Rancho Palos Verdes City Council
   

TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL

FROM: FINANCE DIRECTOR

DATE: AUGUST 19, 2003

SUBJECT: FY02-03 BUDGET ADJUSTMENTS

Staff Coordinator: Kathryn Downs, Accounting Manager

RECOMMENDATION:

Adopt Resolution No. 2003- , amending Resolution 2002-45, the budget appropriation for FY02-03, to increase budgeted appropriations in the General fund, Street Maintenance fund, Proposition C fund, Solid Waste fund and Bikeways fund.

BACKGROUND:

Chapter 3.32 of Title 3 of the Rancho Palos Verdes Municipal Code sets forth guidelines related to the City’s budget administration. Section 3.32.070 of the Code requires that all expenditures in excess of a program/function’s budgeted allocation must be approved by supplemental appropriation by the City Council. While compiling the FY02-03 expenditures for the City, it was determined that seven programs within the General fund, Street Maintenance fund, Proposition C fund, Solid Waste fund and Bikeways fund exceeded the amount budgeted. Therefore, a supplemental appropriation in each of these programs will be necessary to satisfy budgetary compliance. A discussion of the requested adjustments to the programs follows.

DISCUSSION:

General Fund

Building & Safety Program – Geo-technical Services

Geo-technical consultant services are used to review the need for privately initiated geo-technical project reports. The actual cost of geologic services varies each year depending upon the level of activity that occurs. The FY02-03 budget for Geo-technical Services was $120,000. Actual costs were $159,454. The City collects fees that offset this cost of service. The FY02-03 budget for Geo-technical fees was $52,700. Actual fees collected were $158,432.

Staff requests a budget adjustment in the amount of $39,454 to accommodate the increased level of geo-technical activity. The requested budget adjustment will not affect the estimated June 30, 2003 General fund balance because additional fees collected exceed the budget adjustment request by $66,278 ($158,432 actual fees collected less $52,700 fess revenue budgeted less the $39,454 budget adjustment requested).

View Restoration Program – View Restoration Consulting Services

The City utilizes consulting services to provide administrative and analytical support to the View Restoration Commission and process View Restoration/Preservation applications, petitions, and appeals. Due to a significant increase in the number of submitted City Tree Review Permit (CTRP) applications during FY02-03 and the related processing requirements, the cost of processing CTRPs substantially increased. The FY02-03 budget for View Restoration consulting services was $255,000, and actual costs were $279,978. Staff requests a budget adjustment in the amount of $24,978 to accommodate the increased level of CTRP application processing. In an attempt to reduce these costs in FY03-04, the City Council authorized staff to amend the Development Code to streamline the processing requirements for CTRPs.

General Fund Transfers Out – Transfer to COPS/LLESS Fund

The General fund subsidizes the C.O.R.E. Deputy Team. The Team’s activity is accounted for in the COPS/LLESS fund. Actual FY02-03 C.O.R.E. Deputy expenditures were $204,039. Expenditures were funded with grants totaling $115,851, interest earnings of $2,927, COPS/LLESS fund balance of $59,040, and a General fund transfer of $5,000. The remaining expenditure balance of $21,221 is not currently funded in the FY02-03 budget.

The budgeted FY02-03 General fund transfer of $5,000 was originally calculated based on an estimated June 30, 2002 COPS/LLESS fund balance available to use for the C.O.R.E. Deputy Team. The actual June 30, 2002 COPS/LLESS fund balance available for use was approximately $20,000 less than estimated. Staff requests a budget adjustment in the amount of $21,221 to transfer additional General fund monies to the COPS/LLESS fund to pay for the balance of FY02-03 C.O.R.E. Deputy Team expenditures.

Street Maintenance Fund

Street Maintenance Fund Transfers Out – Transfer to Capital Improvement Projects for the 25th Street Settlement Project

The FY01-02 budget for the 25th Street Settlement project included funding from the Street Maintenance fund in the amount of $206,390. The project was continued to FY02-03 and downsized from a total of $887,530 to $431,900. The Street Maintenance fund contribution was also downsized to $86,960. Due to uncertainty of project scope and timing, the budget for the Street Maintenance fund contribution was not carried forward to FY02-03.

The project was completed during FY02-03, at the budgeted amount. Staff requests a budget adjustment in the amount of $86,960 to authorize the funding transfer from the Street Maintenance fund to the Capital Improvement Projects fund. This adjustment will not affect the estimated June 30, 2003 Street Maintenance fund balance, as the 25th Street Settlement project funding transfer was included in FY02-03 estimated activity.

Proposition C Fund

Proposition C Fund Transfers Out – Transfer to Capital Improvement Projects Fund for the 25th Street Settlement and FY01-02 Residential Street Overlay Projects

The FY01-02 budget for the 25th Street Settlement project included funding from the Proposition C fund in the amount of $304,940. As discussed above, due to the uncertainty of project scope and timing, the budget for the Proposition C fund contribution was not carried forward to FY02-03. Staff requests a budget adjustment in the amount of $304,940 to authorize the funding transfer from the Proposition C fund to the Capital Improvement Projects fund. This adjustment will not affect the estimated June 30, 2003 Proposition C fund balance, as the 25th Street Settlement project funding transfer was included in the FY02-03 estimated activity.

