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Home My WebLink AboutAGENDA REPORT 2022 0216 CCSA REG ITEM 09CCITY OF MOORPARK, CALIFORNIA City Council Meeting of February 16, 2022 ACTION APPROVED STAFF RECOMMENDATION, INCLUDING ADOPTION OF RESOLUTION NO. 2022-4073. (ROLL CALL VOTE: UNANIMOUS). BY B.Garza. C.Consider Resolution Authorizing Mid-Year Adjustments to Fiscal Year 2021/22 Budget. Staff Recommendation: Adopt Resolution No. 2022-4073 amending the Fiscal Year 2021/22 budget as noted in Exhibits "A", "B", and "C" to the attached resolution. (ROLL CALL VOTE REQUIRED) (Staff: PJ Gagajena, Assistant City Manager and Interim City Treasurer/Finance Director) Item: 9.C. MOORPARK CITY COUNCIL AGENDA REPORT TO: Honorable City Council FROM: PJ Gagajena, Assistant City Manager and Interim City Treasurer/ Finance Director DATE: 02/16/2022 Regular Meeting SUBJECT: Consider Resolution Authorizing Mid-Year Amendments to Fiscal Year 2021/22 Budget BACKGROUND The City Council adopted a budget for Fiscal Year (FY) 2021/22 on June 16, 2021, and periodically has amended it by resolution for various projects and programs. After a review of the current budget status, in anticipation of developing a budget recommendation for the new fiscal year, staff has compiled additional recommended budget amendments for the City Council’s consideration. DISCUSSION The Mid-Year report provides City Council and the community with high level and currently available information updated in the City’s baseline budget. The report encompasses a few minor adjustments and operational corrections needed to realign the first half of the fiscal year’s spending with the City’s mission and Council’s stated goals. The attached resolution makes several revenue and expenditure adjustments to the currently adopted FY 2021/22 budget, with an explanation for each item. Exhibit A summarizes the projected changes to revenues and expenditures and the net fiscal impact by fund. Revenue adjustments in Exhibit B reflect increases in revenue, and expenditure adjustments in Exhibit C show cost increases and decreases for the remainder of the FY. Total projected revenue will increase by $7,000 and total projected expenditures will increase by $7,000, resulting in zero net impact across all funds to the available fund balance. The General Fund’s projected expenditure decrease of $40,000, generates a net increase of $40,000 in the General Fund balance. This is offset by the Equipment Replacement Fund’s projected expenditure increase of $40,000, which results in a net decrease of $40,000 in the Equipment Replacement Fund balance. Item: 9.C. 49 Honorable City Council 02/16/2022 Regular Meeting Page 2 The reopening of the economy during the beginning of the fiscal year helped fuel consumer demand and support the recovery of many business sectors. Although the report reflects a positive outlook on overall General Fund revenues, it is important to note that the estimates are made based upon available information on or before December 2021, which does not fully capture the impacts of the COVID-19 pandemic. Therefore, the data may be different by the end of the year due to the pandemic’s effects that are fluid and changing daily. Revenues Property Tax is expected to remain the same as originally estimated at $5.2 million based on assessed values on the tax roll for this fiscal year not including delinquencies, supplemental assessments, or prior year collections revenue. Sales and Use Tax revenue is not expected to change from its current estimate of $4.3 million. Although there were some positive signs in the economy at the start of the fiscal year, impacts of the pandemic are expected to keep revenues level. Transient Occupancy Tax revenues are projected to remain the same at $120,000 for FY 2021/22 based on amounts reported by the Fairfield Inn and Suites. Permit and Fee revenues are projected to slightly increase by $7,000 due to new business openings in the industrial and retail sectors, which is shown in Exhibit B. Expenditures Staff reviewed and analyzed operational projections for each department for the remainder of the fiscal year. Any changes within department budgets were netted out among line-item expenses where feasible. Exhibit C represents additional amounts departments will need to pay for property maintenance services, contractual services, salary adjustments, and equipment purchases. This includes reclassifying a Planning Manager position to Deputy Community Development Director to take on a higher level of responsibilities to oversee and implement the General Plan, update the Zoning Code, coordinate the review of fees and cost allocations, and support the Community Development Director on housing and economic development functions. A new police motorcycle will also be purchased to replace an existing motorcycle that has reached the end of its useful life. These are mostly offset by budget reductions of rescheduled or delayed projects and services for the remainder of the fiscal year. Although the Ventura County Board of Supervisors approved a 2.2% increase in Sheriff’s law enforcement service rates for FY 2021/22, this was already budgeted for this fiscal year so no budget adjustments are needed. 