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HomeMy WebLinkAboutAGENDA REPORT 2023 0301 CCSA REG ITEM 09CCITY OF MOORPARK, CALIFORNIA City Council Meeting of March 1, 2023 ACTION ADOPTED RESOLUTION NO. 2023-4162. (ROLL CALL VOTE: 4-0, COUNCILMEMBER GROFF ABSENT) BY A. Hurtado. C. Consider Resolution Authorizing Mid-Year Amendments to Fiscal Year 2022/23 Budget. Staff Recommendation: Adopt Resolution No. 2023-4162 amending the Fiscal Year 2022/23 budget as noted in Exhibits “A”, “B”, and “C” to the attached resolution. (Staff: PJ Gagajena, Assistant City Manager and Interim Finance Director/City Treasurer) (ROLL CALL VOTE REQUIRED) 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: 03/01/2023 Regular Meeting SUBJECT: Consider Resolution Authorizing Mid-Year Amendments to Fiscal Year 2022/23 Budget BACKGROUND The City Council adopted a budget for Fiscal Year (FY) 2022/23 on June 15, 2022, and periodically has amended it by resolution for various projects and programs. In addition, now that approximately half of the fiscal year has passed, as is a best practice and standard tradition, staff has reviewed budget assumptions of projected revenues and expenditures against actual receipts and expenses and can provide more accurate budget presumptions. 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 2022/23 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 revenues will increase by $724,807and total projected expenditures will increase by $546,500, resulting in a net total increase of $178,307 in revenues to the available fund balance. The largest projected expenditures include the fund accounts for Item: 9.C. 75 Honorable City Council 03/01/2023 Regular Meeting Page 2 legal services in the General Fund, Housing Successor Agency, Park Maintenance District, Internal Services, and Country Club Estates. These are offset by sales tax revenues in the General Fund, one-time loan repayments in the Los Angeles Area of Contribution Fund, and Building & Safety permits and fees. Increases in the Traffic System Management Fund are offset with the Proposition 1B Local Streets and Roads Fund with a zero net overall impact. While consumer demand continued to support the recovery of many business sectors post pandemic, the economy slowed down during the beginning of the fiscal year due to high inflation and interest rates. 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 2022. The data may be different by the end of the fiscal year due to the current economic climate that is fluid and changing daily. Revenues Property Tax is expected to largely 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. However, there is additional property tax revenue in the amount of $85,000 received from prior year property taxes and other property taxes such as Redevelopment Property Tax Trust Fund (RPTTF) pass-through distributions. Sales and Use Tax revenue is expected to modestly increase by $200,000 from its current estimate of $5 million to $5.2 million due to higher than expected revenues from retail, restaurants, and the construction industry. Transient Occupancy Tax revenues are projected to remain the same at $275,000 for FY 2022/23 based on amounts reported by the Fairfield Inn and Suites. Permit and Fee revenues are expected to increase by $146,000 from Building & Safety revenues due to higher than anticipated building and construction activities. One-time revenues are expected to increase by $203,807 due to two one-time payments of deferred loans associated with the Los Angeles Area of Contribution Fund. 