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HomeMy WebLinkAboutAGENDA REPORT 2025 0219 CC REG ITEM 09DCITY OF MOORPARK, CALIFORNIA City Council Meeting of February 19, 2025 ACTION APPROVED RESOLUTION NO. 2025-4300, AS AMENDED. (ROLL CALL VOTE: UNANIMOUS) BY A. Hurtado. D. Consider Resolution Authorizing Mid-Year Amendments to Fiscal Year 2024/25 Budget. Staff Recommendation: Adopt Resolution No. 2025-4300 amending the Fiscal Year 2024/25 budget as noted in Exhibits "A", "B", and "C" to the attached resolution. (ROLL CALL VOTE REQUIRED) (Staff: Hiromi Dever, Finance Director) Item: 9.D. MOORPARK CITY COUNCIL AGENDA REPORT TO: Honorable City Council FROM: Hiromi Dever, Finance Director BY: Gilbert Punsalan, Budget & Finance Manager DATE: 02/19/2025 Regular Meeting SUBJECT: Consider Resolution Authorizing Mid-Year Amendments to Fiscal Year 2024/25 Budget BACKGROUND The City Council adopted a budget for Fiscal Year (FY) 2024/25 on June 19, 2024, 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 and standard practice in the City, 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 2024/25 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 overall decreases in revenue, and expenditure adjustments in Exhibit C show cost increases and decreases for the remainder of the FY. Total projected revenues will decrease by $6,587,640 and total projected expenditures will increase by $515,047, resulting in a net total decrease of $7,102,687 to estimated fund balance across all funds. The largest projected changes are primarily from decreases in developer agreement fees due to delays in developer projects offset by Item: 9.D. 127 Honorable City Council 02/19/2025 Regular Meeting Page 2 increases in investment earnings and other property taxes related to the Redevelopment Property Tax Trust Fund (RPTTF) distribution. Revenues Property Tax is expected to increase from $6.0 million to $7.0 million primarily related to an increase of $0.9 million to other property taxes related to the RPTTF distribution and $0.1 million increase in current year secured property tax. Sales and Use Tax revenue is expected to decrease by $400,000 from its current estimate of $4.8 million to $4.4 million due to current economic conditions of inflation and interest rates. Investment Earnings revenues are projected to increase $1.4 million primarily due to the increase in fair market valuation for investments held. Development Revenues associated with anticipated projects are reduced by $8.4 million due to delays in the timelines for the North Ranch, Pacific Communities, Moorpark Avenue Mixed-Use, and Pentair Expansion projects. The reduced amount will be included in FY 2024/25. Transit revenues are reduced $0.8 million due to TDA allocation originally budgeted as both TDA Article 8a and 8c. For FY 2024/25 all TDA allocation is designated as Article 8c. 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 departments proposed amendments to account for expenditures not originally budgeted, including the following: increased equipment maintenance service charges related to traffic signal maintenance and callouts for Public Safety Power Shutoff (PSPS) events, increase in management fees for the City’s transit program, and unanticipated franchise agreement negotiation fees and housing related legal fees. CONCLUSION 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. 