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2022-06-22 Item 08Y FY 21-22 Third Quarter Budget Status Report - Attachment 1 Amended and Posted 06-22-2022ATTACHMENT 1 RESOLUTION NO. 2022-81 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ENCINITAS AMENDING THE FISCAL YEAR 2021-22 BUDGET WHEREAS, on June 23, 2021, the City Council of the City of Encinitas adopted Resolution Number 2021-70 adopting the budget for Fiscal Year 2021-22; and WHEREAS, changes in anticipated revenues and/or expenditures of the City of Encinitas necessitates amendments to the appropriations for Fiscal Year 2021-22; and WHEREAS, budgeted expenditures do not exceed anticipated revenue and available fund balance; and WHEREAS, the City Council has reviewed the proposed Fiscal Year 2021-22 budget amendments. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Encinitas that the budget amendments for Fiscal Year 2021-22 as contained in Exhibit A to this resolution are hereby adopted; and NOW, THEREFORE, BE IT FURTHER RESOLVED by the City Council of the City of Encinitas that the budget amendments for Fiscal Year 2021-22 as contained in Exhibit B to this resolution are hereby ratified. PASSED, APPROVED AND ADOPTED this 22nd day of June, 2022 by the City Council of the City of Encinitas, State of California. ____________________________ Catherine S. Blakespear, Mayor ATTEST: ______________________________ Kathy Hollywood, City Clerk ATTACHMENT 1 APPROVED AS TO FORM: _____________________________ Tarquin Preziosi, City Attorney CERTIFICATION: I, Kathy Hollywood, City Clerk of the City of Encinitas, California, do hereby certify under penalty of perjury that the foregoing Resolution was duly adopted at a regular meeting of the City Council on the 22nd day of June, 2022 by the following vote: AYES: NOES: ABSENT: ABSTAIN: _____________________________ Kathy Hollywood, City Clerk FY 21-22 Proposed CIP Budget and Fund Transfer Amendments ATTACHMENT 1 RESOLUTION NO. 2022 -81 - EXHIBIT A LINE PROJECT NUMBER ORG OBJECT ACCT TYPE REVENUE (R)/ EXPENDITURE (E) COMMENT INCREASE (I)/ DECREASE (D) AMOUNT ADD'L DESC 7 CD20A 40295101 590 E CP20D:CD20A 402101 close tr I 0 8 CP20A 40295101 590 E CP20D:CD20A 402101 close tr D 0 10 CP20A 40295101 590 E CP20A close Park Pedestals D 529 Notice of Completion recorded 8/25/2021. Project closure submitted 9/2/2021. 11 10190999 498.2 E CF20D 101:403 capital transfer I 6,475,850 12 40300000 398.2 R CF20D 101:403 capital transfer I 6,475,850 14 22200000 331.1 R FY21 Fair Housing carryover I 9,667 Carryforward amount from FY21 that needs to be spent in FY22 for Fair Housing Services provided by contract with Legal Aid Society. 15 22251470 494.1 E FY21 Fair Housing carryover I 9,667 Carryforward amount from FY21 that needs to be spent in FY22 for Fair Housing Services provided by contract with Legal Aid Society. 16 29571630 441.1 E Electricity rate increases I 87,000 17 29771630 441.1 E Electricity rate increases I 6,100 18 COV22 10190901 493 E //COV22 reimb 101 obj? I 1,000,000 Placeholder for budget to track Covid-related reclassifications. 19 COV22 60120340 462 E //COV22 reimb 601 obj? I 100,000 This will need a cash transfer if allocating funds to Risk. 20 CP21A 40295229 540 E CP21A Contract 72 I 5,067 Senior Center Courtyard adjustment to pay invoice received after project completion; matches unexpended amount on Contract 72. 21 22990999 498.2 E CP21A PSCDO 229:402 transfer I 5,067 Adjustment to pay invoice received after project completion; matches unexpended amount on Contract 72. 22 40200000 398.2 R CP21A PSCDO 229:402 transfer I 5,067 Adjustment to pay invoice received after project completion; matches unexpended amount on Contract 72. 23 60120340 486.1 E Claims - Liability I 400,000 24 60120340 486.4 E Claims - Workers Comp I 150,000 25 60120340 431.21 E Legal Contracts I 100,000 26 30100000 398.4 R IBank Loan transfer from 101 I 850,231 Transfer-out of General Fund was included in FY22 original budget. Needs related transfer-in to debt service fund. 27 30191966 488.2 E IBank Loan cost of issuance I 300,000 Loan expected to close in FY22. Assumes loan origination fee $200K, estimates $100K for other costs like preliminary title and appraisal. 