50 Honorable City Council 02/16/2022 Regular Meeting Page 3 CONCLUSION Despite strong economic growth during last summer, the pandemic’s impact on businesses during the winter season makes it difficult to anticipate projected revenues by the end of the fiscal year along with ongoing labor shortages, high inflation and potential interest rate increases. This report represents our continued commitment to prudent fiscal management, effective delivery of services and programs to our residents, support and outreach to our business community, and adherence to long-term policies and goals of the City Council to ensure a stable financial future for the City. Staff will continue to monitor this fiscal year’s financial implications and will report back to the City Council before the year-end on the results of revenues and expenditures, and finalize adjustments needed to close the books for the year. FISCAL IMPACT The attached resolution shows revenue and expenditure adjustments for FY 2021/22. There is zero overall net impact to the available fund balance. COUNCIL GOAL COMPLIANCE This action does not support a current strategic directive. STAFF RECOMMENDATION (ROLL CALL VOTE REQUIRED) Adopt Resolution No. 2022-______ amending the Fiscal Year 2021/22 budget as noted in Exhibits “A”, “B”, and “C” to the attached resolution. Attachment: Draft Resolution No. 2022-_____ 51 ATTACHMENT RESOLUTION NO. 2022-____ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MOORPARK, CALIFORNIA, AUTHORIZING AN AMENDMENT TO THE FISCAL YEAR 2021/22 ADOPTED OPERATING AND CAPITAL IMPROVEMENT BUDGET WHEREAS, on June 16, 2021, the City Council adopted the Operating and Capital Improvement Budget for fiscal year 2021/22; and WHEREAS, certain additions and adjustments to the budget are proposed to allow for effective service delivery for the balance of the fiscal year; and WHEREAS, the City Council now wishes to amend the 2021/22 fiscal year budget as noted in Exhibits “A”, “B”, and “C”. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. A budget amendment as more particularly described in Exhibits “A”, “B” and “C” attached hereto is hereby approved. SECTION 2. The City Clerk shall certify to the adoption of this resolution and shall cause a certified resolution to be filed in the book of original resolutions. PASSED AND ADOPTED this 16th day of February, 2022. _____________________________________ Janice S. Parvin, Mayor ATTEST: __________________________________ Ky Spangler, City Clerk Attachment: Exhibits “A”, “B”, and “C” – Mid-Year Budget Amendment 52 Exhibit "A"City of MoorparkMid-Year Budget Amendment for the 2021/2022 Fiscal YearSummary by FundProjected Projected Net Fund BalanceRevenue ExpenditureImpactIncrease IncreaseIncrease(Decrease) (Decrease) (Decrease)1000 - General Fund(40,000)40,0002200 - Community Development7,0007,000-3003 - Equipment Replacement Fund40,000(40,000)$ 7,000$ 7,000$ 0FundResolution No. 2022-____ Page 253 Exhibit "B"City of MoorparkMid-Year Budget Amendment FY 2021/22Account SchemaFundAccount DescriptionCurrentBudgetYTD Actual RevisionAmendedBudgetExplanationREVENUE:2200-000-00000-43170Community DevelopmentCDF - SIGNS & BANNERS PERMIT8,000 1,293 2,000 10,000 Increased revenues from new businesses.2200-000-E0047-43200Community DevelopmentCDF - NR B&S PERMIT FEE70,000 33,987 5,000 75,000 Increased revenues from new businesses.Total Revenue Revision $ 7,000Resolution No. 2022-____ Page 354 Exhibit "C"City of MoorparkMid-Year Budget Amendment FY 2021/22Account SchemaFundDivisionAccount DescriptionCurrentBudgetYTD Actual RevisionAmendedBudgetExplanationEXPENDITURES:1000-132-00000-51000General FundCity ClerkCCLERK - CONTRACTUAL SVC 110,900 77,396(42,300)68,600 Records retention project rescheduled and lower anticipated costs for redistricting process.1000-211-00000-51220General FundPolice DepartmentPOLICE - VEHICLE MAINT SVC 349,343 10,540(40,000)309,343 Receipt of vehicle parts delayed due to supply chain issues. 1000-171-F0001-53000 General FundFacilities MaintenanceCITY HALL - PROP MAINT SVC93,908 59,938 25,000 118,908 Maintenance costs for new city hall.1010-530-00000-51000General FundCommunity ServicesLIBR SVC - CONTRACTUAL SVC 521,934498 17,300 539,234 Library operations consultant not originally budgeted because agreement negotiations were not complete at budget adoption.2200-161-00000-50020 Community Development Planning & ZoningPLANNING - SALARIES (FT)493,444 234,666 7,000 500,444 Classification upgrade of Planning Manager to Deputy Community Development Director.3003-211-00000-55020 Equipment Replacement Police DepartmentPOLICE VEHICLES40,000 40,000 40,000 80,000 Replacement cost for new police motorcycle to replace current motorcycle that has reached end of useful life.Total Expenditure Revision $ 7,000 Resolution No. 2022-____ Page 455