HomeMy WebLinkAboutAGENDA REPORT 2015 1216 CCSA REG ITEM 10E ITEM 10.E.
CITY OF MOORPARK,CALIFORNIA
City Council Meeting
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MOORPARK CITY COUNCIL ACTION: old Jioi .
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AGENDA REPORT �5—
TO: The Honorable City Council
FROM: Ron Ahlers, Finance Director, ,I A/ r
By: Irmina Lumbad, Budget and Finance Manager
DATE: December 1, 2015 (CC Meeting of December 16, 2015)
SUBJECT: Consider Resolution Amending the Fiscal Year 2015/2016 Budget and
Authorizing the Transfer of General Fund Money to Cover Fiscal Year
2014/2015 Year-End Deficits in Certain Funds for the City's
Landscaping and Lighting Assessment Districts
BACKGROUND
On June 3, 2015, the City Council approved the assessments for the City's Landscaping
and Lighting Districts for fiscal year (FY) 2015/2016. In the staff report accompanying that
action, it was mentioned that certain Assessment District Funds were projected to show a
FY 2014/2015 year-end deficit. Continuing the policy from prior years, the projected FY
2014/2015 deficits were funded in the adopted budget for the succeeding FY 2015/2016. It
was also mentioned in the report that, when the actual FY 2014/2015 year-end figures
were known, staff would present to the City Council, a budget amendment approving
appropriations and fund transfers to "zero-out"the actual deficits.
DISCUSSION
A. Actual FY 2014/2015 Year-End Deficits
Attachment 2 is a schedule showing the Fund Activity for the Assessment District
Funds for FY 2014/2015. Certain Funds show a year-end deficit, summarized as
follows:
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Honorable City Council
December 16, 2015
Page 2
FY 14/15 FY 14/15
Beginning Ending
Fund Balance2 Transfers In3 Revenue Expenses Balance
2300:Citywide-Street Lighting ($62,508.48) $68,770.48 $252,912.91 $384,228.52 ($125,053.61)
2300:Citywide-Laedcaping $18,972.26 $0.00 $191,058.14 $235,503.35 ($25,472.95)
2301:Dist 1 Pecan Ave Tract 2851' ($505.61) $1,424.61 $9,895.86 $17,613.52 ($6,798.66)
2305:Dist 5 Pheasant Run Areal ($31,516.50) $34,710.50 $24,196.13 $54,996.76 ($27,606.63)
2306:Dist6 Inglewood Street' ($91.63) $103.63 $994.99 $1,466.12 ($459.13)
2307:Dist 7 Moorpark Business Park' ($20,076.67) $20,594.57 $11,597.98 $12,751.42 ($635.54)
2308:Dist 8 Home Acres Buffer' ($10,218.61) $11,137.61 $16,427.33 $26,599.95 ($9,253.62)
2309:Dist 9 Moorpark Industrial Park' ($2,897.86) $3,160.86 $1,383.79 $4,336.63 ($2,689.84)
2314:Dist 14 Wilshire Builders' ($1,711.85) $1,905.85 $1,623.20 $3,075.44 ($1,258.24)
Total ($110,554.95) $141,808.11 $510,090.33 $740,571.71 ($199,228.22)
Notes:
' Landscaping deficits
2 The aggregate FY14/15 beginning balance total$129,527 net of Fund 2300(Cityw ide Landscaping),which posted surplus fund
balance at year end.
Transfers In reflect FY13/14 actual fund deficits$129,527 plus additional subsidy of$12,281 for the paydow n of retirement
pension unfunded liability.
