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Home My WebLink AboutAGENDA REPORT 2017 0621 CCSA REG ITEM 09E ITEM 9.E. MOORPARK CITY COUNCIL CITY OFMOORPARK,CAL@FORN. Baty Councoi Meeting AGENDA REPORT , TO: Honorable City Council FROM: Steven Kueny, City Manager by Ron Ahlers, Finance Director 'Jc DATE: June 13, 2017 (City Council Meeting of June 21, 2017) SUBJECT: Consider Resolution Adopting the Operating and Capital Improvement Budget for the City of Moorpark for the Fiscal Year 2017/2018. SUMMARY On May 17, 2017, the City Manager presented to the City Council the recommended Operating and Capital Improvement Budget for Fiscal Year (FY) 2017/2018. The Council held a public meeting to discuss the budget on May 24, 2017. Based on this meeting, Council directed staff to make several changes to the recommended budget and to present the budget for formal approval on June 21, 2017. After further analysis of the May 24 action and current information, staff has included other adjustments for Council consideration and action. The General Fund (GF) is balanced. DISCUSSION On May 17, 2017, the City Manager presented to City Council the Operating and Capital Improvement Budget for the City of Moorpark. The proposed Budget as submitted to the City Council had a projected GF deficit of $357,430. As discussed below, the recommendations for balancing the FY 2017/18 GF budget include transferring costs to other funds and using $75,000 of GF FY 2016/17 operating surplus. Changes to the proposed budget are as follows. $236,500 to be funded by Equipment Replacement instead of the GF ($10,000 backup network server, $15,000 local area network switch, $6,500 scanners, $105,000 backup generator for the Community Center, $100,000 HVAC replacement at Arroyo Vista Recreation Center (AVRC)). The Park Improvement Fund will budget instead of the GF: $95,000 for the backup generator at AVRC; $35,000 for skate park drainage; $35,000 for Arroyo Vista Community Park (AVCP) slope landscaping; $10,000 each (total $40,000) for sidewalk access at Peach Hill Park, Monte Vista Nature Park, Mountain Meadows Park and 83 Honorable City Council June 21, 2017 Page 2 Tierra Rejada Park. The GF eliminates $15,000 for the AVRC gym floor resurfacing; this will be accomplished in FY 2016/17. The GF will increase revenue by $35,000 from administrative cost reimbursement from two Community Facilities Districts (CFD). In addition, we are reducing the budget for the Moorpark Highlands Landscape Maintenance District by $111,000 ($2,000 soils test, $5,000 pest management, $30,000 trail management, $29,000 tree trimming and $45,000 water). There are a few transfers of costs among the landscape maintenance districts associated with tree removal. $20,000 increase each for districts 2 and 5 with a $40,000 decrease in district 10. The General Plan Land Use and Circulation Element in the amount of $75,000 can be funded from the GF reserves. This item has been carried over from FY 2016/17 and was previously funded by the GF reserves. The above changes reduce expenses in the GF by $531,500 and increase GF revenue by $35,000. The recommended GF budget showed a deficit of $357,430. This is now eliminated and is replaced by a GF surplus of$209,070. Additionally, the Library Facilities Fund deleted the retrofit of the entry door in the amount of $9,000. The Endowment Fund added $1.5 million for open space land acquisition. These are the funds the City received from Ventura County on June 15, 2015 for sustainability. If the City Council concurs with the changes to the City Manager's recommended budget as noted in this staff report, staff recommends that the City Council adopt the attached resolution. The final budget document with the referenced changes will be provided to the City Council under separate cover as well as made available to the public on the City's website, at City Hall and the Moorpark Library by early July 2017. Successor Agency to the Redevelopment Agency of the City of Moorpark The budget approval is being performed for City internal governance purposes and the approval of the Recognized Obligation Payment Schedule (ROPS) by the Oversight Board on January 17, 2017 and the State of California Department of Finance's (DOF) allowance of costs in the ROPS defined the parameters of the Successor Agency administrative and operating budget for the period of the ROPS. As previously explained, the annual budget may be modified should the ROPS for the second half of the fiscal year include substantial departures from the approved ROPS. STAFF RECOMMENDATION (ROLL CALL VOTE REQUIRED) Adopt Resolution No. 2017- Attachment: Resolution No. 2017- 84 RESOLUTION NO. 2017- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MOORPARK, CALIFORNIA, ADOPTING THE OPERATING AND CAPITAL IMPROVEMENT BUDGET FOR THE CITY OF MOORPARK FOR THE FISCAL YEAR 2017/2018 WHEREAS, on May 17, 2017 the City Manager's Recommended Budget for Fiscal Year 2017/2018 was submitted to the City Council for its review and consideration; and WHEREAS, the City Council has provided the opportunity for public comment at a public meeting held on May 24, 2017, and conducted detailed review of expenditure proposals; and WHEREAS, as the result of the reviews and analysis, expenditure proposals and revenue projections have been modified as needed. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The Operating and Capital Improvement Budget for Fiscal Year 2017/2018 (beginning July 1, 2017) for the City of Moorpark containing operating and capital expenditures and anticipated revenues as identified in Exhibit "A" to this resolution attached hereto and incorporated herein, shall be adopted as the City of Moorpark's Operating and Capital Improvement Budget for Fiscal Year 2017/2018. SECTION 2. The City Manager is authorized to amend the capital improvement budget for Fiscal Year 2017/2018 at the conclusion of Fiscal Year 2016/2017 when a final accounting of project costs during the Fiscal Year 2016/2017 is complete and continuing appropriations are determined as long as the total project appropriation authorized by the City Council is not exceeded. SECTION 3. The City Manager is authorized to approve appropriation transfers within departments and within individual funds as required to provide efficient and economical services, as long as the total department appropriation and fund appropriation authorized by the City Council is not exceeded. 85 Resolution No. 2017- Page 2 SECTION 4. Except as otherwise provided in this resolution, amendments to the appropriations in Fiscal Year 2017/2018 Operating and Capital Improvement Budget shall require Council action by resolution. SECTION 5. The City Manager is authorized to make such emergency appropriations as may be necessary to address emergency needs of the City, provided that the appropriation is presented to the City Council at its next regular meeting for ratification. SECTION 6. The budget approval is being done for City internal governance purposes and the approval of the Recognized Obligation Payment Schedule (ROPS) by the Oversight Board on January 17, 2017 and the State of California Department of Finance's (DOF) . allowance of costs in the ROPS defined the parameters of the Successor Agency administrative and operating budget for the period of the ROPS. The Successor Agency understands that the annual budget may be modified should the ROPS be amended. SECTION 7. 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 21st day of June, 2017. Janice S. Parvin, Mayor ATTEST: Maureen Benson, City Clerk Attachment: Exhibit "A" 86 Resolution No. 2017- Page 3 Exhibit A Operating and Capital Improvement Budget For the City of Moorpark Fiscal Year 2017/2018 Provided Separately 87