HomeMy WebLinkAboutRes No. 09-1 - Amend FY 08-09 Budget - MD-YR Adjstmnts CITY OF PALM DESERT
FINANCE DEPARTMENT
Staff Report
REQUEST: APPROVAL OF RESOLUTION NO. 09-1 AMENDING THE FISCAL YEAR
2008/2009 BUDGET AS A RESULT OF MID-YEAR ADJUSTMENTS
DATE: FEBRUARY 12, 2009
CONTENTS: RESOLUTION 09-1 AMENDING THE FISCAL YEAR 2008/2009 BUDGET
EXHIBITS DEMONSTRATING REDUCTIONS TO FY 08/09 BUDGET
Recommendation:
By Minute Motion, approve Resolution No. 09-1 amending the Fiscal Year
2008/2009 budget as a result of mid-year adjustments.
Executive Summarv:
The City Council directed staff to reconsider the City's 2008/2009 fiscal year financial plan to
identify budget adjustments for consideration that will bring the City's current fiscal year budget
into balance. To this end, staff identified $3,119,916 in reductions from operating expenditures,
$2,200,000 in savings attributable to a canceled capital project to be reprogrammed as revenue
to the General Fund; and, $339,000 in reimbursements from the Redevelopment Agency to the
General Fund. These adjustments total $5,658,916, with the source of adjustments identified on
Exhibit "A" (attached) and departmental category detail on Exhibit "B" (attached).
There is $601,000 in proposed adjustments highlighted in the staff report called out for special
consideration by the City Council. Should the City Council wish to keep any of these
expenditures in the budget, there is approximately a $559,710 surplus, as presented, that
creates some flexibility. Staff has also identified other potential capital expenditure savings in
deferrals of projects that could be considered should additional or alternative adjustments be
necessary, or should additional reductions in revenues be identified over the balance of the
fiscal year.
Palm Desert, like all cities in California, is subject to prevailing economic conditions. Unlike
many of our sister cities, Palm Desert participated significantly in the economic growth over the
prior years and was able to increase its Undesignated General Fund Reserves from
$23,000,000 to $62,000,000 through its approved financial plans between 2003 and 2008.
Going forward, management does not see this opportunity in the near term and views the
proposed mid-year adjustments, under consideration, as a "down paymenY' on aligning the
City's revenues and expenditures for Fiscal 2009/2010.
Staff Report
Approval of Resolution 09-1 Amending the Fiscal Year 2008/2009 Budget
February 12, 2009
Page 2 of 3
Backqround:
Staff has completed a mid-year analysis of the current budget and financial position of the City.
Estimated revenues for the General Fund are $50.67 million (decrease in sales tax by 10% and
interest earnings by 50%, increase in transfers in from Fund 400 in the amount of $2.2 million,
RDA additional reimbursement of $339,000) versus estimated expenditures of $50.11 million
(lower expenditures to original financial plan due to staff-recommended adjustments).
M id-Year
Oriqinal Budqet Revised Budget
Revenues $53,231,500 $50,670,500
Expenses $53,230,706 $50,110,790
Staff reviewed all programs to determine if there were specific items that could be reduced or
delayed for the remaining five months of the fiscal year due to the economic downturn. It was
determined that two clerical positions could remain vacant for the remainder of the fiscal year;
one in Public Works ($40,000), and the other in the Redevelopment Agency ($40,000).
Following the most recent City Council meeting, Finance staff met with various department
heads to reduce the expenditures by $5 million. Staff found an additional $1,854,029 in addition
to the prior amount of $1,265,887 for a total of $3,119,916. Staff is also recommending that
savings resulting from a capital project eliminated by City Council be transferred to the General
Fund revenue in the amount of $2.2 million plus an additional $339,000 in reimbursements from
RDA.
The following budget adjustments are items that staff believes should be highlighted to City
Council:
• $(100,000) Eight of the nine positions are currently filled and funded by Account No.
110-4210-422-3040. It is recommended that one position still unfilled remain vacant for
the remainder of the fiscal year ($100,000).
• $(117,000) Represents a reduction of the remainder of the summer concerts and the
elimination of the movies in the park. A committee has been reviewing the feasibility of
the program due to the low resident turnout. Council commemorative gifts could be
reduced or eliminated. Lastly, elimination of funding for the KCET Film Festival is
proposed.
• $(12,000) Visitor Center will reduce cost of goods sold.
• $(4,000) Decrease the amount and frequency of special awards, and issue more
proclamations in presentation folders instead of frames.
• $(100,000) Bus shelter projects that are currently in Fund 400 will be transferred to the
special revenue fund Air Quality.
