2015-11-18 Item 08C - First Quarter Fiscal Year 2015-16 Operating Budget AGENDA REPORT
Cit y Council
MEETING DATE: November 18, 2015
PREPARED BY: Teri Shoemaker DEPT. DIRECTOR: Tim Nash
DEPARTMENT: Finance CITY MANAGER: Karen P. Brust
SUBJECT:
First Quarter Fiscal Year 2015-16 Operating Budget Report
RECOMMENDED ACTION:
Staff recommends City Council take the following action:
1. Adopt Resolution No. 2015-71 approving the First Quarter FY 2015-16 Operating Budget
Adjustments
STRATEGIC PLAN:
This item falls within the Organizational Efficiency and Effectiveness focus area of the Strategic
Plan, maintaining the City's financial health.
FISCAL CONSIDERATIONS:
The impact of all proposed General Fund revenue appropriations is an increase of $106,487.
The impact of all proposed General Fund expenditure budget appropriations is an increase of
$68,676. The transfer of Recreation (571) and Junior Lifeguard (572) year end fund balance
into the General Fund results in a net increase of $462,722. The net impact to the General
Fund is an increase of$500,533 to fund balance.
If all proposed adjustments are approved, the FY 2015-16 General Fund unassigned projected
ending fund balance will be $11,884,097. The table below reflects the General Fund balance
status to date:
City of Encinitas 11/13/2015
General Fund Balance Status Increase (Decrease)
Meeting Date Resolution# to fund balance
Net available fund balance at 6/30/2015 $ 13,599,967
FY 2015-16 Budget Amendments
Pacific View professional services 07/15/15 (25,000)
SEIU and unrep. MOU impacts 07/15/15 2015-46 (180,800)
Alternative Fuel study additional budget 08/19/15 2015-42 (31,925)
Montgomery At-grade Pedestrian Crossing 10/28/15 2015-77 (573,766)
CalPERS Lump Sum Payment 5%of FY 2014-15 Budget Surplus 10/28/15 2015-72 (341,956)
1st Quarter Operating Adjustments 11/18/15 2015-71 500,533
1st Quarter CIP Adjustments 11/18/15 2015-79 (45,456)
El Portal Pedestrian and Bike Underpass 11/18/15 2015-75 (704,000)
Leo Mullen Sports Park Artificial Turf&Lights 11/18/15 2015-81 (313,500)
Total FY 2015-16 Budget Amendments $ (1,715,870)
Available fund balance: $ 11,884,097
11/1812015 Item #8C Page 1
BACKGROUND:
The purpose of this report is to provide a quarterly update on the current fiscal year operating
budget. The report provides recommendations for additional budget appropriations and budget
transfers. The current budget for FY 2015-16 was approved by Council on June 10, 2015 and is
the first year of a two-year budget.
ANALYSIS:
The Finance department has completed the first quarter review of FY 2015-16 which includes
recommendations for budget appropriations and budget transfers for Council consideration. All
current year changes are highlighted in table format on the following pages. Changes are also
indicated in bold font on Schedule A (Attachment 1).
Table 1
Proposed First Quarter Budget Appropriations
General Fund(101)
Revenue Expenditure Fund Balance
Increase Increase Increase
(Decrease) (Decrease) (Decrease)
General Government $ 106,487 $ 66,176 $ 40,311
City Council
Increase budget to cover the cost of temporary personnel services to cover an $ 23,500 $ (23,500)
unanticipated leave of absence.
City Manager
Appropriate the unspent grant balance from the Neighborhood Reinvestment Program $ 3,097 $ (3,097)
operating budget for FY 2015-16.
Arts Administration
Request increase in budget to hire Keyser Marston Associates to assist in the process
of negotiations for the lease agreement with Intrepid Theatre Company as directed by $ 25,000 $ (25,000)
Council on June 24,2015.
IT/GIS
Increase the budget to account for sales tax due for the lease of the Citywide Multi- $ 10,629 $ (10,629)
Functional Printers(MFDs). Vendor thought City was exempt.
Finance
Increase to the revenue estimate for the Vehicle Licensing Fee based on receipt of a $ 92,111 $ 92,111
revised estimate from the County of San Diego after the budget was adopted.
Parks&Recreation
Increase budget for Parks&Recreation Commissioner attendance at the annual CPRS $ 3,950 $ (3,950)
conference as authorized by the City Council on June 10,2015.
Districts
Appropriation to the General Fund for CSD, ESD and SDWD share of Payroll System $ 14,376 $ 14,376
costs.