B. Proposed Adjustments
During the budget development for FY 2015/2016, assessment districts were
projected to have an aggregate deficit of $283,972.00. Since the Gas Tax Fund
was estimated to have $339,678.00 surplus fund balance, the General Fund
budgeted 100% of the subsidy as follows:
Transfer from
Transfer to Fund: General Fund
2300:Citywide-Street Lighting ($137,677.00)
2300:Citywide-Landcaping ($70,960.00)
2301:Dist 1 Pecan Ave Tract 2851 ($5,960.00)
2303:Dist 3 Buttercreek/Peppermill' $0.00
2304:Dist4 Williams Ranch Road' $0.00
2305:Dist 5 Pheasant Run Areal ($43,516.00)
2306:Dist6 Inglewood Street' ($679.00)
2307:Dist 7 Moorpark Business Park' ($3,387.00)
2308:Dist 8 Home Acres Buffer' ($16,269.00)
2309:Dist9 Moorpark Industrial Park' ($3,608.00)
2310:Dist 10 Mountain Meadows' $0.00
2314:Dist 14 Wilshire Builders' ($1,916.00)
Total ($283,972.00)
Note:
' Landscaping deficits
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Honorable City Council
December 16, 2015
Page 3
Prior to FY 2011/2012, the street lighting deficit was funded by the Gas Tax Fund,
and the deficits in the various landscaping districts were funded 50-50 by the
General Fund and the Gas Tax Fund. However, the funding scheme has been
modified to prevent the Gas Tax Fund from incurring a deficit fund balance. As
was the case in FY 2013/2014, the General Fund fully subsidized the FY
2012/2013 aggregate deficit of$431,801.00.
The June 30, 2016 revised surplus fund balance estimate for Gas Tax Fund is now
$145,668.00 due to additional appropriation for the 2015 Pavement Rehabilitation
Project (CIP 8002). Staff is recommending to fully subsidize the prior year deficits
using the General Fund. The actual FY 2014/2015 deficit is $84,743.78 less than
expected. This improvement is primarily attributed to water ($57,580.73) and
street light energy ($11,603.01) savings; and deferment of the arborist risk
assessment inspections. Using the modified funding policy, the FY 2014/2015
assessment districts' actual deficit of $199,228.22 will require the transfers from
the General Fund follows:
Transfer FROM
Total Actual
Transfer TO Fund: General Fund Gas Tax Fund Deficit
2300:Citywide-Street Lighting $125,053.61 $0.00 $125,053.61
2300:Citywide-Landcaping $25,472.95 $0.00 $25,472.95
2301:Dist 1 Pecan Ave Tract 2851' $6,798.66 $0.00 $6,798.66
2305:Dist 5 Pheasant Run Areal $27,606.63 $0.00 $27,606.63
2306:Dist 6 Inglewood Street' $459.13 $0.00 $459.13
2307:Dist 7 Moorpark Business Park' $635.54 $0.00 $635.54
2308:Dist 8 Home Acres Buffer' $9,253.62 $0.00 $9,253.62
2309:Dist 9 Moorpark Industrial Park' $2,689.84 $0.00 $2,689.84
2314:Dist 14 Wilshire Builders' $1,258.24 $0.00 $1,258.24
Total $199,228.22 $0.00 $199,228.22
Note:'Landscaping deficits
C. FY 2015/2016 Projected Deficits
On July 1, 2015, City Council adopted the final Drought Action Plan detailing the
conservation action items and practices to meet the State Water Resources
Control Board mandate of a 25% water reduction using the 2013 water use
baseline. On August 19, 2015, the City proceeded with phase 1 of action item
A.2.b — landscape maintenance districts and city facility landscape renovations.
The turf conversion cost to various LMD was estimated to be $256,350 with
various districts requiring General Fund subsidy totaling $65,070 in FY
2015/2016.
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Honorable City Council
December 16, 2015
Page 4
The current year projections show an aggregate fund balance deficit of
$345,683.94; an increase of$146,455.72 from the FY 2014/2015 actuals. This is
driven by anticipated higher operating costs within Districts 1 to 12. Although
certain measures have been implemented to reduce water consumption, i.e.
installation of central irrigation system and the turf conversion; staff anticipates a
6% water rate hike costing an estimated $41,500. On October 7, 2015, City
Council approved two staff recommendations: 1) to amend Oakridge Landscape
Inc.'s agreement to expand scope of services to include the assessment districts
which will cost an additional $31,900; and 2) to fully fund the present value of
Other Post Employment Benefits (OPEB), the allocated cost to assessment
districts is $19,500. In addition, prior year deferred services - tree trimming
$22,100; arborist for trees risk assessment $20,000 and additional property
maintenance work $6,000 are scheduled to be completed in the current year.
Staff assumes the City will accept Districts 20 (Lyon Homes Tract 5187) and 21
(Shea Homes Tract 5133) and the allocation for personnel cost and cost plan
charges will be based on the Zone/District's size relative to the total acreage of
147.12.
