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Home My WebLink About75F-1 - PH - 2016-17 BUDGETREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: JUNE 7, 2016 TITLE: PUBLIC HEARING — FISCAL YEAR 2016 -17 CITY BUDGET (STRATEGIC PLAN NO. 4,2A) CITY MANAGE RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: _-•c• ❑ As Recommended ❑ As Amended ❑ Ordinance on 1" Reading ❑ Ordinance on 2ntl Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER 1. Adopt an ordinance appropriating funds for the General Fund and various other City Funds, for fiscal year commencing July 1, 2016. 2. Adopt a Seven -Year Capital Improvement Program (CIP) beginning fiscal year 2016 -17 through fiscal Year 2022 -23 per Orange County Transportation Authority (OCTA) Measure M2 eligibility requirement. 3. Adopt a resolution to amend and reestablish the City's basic classification and compensation plans. On May 17, 2016, the City Council was presented with the City Manager's proposed budget for fiscal year 2016 -17. The proposed budget fulfills the City's purpose of providing quality service and enhancement of safety, livability and prosperity for our community. In alignment with the seven Strategic Plan goals of Community Safety; Youth, Education and Recreation; Economic Development; City Financial Stability; Community Health, Livability, Engagement & Sustainability; Community Facilities & Infrastructure; and Team Santa Ana. The proposed budget includes the addition of new and expanded programs and services such as: expanded youth programs for literacy, computer usage and summer programs; enhanced public safety including six additional police officer positions; funding for Economic Development Public /Private partnerships; support for Community Engagement and Partnership for Safety & Greater Prosperity; and investment in City facilities such as the Santa Ana Regional Transportation Center (SARTC), 75F -1 -1 Public Hearing — Fiscal Year 2016 -17 City Budget June 7, 2016 Page 2 Proposed City Budget FY 2016 -17 The total annual City proposed budget for fiscal year 2016 -17 is $513,887,000. The proposed budget incorporates all funded appropriations related to the following City Funds: General Fund, Internal Service, Enterprise, Special Revenue, Community Development, and Capital Funds. The proposed 2016 -17 General Fund budget is $228,970,000 and equates to approximately 45% of the total City proposed budget. The General Fund supports those functions most commonly associated with city government such as police, fire, recreation, library, planning and building, street maintenance and general City administration. The proposed budget includes approximately $11 million - $13 million in supplemental requests and additional assigned services /programs that are in alignment with the City's Strategic Plan, as outlined below: Strategic Plan Goal(s) Amount • Community Safety $3.3 million • Youth, Education and Recreation $1.1 million • Economic Development $3.0 million • City Financial Stability $2.5 million to $4.5 million • Community Health, Livability, Engagement and Sustainability $600k • Community Facilities & Infrastructure $250k • Team Santa Ana $240k Additionally, the proposed budget incorporates matching funds for the Community Oriented Policing Services (COPS) grants for ten police officers and reoccurring expenditures totaling approximately $2.5 million for the five -year Strategic Plan which commenced July 1, 2014. The Strategic Plan provides funding for various programs and services including a community policing survey, youth sports scholarships, community volunteer /internship program, and additional resources to extend the life of existing City infrastructure. With the City's efforts to foster an environment of transparency and citizen engagement, five Community Budget meetings were conducted during April 2016 through May 2016. Based on Community Budget Meetings and City Council feedback, the following recommendations are included in the proposed budget: • Reallocating two part -time Rangers for two full -time Park Rangers to enhance park safety; • Expansion of Recreation Center Hours for youth programs /activities; • Increase support for safety at the Main Library; • Addition of Code Enforcement Officers to ensure community livability and; • Addition of an Asset Management Analyst to manage the City's capital assets 75F -1 -2 Public Hearing — Fiscal Year 2016 -17 City Budget June 7, 2016 Page 3 Workforce Changes Summary Proposed workforce changes included in the City's fiscal year 2016 -17 