SEPTEMBER 6, 2005 FY04-05 BUDGET ADJUSTMENTS SEPTEMBER 6, 2005 FY04-05 BUDGET ADJUSTMENTS SEPTEMBER 6, 2005 FY04-05 BUDGET ADJUSTMENTS

TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL

FROM: DIRECTOR OF FINANCE AND INFORMATION TECHNOLOGY

DATE: SEPTEMBER 6, 2005

SUBJECT: FY04-05 BUDGET ADJUSTMENTS

Staff Coordinator: Kathryn Downs, Deputy Director of Finance and Information Technology

RECOMMENDATION:

Adopt Resolution No. 2005- , amending Resolution 2004-45, the budget appropriation for FY04-05, to increase budgeted appropriations in the General fund and Street Maintenance fund.

EXECUTIVE SUMMARY:

This is an annually recurring staff report (with accompanying resolution) for the sole purpose of ensuring budgetary compliance for FY04-05, previously ended on June 30, 2005. Staff anticipates that the excess of revenues over budget and additional expenditure savings for FY04-05 will significantly offset the additional budget requests contained herein. Therefore, the Schedule of Estimated General Fund Reserves as of June 30, 2005 has not been reduced.

BACKGROUND:

Chapter 3.32 of Title 3 of the Rancho Palos Verdes Municipal Code sets forth guidelines related to the Cityís budget administration. Section 3.32.070 of the Code requires that all expenditures in excess of a program/functionís budgeted allocation must be approved by supplemental appropriation by the City Council. While compiling the FY04-05 expenditures for the City, it was determined that five programs within the General fund and Street 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

Public Safety Special Programs

A Community Service Officer of the Los Angeles County Sheriff normally provides traffic control service at Rancho Vista Elementary. Due to a staffing shortage, either Traffic or Motorcycle Officers provided this service during the 2004-05 school year. The billing rates for Traffic and Motorcycle Officers are more than twice the rate for a Community Service Officer. Staff requests a budget adjustment in the amount of $12,000 to cover the increased FY04-05 billing amounts. Staff understands the Lomita Sheriff Station has recently hired a new Community Service Officer and expects that the FY05-06 budget will be adequate for traffic control during the 2005-06 school year.

Building & Safety Program

Building and Safety program expenditures of $608,211 exceeded the budget amount of $573,168 by $35,043. The additional cost reflects unanticipated additional building permit activity and was offset with additional fee revenue of $107,962. The net affect of the increased activity is a $72,919 increase to the General fund balance. Staff requests a budget adjustment in the amount of $36,000 to accommodate the additional FY04-05 activity.

Natural Community Conservation Planning (NCCP) Program

Staff requests a budget adjustment in the amount of $9,000 for services provided by the Cityís NCCP consultant. Budget expenditures for the consultant were $25,000. Actual expenditures required for FY04-05 activity were $33,416.

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 FY04-05 budget for Geo-technical Services was $140,000. Actual costs were $214,842. The City collects fees that offset this cost of service. The FY04-05 budget for Geo-technical fees was $140,000. Actual fees collected were $206,820.

Staff requests a budget adjustment in the amount of $75,000 to accommodate the increased level of geo-technical activity. When considering the related $66,820 increase of fee revenue, the requested budget adjustment will have a net $8,180 unfavorable affect on the estimated June 30, 2005 General fund balance.

Street Maintenance Fund

Portuguese Bend Road Maintenance Program

On June 7 2005, Public Works staff reported to City Council that severe winter rains required the City to increase the frequency of paving to maintain safe conditions on Portuguese Bend Road. At that time, City Council approved a $44,000 budget adjustment for the additional paving activity. The revised FY04-05 program budget of $156,300 was exceeded by $651. Staff requests an additional budget adjustment in the amount of $1,000 to cover the shortfall.

FISCAL IMPACT:

As stated previously, Staff anticipates that the excess of revenues over budget and additional expenditure savings for FY04-05 will significantly offset the additional budget requests contained herein. Therefore, the Schedule of Estimated General Fund Reserves as of June 30, 2005 has not been reduced. Finance Staff has taken the initiative to ensure that these additional budget requests do not increase the appropriations continued to FY05-06.

Respectfully submitted,

Dennis McLean

Director of Finance and Information Technology

Reviewed:

Les Evans

City Manager

RESOLUTION NO. 2005 -

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

VERDES, AMENDING RESOLUTION 2004-45, THE BUDGET APPROPRIATION

FOR FY04-05, 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, 2004, the City Council of the City of Rancho Palos Verdes adopted Resolution 2004-45, approving a spending plan and authorizing a budget appropriation for FY04-05: and

WHEREAS, certain programs included in the FY04-05 budget will have expenditures in excess of the adjusted budget; and

WHEREAS, the City Council desires that the FY04-05 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 FY04-05 budget:

Increase the General fund budget as follows:

Safety Special Pgm #101-1024-32-00 Professional/Technical $ 12,000

Building & Safety #101-4002-32-00 Professional/Technical $ 36,000

NCCP #101-4005-32-00 Professional/Technical $ 9,000

Geology #101-4006-32-00 Professional/Technical $ 75,000

Increase the Street Maintenance fund budget as follows:

Port Bend Road #202-3005-43-00 Maintenance $ 1,000

PASSED, APPROVED, AND ADOPTED THE 6th DAY OF SEPTEMBER 2005.

___________________________

MAYOR

ATTEST:

______________________

CITY CLERK

State of California )

County of Los Angeles )ss

City of Rancho Palos Verdes )

I, CAROLYNN PETRU, City Clerk of The City of Rancho Palos Verdes, hereby certify that the above Resolution No. 2005- was duly and regularly passed and adopted by the said City Council at regular meeting thereof held on September 6, 2005.

_____________________________

CITY CLERK

CITY OF RANCHO PALOS VERDES