FY 2015/2016 Estimated Fund Activity chart is presented in Attachment 3. The
estimated amounts are summarized as follows:
FY15/16 FY15/16
Beginning Transfer In Ending
Fund Balance Jan-20162 Revenues3 Expenditures4 Balance
2300: Citywide-Street Lighting ($125,053.61) $125,053.61 $252,055.00 ($396,950.00) ($144,895.00)
2300: Citywide-Landcaping ($25,472.95) $32,929.95 $185,320.00 ($295,575.00) ($102,798.00)
2301: Dist 1 Pecan Ave T-2851 ($6,798.66) $6,798.66 $9,702.00 ($18,623.00) ($8,921.00)
2304: Dist 4 Williams Ranch Rd T-32741 $2,851.63 $6,383.00 ($9,991.00) ($756.37)
2305: Dist 5 Pheasant Run Areal ($27,606.63) $35,702.63 $23,340.00 ($86,500.00) ($55,064.00)
2306: Dist 6 Inglewood Street' ($459.13) $459.13 $924.00 ($1,660.00) ($736.00)
2307: Dist 7 Moorpark Business Park' ($635.54) $16,372.54 $11,298.00 ($31,894.00) ($4,859.00)
2308: Dist 8 Home Acres Buffer' ($9,253.62) $40,959.62 $15,243.00 ($66,460.00) ($19,511.00)
2309: Dist 9 Moorpark Industrial Park' ($2,689.84) $2,689.84 $1,357.00 ($5,841.00) ($4,484.00)
2311: Dist 11 Alyssas Court' $2,398.43 $2,074.00 $1,520.00 ($6,957.00) ($964.57)
2314: Dist 14 Wilshire Builders' ($1,258.24) $1,258.24 $1,634.00 ($4,329.00) ($2,695.00)
Total ($193,978.16) $264,298.22 $508,776.00 ($924,780.00) ($345,683.94)
Total Subsidy Required ($199,228.22)
Notes:
1 Landscape districts
2 Transfers In includes subsidy for FY14/15 deficits ($199,228)and Phase 1 turf conversion ($65,070)
3 Revenues reflect FY 15/16 approved assessments
3 Expenditures include projected cost of the phase 1 landscape renovations.
The Gas Tax Fund will not have enough fund balance to support the projected FY
2015/2016 year-end deficit. Thus, the $345,683.94 will need to be funded by General
Fund transfers in FY 2016/2017 or further service or cost reductions will need to be 2 0 3
Honorable City Council
December 16, 2015
Page 5
implemented.
FISCAL IMPACT
The attached Resolution amends the FY 2015/2016 budget by revising the appropriated
amounts of the fund transfers to equal the actual FY 2014/2015 year-end deficits plus the
cost of phase 1 turf conversion project. The General Fund will have savings of
$84,743.78. The aggregate appropriation decrease is described below:
General Fund
FY 2015/2016 Original Budget $283,972.00
Add: Resolution No. 2015-3427 Phase 1 Turf Conversion Subsidy $65,070.00
FY 2015/2016 Adjusted Budget $349,042.00
FY 2014/2015 Actual LMD Fund Deficits $199,228.22
FY 2015/2016 Projected Phase 1 Turf Conversion Costs $65,070.00
FY 2015/2016 Required Subsidy $264,298.22
Budget Adjustment Decrease ($84,743.78)
As stated in this report, combined Gas Tax and TDA Article 8 fund balance will not be
enough to fund the continuing lighting deficits in future years due to other street
expenditures. This will require more funding from the General Fund Reserve unless
assessment revenue is increased or services reduced.