Planning&Building $ - $ 2,500 $ (2,500)
Advanced Planning
Request additional increase for legal ads due to higher volume of expenses. $ 2,500 $ (2,500)
Total General Fund Appropriations: $ 106,487 $ 68,676 $ 37,811
In addition to the first quarter appropriations, several budget transfers have been identified
which require City Council approval. The transfers are outlined below:
Table 2
Proposed First Quarter Budget Transfers
Transfer Transfer
Department Description Fund From To Justification
Current Planning/Building Transfer Planner IV salary from Restore Senior Planner salary
Advanced Planning to Current 101 (123,138) 123,138 and benefits
Planning
Transfer from Current Planning to Increase in legal advertising in
Advanced Planning 101 (3,000) 3,000 Advanced Planning
Non Departmental Transfer fund balance at 6/30/15 for
Recreation Fund(571)of$349,377
into General Fund(101)effective 101 /571 (349,377) 349,377 Per Council direction
7/01/15 per Council direction.
Non Departmental Transfer fund balance at 6/30/15 for
Junior Lifeguard Fund(572)of
$113,345 into General Fund(101) 101 /572 (113,345) 113,345 Per Council direction
effective 7/01/15 per Council
direction.
Non Departmental Transfer from Solid Waste Fund
(214)to Vehicle Replacement Fund 214/622 (29,053) 29,053
(622)to reimburse for the purchase
of a vehicle.
Total Transfers: (617,913) 617,913
11/1812015 Item #8C Page 2
Appropriations for other funds are identified in Table 3 below:
Table 3
Proposed First Quarter Budget Appropriations
Other Funds
Revenue Expenditure Fund Balance
Increase Increase Increase
(Decrease) (Decrease) (Decrease)
Other Operating Funds $ 582,410 $ 546,640 $ 35,770
Community Development Block Grant(Fund 222)
To reflect the ending Residential Rehabilitation program balance from FY 2014-15
which is the beginning funds balance for FY 2015-16. The balance available for $ 185,282 $ 185,282
the program is part of the City's Line of Credit (LOC) available from the U.S.
Department of Housing and Urban Development(HUD)
Increase CDBG expenditures to reflect beginning balance for the Residential
Rehabilitation program. $ 185,282 $ (185,282)
HOME Program (Fund 227)
Request additional increase to HOME revenue to reflect the income that is $ 85,205 $ 85,205
expected in FY 2015-16.
Request expenditure increase to the HOME program to reflect an increase of
$25,805 for the anticipated administrative processing expenses for FY 2015-16 $ 25,805 $ (25,805)
and the cost of two$5,000 grants and a loan of$10,000.
CS17A Fire Ops(Fund 230)
Revenue for this fund will now be posted to the newly created Fund(230). $ 281,171 $ 88,000 $ 193,171
Revenue from EMS Agreement with the County for ALS first responder and EMS
support services.
Encinitas Lighting&Landscaping(Fund 295)
Increase budget to cover the cost of repairs to a vehicle accident in FY 2014-15. $ 13,904 $ (13,904)
The recovery of funds occurred in FY 2014-15, however, the repairs occurred in
FY 2015-16.
District Funds CSD/ESD(Fund 511 and 521)
Budget appropriation for CSD and ESD for their share of the implementation of $ 2,875 $ (2,875)
the payroll system costs. CSD share is$1,917 and ESD share is$958.
Increase budget to CSD to reflect cost share for the Fleet Fund(621). $ 30,774 $ (30,774)
Risk Management(Fund 601)
Request increase in the claims budget as the costs of claims have exceeded the $ 200,000 $ (200,000)
budget projection and the funds are necessary to process ongoing liability claims.
Fleet Maintenance (Fund 621)
Increase in revenue from CSD cost share of the internal service cost. $ 30,752 $ 30,752
Total Other Operating Fund Appropriations: $ 582,410 $ 546,640 $ 35,770
ENVIRONMENTAL CONSIDERATIONS:
The action being considered by the City Council is exempt from the California Environmental
Quality Act (CEQA) because it is not a "project' under Section 15378(b)(5) of CEQA Guidelines.
The action involves an organizational or administrative activity of government that will not result
in the direct or indirect physical change in the environment.