128 Honorable City Council 02/19/2025 Regular Meeting Page 3 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. ENVIRONMENTAL DETERMINATION This action is exempt from the California Environmental Quality Act (CEQA) as it does not constitute a project, as defined by Section 15378 of the State CEQA Guidelines. Therefore, no environmental review is required. FISCAL IMPACT The attached resolution shows revenue and expenditure adjustments for FY 2024/25 with a net overall decrease of $7,102,687 in estimated fiscal year end fund balance across all funds. COUNCIL GOAL COMPLIANCE This action does not support a current strategic directive. STAFF RECOMMENDATION (ROLL CALL VOTE REQUIRED) Adopt Resolution No. 2025-____ amending the Fiscal Year 2024/25 budget as noted in Exhibits “A”, “B”, and “C” to the attached resolution. Attachment: Draft Resolution No. 2025-____ 129 ATTACHMENT RESOLUTION NO. 2025-____ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MOORPARK, CALIFORNIA, AUTHORIZING AN AMENDMENT TO THE FISCAL YEAR 2024/25 ADOPTED OPERATING AND CAPITAL IMPROVEMENT BUDGET WHEREAS, on June 19, 2024, the City Council adopted the Operating and Capital Improvement Budget for fiscal year 2024/25; and WHEREAS, certain additions and adjustments to the budget are proposed to allow for effective service delivery for the balance of the fiscal year; and WHEREAS, the City Council now wishes to amend the 2024/25 fiscal year budget as noted in Exhibits “A”, “B”, and “C”. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. A budget amendment as more particularly described in Exhibits “A”, “B” and “C” attached hereto is hereby approved. SECTION 2. The City Clerk shall certify to the adoption of this resolution and shall cause a certified resolution to be filed in the book of original resolutions. PASSED AND ADOPTED this 19th day of February, 2025. _____________________________________ Chris R. Enegren, Mayor ATTEST: __________________________________ Ky Spangler, City Clerk Attachment: Exhibits “A”, “B”, and “C” – Mid-Year Budget Amendments 130 Exhibit "A" City of Moorpark Fiscal Year 2024/25 Proposed Mid-Year Budget Amendments Summary by Fund Proposed Proposed Net Fund Revenue Expenditure Balance Impact Increase Increase Increase Fund (Decrease)(Decrease)(Decrease) 1000 - GENERAL FUND 907,000$ 64,252$ 842,748$ 1010 - LIBRARY OPERATING FUND 30,400 5,400 25,000 2001 - TRAFFIC SYSTM MGMT FUND (158,229) - (158,229) 2002 - CITY-WIDE TRAFFIC MITIGAT (589,446) - (589,446) 2004 - LIBRARY FACILITIES (57,296) - (57,296) 2006 - TREE AND LANDSCAPE FEES (13,872) - (13,872) 2007 - ART IN PUBLIC PLACES (204,205) - (204,205) 2008 - BICYCLE PATH/MULTI-USE TR 10,000 - 10,000 2009 - MUNICIPAL POOL 10,000 - 10,000 2010 - COMMUNITY WIDE PARK DEVT (483,465) - (483,465) 2011 - PARK IMPROVEMENT ZONE 2017-1 (337,593) - (337,593) 2013 - PARK IMPROVEMENT ZONE 2017-2 (407,610) - (407,610) 2014 - LOS ANGELES A.O.C.243,000 - 243,000 2018 - ENDOWMENT FUND (1,242,101) - (1,242,101) 2019 - OPEN SPACE ACQUISITION FUND 20,000 - 20,000 2121 - CITY AFFORDABLE HOUSING (4,180,816) 10,000 (4,190,816) 2123 - HOUSING-SUCCESSOR