• $(5,000) Cancel organized City employee appreciation picnic in exchange for a very
informal "pot luck" picnic.
G:\Finance\Niamh Ortega\Staff ReportsWpproval Of Resolution Amending Mid Year08-09 Budget V2.Docx
Staff Report
Approval of Resolution 09-1 Amending the Fiscal Year 2008/2009 Budget
February 12, 2009
Page 3 of 3
• $(40,000) Parks and Risk Manager are recommending elimination of skate park
supervision performed by CV Recreation. Risk Manager indicates that most cities do not
have a supervised skate park.
• $(140,000) Parks reduction relates to more accurate water and electricity costs for the
newer parks (Freedom, University Parks).
• $(68,000) Eliminate oversight by Coachella Valley Recreation and Parks District on
Freedom, Homme Adams, Joe Mann and University Parks.
• $(15,000) Eliminate park ambassador program and organize staff to provide the
services of opening of bathrooms and picking up trash as necessary.
Staff is recommending budget adjustments in an amount totaling $3,119,916. Revenue
adjustments plus additional revenue of $2,200,000 (transfer from Fund 400) and $339,000 from
RDA will offset a portion of the lower sales tax and interest earnings. If any items above are
removed from the budget adjustments, and exceed the presented surplus, staff would add
additional capital project transfer from Fund 400, if needed.
Staff recommends approval of the resolution and attached exhibits amending the City budget for
Fiscal Year 2008/2009. Staff recommends that the action be taken at this City Council meeting
in order to ensure the additional budget savings.
Submi By: Approval:
. `
Paul S. Gibson J in cCarthy
Director of Finance/City Treasurer nterim City Manager
PSG:nmo CiTY COUNCIL�ON
* APPROVED �"� DF.NtED-�-�-
1) Adopted Res. No. 09-1 as amended. RF EiVED OTHER Ha....�:.�....�
4-0 (Benson ABSENT)
2) By Minute Motion, authorized the MF,ETi DATE �f
re-programming and transfer of funds
AYES: � � `�'� � �
from the Street Fair Fund, the ParkviewNOES:
Office Building (Brothers Buildings) ABSENTi
Fund, along with elimination of the ABSTAIN:
carport project at the Parkview Office VERIFIED BY:
Complex, approximately $1.65 million Original on File wfth Ci lerk's Offica
in total, to the City's General Fund
for unrestricted use.
3-1 (Spiegel NO, Benson ABSENT)
G:\Finance\Niamh Ortega\Staff ReportsWpproval Of Resolution Amending Mid Year08-09 Budget V2.Docx
RESOLUTION NO. 09-1
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF PALM DESERT, CALIFORNIA, AMENDING THE FISCAL YEAR 2008-09
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 2008-09 Budget;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Palm Desert, California, that the 2008-09 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 2008-09 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 2008-09.
2. The amounts shown in the column entitled "Revised Estimated
Revenue" in the table entitled "City of Palm Desert, Mid-Year 2008-09
Budget Review, Revised Estimated Revenues", attached hereto as Exhibit
"A" —bottom of page, are hereby accepted as the Estimated Revenues for
the 2008-09 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 day of February, 2009, by the
following vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
ROBERT A. SPIEGEL, MAYOR
ATTEST:
RACHELLE KLASSEN, CITY CLERK
CITY OF PALM DESERT, CALIFORNIA
09-1 Exhibit A City of Palm Desert Mid-Year Budget Adjustments
A B C
Item# Cuts Recommended CIP Rec. CIP if Needed
1 Public Works 995,000 2,200,000 1,650,000
2 Development Services 68,000 225,000
3 Civic Center Park 134,000
4 Parks Maint 258,391
5 City Manager 35,150
6 Office of Energy 80,000
7 Information System 65,000
8 Finance 7,000
9 Audit 20,000
10 General Services 10,000
11 Unemployment 15,000
12 Insurance 60,000
13 Police 500,000
14 Retiree Health 100,000
15 Workers Comp 100,000
16 Building&Safety 75,100
17 Planning 65,000
19 Community Services 48,000 170,000
20 Marketing 211,000
21 Human Resources 75,000
22 Community Promotions 117,825