ATTACHMENTS:
1 — Revised Budget Summary Schedule A— First Quarter FY 2015-16
2 — Resolution No. 2015-71 Approving the First Quarter Budget Adjustments for FY 2015-16
11/18/2015 Item #8C Page 3
ATTACHMENT
Schedule A: Revised Budget Summary First Quarter FY2015-16*
(Column 1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
(11)
375,546 1,380,849 -
- (1,085,652) (295,197)
Unassigned
State Capital Grants
Approved
Approved
Interfund
Interfund
Interfund
Interfund
Current
Unassigned
(142,000) (142,000)
Coastal Zone Management Fund
Fund
Revenue
Operating
Capital
Transfers
Transfers
Transfers
Transfers
Year
Projected
224
214
Balance
Projections
Expenditures
Expenditures
In
Out
Debt Service
Capital
Summary
Fund Balance
FUND NAME
FUND
July 1,2015
(9,664)
94,091
Senior Nutrition Grant
221
-
83,000
(+3-4+(5...8))
(+2+9)
GENERALFUNDS
7,096
7,096
Comm Development Block Grant(CDBG)
222
-
579,023
407,374
24,496
(196,000)
145
145
General Fund"
101
18,635,041
65,138,789
57,232,249
4,662
1,647,082
(2,646,724)
(4,994,187)
(5,374,781)
(3,462,069)
15,172,972
Contingency Reserves(20%of Operating Expend
101
11,323,163
-
-
Donations&Contributions
229
120,068
563,000
245,590
11,323,163
Budget Stabilization Reserve(2%of revenues)
101
1,300,646
CSA17 Fire Operations
230
-
281,171
88,000
-
193,171
1,300,646
TOTAL GENERAL FUNDS
31,258,850 65,138,789 57,232,249
- 1,647,082 (2,646,724) (4,994,187) (5,374,781)
(3,462,069) 27,796,781
INFRASTRUCTURE FUNDS
(4,835,197)
(305,599)
802,008
GRANTFUNDS
State Gasoline Taxes
201
375,546 1,380,849 -
- (1,085,652) (295,197)
375,546
State Capital Grants
203
- 1,700,000
(1,700,000)
-
Transnet Program(Prop A Sales Tax)
211
- 2,473,000 -
(2,615,000)
(142,000) (142,000)
Coastal Zone Management Fund
212
732,061 300,000 238,599
(225,000)
(163,599) 568,462
Federal Capital Grants
223
- - -
(947,290)
-
Federal TDA Grants
224
214
906,247
426,250
TOTAL INFRASTRUCTURE FUNDS
1,107,607
5,853,849
238,599
(1,085,652)
(4,835,197)
(305,599)
802,008
GRANTFUNDS
State Law Enforcement Grant
202
-
100,000
100,000
-
Government Education Access
213
612,951
425,895
187,345
(947,290)
(708,740)
(95,789)
Solid Waste,Recycling and HHW
214
906,247
426,250
462,262
(29,053)
(65,065)
841,182
Asset Forfeiture
215
103,755
533
10,197
(9,664)
94,091
Senior Nutrition Grant
221
-
83,000
122,443
46,539
7,096
7,096
Comm Development Block Grant(CDBG)
222
-
579,023
407,374
24,496
(196,000)
145
145
HOME Entitlement Program
227
25,017
86,650
31,912
4,662
59,400
84,417
Federal Law Enforcement Grant
228
-
10,000
10,000
-
-
-
Donations&Contributions
229
120,068
563,000
245,590
75,000
(472,000)
(79,590)
40,478
CSA17 Fire Operations
230
-
281,171
88,000
-
193,171
193,171
TOTAL GRANT FUNDS
1,768,038
2,555,522
1,665,123
150,697 (29,053)
(1,615,290)
(603,247)
1,164,791
DEVELOPMENT IMPACT FUNDS
Park Improvement Fees
231
603,216
151,460
-
-
151,460
754,676
Park Acquisition Fees
232
1,263,810
203,119
203,119
1,466,929
Traffic Mitigation Fees
233
(600,667)
388,303
(852,000)
(463,697)
(1,064,364)
RTCIP-(Regional Arterial System)Fee
234
894,316
922,704
(576,000)
346,704
1,241,020
Open Space Acquisition Fees
235
83,223
34,049
34,049
117,272
Recreational Trails Fees
236
24,433
6,531
6,531
30,964
Community Facilities Fees
237
-
45,680
(45,680)
-
-
Fire Mitigation Fees
238
-
43,028
(43,028)
-
Flood Control Mitigation Fees
239
341,798
51,139
(75,000)
(23,861)
317,937
In Lieu Fees Curb Gutter Sidewalks
251
12,550
24
24
12,574
In Lieu Fees Underground Utilities
252
(69,505)
1,885
1,885
(67,620)
Affordable Housing
253
1,359,632
2,000
2,000
1,361,632
TOTAL DEVELOPMENT IMPACT FUNDS
3,912,806
1,849,922
(88,708)
(1,503,000)
258,214
4,171,020
LIGHTING&LANDSCAPE DISTRICTS
Villanitas Road M.I.D.
