TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: DIRECTOR OF FINANCE AND INFORMATION TECHNOLOGY
DATE: AUGUST 17, 2004
SUBJECT: FY03-04 BUDGET ADJUSTMENTS
Staff Coordinator: Kathryn Downs, Accounting Manager
RECOMMENDATION:
Adopt Resolution No. 2004- , amending Resolution 2003-42, the budget appropriation for FY03-04, to increase budgeted appropriations in the General fund and Subregion One Maintenance fund.
EXECUTIVE SUMMARY:
This is an annually recurring staff report (with accompanying resolution) for the sole purpose of ensuring budgetary compliance for FY03-04, previously ended on June 30, 2004. Staff anticipates that the excess of revenues over budget and additional expenditure savings for FY03-04 will significantly offset the additional budget requests contained herein. Therefore, the Schedule of Estimated General Fund Reserves as of June 30, 2004 has not been reduced.
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 FY03-04 expenditures for the City, it was determined that four programs within the General fund and Subregion One Maintenance 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
City Attorney Program
City Attorney program expenditures of $1,044,007 exceeded the budgeted amount of $850,000 by $194,007. The additional expenditures are a result of unanticipated view ordinance and landslide moratorium litigation, as well as special projects (e.g. PVIC clean-up and NPDES).
Building & Safety Program
Building and Safety program expenditures of $627,134 exceeded the budget amount of $569,415 by $57,719. The additional cost reflects unanticipated additional building permit activity and was offset with additional fee revenue of $125,775. The net affect of the increased activity is a $68,046 increase to the General fund balance.
Geology Program
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 FY03-04 budget for Geo-technical Services was $140,000. Actual costs were $164,686. The City collects fees that offset this cost of service. The FY03-04 budget for Geo-technical fees was $140,000. Actual fees collected were $161,799.
Staff requests a budget adjustment in the amount of $24,686 to accommodate the increased level of geo-technical activity. When considering the related $21,799 increase of fee revenue, the requested budget adjustment will have a net $2,887 affect on the estimated June 30, 2004 General fund balance.
Subregion One Maintenance Fund
Subregion One Maintenance program expenditures of $26,958 exceeded the budgeted amount of $24,000 by $2,958. Expenditures were completely comprised of actual water utility charges and landscape maintenance charges. The entire cost of maintenance is funded with the principle and interest earned on the $750,000 payment made by the developer of Subregion One.
FISCAL IMPACT:
As stated previously, Staff anticipates that the excess of revenues over budget and additional expenditure savings for FY03-04 will significantly offset the additional budget requests contained herein. Therefore, the Schedule of Estimated General Fund Reserves as of June 30, 2004 has not been reduced. Finance Staff has taken the initiative to ensure that these additional budget requests do not increase the appropriations continued to FY04-05.
Respectfully submitted,
Dennis McLean
Director of Finance and Information Technology
Reviewed:
Les Evans
City Manager
RESOLUTION NO. 2004 -
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS
VERDES, AMENDING RESOLUTION 2003-42, THE BUDGET APPROPRIATION
FOR FY03-04, 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 1, 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 programs included in the FY03-04 budget will have expenditures in excess of the adjusted budget; and
WHEREAS, the City Council desires that the FY03-04 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 FY03-04 budget:
Increase the General fund budget as follows:
City Attorney #001-103-40 Legal Services $ 194,007
Building & Safety #001-402-35 Professional/Technical $ 57,719
Geology #001-406-35 Professional/Technical $ 24,686
Increase the Subregion One Maintenance fund budget as follows:
Maintenance #123-323-30 Maintenance $ 2,958
PASSED, APPROVED, AND ADOPTED THE 17th DAY OF AUGUST 2004.
___________________________
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. 2004- was duly and regularly passed and adopted by the said City Council at regular meeting thereof held on August 17, 2004.
_____________________________
CITY CLERK
CITY OF RANCHO PALOS VERDES