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Home My WebLink AboutRes 06-14 Mid-year Adjustments FY 2005-06 BudgetCITY OF PALM DESERT FINANCE DEPARTMENT STAFF REPORT REQUEST: Approve amending the fiscal year 2005-2006 Budget as a result of Mid -Year Adjustments. DATE: February 9, 2006 CONTENTS: Resolution 06-14 Amending the Fiscal Year 2005-06 Budget. Recommendation: 1. By Minute Motion, approve Resolution 06- 14 Amending the fiscal year 2005- 2006 Budget as a result of Mid -Year Adjustments. Background: Staff has completed a Mid -Year analysis of the current budget and financial position of the City. The estimated revenues for the General Fund are $44.631 million(up $1.9 million over original budget) versus estimated expenditures of $43,166 million (up $528 thousand over original budget). Sales Tax is estimated to end up at $17.5 million (includes receiving 4.4 million(less 803,000 adjustment for last years) from ERAF triple flip shift) , T.O.T. at 7.8 million, Property Tax at $4.1 and Building Permits/grading permits at $2 million (up 700,000). Mid -Year Original Bud4_ et Revised Buda_ et Revenues 42,731,192 44,631,000 Expenses 42,640,694 43,166,007 The following are additional amounts needed due to Mid -Year Budget review of expenses. There are several departments that staff is requesting adjustments to, however, the overall affect is an additional $528,313 which will be offset by the estimated revenue increase of $1.9 million. The Final Budget will be less than the current Mid -Year Estimate, but until the audit is completed is difficult to know. • $ 37,000 City Manager is requesting $28,000 for Outside Consultant writing the City's energy plan and 9,000 for staff and City Council members travel to San Francisco to attend P.U.C. plus local hotel accommodation for energy group and lastly for travel to Colorado to attend Aspen Accord. • $ 35,000 Continue transferring old Finance records into imaged documents. • $885,000 State Budget requires paying $685,000 for ERAF and additional 200,000 to the County for administering Property Taxes for the City per State law. • $77,013 Human Resources is requesting 42,013 for filling the Human Resources Manager prior position of HR Technician, $20,000 for training associated with Palm Desert 2020 plan. • $ 7,800 Marketing is requesting $650 per month increase in contract retainer for marketing contract. • $11,500 City Council Budget needs 10,000 for increase City Council. • participation in conferences. Mid -Year Budget Review 2005-06 Paae 2 • $80,000 Building and Safety is requesting 80,000 for additional work required due to the unfilled Deputy Building Official position. • (80,000) Salary savings for Deputy Building Official. • $30,000 Due to transferring a maintenance worker from streets to parks division. • (30,000) Transfer Salary savings from Streets to Parks salary accounts. • $100,000 Public Works Administration is requesting 100,000 (Professional Engineering) to handle the work load from 3 vacant positions. • (100,000) Salary savings for 3 vacant positions. • $(50,000) Transferring 50,000 to Parking Lot Maintenance account below. • $175,000 Fleet Maintenance is requesting 85,000 for increase fuel costs; 2)10,000 for hazardous material cleanup due to contamination of seepage clarifier pit; 3) 80,000 for a.) repair made to Loader's transmission, b.)Van 67 major repairs. • $50,000 Repair and Resurface Portola Community Center and old Visitor Center's parking lots. • $75,000 Outside Agency needs additional funds to cover after school program increase, historical payment and other contributions not budgeted. • (775,000)Sheriff Contract meeting indicated that the budgeted 10% increase is now estimated to be only 3.54%, therefore a savings of $775,000. Other Funds Aooroariation Adiustments: • $ 26,000 Landscape and Lighting district Maintenance cost increase for Haystack. Staff recommends approval of the two resolutions amending the City Budget. Submitted By: Paul S. Gibson Director of Finance/City Treasurer Approval: Carlos *Oeo, City Manager RESOLUTION NO. 06-14 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AMENDING THE FISCAL YEAR 2005-06 BUDGET AS A RESULT OF MID -YEAR ADJUSTMENTS. WHEREAS, as a result of a Mid -year review of the budget, it is desirable to revise the 2005-06 Budget; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Palm Desert, California, that the 2005-06 Budget is hereby revised as follows: 1. The amounts shown in the column entitled "Revised Appropriations" in the table entitled "City of Palm Desert, Mid -Year 2005-06 Budget Review, Revised Appropriations Operating Budget", attached hereto as Exhibit "A", are hereby appropriated to the departments, activities and projects identified therein as the Operating Budget for 2005-06. 