291
255,749
11,760
20,805
(9,045)
246,704
Cerro Street M.I.D.
292
333,639
40,700
35,837
4,863
338,502
Village Park M.I.D.
293
140,964
33,010
45,013
-
(12,003)
128,961
Wiro Park M.I.D.
294
744
11,010
19,099
8,400
311
1,055
Encinitas Lighting Landscape District
295
757,520
1,231,550
1,436,680
-
(100,000)
(305,130)
452,390
Encinitas Ranch Lighting Landscape
297
1,268,964
622,620
503,723
-
118,897
1,387,861
TOTAL LIGHTING&LANDSCAPE DISTRICT
FUNDS
2,757,580
1,950,650
2,061,157
8,400
(100,000)
(202,107)
2,555,473
11/18/2015 Item #8C Page 4
ATTACHMENT
Schedule A: Revised Budget Summary First Quarter FY2015-16*
(Column 1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
(11)
Unassigned
Approved
Approved
Interfund
Interfund
Interfund
Interfund
Current
Unassigned
Fund
Revenue
Operating
Capital
Transfers
Transfers
Transfers
Transfers
Year
Projected
Balance
Projections
Expenditures
Expenditures
In
Out
Debt Service
Capital
Summary
Fund Balance
FUND NAME
FUND
July 1,2015
(+3-4+(5...8))
(+2+9)
DEBT SERVICE FUNDS
Debt Service Fund
301
240
477,242
477,002
Encinitas Public Finance Authority
302
37,240
4,554,425
4,517,185
TOTAL DEBT SERVICE FUNDS
37,480
5,031,667
-
-
4,994,187
-
CAPITAL IMPROVEMENT FUNDS
Capital Project Fund
401
11,590,578
11,590,578
-
-
Facility Maintenance Fund
402
1,362,000
1,000,000
1,232,000
870,000
870,000
TOTAL CAPITAL IMPROVEMENT FUNDS
-
-
12,952,578
1,000,000
12,822,578
870,000
870,000
CARDIFF SANITARY DIVISION FUNDS
Operations
511
2,578,210
4,801,711
3,589,111
-
(930,347)
282,253
2,860,463
Capital Replacement
512
1,702,405
-
3,664,762
930,347
(2,734,415)
(1,032,010)
Capital Expansion
513
717,523
51,255
-
-
51,255
768,778
TOTAL CSDFUNDS
4,998,138
4,852,966
3,589,111
3,664,762
(2,400,907)
2,597,231
ENCINITAS SANITARY DIVISION FUNDS
Operations
521
1,749,927
2,839,344
1,500,812
(1,496,940)
(158,408)
1,591,519
Capital Replacement
522
3,860,234
-
1,376,587
1,496,940
120,353
3,980,587
Capital Expansion
523
2,202,060
72,360
-
-
72,360
2,274,420
TOTAL ESD FUNDS
7,812,221
2,911,704
1,500,812
1,376,587
-
34,305
7,846,526
OTHER PROPRIETARY FUNDS
Section 8 Housing-Admin
551
19,966
208,480
275,713
67,043
(190)
19,776
Section 8 Housing-HAP
552
7,110
971,447
986,500
-
(15,053)
(7,943)
Pacific Pines Affordable Housing
561
1,576,736
219,342
221,879
13,327
10,790
1,587,526
Recreation Programs"
571
349,377
-
-
-
(349,377)
(349,377)
-
Junior Lifeguard Program"
572
113,345
-
-
-
(113,345)
(113,345)
-
TOTAL OTHER PROPRIETARY FUNDS
2,066,534
1,399,269
1,484,092
-
80,370
(462,722)
(467,175)
1,599,359
INTERNAL SERVICE FUNDS
Self-Insurance Fund
601
3,247,178
1,005,687
2,080,550
894,257
(180,606)
3,066,572
Wastewater Support
611
-
1,044,337
924,037
-
(113,000)
7,300
7,300
Fleet Maintenance
621
-
627,572
596,820
-
30,752
30,752
Vehicle Replacement
622
846,871
10,000
328,000
142,053
(175,947)
670,924
Mach Equipment Replacement
623
1,292,929
10,000
140,000
125,000
(5,000)
1,287,929
Fire Apparatus Replacement
624
2,645,557
525,000
875,855
378,000
27,145
2,672,702
TOTAL INTERNAL SERVICE FUNDS
8,032,535
3,222,596
4,945,262
-
1,539,310
(113,000)
(296,356)
7,736,179
TOTAL ALL FUNDS
63,714,309
89,772,747
77,748,072
17,993,927
4,425,859
(4,425,859)
(605,691)
(6,574,941)
57,139,368
Revised 10/28/15 to reflect final audited fund balances and adjustments due to placeholders for approved budget items for which account numbers were not available at the adoption publication.
