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HomeMy WebLinkAboutAGENDA REPORT 2009 0617 CC SPC ITEM 05AMOORPARK CITY COUNCIL AGENDA REPORT TO: Honorable City Council L FROM: Ron Ahlers, Finance Director l-'l ITEM 5.A. CITY OF MOORPARK, CALIFORNIA City Council Meeting 1- 00 AC"* let 3 By- ...3„ DATE: June 11, 2009 (City Council meeting of June 17, 2009) SUBJECT: Consider Resolution Amending the Fiscal Year 2008/09 Budget to Appropriate $568,000 from the General Fund Reserve to be Transferred to the Community Development Fund BACKGROUND The City Council adopted a budget for FY 2008/2009 on July 2, 2008. On March 18, 2009 the City Council received the mid -year budget report which recommended that additional General Fund resources be used to support the Community Development Fund (2200). As you'll recall, this fund began this current fiscal year with a negative fund balance. The balance should have been zero. The attached resolution shall zero this fund out for June 30, 2009. On May 20, 2009, the City Council received the City Manager's recommended budget for FY 2009/10, which re- iterated our intention to bring the fund to zero. Additionally, it recommended that we set -aside money for two separate accounts that are collected by the Community Development department. DISCUSSION The Community Development Fund began the fiscal year with $43,000 in cash. Payables amounted to $436,000, of which $245,000 was due to Charles Abbott & Associates. This created a negative fund balance of $393,000 as of July 1, 2008. The $245,000 should have been set -aside in a trust fund to account for this money being earned but not yet due to Charles Abbott. In addition, we did not accurately project the fund balance at June 30, 2008, which also included $191,000 in payables. The approved FY 2008/09 budget showed a zero fund balance at 6/30/2008 when it actually ended with about a $393,000 negative fund balance. Funds should have been transferred from the General Fund to the Community Development Fund last fiscal year, 2007/08, in order to zero out the negative fund balance. For FY 2008/09 revenues are currently estimated at $1,280,000 with budgeted General Fund transfer of $957,000, for a total of $2,237,000. Transfers from other funds are estimated at $10,000. Expenses 000001 Honorable City Council June 17, 2009 Page 2 are currently estimated at $2,249,000 which is below the original estimate of $2,575,000. This fund is projected to finish this current year with a deficit of $2,000. This will decrease the projected fund balance to a negative $395,000 as of June 30, 2009. For this current year, this transfer should be increased by $430,000 in order to provide us with $35,000 extra in case our estimates our off from what actually occurs. This action shall erase the projected negative fund balance. Therefore, the transfer would be up to $1,387,000 from the General Fund into the Community Development Fund. Additionally, the Community Development Fund has several issues that need to be resolved. Since this fund has zero reserves, it has not properly set -aside any money for the following: • Charles Abbott & Associates portion of the Building & Safety services due for future services to be rendered ($88,000) • Imaging fee imposed on developers ($50,000) FISCAL IMPACT As described in this report the Council is being asked to transfer an additional $568,000 from the General Fund reserve to ensure a zero fund balance in the Community Development Fund as of 6/30/2009 and to set aside funds for the Imaging Fee and future building and safety services costs for which fees have been paid but services not yet provided. The attached resolution shall transfer funds from the General Fund (1000) into the General Deposits Fund (6000) for these two set - asides. Finance will monitor these receipts in the future and continue to post the amounts into the General Deposit Fund. STAFF RECOMMENDATION (Roll call vote) Adopt Resolution No. 2009 - 000002 Exhibit 1 RESOLUTION NO. 2009 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MOORPARK, CALIFORNIA, AMENDING THE FISCAL YEAR 2008/09 BUDGET TO APPROVE CERTAIN APPROPRIATIONS AND FUND TRANSFERS FROM THE GENERAL FUND (1000) TO THE COMMUNITY DEVELOPMENT FUND (2200) AND THE AGENCY FUND (6000) TO ELIMINATE YEAR -END DEFICITS AND TO SET - ASIDE RESERVES AS DEFINED HEREIN WHEREAS, on July 2, 2008, the City Council adopted the Budget for fiscal year 2008/09; and WHEREAS, said budget for fiscal year 2008/09 includes $956,826 in General Fund (1000) transfers to cover current year operating expenses in the Community Development Fund (2200); and WHEREAS, a staff report has been presented to the City Council summarizing the estimated fiscal year 2008/09 fund deficit of $430,000 in the Community Development Fund (2200); and WHEREAS, the same staff report requested to set -aside reserves in the Agency Fund (6000) for Charles Abbott & Associates portion of the Building and Safety fee ($88,000) and Imaging fees ($50,000) imposed on developers; and WHEREAS, said staff report has been presented to the City Council requesting an budget increase of $568,000 in the General Fund (1000) to match the required fund transfers to eliminate the estimated deficit in the Community Development Fund (2200) and to establish the reserves in the Agency Fund (6000); and WHEREAS, Exhibit "A ", attached hereto and made a part hereof, describes said budget amendments and its resultant impacts to the budget line item(s). NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. That a Budget Amendment increase of $568,000, as more particularly described in Exhibit "A ", is hereby approved. SECTION 2. That fund transfers up to $1,524,826 as particularly described in Exhibit "A ", is hereby approved. 0000f'3 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 17"' day of June, 2009. Janice S. Parvin, Mayor ATTEST: Deborah S. Traffenstedt, City Clerk Attachment: Exhibit'A': Budget Appropriation and Fund Transfer Detail 000004 Exhibit A Budget Amendment for General Fund to Adjust Transfers To Community Development and Fiduciary Funds FY 2008/09 A. Fund Allocation Fund No. Fund Description Amount 1000 General Fund 568,000 6000-Equity Transfer for Imaging Fee $50,000 1000 - 6100 -000 -9820 $956,826 Total 568,000 B. Fiscal Year 2008/09 Budget Appropriation Budget Number Adopted Budget Budget Change Revised Budget FROM: $88,000 6000-Equity Transfer for Imaging Fee $50,000 1000 - 6100 -000 -9820 $956,826 430,000 $1,386,826 1000-Equity Transfer to Fund 6000 $0 138,000 $138,000 Total $956,826 568,000 $1,524,826 TO: 2200 -3720 $956,826 430,000 $1,386,826 6000-Equity Transfer for CAA Ca $0 88,000 $88,000 6000-Equity Transfer for Imaging Fee $0 50,000 $50,000 Total $956,826 568,000 $1,524,826 C. Appropriation Allocation To Be Transferred to Fund: From Fund 1000 2200 -3720 $1,386,826 6000-Equity Transfer for CAA Ca $88,000 6000-Equity Transfer for Imaging Fee $50,000 Total $1,524,826 Approved as to Form. 0000+5