HomeMy WebLinkAbout11C - 2ND READ ORD - ADOPT 2017-2018 BUDGETREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
JULY 5, 2017
TITLE:
ORDINANCE SECOND READING: ADOPTION
OF CITY BUDGET FISCAL YEAR 2017-18
AND ADOPT RESOLUTION TO AMEND THE
CITY'S BASIC CLASSIFICATION AND
COMPENSTATION PLAN
{STRATEGIC PLAN NO. 4, 2A} /
RECOMMENDED ACTION
CLERK OF COUNCIL USE ONLY:
APPROVED
❑ As Recommended
❑ As Amended
❑ Ordinance on 1a' Reading
❑ Ordinance on 2nd Reading
❑ Implementing Resolution
❑ Set Public Hearing For
CONTINUED TO
FILE NUMBER
1. Place ordinance (Exhibit 1) on second reading and adopt the fiscal year 2017-18 City Budget
as amended by the City Council (Exhibit 2).
2. Adopt a resolution to amend and reestablish the City's basic classification and compensation
plan (Exhibit 3).
3. Approve Carry -forward resulting from Contractual/Project savings during FY 2016-17 within
the General Fund in the amount of $65,000 as result of the inclusion of the Legal Defense
Fund program
4. Increase the City and General Fund Budget in the amount of $35,000 as a result of the
inclusion for the formation of the Police Department Oversight Commission
Alternative Option:
Adopt a resolution to approve continued funding for fiscal year 2017-2018 equal to the
expenditures from June of fiscal year 2016-2017.
DISCUSSION
On June 20, 2017, the City Council conducted the required public hearing regarding the
Proposed Fiscal Year 2017-18 City Budget (Budget) and approved the first reading of the budget
ordinance. The City Budget for FY 2017-18 totals $510,713,778 which includes appropriation in
the amount of $234,235,795 for the City's General Fund. Public comments were received and
City Council discussed additions and modification to the budget. Staff has developed a list of the
requested changes for consideration by the City Council (Exhibit 2). The following is a summary
of those changes.
11C-1
Ordinance — Second Reading: FY 17-18 Budget
July 5, 2017
Page 2
Direction was given to explore the addition of the Youth Services position. This position would be
under the Parks Recreation and Community Services Agency. In order to complete this request,
Staff has included the title of a Youth Services Supervisor to the City's Basic Classification and
Compensation Plan (Exhibit 3). Funding for this position has been identified within the existing
Agency budget from Part -Time salaries. Inclusion of this position will provide a central resource
for youth activities across all City departments.
The position of Economic Development Specialist II to the Community Development Agency has
been included in the budget and is funded through salary savings from the vacant Community
Development Agency Executive Director. This position would allow the City to provide a robust
economic development program, and assist with attraction, retention and expansion of
businesses.
The City Attorney has expressed interest, with concurrence from the City Council, to have
flexibility to utilize funds in the Contractual Services account to be available in the salaries
account to add an additional Assistant City Attorney position. The position would allow for
increased enforcement of marijuana enforcement. This service is currently provided by contract
law firms.
The City Council also provided input on including seed money for Legal Defense Fund for
immigration resources. These funds would be identified from general fund carry forward and
assigned to the Non -Departmental account.
Funding has also been included to investigate options to assist Council in making decisions
regarding the possible formation of a police review or oversight board. Funds would be included
in the City Attorney's Office budget.
Staff received a request to include the budget principles outlined in Management Partners'
Budget Stabilization Study. Upon direction from the City Council, staff will review the budget
principles and the inclusion into the City's Fiscal Policy/Principles. This would ensure that the
City's policies/principles reflect best practices in public financial management.
Alternative Option -No Budget Approval
In accordance with Section 607 of the Santa Ana City Charter (Charter), the City Council is
required to adopt a budget for the ensuing fiscal year on or before July 31. As an alternative; in
the event the second reading of the budget ordinance is not approved and thus no Budget is
adopted. It will be necessary for the City Council to adopt the said Resolution (Exhibit 4) to
ensure continued orderly operation of City Business. Specifically, Section 607 of the Charter
allows for appropriations to be in the amounts equal to the expenditures of the several
departments and/or divisions during the month of June (e.g. June 2017). Additionally, approval
of this resolution will establish a moratorium in hiring new personnel, and prevents the City from
entering into new contractual obligations.
11C-2
Ordinance — Second Reading: FY 17-18 Budget
July 5, 2017
Page 3
Furthermore, the following ordinance was introduced for first reading and City Council authorized
publication of title by a vote of 5-1 (Martinez dissented and Tinajero absent):
ORDINANCE NO. NS -2919 - 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, 2017
STRATEGIC PLAN ALIGNMENT
Approval of this item supports the City's efforts 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
The addition of the City Attorney's Office budget to investigate Police Department oversight
options will increase both the City and General Fund Budgets respectively in the amount of
$35,000. The expenditure increase is offset by a corresponding increase in the revenue account
of Earnings on Investment (01102002-58000) to $753,000. The increase in revenue is as a
result of a recent increase by the Federal Government of interest rates which impact the City's
investment portfolio in a positive manner.