Funds 571 and 572 were merged into the General Fund(101)beginning in FY2015-16 and are included in the beginning fund balance.
11/18/2015 Item #8C Page 5
Attachment 2
RESOLUTION NO. 2015-71
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ENCINITAS
AMENDING THE FISCAL YEAR 2015-16 BUDGET
WHEREAS, on June 10, 2015 the City of Encinitas City Council adopted Resolution
No. 2015-32 appropriating the budget for Fiscal Year 2015-16; and
WHEREAS, changes in anticipated revenues and/or expenditures of the City of
Encinitas necessitates a revision of the appropriations for Fiscal Year 2015-16; and
WHEREAS, the City Council has reviewed the proposed Fiscal Year 2015-16
budget amendments; and
NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED that
the City Council of the City of Encinitas does,hereby, adopt the First Quarter Budget
amendments for Fiscal Year 2015-16 as summarized by attachment, "First Quarter
Operating Amendments"
PASSED AND ADOPTED this 18th day of November, 2015, by the following vote,
to wit:
AYES:
NAYS:
ABSENT:
ABSTAIN:
Kristin Gaspar, Mayor
City of Encinitas
ATTEST:
Kathy Hollywood, City Clerk
11/18/2015 Item #8C Page 6
Attachment 2
First Quarter Operating Amendments
Revenue Expenditure Transfers Fund Balance
Fund Increase Increase Increase Increase
(Decrease) (Decrease) (Decrease) (Decrease)
General Fund (101) $106,487 $68,676 $462,722 $500,533
Solid Waste,
Recycling & HHW (29,053) (29,053)
Fund (214)
CDBG Fund (222) 185,282 185,282 0
HOME Program Fund 85,205 25,805 59,400
(227)
CSA17 Fire Ops 281,171 88,000 193,171
Fund (230)
Encinitas
Lighting/Landscape 13,904 (13,904)
Fund (295)
Cardiff Sanitary 32,691 (32,691)
District Fund (511)
Encinitas Sanitary 958 (958)
District Fund 521
Recreation Fund (349,377) (349,377)
(571)
Junior Lifeguard (113,345) (113,345)
Fund (572)
Risk Management 200,000 (200,000)
Fund (601)
Fleet Maintenance 30,752 30,752
Fund (621)
Vehicle Replacement 29,053 29,053
Fund (622)
TOTAL $688,897 $615,316 $0 $73,581
11/18/2015 Item #8C Page 7
gc
Brandi Lewis
'rom: Tim Nash
`'Sent: Monday, November 16, 2015 4:44 PM
To: Lisa Shaffer
Cc: Karen Brust;Teri Shoemaker
Subject: Question regarding item 8C Wednesday's City Council Meeting
This email has been blind copied to the Mayor and the rest of the City Council.
Hi Lisa,
In response to your question raised in briefings today about taking action on item 8C (15L quarter operating budget
report) before considering the three other items that have a fiscal impact on this Council meeting agenda,the resolution
(2015-71)that staff is recommending that City Council adopt in item 8C only approves the budget adjustments in the 15t
quarter budget report.Approving this item does not approve the budget adjustments City Council will consider in items
8D(1st quarter CIP report), 8G (El Portal pedestrian and bike underpass) and 10C(Leo Mullen turf and soccer field
lighting project.)
The same General Fund balance status table appears in the fiscal consideration section of the agenda report for all four
items requesting budget adjustments on this agenda.This table summarizes the not only the items under consideration
on this agenda but also items that have been approved in previous City Council actions that have an impact on the
General Fund balance.The reason for including all four items that are under consideration on this agenda is so that City
Council can see the full impact if all four agenda items are approved. If any of the four items are not approved the
impact of that item will be removed from the table in future agenda reports.
LPlease let me know if you have additional questions.Thanks.
Tim
TIM NASH I FINANCE DIRECTOR I CITY OF ENCINITAS
505 SOUTH VULCAN AVENUE, ENCINITAS, CA 92024-3633 1 760.633.2772
TNASH @ENCINITASCA.GOV
1