AGENCY - 14,321 (14,321) 2200 - COMMUNITY DEVELOPMENT 138,000 20,000 118,000 2205 - ENGINEERING/PW FUND 110,000 - 110,000 2300 - AD 84-2 CITYWIDE LLMD - 59,000 (59,000) 2315 - COUNTRY CLUB ESTATES 10,000 - 10,000 2320 - MERIDIAN HILLS 10,000 45,000 (35,000) 2322 - MOORPARK HIGHLANDS 20,000 31,000 (11,000) 2330 - AD 92-1 MISSION BELL PLZ 25,000 - 25,000 2409 - FEDERAL & STATE GRANTS 35,000 - 35,000 2410 - SOLID WASTE AB939 44,093 69,575 (25,482) 2411 - LOCAL TDA ARTICLE 3 15,000 - 15,000 2412 - LOCAL TDA ARTICLE 8A (775,000) - (775,000) 2414 - LOCAL TDA ARTICLE 8C 10,000 70,500 (60,500) Resolution No. 2025-____ Page 2 131 Exhibit "A" City of Moorpark Fiscal Year 2024/25 Proposed Mid-Year Budget Amendments Summary by Fund Proposed Proposed Net Fund Revenue Expenditure Balance Impact Increase Increase Increase Fund (Decrease)(Decrease)(Decrease) 2415 - GAS TAX 20,000 126,000 (106,000) 2416 - ROAD MAINT & REHAB 94,500 - 94,500 2434 - PROP 1B-LOCAL STREETS&RDS (10,000) - (10,000) 3000 - CAPITAL PROJECTS FUND 10,000 - 10,000 3001 - CITY HALL IMPROVEMENT FUND 20,000 - 20,000 3005 - REMAINING BOND PROCEEDS 80,000 - 80,000 3006 - PEG CAPITAL FUND 10,000 - 10,000 (6,587,640)$ 515,047$ (7,102,687)$ Resolution No. 2025-____ Page 3 132 Exhibit "B" City of Moorpark Fiscal Year 2024/25 Proposed Mid-Year Budget Amendments Summary of Revenue Adjustments Fund Account Number Account Description Current Budget YTD Actual Proposed Adjustments Amended Budget Explanation 1000 1000-000-00000-40000 GF - PROP TAXES-CY SEC 4,700,000$ 2,721,403$ 100,000$ 4,800,000$ Year-to-date actuals received higher than originally projected. 1000 1000-000-00000-40070 GF - PROP TAXES - VLF 4,790,000 - 70,000 4,860,000 Actual distribution higher than estimated 1000 1000-000-00000-40080 GF - OTHER PROP TAXES 700,000 808,561 900,000 1,600,000 Year-to-date actuals received higher than originally projected. 1000 1000-000-00000-40100 GF - SALES&USE TAX 4,800,000 1,435,908 (400,000) 4,400,000 Year-to-date actuals received lower than originally projected. Lowered outlook on sales tax per consultant. 1000 1000-000-00000-42000 GF - INVEST EARN 1,400,000 780,085 200,000 1,600,000 Higher than estimated earnings 1000 1000-000-00000-42050 GF - RENTS&CONCESS 40,000 71,193 85,000 125,000 New rental agreement with CHP. 1000 1000-000-00000-43080 GF - DEVT PROCESS STAFF CHG 25,000 214 (20,000) 5,000 GF Staff charges lower than estimated 1000 1000-000-00000-43090 GF - CONTRACT ADMIN FEE 125,000 549 (10,000) 115,000 GF Admin Fees lower than estimated 1000 1000-000-00000-43290 GF - ADMINISTRATIVE FEES 117,000 38,377 (30,000) 87,000 GF Admin Fees lower than estimated 1000 1000-000-00000-46310 GF - MOTOR VEH IN LIEU (ST)25,000 57,108 32,000 57,000 Year-to-date actuals received higher than originally projected. 1000 1000-171-F0002-42050 COMM CTR - RENTS&CONCESS 27,000 24,572 27,000 54,000 Year-to-date actuals received higher than originally projected. 1000 1000-311-C0020-46250 PRINCETON AV IMPROV - COUNTY GRANT 600,000 - (47,000) 553,000 GF allocation for county reimbursement lower than estimated 1010 1010-000-00000-42000 LIBR OPS - INVEST EARN 60,000 75,943 25,000 85,000 Higher than estimated earnings 1010 1010-000-G0000-46550 Grant Revenue - - 5,400 5,400 Lunch at Library Grant; offset by increase in expenditure. 