TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL

FROM: ASSISTANT CITY MANAGER/CITY CLERK

DATE: JUNE 6, 2006
SUBJECT: ADOPTION OF THE CITY BUDGET AND EMPLOYEE SALARY RANGES FOR FISCAL YEAR 2006-2007

Attachment A: Budget Resolution - PDF
Atachment: EXHIBIT "A" Salary Resolution - PDF

RECOMMENDATION

1) Adopt Resolution No. 2006- , approving the City Budget for Fiscal Year 2006-2007; and, 2) Adopt Resolution No. 2006- , establishing salary and hourly ranges for competitive and management employee job classifications.

DISCUSSION

1. Adoption of the FY 06-07 Budget

In 2005, the City prepared a two-year budget document for FY 05-05 and FY 06-07. Because it is the second year of the two-year budget cycle, the FY 06-07 budget is shown as “proposed” in the current budget document. By adopting the City budget one year at a time, the Council has the opportunity to make any modifications it deems necessary to the proposed budget for FY 06-07, based on changes in circumstances that may have arisen since the document was prepared a year ago. Based on direction provided by Council at the April 29, 2006 Budget Workshop, staff has incorporated the changes and is now presenting the FY 06-07 Budget to Council this evening for adoption, which would go into effect on July 1, 2006. To assist Council in the final review of the FY 06-07 Budget, attached is a Fund Summary chart, which estimates the City’s fund balances for the fiscal year ending June 30, 2005 (see Attachment A to the Budget Resolution).

2. Recommended Salary Range Adjustments

In an effort to keep the City’s salary ranges current, the City typically uses the March Consumer Price Index (CPI) to adjust the salary ranges each year for each of the City’s job classifications. The March 2006 CPI shows an increase of 4.2% over the previous twelve months. Therefore, this figure has been used in the attached Salary Range Adjustment resolution. The resolution also continues the monthly car allowance for Department Heads and the Assistant City Manager established by the Council in 1999.
Generally, adjustments to the City’s salary ranges and hourly rates do not result in employees receiving automatic increases. However, because the City has filled a few positions over the last year at the bottom of the current ranges, their salaries would fall below the range after the new schedule goes into effect on July 1, 2006. Because the cost of these adjustments will be minor, they can be accommodated in the budget as proposed. With the exception of these few adjustments, the existing method of employee compensation, whereby the amount of any salary adjustment is based on an employee's annual performance evaluation, will remain in place.

CONCLUSION

Based on the direction provided at the April 29th Budget Workshop, staff has prepared a budget resolution for the Council’s consideration. Staff has also prepared a resolution to adjust the City’s salary ranges and hourly rates based on the CPI over the last twelve-month period. The City Budget for FY 06-07 is now being presented to the Council at a public hearing for review and adoption. If the Council desires to make any additional changes to the City Budget, they can be read into the record during tonight’s budget hearing.

Respectfully submitted:

Carolynn Petru
Assistant City Manager/City Clerk

Reviewed:

Les Evans
City Manager

Attachments:

Resolution No. 2006- , Approving a budget appropriation and adopting the operating and capital improvement budget for Fiscal Year 2006-2007
Resolution No. 2006- , Adopting salary and hourly ranges for all competitive and management employee job classifications

RESOLUTION NO. 2006-___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES APPROVING A BUDGET APPROPRIATION AND ADOPTING THE OPERATING AND CAPITAL IMPROVEMENT BUDGET FOR FISCAL YEAR 2006-2007.

WHEREAS, on June 6, 2006, the City Council conducted an advertised Public Hearing to receive public input regarding the proposed budget for FY06-07;

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

Section 1: That an Appropriation-Expenditure Budgeting Program showing budgetary categories by department is hereby adopted. The adopted budget, by fund, is per the attached Exhibit A with a total Estimated Ending Unreserved Fund Balance of $19,005,182 as of June 30, 2007, exclusive of the City’s Redevelopment Agency and Improvement Authority.

A. The City Manager is authorized to transfer certain Budget Appropriation Balances within functions and/or programs when he deems it necessary to do so in accordance with Chapter 3.32 of the Rancho Palos Verdes Municipal Code.

B. Council approval will be required for any significant changes involving increased or decreased service levels.

C. The Finance Director shall be responsible for constant monitoring of the budget and shall establish and implement appropriate control mechanisms necessary for said purpose, after approval of the City Manager.

Section 2: The FY06-07 Revenue Budget is hereby adopted, establishing the following revenue and internal service fund contribution levels:

PASSED, APPROVED and ADOPTED the 6th day of June 2006.

___________________________
ATTEST: MAYOR

_____________________
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. 2006-__ was duly and regularly passed and adopted by the said City Council at regular meeting thereof held on June 6, 2006.

___________________________
City Clerk

RESOLUTION NO. 2006-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES ADOPTING SALARY AND HOURLY RANGES FOR ALL COMPETITIVE AND MANAGEMENT EMPLOYEE JOB CLASSIFICATIONS, AND RESCINDING RESOLUTION NO. 2005-54.

WHEREAS, at the April 29, 2006 Budget Workshop, the City Council directed that all City's salary and hourly salary ranges be adjusted four and two tenths (4.2) percent based on the March 2006 Consumer Price Index for the preceding twelve month period, so that all City's salary ranges continue to be competitive with the marketplace.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS:

Section 1: The success of any plan in the public or private sector is dependent upon occasionally adjusting the salary ranges to be competitive with the marketplace.

Section 2: The salary and hourly ranges for City job classifications are adopted as outlined in the attached Exhibit "A."

Section 3: Resolution No. 2005-54 is hereby rescinded.

Section 4: A monthly car allowance for certain job classifications is adopted as outlined in the attached Exhibit “B.”

PASSED, APPROVED and ADOPTED this 6th day of June 2006.

 

__________________________
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. 2006- was duly and regularly passed and adopted by the said City Council at a regular meeting thereof held on June 6, 2006.

__________________________
City Clerk

Attachment A: Budget Resolution - PDF
Atachment: EXHIBIT "A" Salary Resolution - PDF