With the approval of the Second Reading, the proposed fiscal year 2017-18 budget in the amount
of $510,713,778 will be appropriated to the City's various funds, departments, programs and
enterprise activities. Of those amounts, $234,235,795 will be appropriated to the various General
Fund operating departments.
Francisco Gutierrez
Executive Director
Finance and Management Services Agency
EXHIBITS: 1. Ordinance No. NS -2919
2. City Council Requested Modifications to FY 17-18 Budget
3. Resolution (City's Basic Classification and Compensation Plan)
4. Resolution (Interim funding for fiscal year 2017-18)
11C-3
11C-4
LS 6(6117
ORDINANCE NO. NS-XXXX
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, 2017
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, 2017.
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 2017-2018, commencing July 1, 2017, 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 2017-2018 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 2017-2018, the several amounts stated as proposed expenditures from such
funds, respectively, in those columns of the Budget that are headed "FY 17-18". 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
the meaning of Section 609 of the City Charter, except that as to any office, department,
Exhibit 1
Ordinance No. NS -
Page 1 of 4
11C-5
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/her opinion, such revisions are necessary and proper.
Section 5. In accordance with Governmental Accounting Standards Board
Statement 54, the City Manager or his/her 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/she 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 2017-2018 City
Budget.
Section 9. Upon and from the effective date of this ordinance, expenditures of
monies appropriated hereby are authorized beginning July 1, 2017.
Section 10. The Clerk of the Council shall cause the title of this ordinance to be
published as required by law.
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
Ordinance No. NS -
Page 2 of 4
11C-6
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 2017.
APPROVED AS TO FORM:
Sonia R. Carvalho, City Attorney
By: L
Lisa Storck
Assistant City Attorney
AYES: Councilmembers
NOES: Councilmembers
ABSTAIN: Councilmembers
NOT PRESENT: Councilmembers
Ordinance No. NS -
Page 3 of 4
11C-7
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- to be the original ordinance adopted by the City Council of
the City of Santa Ana on , 2017, and that said ordinance was
published in accordance with the Charter of the City of Santa Ana.
Date
Ordinance No. NS -
Page 4 of 4
Clerk of the Council
City of Santa Ana
11C-8
City Council Requested Modifications to Fiscal Year 2017-2018 Budget
No. Position/Service Agencv Cost Budget Impact Funding Source
A.
Youth Services Supervisor
Parks,
$88,382*
$0
Funding from
Recreation,
Part -Time salaries
Community
within Agency
Services Agency
B.
Economic Development
Community
$92,600*
$0
Savings resulting
Specialist II
Development
from Executive
Agency
Director vacancy
C.
Assistant City Attorney
City Attorney's
$240,000
$0
Funding from
Office
existing
contractual
services
D.
Legal Defense Fund
Non-
$65,000
$0
Carryforward
Departmental
from prior Fiscal
City Manager's
Year
Office
E.
PD Oversight Formation
City Attorney's
$35,000
$35,000
Increase in
Office
Investment
Income revenues
* For budgeting estimates, the fully burdened costs for the position has a start date of October 1.
Exhibit 2
11C-9
LAR 7.5.17
RESOLUTION NO. 2017 -XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SANTA ANA TO AMEND RESOLUTION NO. 2015-026 TO
EFFECT CERTAIN CHANGES TO THE CITY'S BASIC
CLASSIFICATION AND COMPENSATION PLANS.
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. The City Council has amended and reestablished the Basic Classification
and Compensation Plan on numerous occasions since adoption.
C. 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.
D. It is the City's practice to assign job titles that reflect the duties and
responsibilities of the classification and are consistent with other
classifications within the City's organizational structure as well as
comparable job titles in the labor market, while maintaining internal pay
equity relationships and attracting and retaining qualified candidates.
E. On June 20, 2017, as part of the discussion regarding consideration of the
budget for fiscal year 2017-2018, the City Council voted to add two
positions to the budget to assist in coordinating the City's youth program
and services and to strengthen economic development efforts.
Staff has recommended adding a Youth Services Supervisor—position to
the Parks,. Recreation and Community Services Agency and an Economic
Development Specialist II position to the Community Deve of pment
Agency. The Economic Development Specialist II was already part of the
City's classification and compensation plan but the Youth Services
Supervisor position needs to be added to the City's classification and
compensation plan.