FY02-03 expenditures for the FY01-02 Residential Street Overlay project included Proposition C eligible expenditures in the amount of $82,905. The Residential Street Overlay project is primarily funded with General fund monies. Staff requests a budget adjustment in the amount of $82,905 to authorize the funding transfer from the Proposition C fund to the Capital Improvement Projects fund for the Proposition C eligible expenditures. This adjustment will not affect the estimated June 30, 2003 Proposition C fund balance, as the Residential Street Overlay project funding transfer was included in the FY02-03 estimated activity.

Solid Waste Fund

Solid Waste Fund Transfers Out – Transfer to the Equipment Replacement Fund for the Purchase of Recycled Furniture

During FY02-03, the City purchased ergonomically correct furniture made from recycled materials in the amount of $70,022. The recycled furniture purchase was found to be eligible for use of restricted Solid Waste monies. The furniture was made from 75% recycled materials. Staff requests a budget adjustment in the amount of $52,516 (75% of the $70,022 purchase price) to authorize the funding transfer from the Solid Waste fund to the Equipment Replacement fund. Using Solid Waste monies to pay for a portion of the furniture purchase has un-encumbered Equipment Replacement monies that were originally funded with General fund monies. The estimated June 30, 2003 Solid Waste fund balance is $692,363.

Bikeways Fund

Bikeways Fund Transfers Out – Transfer to Capital Improvement Projects Fund for the FY01-02 Residential Street Overlay Project

FY02-03 expenditures for the FY01-02 Residential Street Overlay project included Transportation Development Act (TDA) eligible expenditures in the amount of $9,483. The Residential Street Overlay project is primarily funded with General fund monies. Staff requests a budget adjustment in the amount of $9,483 to authorize the funding transfer from the restricted Bikeways TDA fund to the Capital Improvement Projects fund for the TDA eligible expenditures. This adjustment will not affect the estimated June 30, 2003 Bikeways zero fund balance, as eligible expenditures are reimbursed by TDA grant monies.

FISCAL IMPACT:

Staff anticipates that the excess of revenues over budget and additional expenditure savings for FY02-03 will significantly offset these additional budget requests. Finance Staff has taken the initiative to ensure that these additional budget requests do not increase the appropriations continued to FY03-04.

Respectfully submitted,
Dennis McLean
Finance Director

Reviewed:
Les Evans
City Manager

RESOLUTION NO. 2003 -

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS

VERDES, AMENDING RESOLUTION 2002-45, THE BUDGET APPROPRIATION

FOR FISCAL YEAR 2002-2003, TO INCREASE THE BUDGET FOR THE APPROVED YEAR END BUDGET ADJUSTMENTS

WHEREAS, Section 3.32 of the Rancho Palos Verdes Municipal Code provides that all expenditures in excess of budgeted allocations must be by supplemental appropriation of the City Council: and

WHEREAS, on June 3, 2002, the City Council of the City of Rancho Palos Verdes adopted Resolution 2002-45, approving a spending plan and authorizing a budget appropriation for FY02-03: and

WHEREAS, certain programs included in the FY02-03 budget will have expenditures in excess of the adjusted budget; and

WHEREAS, the City Council desires that the FY02-03 budget be increased for each of these programs to assure budgetary compliance.

BE IT, THEREFORE, RESOLVED BY THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES:

The following adjustments be made to the FY02-03 budget:

Increase the General fund budget as follows:

Building & Safety #001-402-35 Professional/Technical $ 39,454

View Restoration #001-404-35 Professional/Technical $ 24,978

Transfers Out #001-391-20 Transfer to COPS/LLESS $ 21,221

Increase the Street Maintenance fund budget as follows:

Transfers Out #102-391-20 Transfer to CIP $ 86,960

Increase the Proposition C fund budget as follows:

Transfers Out #115-391-20 Transfer to CIP $ 387,845

Increase the Solid Waste fund budget as follows:

Transfers Out #113-391-20 Transfer to Equipment Replace $ 52,516

Increase the Bikeways fund budget as follows:

Transfers Out #340-391-20 Transfer to CIP $ 9,483

PASSED, APPROVED, AND ADOPTED THE 19th DAY OF AUGUST 2003.

 

___________________________
MAYOR

ATTEST:

______________________
CITY CLERK

State of California )
County of Los Angeles )ss
City of Rancho Palos Verdes )

I, JO PURCELL, City Clerk of The City of Rancho Palos Verdes, hereby certify that the above Resolution No. 2003- was duly and regularly passed and adopted by the said City Council at regular meeting thereof held on August 19, 2003.

_____________________________
CITY CLERK
CITY OF RANCHO PALOS VERDES