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 expenses not originally budgeted, including the following: Annual State of the City event, City of Moorpark 40th Anniversary Celebration, Energov support package and implementation, signing bonuses for hard-to-fill positions, printing and marketing materials for recreational programs, park janitorial services, Fox Canyon water rate increases, lighting and 76 Honorable City Council 03/01/2023 Regular Meeting Page 3 landscaping repairs due to traffic accidents, sand and sand bags due to recent rainstorms, budget and finance consulting and support services, legal services, housing successor agency debt service, developer project expenses, and additional commissioner payments for special and joint meetings. These are offset by approximately $24,500 in budget reductions due to lower than anticipated expenditures and rescheduled projects in the City Clerk’s Office. While expenditure reclassifications per the State Auditor’s recommendations are also listed, these are offsetting adjustments with zero overall impact between the Traffic System Management and Prop 1B-Local Streets and Roads funds. CONCLUSION Although there are ongoing labor shortages, job layoffs in certain industries, high inflation rates, and interest rate hikes, the economy remains steady with modest gains in certain business sectors. This report represents the City’s continued commitment to prudent fiscal management, effective delivery of services and programs to residents and businesses, 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 2022/23 with a net overall increase of $178,307 in fund balance. COUNCIL GOAL COMPLIANCE This action does not support a current strategic directive. STAFF RECOMMENDATION (ROLL CALL VOTE REQUIRED) Adopt Resolution No. 2023-______ amending the Fiscal Year 2022/23 budget as noted in Exhibits “A”, “B”, and “C” to the attached resolution. Attachment: Draft Resolution No. 2023-_____ 77 ATTACHMENT RESOLUTION NO. 2023-____ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MOORPARK, CALIFORNIA, AUTHORIZING AN AMENDMENT TO THE FISCAL YEAR 2022/23 ADOPTED OPERATING AND CAPITAL IMPROVEMENT BUDGET WHEREAS, on June 15, 2022, the City Council adopted the Operating and Capital Improvement Budget for fiscal year 2022/23; 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 2022/23 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 1st day of March, 2023. _____________________________________ Chris R. Enegren, Mayor ATTEST: __________________________________ Ky Spangler, City Clerk Attachment: Exhibits “A”, “B”, and “C” – Mid-Year Budget Amendment 78 Exhibit "A" City of Moorpark Mid-Year Budget Amendment for the 2022/2023 Fiscal Year Summary by Fund Projected Projected Net Fund Balance Revenue Expenditure Impact Increase Increase Increase (Decrease) (Decrease) (Decrease) 1000 - General Fund 310,000 146,100 163,900 2001 - Traffic System Management - 680,806 (680,806) 2014 - Los Angeles Area of Contribution 203,807 - 203,807 2123 - Housing-Successor Agency 110,000 (110,000) 2200 - Community Development 146,000 34,900 111,100 2300 - AD 84-2 Citywide LLMD - 12,000 (12,000) 2312 - 84-2 Carlsberg - 3,000 (3,000) 2315 - Country Club Estates - 55,000 (55,000) 2390 - Park Maintenance District - 101,000 (101,000) 2409 - Federal & State Grants 55,000 55,000 2415 - Gas Tax - 24,000 (24,000) 2434 - PROP 1B-Local Streets & Roads -(680,806)680,806 3009 - Vehicle Replacement Fund 10,000 10,000 9000 - Internal Services Fund - 60,500 (60,500) $ 724,807 $ 546,500 $ 178,307 Fund 79 Exhibit "B" City of Moorpark Mid-Year Budget Amendment FY 2022/23 Account Schema Fund Account Description Current Budget YTD Actual Revision Amended Budget Explanation REVENUE: 1000-000-00000-40100 General Fund GF - SALES&USE TAX 5,028,000 1,697,441 200,000 5,228,000 Increase in sales tax revenue per HdL projection estimates 2014-000-00000-42010 LOS ANGELES A.O.C. LA-AOC LOAN INTEREST - - 177,807 177,807 Birkenshaw loan deferment payment 2014-000-00000-42210 LOS ANGELES A.O.C. LA-AOC LOAN PAYOFFS - 25,649 26,000 26,000 Fitch loan pay-off 2409-000-G0004-46360 Federal & State Grants