28 20100000 332.3 R CS22A SB1 revised revenue est I 51,223 29 20190999 498.2 E CS22A 201:401 SB1 revised rev I 51,223 30 40100000 398.2 R CS22A 201:401 SB1 revised rev I 51,223 31 CS19B 40195101 590 E CS19B:CS04D 401101 close tr D 110,692 Project was completed in February 2021. Balance will be transferred to Leucadia Streetscape Project. 32 CS04D 40195101 590 E CS19B:CS04D 401101 close tr I 110,692 Transfers General Fund budget from closed CS19B Morning Sun Drive Sidewalk to CS04D Leucadia Streetscape. 33 CS20E 40295101 590 E CS20E 402101 close return D 618 South Coast Highway 101 Safety and Mobility project was completed in September 2020. Returning available budget to General Fund. 34 40290999 498.2 E CS20E 402101 close return I 618 South Coast Highway 101 Safety and Mobility project was completed in September 2020. Returning available budget to General Fund. 35 10100000 398.2 R CS20E 402101 close return I 618 South Coast Highway 101 Safety and Mobility project was completed in September 2020. Returning available budget to General Fund. 36 WC17B 40295101 592 E WC17B:CS04D 402101 close tr D 70,000 Close project WC17B Vulcan and San Elijo ATP Study, then transfer available budget to CS04D Leucadia Streetscape. After this study was funded, striping occurred on portions of Vulcan/San Elijo to improve safety and mobility. If a study is needed at a later date, funding will be requested at that time. 37 WC17B 40295101 592 E WC17B:CS04D 402101 close tr D 19,721 Close project 402 WC17B Vulcan and San Elijo ATP Study, then transfer available budget to 401 CS04D Leucadia Streetscape. FY 21-22 Proposed CIP Budget and Fund Transfer Amendments ATTACHMENT 1 RESOLUTION NO. 2022 -81 - EXHIBIT A 38 40290999 498.2 E WC17B:CS04D 402101 close tr I 89,721 Close project 402 WC17B Vulcan and San Elijo ATP Study, then transfer available budget to 401 CS04D Leucadia Streetscape. 39 10100000 398.2 R WC17B:CS04D 402101 close tr I 89,721 40 CS04D 40195101 590 E CS04D 101 tr from 402 WC17B I 89,721 Transfer available General Fund budget to 401 Leucadia Streetscape after closing 402 WC17B Vulcan and San Elijo ATP Study. 41 10190999 498.2 E CS04D 101 tr from 402 WC17B I 89,721 42 40100000 398.2 R CS04D 101 tr from 402 WC17B I 89,721 43 CP16A 40195212 590 E CP16A 212:401 drainage study I 526 Dune Restoration project (CP16A) increase needed to close out drainage study and concept design services funded by Coastal Zone Management Fund. 44 21290999 498.2 E CP16A 212:401 drainage study I 526 Dune Restoration project (CP16A) increase needed to close out drainage study and concept design services funded by Coastal Zone Management Fund. 45 40100000 398.2 R CP16A 212:401 drainage study I 526 Dune Restoration project (CP16A) increase needed to close out drainage study and concept design services funded by Coastal Zone Management Fund. 46 22990099 398.2 R Correct transfer from capital D 12,407 Administrative adjustment to correct budgeted transfer that was copied over from the prior fiscal year for funding from closed projects returned to the funding source. No transfer is needed this fiscal year. 47 CS22A 40195201 540 E CS22A 201:401 SB1 revised rev I 51,223 48 WD17A 40295101 590 E WD17A:CS22F 402101 close tr D 44,446 Close Stormwater Capture and Reuse Study in Fund 402, and transfer budget to CS22F B&C Restripe in Fund 401. Study was completed in FY 2017-18. It was originally anticipated that the balance would be used for a stormwater project if a grant became available. 49 40290999 498.2 E WD17A:CS22F 402101 close tr I 44,446 Close Stormwater Capture and Reuse Study in Fund 402, and transfer budget to CS22F B&C Restripe in Fund 401. Study was completed in FY 2017-18. It was originally anticipated that the balance would be used for a stormwater project if a grant became available. 