budget total a net addition of five positions. This includes the addition of six Police Officers for community policing and prevention programs, deletion of eight Correctional Officers and two Correctional Supervisors, reallocating two part -time Park Rangers into two full -time Park Rangers for park safety, two Code Enforcement Officers to enhance public safety and an Asset Management Analyst for inventory and management of all capital assets. Capital Improvement Program The proposed City's Capital Improvement Program for fiscal year 2016 -17 totals $45,309,512. The program includes the following initiatives: continued development of the Streetcar Project; traffic improvements including the Safe Mobility Santa Ana program, Safe Routes to Schools and Bike Lane Projects; park improvements to bike trails, playground equipment and installation of security lighting and cameras for park safety; street improvements for arterial /residential streets and sidewalk improvements; and significant funding in public utility improvements. The Seven - Year CIP of $119,051,812 from fiscal year 2016 -17 to 2022 -23 includes utilizing OCTA Measure M2 funding for street improvements over the next seven years. STRATEGIC PLAN ALIGNMENT Approval of this item allows the City to meet Goal #4 - City Financial Stability, Objective #2, (provide a reliable five -year financial forecast that ensures financial stability in accordance with the strategic plan), Strategy A (adopt a budget that is in alignment with the financial forecast and strategic plan). FISCAL IMPACT With approval of the proposed fiscal year 2016 -17 budget, $513,887,000 will be appropriated to the City's various funds, departments, programs and enterprise activities. Of those amounts, $228,970,000 will be appropriated to the various General Fund operating departments. APPROVED AS TO FUNDS AND ACCOUNTS: Francisco Gutierrez Executive Director Finance and Management Services Agency Exhibits: 1. Ordinance 2. Resolution 75F -1 -3 75F -1 -4 imf 05124/2016 ORDINANCE NO. NS -XXX AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROPRIATING MONIES TO THE SEVERAL OFFICES, AGENCIES, AND DEPARTMENTS OF THE CITY FOR FISCAL YEAR BUDGET PERIOD COMMENCING JULY 1, 2016 THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES ORDAIN AS FOLLOWS: Section 1. The City Council of the City of Santa Ana hereby finds, determines, and declares as follows: A. The City Manager has prepared and submitted to the City Council, pursuant to Section 605 of the City Charter, a proposed budget for expenditures for the fiscal year commencing July 1, 2016, B. In accordance with Section 606 of the City Charter, a public hearing has been held upon the proposed budget of expenditures after notice of such public hearing had been published in the manner prescribed in Section 606 of the City Charter. C. The proposed budget of expenditures duly submitted and considered as herein stated, together with any supplemental revisions and amendments thereto, was approved, adopted, and fixed by the City Council as the budget of the City for fiscal year 2016 -2017, commencing July 1, 2016, in the amounts and for the funds, purposes, functions, department activities, and programs as therein set forth, including the Seven -Year Capital Improvement Program Plan update per Orange County Transportation Authority Measure M2 eligibility requirement, The adopted budget, including any supplemental revisions and amendments, together with a copy of the appropriation ordinance, shall be placed In the official files of the Clerk of the Council. Section 2. There are hereby appropriated to the several offices, agencies, and departments of the City, being the respective object and purposes specified in that certain document entitled "Fiscal Year 2016 -2017 City Budget', a copy of which is on file in the Office of the Clerk of the Council, out of the various funds of the City for fiscal year 2016 -2017, the several amounts stated as proposed expenditures from such funds, respectively, in those columns of the Budget that are headed "FY 16 -17'. Each aggregate of expenditures so specified in the Budget for the fiscal year for each program shall be deemed to be an appropriation for a single object and purpose within EXHIBIT 1 Ordinance No. NS -xxx Page 1 of 3 75F -1 -5 Jmf 05/24/2016 the meaning of Section 609 of the City Charter, except that as to any office, department, or agency of the City for which more than one program is designated in Section 2 (General Fund Operating Budget) of the Budget, the aggregate