FED/ST GRNT - ST GRANTS-PUB SAFETY 100,000 98,605 55,000 155,000 Grant revenue 1000-000-00000-40080 General Fund GF - OTHER PROP TAXES 500,000 533,959 50,000 550,000 Property tax revenue 1000-000-00000-40020 General Fund GF - PROP TAXES PY 5,000 39,686 35,000 40,000 Prior year property taxes 1000-000-00000-44100 General Fund GF - STMLT/RESTITUTE 20,000 39,584 25,000 45,000 Settlement/Restitute refund 3009-000-00000-49110 Vehicle Replacement Fund VEH RPLC - SALE VEHICLE FA - 7,675 10,000 10,000 Additional surplus for auction 2200-000-E0046-43200 Community Development CDF - RES B&S PERMIT FEE 24,000 143,843 146,000 170,000 Additional Building & Safety permit and fee revenues Total Revenue Revision $ 724,807 80 Exhibit "C" City of Moorpark Mid-Year Budget Amendment FY 2022/23 Account Schema Fund Division Account Description Current Budget YTD Actual Revision Amended Budget Explanation EXPENDITURES: 1000-611-00000-52000 General Fund Economic Development ED - GENERAL/PROGRAM SUPPLIES 5,500 1,031 10,000 15,500 Hosting State of the City Event, not originally budgeted. Current Budget in account is designated for the Mayor's Business appreciation Lucheon. 1000-132-00000-51000 General Fund City Clerk CCLERK - CONTRACTUAL SVC 51,500 973 (10,000)41,500 Savings in Records Retention Services 1000-132-00000-51040 General Fund City Clerk CCLERK - LEGAL SVC 25,000 352 (10,000)15,000 Savings in Legal Services costs 1000-132-00000-51200 General Fund City Clerk CCLERK - PRINT & AD SVC 1,500 0 (1,000)500 Savings in Misc Advertising costs 1000-132-00000-51550 General Fund City Clerk CCLERK - EMPL CONTINUE EDUC & DEVT 6,515 750 (3,500)3,015 Savings in Travel/Lodging costs 1000-133-E0053-52000 General Fund HR/Risk Management HR RECRUITMENT - GENERAL/PROGRAM SUPPL 10,000 7,192 5,000 15,000 Signing Bonuses - not originally budgeted 1000-131-E0054-52000 General Fund Pub Info/Leg Affairs PILA - GENERAL/PROGRAM SUPPL 2,700 1,433 8,000 10,700 40th Anniversary Celebration - not originally budgeted 9000-134-00000-51000 Internal Service Fund ISD/Cable TV ISD/CABLE - CONTRACTUAL SVC 419,360 204,248 60,500 479,860 Energov Support package $20K & $40.5K for Energov implementation- not originally budgeted 1000-521-00000-51200 General Fund Recreation Programs RECR - PRINT & AD SVC 24,000 16,500 7,200 31,200 Increase in printing costs 1000-131-00000-51200 General Fund Pub Info/Leg Affairs PILA - PRINT & AD SVC 11,000 8,443 4,400 15,400 Increase in printing costs 2390-541-R0030-53000 Park Maintenance District Parks Districts AVCP - PROP MAINT SVC 338,322 302,778 16,900 355,222 Janitorial svc. not incl (Parks) + slide replacement 2390-541-R0060-53000 Park Maintenance District Parks Districts CAMPUS CYN PK - PROP MAINT SVC 48,400 30,333 6,000 54,400 Janitorial svc. not incl (Parks) 2390-541-R0050-53000 Park Maintenance District Parks Districts CAMPUS PK - PROP MAINT SVC 22,920 15,750 7,000 29,920 Janitorial svc. not incl (Parks) 2390-541-R0070-53000 Park Maintenance District Parks Districts COLL VIEW PK - PROP MAINT SVC 41,924 25,897 6,000 47,924 Janitorial svc. not incl (Parks) 2390-541-R0130-53000 Park Maintenance District Parks Districts GLENWOOD PK - PROP MAINT SVC 28,756 26,496 9,000 37,756 Janitorial svc. not incl (Parks) + emergency tree removals 2390-541-R0170-53000 Park Maintenance District Parks Districts MAMMOTH HLND PK - PROP MAINT SVC 43,394 38,581 10,000 53,394 Janitorial svc. not incl (Parks) + slide replacement 2390-541-R0150-53000 Park Maintenance District Parks Districts MILLER PK - PROP MAINT SVC 41,592 27,453 5,500 47,092 Janitorial svc. not incl (Parks) 2390-541-R0100-53000 Park Maintenance District Parks Districts MTN MEADOWS PK - PROP MAINT SVC 48,344 30,272 5,000 53,344 Janitorial svc. not incl (Parks) 2390-541-R0080-53000 Park Maintenance District Parks Districts PEACH HILL PK - PROP MAINT SVC 53,180 