50 10100000 398.2 R WD17A:CS22F 402101 close tr I 44,446 Close Stormwater Capture and Reuse Study in Fund 402, and transfer budget to CS22F B&C Restripe in Fund 401. Study was completed in FY 2017-18. It was originally anticipated that the balance would be used for a stormwater project if a grant became available. 51 CS22F 40195101 590 E CS22F 101 tr budget from WD17A I 44,445 Transfer budget to CS22F B&C Restripe in Fund 401 after closing WD17A Stormwater Capture and Reuse Study in Fund 402. 52 10190999 498.2 E CS22F 101 tr budget from WD17A I 44,446 Transfer budget to CS22F B&C Restripe in Fund 401 after closing WD17A Stormwater Capture and Reuse Study in Fund 402. 53 40100000 398.2 R CS22F 101 tr budget from WD17A I 44,446 54 CD17A 40295101 590 E CD17A:CS22F 402101 close tr D 7,860 Close 402 CD17A Leucadia Flooding and transfer funding to 401 CS22F Leucadia B&C Restripe Project. 5 dry wells were install in FY17 and 10 installed in FY19. Additional funds were used for the design of the Jason Street Storm Drain, which will be a new project if it moves forward. 55 40290999 498.2 E CD17A:CS22F 402101 close tr I 7,860 Close 402 CD17A Leucadia Flooding and transfer funding to 401 CS22F Leucadia B&C Restripe Project. 5 dry wells were install in FY17 and 10 installed in FY19. Additional funds were used for the design of the Jason Street Storm Drain, which will be a new project if it moves forward. FY 21-22 Proposed CIP Budget and Fund Transfer Amendments ATTACHMENT 1 RESOLUTION NO. 2022 -81 - EXHIBIT A 56 10100000 398.2 R CD17A:CS22F 402101 close tr I 7,860 Close 402 CD17A Leucadia Flooding and transfer funding to 401 CS22F Leucadia B&C Restripe Project. 5 dry wells were install in FY17 and 10 installed in FY19. Additional funds were used for the design of the Jason Street Storm Drain, which will be a new project if it moves forward. Ratification of FY 21-22 CIP Budget and Fund Transfer Amendments ATTACHMENT 1 RESOLUTION NO. 2022 -81 - EXHIBIT B LINE PROJECT NUMBER ORG OBJECT ACCT TYPE REVENUE (R)/ EXPENDITURE (E) COMMENT INCREASE (I)/ DECREASE (D) AMOUNT ADD'L DESC 1 23800000 349.1 R Adj to match CIP transfer out I 5,014.00 Corrects transfer-related error in FY22 original budget. Identified during fund balance analysis for FY23. 2 10151440 343.1 R INC ESGIL REV EXP RATIFY Q3 I 311,000 Increased appropriation for building inspection services offset by permit fee revenue collected 3 10151440 432.1 E INC ESGIL REV EXP RATIFY Q3 I 311,000 Increased appropriation for building inspection services offset by permit fee revenue collected 4 10151440 343.1 R INC ESGIL REV EXP RATIFY Q3 I 339,000 Increased appropriation for building inspection services offset by permit fee revenue collected 5 10151440 432.1 E INC ESGIL REV EXP RATIFY Q3 I 339,000 Increased appropriation for building inspection services offset by permit fee revenue collected 6 10180876 346.1 R Outdoor prog registration rev I 80,000 Justification: Registration in satellite facility (outdoor) programs has exceeded projections. Adjustment reflects actual revenues received and upcoming FY22 expenditures for contractor payments for programs beginning on or before June 30, 2022. Policy: Admin F005 does not address how staff should handle net-zero increases in revenues and pass-through expenditures for services like building and recreation fees. Budget will process an administrative adjustment and ratify in the next quarterly report. 7 10180876 432.1 E Outdoor prog instructor pmts I 80,000 Justification: Registration in satellite facility (outdoor) programs has exceeded projections. Adjustment reflects actual revenues received and upcoming FY22 expenditures for contractor payments for programs beginning on or before June 30, 2022. Policy: Admin F005 does not address how staff should handle net-zero increases in revenues and pass-through expenditures for services like building and recreation fees. Budget will process an administrative adjustment and ratify in the next quarterly report.