STAFF RECOMMENDATION (Roll Call Vote)
Adopt Resolution No. 2015 -
Attachments:
1: Resolution
2: FY 2014/2015 Actual Fund Activity
3: FY 2015/2016 Estimated Fund Activity
204
ATTACHMENT 1
RESOLUTION NO. 2015 -
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
MOORPARK, CALIFORNIA, AMENDING THE FISCAL YEAR
2015/2016 BUDGET TO APPROVE APPROPRIATION
ADJUSTMENTS AND FUND TRANSFERS FROM THE
GENERAL FUND (1000) TO COVER FISCAL YEAR 2014/2015
YEAR-END DEFICITS FOR CERTAIN ASSESSMENT
DISTRICT FUNDS
WHEREAS, on June 3, 2015, the City Council adopted Resolution No. 2015-3400
approving the Engineer's Report; confirming diagram and assessment; and ordering the
continuation of assessments for fiscal year (FY) 2015/2016 for the City Landscaping and
Lighting Maintenance and Assessment Districts (AD); and
WHEREAS, on June 17, 2015, the City Council adopted Resolution No. 2015-3408
approving the Operating and Capital Improvement Budget for FY 2015/2016, which
includes $283,972.00 transfers from the General Fund to cover the estimated FY
2014/2015 deficits in certain AD funds; and
WHEREAS, on August 19, 2015, the City Council adopted Resolution No. 2015-
3427 appropriating $309,625 from various funds for Phase 1 of the turf conversion project
at various AD and City facilities; increasing budget transfers and approving transfers from
the General Fund to certain AD funds by $65,070; and
WHEREAS, on October 7, 2015, the City Council adopted Resolution No. 2015-
3444 authorizing the $644,768 prefunding of the present value of Other Post Employment
Benefits into an irrevocable trust managed by CaIPERS under the California Employer's
Retiree Benefit Trust program. The aggregate allocation to various AD funds is $19,467;
and
WHEREAS, a staff report has been presented to the City Council summarizing the
actual FY 2014/2015 fund deficits of $199,228.22 in various AD funds; and the same
report is recommending a decrease in appropriations totaling $84,743.78 in the General
Fund to match the required fund transfers to eliminate the mentioned deficits plus the cost
of phase 1 turf conversion project; and
WHEREAS, said staff report has been presented to the City Council requesting
fund transfers in the aggregate amount of$199,228.22; and
WHEREAS, Exhibit "A", attached hereto and made a part hereof, describes said
budget amendments and the resultant impact to the budget line items.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK DOES
HEREBY RESOLVE AS FOLLOWS:
205
Resolution No. 2015-
Page 2
SECTION 1. A Budget Amendment to reduce appropriations by $84,743.78 in
the General Fund to eliminate the FY2014/2015 deficits in certain AD funds, as more
particularly described in Exhibit "A", is hereby approved.
SECTION 2. That a fund transfer in the aggregate amount of $199,228.22 as
particularly described in Exhibit "A", is hereby approved.
SECTION 3. 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 December, 2015.
Janice S. Parvin, Mayor
ATTEST:
Maureen Benson, City Clerk
Attachment: Exhibit'A': Budget Amendment and Fund Transfer Detail
206
Resolution No. 2015-
Page 3
Exhibit A
Budget Amendment for
General Fund to Adjust Transfers
Required to Fund FY 2014/2015 Year-End Deficits
In Certain Assessment District Funds
FY 2015/2016
A. Fund Allocation
Fund/Account No. Fund Description Amount
1000-5500 General Fund ($84,743.78)
Total ($84,743.78)
B. Fiscal Year 2015/2016 Budget Appropriation
Budget Number Adjusted Budget Budget Change Revised Budget
FROM:
1000-7900-0000-9820 $349,042.00 ($84,743.78) $264,298.22
TO:
2300-3720(Lighting) $137,677.00 ($12,623.39) $125,053.61
2300-3720(Landscaping) $78,417.00 ($45,487.05) $32,929.95
2301-3720 $5,960.00 $838.66 $6,798.66
2303-3720 $0.00 $0.00 $0.00
2304-3720 $0.00 $0.00 $0.00
2305-3720 $51,612.00 ($15,909.37) $35,702.63
2306-3720 $679.00 ($219.87) $459.13
2307-3720 $19,124.00 ($2,751.46) $16,372.54
2308-3720 $47,975.00 ($7,015.38) $40,959.62
2309-3720 $3,608.00 ($918.16) $2,689.84
2311-3720 $2,074.00 $0.00 $2,074.00
2314-3720 $1,916.00 ($657.76) $1,258.24
Total $349,042.00 ($84,743.78) $264,298.22
207
Resolution No. 2015-
Page 4
C. Appropriation Allocation
To Be Transferred to Fund Fund 1000
2300-3720 Street Lighting $125,053.61
2300-3720 Landscaping $25,472.95
2301-3720 $6,798.66
2305-3720 $27,606.63
2306-3720 $459.13
2307-3720 $635.54
2308-3720 $9,253.62
2309-3720 $2,689.84
2314-3720 $1,258.24
Total $199,228.22
Approved as to Form:
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