23 Visitor Center 38,000
24 City Council 15,500
25 City Clerk 17,500
26 Legislative Advocacy 9,450
Total 3,119,916 2,200,000 2,045,000
27 Capital Improv Projects 2,200,000 **
Total General Fund 5,319,916 2,045,000
** CIP will be transfer from fund 400 to General Fund and treated as a revenue transfer in
Revenue Adjustments
28 Sales Tax (2,500,000)
29 Interest Earnings (2,600,000)
30 Transfer In (Fm 400-CIP) 2,200,000 **
31 Transfer In (Fm 850-RDA) 339,000
Total Revenue Adjustments (2,561,000)
CITY OF PALM DESERT EXHIBIT"B"
Proposed Mid-Year Budget Adjustments
Building&Safety
Prof-Architectual/Engineering $ 31,100.00
Conference, Seminars, Workshops $ 7,750.00
Printing/Duplicating $ 20,000.00
Other accounts $ 16,250.00
Total Building&Safety $ 75,100.00
Parks & Recreation
Civic Center Park
Contracting $ 68,000.00
Salaries $ 22,500.00
Contracting-Skate Park Supervision $ 40,000.00
Other accounts $ 3,500.00
Total Civic Center Park $ 134,000.00
Parks
Utilities-Water $ 100,000.00
Utilities- Electric $ 40,000.00
Landscape Services $ 100,000.00
Other accounts $ 18,391.00
Total Parks $ 258,391.00
Total Parks& Recreation $ 392,391.00
Office of the City Manager
Special Events $ 7,000.00
Conferences/Seminars $ 17,359.00
Local meetings $ 7,000.00
Other accounts $ 3,791.00
Total Office of the City Manager $ 35,150.00
Finance Department
Professional Computer Services $ 65,000.00
Liability& Property Damage Insurance $ 60,000.00
Police Services $ 500,000.00
Workers Compensation $ 100,000.00
Retiree Health Premium $ 100,000.00
Other accounts $ 52,000.00
Total Finance $ 877,000.00
Office of Energy Management
AB811 Advertising/Promotion $ 80,000.00
Total Office of Energy Management $ 80,000.00
mid-year budget summary Page 1 of 3 Printed:2/5/2009
CITY OF PAIM DESERT EXHIBIT"B"
Proposed Mid-Year Budget Adjustments
Public Works
Professional Services $ 150,000.00
Traffic/Striping $ 175,000.00
Curb/Gutter/ADA Retrofit Program $ 200,000.00
R/M Medians $ 150,000.00
Special Programs-Water Conservation $ 140,000.00
Other accounts $ 180,000.00
Total Public Works $ 995,000.00
Community Services
Human Resources
Recruitment advertising $ 20,000.00
City-wide Training $ 30,000.00
Temporary Help $ 20,000.00
Other accounts $ 5,000.00
Total Human Resources $ 75,000.00
Community Affairs
Legislative Advocacy $ 9,450.00
Community Promotions-concerts, recognition $ 117,825.00
Total Community Affairs $ 127,275.00
Marketing
Promotional $ 35,000.00
Media Buys $ 135,000.00
Other accounts $ 41,000.00
Total Marketing $ 211,000.00
Special Programs
Professional -Other $ 15,000.00
Conferences/Seminars $ 15,000.00
Other accounts $ 18,000.00
Total Special Programs $ 48,000.00
Visitor Center
Cost of goods sold $ 12,000.00
Printing/Duplicating $ 4,000.00
Capital Office Equipment $ 6,000.00
Other accounts $ 16,000.00
Total Visitor Center $ 38,000.00
City Clerk
Professional - Municipal Codes updates $ 5,000.00
Advertising $ 3,000.00
Capital and Other Office Equipment $ 5,000.00
Other accounts $ 4,500.00
Total City Clerk $ 17,500.00
mid-year budget summary Page 2 of 3 Printed:2/5/2009
CITY OF PALM DESERT EXHIBIT"B"
Proposed Mid-Year Budget Adjustments
City Council
Supplies-special awards $ 4,000.00
Professional - consulting services $ 2,500.00
Committee Member Conferences $ 4,000.00
Other accounts $ 5,000.00
Total City Council $ 15,500.00
Total Community Services $ 532,275.00
Community Development
Printing/Duplicating $ 50,000.00
Other accounts $ 15,000.00
Total Community Development $ 65,000.00
Development Services
Professional Services $ 40,000.00
Office Equipment $ 10,000.00
Safety Program $ 10,000.00
Other accounts $ 8,000.00
Total Development Services $ 68,000.00
Total City-wide Adjustments $ 3,119,916.00
CIP
Portola @ Whitewater Fund 400 $ 2,200,000.00
TOTAL ADJUSTMENTS&CIP $ 5,319,916.00
* Total adjustments $ 5,319,916.00
RDA Reimbursement $ 339,000.00
Total including RDA Reimbursement $ 5,658,916.00
** CIP-additional projects if necessary $ 2,045,000.00
mid-year budget summary Page 3 of 3 Printed:2/5/2009