
1,054,842
563,200
7,141,893
3,274,113
3,867,780
1,438,700
23,652,064
6,476,984
17,175,080
17,302,300
60,916,132
50,685,781
10,230,351
1,421,200
1,956,323
1,397,795
558,528
43,900
7,798,766
6,718,240
1,080,526
195,000
1,297,325
287,698
1,009,627
37,400
1,858,240
693,545
1,164,696
30,900
6,422,589
1,629,551
4,793,038
2,800,000
539,742
491,385
48,357
56,700
4,622,352
1,102,518
3,519,834
3,686,500
13,492,923
3,964,278
9,528,645
8,220,300
1,200,877
316,037
884,840
769,500
13,830,830
1,059,700
12,771,130
11,859,900
722,419
553,455
168,965
168,964
311,628
167,059
144,569
83,700
4,019,674
877,449
3,142,225
200,000
292,329
85,317
207,012
128,300
23,720
2,992
20,728
20,728
14,922,260
4,568,609
10,353,651
555,500
(A)
(B)
(C)
(D)
Notes:
(A) Available balance is negative as a result of $5.5 million expenditures for Streetlight project. City Council approved a financing agreement
for $8.6 million in April 2018 to fund the project, but no appropriation adjustment was processed.
(B) Approximately $0.6 million will be reclassified for on -call pavement maintenance.
(C) Approximately $90,000 of FY17-18 expenditures were posted to FY38-19.
(D) City received approximately $100,000 program income and $68,000 de -obligated CHDO funds from granting agency during FY18-19 for which
no appropriation was processed. These funds will be added to total carry forward for FY2019-20.
65A-9
65A-10
EXHIBIT 3
List of Council Special Projects
AMES (Addressing Maintenance Enhancing Services)
Available for FY19-20
Accounting Unit
Project Activity p
Project Description
Anticipated Completion Date
Amount
05005018
16015201102
Homelessness/Communications
June 2020
180,500
05010024
16120001501
Network, data centers and software upgrade
June 2020
4,000
05010024
16120301500
Financial Budgeting Application
June 2020
88,900
05010024
16120401500
Planning & Building Permitting Application
March 2020
263,100
05005018
16015101102
Communications Equipment
June 2020
125,600
05017018
16600701022
Public Works Cl P, Asset Management
June 2020
193,900
05016018
16500001102
General Plan Update
December 2020
974,700
05017018
17600801011
SARTC Deferred Maintenance - HVAC
June 2020
75,700
Total
1,906,400
65A-11
65A-12
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65A-13
65A-14