2001 2001-000-00000-42000 TSM - INVEST EARN 65,000 62,640 30,000 95,000 Higher than estimated earnings 2001 2001-000-00000-43010 TSM - DEVT AGRMT FEES 286,479 4,083 (188,229) 98,250 Delay in timing of developer projects. 2002 2002-000-00000-42000 CW TRAF MITI - INVEST EARN 575,000 512,290 300,000 875,000 Higher than estimated earnings 2002 2002-000-00000-43010 CW TRAF MITI - DEVT AGRMT FEES 2,003,706 35,224 (1,305,206) 698,500 Delay in timing of developer projects. 2002 2002-000-00000-43060 CW TRAF MITI - DEVT AGRMT IMPACT FEES 545,040 918,791 373,760 918,800 Delay in timing of developer projects. 2002 2002-000-00000-43360 CW TRAF MITI - REIMBURSE - - 42,000 42,000 County Reimbursement for Princeton Ave 2004 2004-000-00000-42000 LIBR FAC - INVEST EARN 120,000 152,751 80,000 200,000 Higher than estimated earnings 2004 2004-000-00000-43000 LIBR FAC - GEN DEVT FEES 225,646 124,154 (137,296) 88,350 Delay in timing of developer projects. 2006 2006-000-00000-43000 TR&LSCP - GEN DEVT FEES 21,067 7,195 (13,872) 7,195 Delay in timing of developer projects. 2007 2007-000-00000-42000 ART IN PP - INVEST EARN 140,000 151,832 80,000 220,000 Higher than estimated earnings 2007 2007-000-00000-43000 ART IN PP - GEN DEVT FEES 594,975 9,551 (284,205) 310,770 Delay in timing of developer projects. 2008 2008-000-00000-42000 BIKE/TRL - INVEST EARN 2,000 4,520 10,000 12,000 Higher than estimated earnings 2009 2009-000-00000-42000 MUNI POOL - INVEST EARN 3,000 10,926 10,000 13,000 Higher than estimated earnings Resolution No. 2025-____ Page 4 133 Exhibit "B" City of Moorpark Fiscal Year 2024/25 Proposed Mid-Year Budget Amendments Summary of Revenue Adjustments Fund Account Number Account Description Current Budget YTD Actual Proposed Adjustments Amended Budget Explanation 2010 2010-000-00000-42000 PK DEVT CW - INVEST EARN 50,000 47,621 20,000 70,000 Higher than estimated earnings 2010 2010-000-00000-43010 PK DEVT CW - DEVT AGRMT FEES 789,315 279,148 (503,465) 285,850 Delay in timing of developer projects. 2011 2011-000-00000-42000 PK DEVT Z1 - INVEST EARN 20,000 25,305 10,000 30,000 Higher than estimated earnings 2011 2011-000-00000-43010 PK DEVT Z1 - DEVT AGRMT FEES 347,593 - (347,593) - Delay in timing of developer projects. 2013 2013-000-00000-43010 PK DEVT Z3 - DEVT AGRMT FEES 836,380 418,721 (407,610) 428,770 Delay in timing of developer projects. 2014 2014-000-00000-42000 LA-AOC - INVEST EARN 225,000 173,553 50,000 275,000 Higher than estimated earnings 2014 2014-000-00000-43360 LA-AOC - REIMBURSE - - 193,000 193,000 County Reimbursement for Princeton Ave 2018 2018-000-00000-42000 ENDOW - INVEST EARN 250,000 283,650 100,000 350,000 Higher than estimated earnings 2018 2018-000-00000-43010 ENDOW - DEVT AGRMT FEES 2,026,201 28,429 (1,342,101) 684,100 Delay in timing of developer projects. 2019 2019-000-00000-42000 OPEN SPACE ACQ - INVEST EARN 80,000 78,475 20,000 100,000 Higher than estimated earnings 2121 2121-000-00000-42000 CITY HSNG - INVEST EARN 55,000 84,456 30,000 85,000 Higher than estimated earnings 2121 2121-000-00000-43010 CITY HSNG - DEVT AGRMT FEES 5,244,816 1,034,000 (4,210,816) 1,034,000 Delay in timing of developer projects. 