Exhibit 3
Resolution 2017 -XXX
Page 1 of 3
11C-11
11C-12
G. 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 "F" as follows:
A. Adding the following full time classification titles at the monthly seven -step
salary rate range indicated:
7 -Step Salary Rate Range Effective 07/01/16
Monthly Salary
Classification Title SSR Minimum -Maximum
Youth Services Supervisor 680 $5,776.41-$7,742.31
Section 3: All salary rate range classifications are set forth in the City's "Salary
Schedule' as periodically updated.
Section 4: That except as amended by this Resolution, all other provisions of
Resolutions No. 2015-026 shall remain in full force and effect.
Section 5: This Resolution is operative from and after the date upon which it is
adopted.
ADOPTED this 5th day of July, 2017,
APPROVED AS TO FORM:
Sonia R. Carvalho
City Attorney
By: sawa,
Laura A. Rossini
Senior Assistant City Attorney
Miguel A. Pulido
Mayor
11C-13
Resolution 2017 -XXX
Page 2 of 3
11C-14
AYES: Councilmembers
NOES: Councilmembers
ABSTAIN: Councilmembers
NOT PRESENT: Councilmembers
CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, MARIA D. HUIZAR, Clerk of the Council, do hereby attest to and certify the attached
Resolution No. 2017- to be the original Resolution adopted by the City Council of the
City of Santa Ana on July 5, 2017.
Date:
Resolution 2017 -XXX
Page 3 of 3
11C-15
Clerk of the Council
City of Santa Ana
11C-16
jmf 6/21/17; revised src 6/22/17
RESOLUTION NO. 2017 -XXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SANTA ANA APPROVING INTERIM FUNDING FOR FISCAL
YEAR 2017-18
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS
FOLLOWS:
Section 1. The City Council of the City of Santa Ana hereby finds, determines and
declares as follows:
- -- --- —A Sections -604,-605, and-606=of==the=Santa-Ana-C-ity=C-harter--set=forth=a-process— - - -
to present a budget to the City Council, which includes holding a public hearing.
B. The City Manager has considered estimates of revenue from all sources
and estimates of expenditures required for the proper conduct of the -activities of the City
of Santa Ana for Fiscal Year 2017-18 and has submitted to the City Council a proposed
budget for Fiscal Year 2017-18 in accordance with the City Charter.
C. On June 20, 2017, the City Council held the required public hearing on the
budget and approved the first reading of the ordinance adopting the proposed budget for
Fiscal Year 2017-18, but also requested from staff additional changes to the budget for
consideration at the second reading at the July 5, 2017 meeting.
D. On July 5, 2017, the City Council held further budget discussions, but
determined that additional time is necessary for the evaluation and approval of the 2017-
18 budget.
E. Section 607 of the Santa Ana City Charter directs that the City Council shall
adopt a budget for the ensuing fiscal year on or before July 31, but the July 18, 2017 City
Council meeting has been cancelled, and the City Council will not meet again until August
1, 2017.
F. Accordingly, it is the intention of the City Council to grant interim spending
authority to permit the continued orderly operations of the City through August 31, 2017,
or until a budget is approved for Fiscal Year 2017-18, whichever comes first.
Section 2. To permit the continued orderly operations of the City, interim
spending authority is hereby granted through August 31, 2017, or until a budget is
approved by the City Council for Fiscal Year 2017-18, whichever comes first. If a budget
has not been approved by August 31, 2017, an extension of such authority shall be
considered by the City Council.
Exhibit 4
Resolution No. 2017 -XXX
Page 1 of 3
11C-17
jmf 6/21/17; revised src 6/22117
Section 3. All amounts necessary for the continued operation of the City for the
period specified in Section 2 are hereby appropriated for expenditure. In accordance with
Section 607 of the City Charter, on a monthly basis, such appropriations shall be in
amounts of money equal to the expenditures of the several offices, departments, and
divisions of the City during the month of June 2017.
Section 4. This Resolution shall take effect immediately upon its adoption by
the City Council, and the Clerk of the Council shall attest to and certify the vote adopting
this Resolution.
ADOPTED this day of
APPROVED AS TO FORM:
Sonia R. Carvalho, City Attorney
By: / ^VL-
hn M. Funk
Assistant City Attorney
AYES:
NOES:
ABSTAIN:
NOT PRESENT:
Councilmembers
Councilmembers
Councilmembers
Councilmembers
Miguel A. Pulido
Mayor
11C-18
2017.
Resolution No. 2017 -XXX
Page 2 of 3
jmf 6/21/17; revised src 6/22/17
CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, Maria D. Huizar, Clerk of the Council, do hereby certify the attached Resolution No.
2017- to be the original resolution adopted by the City Council of the City of Santa
Ana on .2017.
Date:
Clerk of the Council
City of Santa Ana
11C-19
Resolution No. 2017 -XXX
Page 3 of 3
11 C-20