expenditure authorized for all programs in Section 2 of each such office, department, or agency shall be deemed to be an appropriation for a single object and purpose within the meaning of Section 609 of the City Charter. Section 3. The appropriations hereby made shall constitute the maximum expenditures authorized for the several offices, agencies, and departments opposite which the amounts of such appropriations are shown in the Budget. Section 4. No warrant shall be issued or indebtedness incurred for any purpose that exceeds the unexpended balance of the appropriations established by this ordinance, unless such appropriation shall have been amended or supplemented by the City Council in the manner set forth in Section 609 of the City Charter. The City Manager is hereby authorized to make revisions between the items included within any such appropriation if, in his opinion, such revisions are necessary and proper. Section 5. In accordance with Governmental Accounting Standards Board Statement 54, the City Manager or his designee is hereby authorized, as of the date of this ordinance, to allocate assigned governmental funds' balances to specific programs and activities as deemed necessary and proper. Section 6. The Executive Director of Finance and Management Services is hereby authorized to transfer monies in accordance with the Interfund Transfers listed in the Budget in such amounts and at such times during the fiscal year as he may determine necessary to the competent operation and control of City business, except that no such transfer shall be made in contravention of State law or City ordinance or exceed in total the amount stated herein or as amended by the City Council. Section 7. One certified copy of this appropriation ordinance together with a certified copy of each amendment thereto shall be transmitted by the Clerk of the Council to the Executive Director of Finance and Management Services. Section 8. The City Council of the City of Santa Ana hereby adopts the updated Seven -Year Capital Improvement Program, as set forth in the 2016 -2017 City Budget. Section 9. Upon and from the effective date of this ordinance, expenditures of monies appropriated hereby are authorized beginning July 1, 2016. Section 10. The Clerk of the Council shall cause the title of this ordinance to be published as required by law. Ordinance No. NS -xxx Page 2 of 3 75F -1 -6 jmf 0512412016 Section 11, All presently applicable documentation pertaining to the number, titles, qualifications, powers, duties, or compensation of officers or employees of the City, which has been previously approved by resolution or order of the City Council and which is currently on file with the Executive Director of Personnel Services, is incorporated herein and is hereby approved. The City Manager is authorized to create, alter, or abolish any position of employment, or the number, title, qualifications, powers, duties, or compensation thereof, when such action is appropriate to promote the efficiency of the City administrative organization; provided, however, that no such action shall be effective unless and until approved by resolution or order of the City Council. ADOPTED this day of APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney By: Lisa Storck Assistant City Attorney AYES Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers 2016. Miguel A. Pulido Mayor CERTIFICATE OF ATTESTATION AND ORIGINALITY I, MARIA D. HUIZAR, Clerk of the Council do hereby attest to and certify the attached Ordinance No. NS -XXX to be the original ordinance adopted by the City Council of the City of Santa Ana on , and that said ordinance was published in accordance with the Charter of the City of Santa Ana. Date Clerk of the Counci City of Santa Ana 75F -1 -7 Ordinance No. NS -xxx Page 3 of 3 75F -1 -8 LAR 6/7/16 RESOLUTION NO. 2016- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA TO AMEND THE CITY'S BASIC CLASSIFICATION AND COMPENSATION PLANS TO EFFECT CERTAIN CHANGES, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1: The City Council hereby finds, determines and declares as follows: A. Section 1004, Article X of the City Charter of the City of Santa Ana requires the City Manager to prepare, install and maintain a position classification and pay plan subject to civil service rules and regulations and the approval of the City Council. B. On June 16, 2015, the City Council adopted Resolution No. 2015 -026 amending and re- establishing the Basic Classification and Compensation Plan for all Full -Time and Part -Time Classifications of Officers and Employees of the City of Santa Ana. C. On December 15, 2015, the City Council adopted Resolution No. 2015- 069 which amended Resolution No, 2015 -026 as to the City's Executive Management ( "EM ") Classification to provide a salary increase consistent with that provided to other City bargaining units. D. On January 19, 2016, the City Council adopted Resolution No. 2016 -005 which amended Resolution No. 2015 -026 as to the salary rate range for the EM Classification of Deputy City Manager from EM -41 to EM -44. E. On March 1, 2016, the City Council adopted Resolution No, 2016 -015 which amended Resolution No. 2015 -026 as to various classifications and compensation throughout the City based upon the Personnel Department's mid -year review. F. The City Council has amended and reestablished the Basic Classification and Compensation Plans on numerous occasions since adoption. G. With the adoption of the Annual Budget for Fiscal Year 2016 -2017, the City Council authorized certain organizational, staffing, and compensation changes which affect a number of classification titles in the City's Basic Classification and Compensation Plans. Resolution No. 2016 -XXX Page 1 of 3 Exhibit 2 75F -1 -9 H. To encourage unrepresented Executive Management (EM) employees to participate in the City's 457 deferred compensation plan, the City Manager proposes changes in the Cash -in -lieu Benefits language to clarify that unused Cash -in -Lieu Benefits can be transferred to the 457 deferred compensation plan on a voluntary basis. In addition, it is recommended that the language be clarified to comply with medical insurance requirements as set forth in the Affordable Care Act. I. It is now desired to amend Council Resolution No. 2015 -026, as amended, in order to effect these changes, as shown below: Section 2: The Santa Ana City Council amends Resolution No. 2015 -026, Exhibit "A" Section 4 "Health and Welfare Benefits' subsection D "Cash -in -Lieu of Benefits" as follows (added language is underlined and language to be deleted is struck): A. Executive Management (EM) employees will be eligible to receive cash (subject to taxation as wages) through the cafeteria plan if they either opt -out of receiving one ofzhe- apt; anal, benefits, provided- t#reugh -toe -plan medical insurance after providing proof of other group medical coverage under a spouse /domestic partners non City sponsored plan, or if they choose optional benefits that do not cost as much as the maximum dollar amount they received through the plan. Any unused cash -in -lieu benefits can be transferred to the 457 deferred compensation plan on a voluntary basis. Section 3: The Santa Ana City Council amends Resolution No. 2015 -026, Exhibit "F as follows: A. Adding the following full time classification titles at the monthly seven -step salary rate range indicated: 7 -Step Salary Rate Ranne (SRR) Effective 07/01/1.6 Classification Title Monthly Salary SSR Minimum - Maximum Asset Management 665 $5356 - $7176 Analyst` DNA Coordinator* 595 $3803 - $5101 Zoo Operations Coordinator` 619 $4278 - $5734 *Includes 2.5% Salary Increase effective 7/1/16. Does not include the 0.25% RHS Plan Base Premium. Resolution No. 2016 -XXX Page 2 of 4 75F -1 -10 Section 4: The Santa Ana City Council amends Resolution No. 2015 -026, Exhibit "D" as follows: A. Adjusting the salary for the following full time classification title at the month seven -step salary rate range indicated: Classification Title 5 -Step Salary Rate Range (SRR) Effective 07/01/16 FROM TO SSR Min -Max SSR Min -Max Police Photo /Video 631 $4533 - $5515 646 $4882 - $5934 Specialist`s "Includes 2.5 % Salary Increase effective 7/1/16 Section 5. That except as amended by this Resolution, all other provisions of Resolution No. 2015 -026, as amended, shall remain in full force and effect. Section 6. This Resolution is operative from and after July 1, 2016. ADOPTED this 7th day of June, 2016. APPROVED AS TO FORM: Sonia R. Carvalho City Attorney �Alr Laura A. Rossini Senior Assistant City Attorney Resolution No. 2016 -XXX Page 3 of 4 Miguel A. Pulido Mayor 75F -1 -11 AYES: NOES: ABSTAIN: NOT PRESENT: Councilmembers Councilmembers Councilmembers Councilmembers CERTIFICATE OF ATTESTATION AND ORIGINALITY I, MARIA D. HUIZAR, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2016 to be the original Resolution adopted by the City Council of the City of Santa Ana on June 7, 2016, Date: Clerk of the Council City of Santa Ana Resolution No. 2016 -XXX Page 4 of 75F -1 -12