2200 2200-000-00000-43180 CDF - ADVANCE PLAN FEES 15,000 30,667 16,000 31,000 Year-to-date actuals received higher than originally projected. 2200 2200-000-00000-44100 CDF - STLMT/RESTITUTE - 18,134 18,000 18,000 One time settlement 2200 2200-000-00000-46350 CDF - STATE GRANTS - - 30,000 30,000 Downtown Specific Plan Grant. 2200 2200-000-00000-49010 CDF - TFER FR OTH FUND 1,589,309 - (26,000) 1,563,309 Decrease in subsidy requirement from other funds. 2200 2200-000-E0046-43200 CDF - RES B&S PERMIT FEE 386,978 355,738 100,000 486,978 Permits issuance for new development 2205 2205-000-00000-42000 ENG/PWE - INVEST EARN - 7,423 10,000 10,000 Higher than estimated earnings 2205 2205-000-00000-43020 ENG/PWE - DEVT PLAN REV&PROCE FEE 400,000 390,148 100,000 500,000 Plan checks for new development 2315 2315-000-00000-42000 LMD-Z15 - INVEST EARN 40,000 44,078 10,000 50,000 Higher than estimated earnings 2320 2320-000-00000-42000 LMD20 MER HILLS - INVEST EARN 20,000 25,294 10,000 30,000 Higher than estimated earnings 2322 2322-000-00000-42000 LMD-Z22 - INVEST EARN 30,000 47,117 20,000 50,000 Higher than estimated earnings 2330 2330-000-00000-42000 LMD-Z30 - INVEST EARN - 21,613 25,000 25,000 Higher than estimated earnings 2409 2409-000-00000-42000 FED/ST GRNT - INVEST EARN - 14,225 10,000 10,000 Higher than estimated earnings 2409 2409-000-00000-46350 CETF Digital Literacy Grant - - 25,000 25,000 Digital Literacy Grant toward Library's new podcast recording booth. 2410 2410-000-00000-42000 SLD WSTE - INVEST EARN 15,000 55,183 35,000 50,000 Higher than estimated earnings 2410 2410-000-G0002-46370 SLD WSTE - ST GRANTS-BEVERAGE CTR RECYCLE 9,200 - 9,093 18,293 Beverage Container Recycling City/County Payment Program Grants (California Beverage Container Recycling Fund, Fiscal Year 2024–25); offset by increase in expenditure. Resolution No. 2025-____ Page 5 134 Exhibit "B" City of Moorpark Fiscal Year 2024/25 Proposed Mid-Year Budget Amendments Summary of Revenue Adjustments Fund Account Number Account Description Current Budget YTD Actual Proposed Adjustments Amended Budget Explanation 2411 2411-000-00000-42000 TRANS-3 - INVEST EARN 4,000 28,317 15,000 19,000 Higher than estimated earnings 2412 2412-000-00000-42000 TRANS-8A - INVEST EARN 10,000 38,647 25,000 35,000 Higher than estimated earnings 2412 2412-000-00000-46200 TRANS-8A - TRANSIT ALLOC (CNTY)800,000 - (800,000) - All FY24/25 TDA Allocation was designated for Art 8c (Fund 2414) 2414 2414-000-00000-42000 TRANS-8C - INVEST EARN 2,000 14,344 10,000 12,000 Higher than estimated earnings 2415 2415-000-00000-42000 GAS TX - INVEST EARN 15,000 30,245 20,000 35,000 Higher than estimated earnings 2416 2416-000-00000-42000 RD MAINT&REHAB - INVEST EARN 500 103,289 94,500 95,000 Higher than estimated earnings 2434 2434-000-00000-42000 PROP1B-ST/RDS - INVEST EARN 10,000 51 (10,000) - Prop 1B Closed, transferred to Traffic Mitigation 3000 3000-000-00000-42000 CAP PROJ - INVEST EARN 10,000 22,594 10,000 20,000 Higher than estimated earnings 3001 3001-000-00000-42000 CH IMPRV - INVEST EARN 55,000 85,131 20,000 75,000 Higher than estimated earnings 3005 3005-000-00000-42000 REMAIN BOND PROC - INVEST EARN - 57,962 80,000 80,000 Higher than estimated earnings 3006 3006-000-00000-42000 PEG CAPITAL - INVEST