TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL

FROM: FINANCE DIRECTOR

DATE: AUGUST 19, 2003

SUBJECT: FY02-03 CONTINUING APPROPRIATIONS

Staff Coordinator: Kathryn Downs, Accounting Manager

RECOMMENDATION:

1) Adopt Resolution No. 2003- , amending Resolution No. 2003-42, the budget appropriation for FY03-04, to continue certain expenditure appropriations from FY02-03.

2) Adopt Resolution No. 2003- , amending Resolution No. 2002-45, the budget appropriation for FY02-03, to reduce the budget for continuing appropriations that will be rebudgeted and included in the FY03-04 budget.

BACKGROUND AND DISCUSSION REGARDING CONTINUING APPROPRIATIONS:

At the end of each fiscal year, it is necessary to prepare a summary of budgeted appropriations that must be carried over to the next fiscal year as continuing appropriations. The attached list of FY02-03 continuing appropriations (Attachment A) includes projects, which were included in the FY02-03 budget, but were not completed by the end of the fiscal year.

The majority of the continuing appropriation items relate to ongoing Public Works projects started in FY02-03 (or earlier) that were not completed by June 30, 2003. Many of these Public Works projects are historically performed in the summer months to avoid the rainy season (i.e. road and sewer construction projects, recycling beautification grants) or are large projects that take several years to complete (i.e. the Point Vicente Soil Remediation Project). City staff anticipates that the majority of additional expenditures related to these projects will be incurred during FY03-04. However, in some instances, especially in regards to the larger projects, completion will not necessarily occur until after June 30, 2004. In these instances it will probably be necessary to carry over amounts to FY 2003-2004 as a part of next year’s continuing appropriations.

Staff reviewed all projects budgeted in FY02-03 during the course of preparing the City’s FY03-04 budget. Staff also recently reviewed FY02-03 expenditures and determined that some amounts previously budgeted in FY02-03 (and expected to be expended prior to fiscal year end) were not actually expended prior to June 30, 2003. These unspent appropriations must be carried over to FY03-04 as continuing appropriations to ensure budgetary compliance.

Staff included the entire amount of the continuing appropriation in the FY02-03 column of the 2003 Five-Year Financial Model prepared in conjunction with the FY03-04 budget. Therefore, estimated beginning fund balances presented with the FY03-04 budget have already been reduced by the amount of the proposed continuing appropriations. The approval of these continuing appropriations will not change estimated ending fund balances at June 30, 2004.

The attached list of FY02-03 continuing appropriations (Attachment A) itemizes each individual project for which staff recommends a continuation of the appropriation into FY03-04. A brief description of each item is provided as well. Approval of the proposed resolution will allow staff to prepare the necessary budget adjustments to provide for the completion of these projects in FY03-04.

DISCUSSION OF CONTINUING APPROPRIATION ITEMS:

The attached list of FY02-03 continuing appropriations (Attachment A) itemizes each individual project for which staff recommends a continuation of the appropriation into FY03-04. A brief description of each item is provided as well.

FISCAL IMPACT:

The proposed recommendations will have no impact on the estimated (budgeted) fund balance at June 30, 2004 for any of the City’s funds. The first resolution merely authorizes increasing the FY03-04 budget expenditures associated with each of the listed continuing appropriations discussed above. The second resolution authorizes decreasing the FY02-03 budget for the same continuing appropriations.

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 REDUCE THE BUDGET FOR THE APPROVED CONTINUING APPROPRIATIONS

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 projects included in the FY02-03 budget will be carried over as continuing appropriations to FY03-04 (listed in the attached Exhibit A); and

WHEREAS, the City Council desires that the FY02-03 budget be reduced for each of the continuing appropriations carried over to FY03-04.

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 per the attached Exhibit A:

Decrease the General fund budget as follows:

City Council #001-101-35 Professional/Technical $ 5,000

Comm Outreach #001-105-50 Operating Supplies $ 9,800

Comm Outreach #001-105-71 Meetings/Conferences $ 14,500

Finance #001-120-35 Professional/Technical $ 72,740

Info Technology #001-130-86 Computer Equipment $ 66,000

Emergency Prep #001-230-35 Professional/Technical $ 46,100

Emergency Prep #001-230-50 Operating Supplies $ 10,900

Public Works Adm #001-301-35 Professional/Technical $ 67,600

Public Works Adm #001-301-54 Printing & Binding $ 1,500

Building Maint #001-340-30 Maintenance $ 50,500

Parks/Trails Maint #001-341-30 Maintenance $ 62,000

Planning #001-401-35 Professional/Technical $ 341,540

Building & Safety #001-402-35 Professional/Technical $ 10,000

Recreation Admin #001-510-35 Professional/Technical $ 67,500

Rec Special Events #001-540-50 Operating Supplies $ 10,000

Recreation PVIC #001-560-58 Vehicle & Equipment Rental $ 4,000

Decrease the Street Maintenance fund budget as follows:

Street Maintenance #102-302-30 Maintenance $ 304,300

Street Maintenance #102-302-35 Professional/Technical $ 101,300

St Landscape Maint #102-303-30 Maintenance $ 20,900

St Landscape Maint #102-303-35 Professional/Technical $ 2,100

Decrease the Community Development Block Grant fund budget as follows:

Capital Projects #110-910-35 Professional/Technical $ 231,200

Capital Projects #110-910-82 Improvements $ 582,000

Decrease the Recycling fund budget as follows:

Neighborhood Beaut#112-312-68 City Grants $ 121,900

Decrease the Proposition A fund budget as follows:

Bus Shelter Improv #116-316-82 Improvements $ 12,000

Decrease the COPS/LLESS fund budget as follows:

Wireless Emer Net #117-217-78 Miscellaneous $ 11,000

Decrease the Habitat Restoration fund budget as follows:

Forrestal Re-Veget #122-322-82 Improvements $ 127,500

Decrease the Abalone Cove Sewer Maintenance District fund budget as follows:

Maintenance #125-325-82 Improvements $ 21,300

Decrease the Capital Improvement Projects fund budget as follows:

CIP #330-930-35 Professional/technical $ 507,925

CIP #330-930-82 Improvements $ 3,864,975

Decrease the Equipment Replacement fund budget as follows:

Computer Equip #781-382-86 Computer Equipment $ 72,700

Furniture & Equip #781-383-85 Furniture & Equipment $ 223,100

Decrease the Building Replacement fund budget as follows:

Cable TV Rehab #786-386-82 Improvements $ 16,200

PASSED, APPROVED, AND ADOPTED THE 19^th 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

RESOLUTION NO. 2003-

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

VERDES, AMENDING RESOLUTION 2003-42, THE BUDGET APPROPRIATION

FOR FISCAL YEAR 2003-2004, TO INCREASE THE BUDGET FOR CERTAIN CONTINUING APPROPRIATIONS FROM FISCAL YEAR 2002-2003.

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 12, 2003, the City Council of the City of Rancho Palos Verdes adopted Resolution 2003-42, approving a spending plan and authorizing a budget appropriation for FY03-04: and

WHEREAS, certain project expenditures included in the FY02-03 budget were not completed by fiscal year end; and

WHEREAS, the City Council has determined that each of these specific project expenditures (listed in the attached Exhibit A) should be completed in FY03-04; and

WHEREAS, the carryover of these items will not change the estimated (budgeted) ending fund balance at June 30, 2004;

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

The following adjustments be made to the FY03-04 budget per the attached Exhibit A:

Increase the General fund budget as follows:

City Council #001-101-35 Professional/Technical $ 5,000

Comm Outreach #001-105-50 Operating Supplies $ 9,830

Comm Outreach #001-105-71 Meetings/Conferences $ 14,500

Finance #001-120-35 Professional/Technical $ 72,740

Info Technology #001-130-86 Computer Equipment $ 66,000

Emergency Prep #001-230-35 Professional/Technical $ 46,100

Emergency Prep #001-230-50 Operating Supplies $ 10,900

Public Works Adm #001-301-35 Professional/Technical $ 67,600

Public Works Adm #001-301-54 Printing & Binding $ 1,500

Building Maint #001-340-30 Maintenance $ 50,500

Parks/Trails Maint #001-341-30 Maintenance $ 62,000

Planning #001-401-35 Professional/Technical $ 341,540

Building & Safety #001-402-35 Professional/Technical $ 10,000

Recreation Admin #001-510-35 Professional/Technical $ 67,500

Rec Special Events #001-540-50 Operating Supplies $ 10,000

Recreation PVIC #001-560-58 Vehicle & Equipment Rental $ 4,000

Increase the Street Maintenance fund budget as follows:

Pavement Mgt #102-302-30 Maintenance $ 304,300

Pavement Mgt #102-302-35 Professional/Technical $ 101,300

St Maint Non-Pave #102-303-30 Maintenance $ 20,900

St Maint Non-Pave #102-303-35 Professional/Technical $ 2,100

Increase the Community Development Block Grant fund budget as follows:

Capital Projects #110-910-35 Professional/Technical $ 231,200

Capital Projects #110-910-82 Improvements $ 582,000

Increase the Beautification fund budget as follows:

Neighborhood Beaut#112-312-68 City Grants $ 121,900

Increase the Transit fund budget as follows:

Bus Shelter Improv #116-391-20 Transfers Out to CIP $ 12,000

Increase the Public Safety Grants fund budget as follows:

Wireless Emer Net #117-217-78 Miscellaneous $ 11,000

Increase the Habitat Restoration fund budget as follows:

Forrestal Re-Veget #122-322-82 Improvements $ 127,500

Increase the Abalone Cove Sewer Maintenance District fund budget as follows:

Maintenance #125-325-82 Improvements $ 21,300

Increase the Capital Improvement Projects fund budget as follows:

CIP Transfers In #330-391-10 Transfers In from Transit $ 12,000

CIP Street Improv #330-931-82 Bus Shelter Improvements $ 12,000

CIP Storm Drains #330-932-35 Professional/Technical $ 125,800

CIP Storm Drains #330-932-82 Improvements $ 217,300

CIP St Maint Pvmt #330-930-35 Professional/Technical $ 64,500

CIP Park Improv #330-933-35 Professional/Technical $ 247,625

CIP Park Improv #330-933-82 Improvements $ 3,367,675

CIP Sewer Maint #330-933-35 Professional/Technical $ 70,000

CIP Sewer Maint #330-933-82 Improvements $ 280,000

Increase the Equipment Replacement fund budget as follows:

Computer Equip #781-382-86 Computer Equipment $ 72,700

Furniture & Equip #781-383-85 Furniture & Equipment $ 223,100

Increase the Building Replacement fund budget as follows:

Cable TV Rehab #786-386-82 Improvements $ 16,200

PASSED, APPROVED, AND ADOPTED THE 19^th 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