2. The amounts shown in the column entitled "Revised Estimated Revenue" in the table entitled "City of Palm Desert, Mid -Year 2005-06 Budget Review, Revised Estimated Revenues", attached hereto as Exhibit "B", are hereby accepted as the Estimated Revenues for the 2005-06 Fiscal Year for each fund and revenue source. PASSED, APPROVED AND ADOPTED at the regular meeting of the Palm Desert City Council held on this _Enday of February, 2006, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: JIM FERGUSON, MAYOR ATTEST: RACHELLE KLASSEN, DEPUTY CITY CLERK CITY OF PALM DESERT, CALIFORNIA CITY OF PALM DESERT RESOLUTION MID YEAR 2005-2006 BUDGET REVIEW EXHIBIT "A" REVISED APPROPRIATIONS IFUii3tt3EPAiTM�{T . < :tA14 1D INC GENERAL FUND: City Manager: Prof. Other 28,000 Ted Flanigan's Contract Conference/Seminars 9,000 Staff & City Councilmembers travel to San Francisco Total City Manager 37,000 to attend PUC; (2) local hotel accommodation for energy Group; and (3) travel costs to Colorado to attend Aspen Accord. Finance Printing & Duplicating 35,000 Continue imaging of Documents General Services SB2557 County Tax Admin 200,000 Payment to County for Tax Administration ERAF Payment to State 685,000 Payment to State for ERAF Total General Services 885,000 Human Resources Salaries 42,013 Fill vacancy for HR Technican City -Wide Training 20,000 For Training associated with Palm Desert 2020 Other Advertising 15,000 Unprecedented number of recruitments plus higher Advertising Cost. Total Human Resources 77,013 Marketing Advertising 7,800 $650 per month increase in contract retainer for Marketing. City Council Conference/Seminars 10,000 Increase City Council participation in Conferences. Postage & Freight 1,500 Postage for items to Gisbome 50th Anniversary Total City Council 11,500 Building & Safety Salaries (80,000) Salary Savings for vacant Deputy Building Official. Prof. -Engineering 80,000 Additional work required due to unfilled Deputy Building Offical Total Building & Safety - Civic Center Park Salaries 30,000 Maintenace Worker position for the parks (Transfer position from Streets to Park) Public Works Admin. Salaries (100,000) Salary savings for 3 vacant positions. Professional -Engineer 100,000 To handle the work load from the 3 vacant positions. Total Public Works - Street Department (30,000) Transfer of Salary savings to Parks to transfer position. Street Resurfacing Resurfacing (50,000) Transfer to cover Parking Lot Maintenance Fleet Maintenance Fleet -Fuel 85,000 Due to increase fuel cost Hazardous Material 10,000 Seepage Clarifier Pit cleanup due to contamination. Fleet Maintenance 80,000 Loader's transmission needed repair & Van 67 needed major Total Fleet Maint. 175,000 repair. Parking Lot Maintenance 50,000 Repair & Resurface Portola Community Center & old Visitor Center parking lots. Outside Agency Funding 75,000 After School Program, Historical, & Other Agencies Police (775,000) Contract savings due to estimate of 3.54% versus 10% budget. TOTAL GENERAL FUND: 528,3131 Haystack Landscape Maint. 26,000 Maintenance increase costs CITY OF PALM DESERT Resolution No. MID -YEAR 2005-2006 BUDGET REVIEW Exhibit "B" REVISED ESTIMATED REVENUE GENERAL FUND: Property Taxes 600,000 Due to all the Building Activities Property Transfer Tax 100,000 Increase number of houses sold Trancient Occupancy Tax 200,000 Increase in occupancy. Motor Vehicle License 200,000 Based on State revised estimate. Fines 100,000 Not Budgeted Building Permits 300,000 Increase Building Activity Subdivision 400,000 Increase processing of Tract maps Total General Fund Revenue 1 1,900,0001