EARN - 10,052 10,000 10,000 Higher than estimated earnings Total Proposed Revenue Adjustments (6,587,640)$ Resolution No. 2025-____ Page 6 135 Exhibit "C" City of Moorpark Fiscal Year 2024/25 Proposed Mid-Year Budget Amendments Summary of Expenditure Adjustments Fund Account Number Account Description Current Budget YTD Actual Proposed Adjustments Amended Budget Explanation 1000 1000-171-F0010-53000 New City Hall Science Dr. -Prop Maint.Svc 14,000$ 23,467$ 15,000$ $ 29,000 City Hall move-in expenditures. 1000 1000-172-00000-51000 Property Maintenance - Contractual 25,000 1,110 22,445 47,445 To adjust for a purchase order rollover issue. 1000 1000-212-G0031-55000 CDBG O&E GRANT - MACHINE&EQUIP - - 26,807 26,807 Reso# 2025-4296 – Equipment Purchase 1010 1010-530-GXXXX-52050 Tools and Non Capital Equipment - - 5,400 5,400 Lunch at Library Grant; offset by increase in revenue. 2121 2121-422-00000-51040 CITY HSNG - LEGAL SVC 5,000 9,965 10,000 15,000 Projected increase in legal services expenditures. 2123 2123-172-00000-51000 Property Maintenance - Contractual 23,500 2,561 14,321 37,821 To adjust for a purchase order rollover issue. 2200 2200-160-00000-51000 CDD ADM - CONTRACTUAL SVC 20,000 19,201 20,000 40,000 Projected increase in contractual services expenditures. 2300 2300-312-P0006-51210 Equipment Maint. SVC 60,000 37,028 40,000 100,000 Two additional streetlight knockdowns pending. 2300 2300-542-P0005-51000 Pepper Tree Maint - Contractual Svc TREE MAINT - CONTRACTUAL SVC 19,000 24,648 19,000 38,000 Unexpected pepper tree maintenance and replacement due to strong wind events. 2320 2320-542-P0004-53000 Landscaping - Prop Maint Svc 62,287 21,177 45,000 72,287 Necessary repairs to fence due to vehicle damage and upcoming planting improvements 2322 2322-542-P0004-53000 Landscaping - Prop Maint Svc 131,000 72,916 31,000 146,000 Unanticipated fire abatement mandated by VCFD in Ridgecrest basin, and engineering plans for basin repairs 2410 2410-445-G0002-52050 BEV CTR RECYC GRT 9,200 650 9,093 18,293 Awards for the Beverage Container Recycling City/County Payment Program (California Beverage Container Recycling Fund, Fiscal Year 2024–25); offset by increase in revenue. 2410 2410-445-P0002-51040 Legal Svc 15,000 75,482 60,482 75,482 Legal Fees for Franchise Agreement Negotiations 2414 2414-430-P0010-51000 Intercity Dial-A-Ride Services - ECTA 190,000 96,389 15,000 205,000 To account for management fees that TO invoices at the end of the fiscal year. 2414 2414-430-P0011-51000 City Transit Contractual SVC 1,377,600 647,474 40,000 1,417,600 To account for management fees that TO invoices at the end of the fiscal year. 2414 2414-430-P0013-51000 Public Transit - Metrolink Contractual Services 10,000 4,120 15,500 25,500 To replace and update lights on the center platform with LED lights. 2415 2415-311-00000-51210 Equipment Maint. SVC 118,500 39,334 110,000 228,500 Increase in traffic signal maintenance expenditures and frequency of callouts due to PSPS events. 2415 2415-311-00000-55000 Machine & Equipment - - 16,000 16,000 Replacement of two nonfunctional radar speed signs (NB side of Spring Road and WB side of Championship Drive). Total Proposed Expenditure Adjustments $ 515,047 Resolution No. 2025-____ Page 7 136