40,185 4,500 57,680 Janitorial svc. not incl (Parks) 2390-541-R0010-53000 Park Maintenance District Parks Districts POINDEXTR PK - PROP MAINT SVC 58,760 44,515 10,500 69,260 Janitorial svc. not incl (Parks) + emergency tree removals 2390-541-R0111-53000 Park Maintenance District Parks Districts TIERRA REJA PK - PROP MAINT SVC 48,844 45,600 5,000 53,844 Janitorial svc. not incl (Parks) 2390-541-R0200-53000 Park Maintenance District Parks Districts NATURE TRAILS - PROP MAINT SVC 5,200 4,800 3,600 8,800 Increase landscape svc (Parks) 2390-541-R0030-54030 Park Maintenance District Parks Districts AVCP - WATER & SEWAGE 80,000 3,211 12,000 92,000 Rate Increases (Fox Canyon) 2300-542-P0004-53000 AD 84-2 Citywide LLMD Lighting/Landscaping Districts LANDSCAPING - PROP MAINT SVC 86,500 41,314 12,000 98,500 Lighting and landscaping repairs due to traffic accidents 2312-542-P0004-53000 84-2 Carlsberg Lighting/Landscaping Districts LANDSCAPING - PROP MAINT SVC 85,692 59,740 3,000 88,692 Lighting and landscaping repairs due to traffic accidents 2315-542-P0004-53000 Country Club Estates Lighting/Landscaping Districts LANDSCAPING - PROP MAINT SVC - 286 55,000 55,000 Lighting and landscaping repairs due to traffic accidents 2415-311-00000-51210 Gas Tax Street Maintenance ST MAINT - EQUIP MAINT SVC - 0 24,000 24,000 Traffic signal knockdown replacements 1000-231-00000-52000 General Fund NPDES NPDES - GENERAL/PROGRAM SUPPL 1,500 871 1,000 2,500 Sand and sand bags for recent rainstorms 1000-151-00000-51000 General Fund Finance FIN - CONTRACTUAL SVC 201,225 156,942 20,000 221,225 Herrera Associates CPA for finance consulting services 1000-151-00000-50030 General Fund Finance FIN - SALARIES (PT)- 1,881 15,000 15,000 PT Salaries for Project Administrator II budget and finance support services 2001-430-C0032-55200 Traffic System Management Fund Transit METROLK N PARKING - INFRASTRUCTURES (598,832)38,489 675,620 76,789 Re-class of expenditure from Fund 2434 to Fund 2001 per State Auditor's recommendation. 2001-430-C0032-55300 Traffic System Management Fund Transit METROLK N PARKING - CAPITAL-PROF SVC (5,186)- 5,186 - Re-class of expenditure from Fund 2434 to Fund 2001 per State Auditor's recommendation. 81 Exhibit "C" City of Moorpark Mid-Year Budget Amendment FY 2022/23 Account Schema Fund Division Account Description Current Budget YTD Actual Revision Amended Budget Explanation 2434-430-C0032-55200 Prop 1B-Local Street & Roads Transit METROLK N PARKING - INFRASTRUCTURES 870,335 273,709 (596,627)273,708 Re-class of expenditure from Fund 2434 to Fund 2001 per State Auditor's recommendation. 2434-430-C0032-55300 Prop 1B-Local Street & Roads Transit METROLK N PARKING - CAPITAL-PROF SVC 85,175 7,502 (84,179)996 Re-class of expenditure from Fund 2434 to Fund 2001 per State Auditor's recommendation. 1000-140-00000-51040 General Fund City Attorney CTYATTY - LEGAL SVC 100,000 105,969 100,000 200,000 YTD actuals up to Nov 2022; increase requested to cover the costs for remaining FY 2123-000-00000-57010 Housing-Successor Agency Unallocated HSNG SA - BOND PRINCIPAL 20,000 130,000 110,000 130,000 Need increase in budget to cover the debt service in FY23 2200-161-00000-51040 Community Development Planning & Zoning PLANNING - LEGAL SVC 15,000 28,672 17,000 32,000 Developer project expenses were not projected into the original budget, this increase takes into consideration these expenditures. 2200-161-00000-51200 Community Development Planning & Zoning PLANNING - PRINT & AD SVC 1,500 17,319 16,500 18,000 Developer project expenses were not projected into the original budget, this increase takes into consideration these expenditures. 2200-160-00000-50010 Community Development CDD Administration CDD ADM - HONORARIUMS 6,000 4,400 1,400 7,400 Need more budget due to special and joint meetings Total Expenditure Revision $ 546,500 82