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Home My WebLink AboutRes No. 09-1 - FY 08/09 MY Adjustments . � �.•�.��::�.�.,, �.�„�...,�..__�„�� f rr�i r ps�' p,9 LL' ��/7�( '//� �� 'lN f 6+....a...�..,,.�..�..Aa,�„�......f!!'� � [ � E--.s G-.;a'.j?.,�:;i,:..: �e1_,,.„,�rL�`e,��;.�,a��,.�,.,,,,�. CITY OF PALM DESEF�T �--� ��=��:�°�r�� c��,;�;�� ,4 ii4,'PW.ttn,1�R.��i�iSo�a,r.1�S,�Gs.U3acc 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: JANUARY 22, 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. 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 $48.296 million (lower sales tax -10% and interest earnings -50%) versus estimated expenditures of $51,965 million (lower expenditures to original budget due to staff-recommended budget cuts). Mid-Year Oriqinal Budqet Revised Budqet Revenues $53,231,500 $48,296,100 Expenses $53,230,706 $51,965,619 Staff was requested to look at all programs to see if there were any areas that could be reduced or delayed for the remaining six months of the fiscal year due to the downturn of the economy. It was determined that two clerical positions would be left vacant for the remainder of the fiscal year; one in Public Works, and the other in the Redevelopment Agency. Staff sent out a three-tier reduction request form. The intent of the first tier is to determine reductions that can be reasonably believed to save money this fiscal year. Tier Two reductions can be made to keep the City operating at a lesser standard and Tier Three budget reductions would greatly diminish current services and should be considered as a last resort. At this time, Staff is recommending reductions at the first Staff Report Approval of Resolution Amending the Fiscal Year 2008/2009 Budget January 22, 2009 Page 2 of 2 tier level only. Some of staff-recommended cuts include cuts to capitat projects that do not impact the General Fund operating budget, therefore and as such were not included. No budget increases were requested at this time. The following are decreases made by staff due to mid-year budget review of expenses: • $ (17,500) Slower building permit activity allows a reduction in contracted professional services and decrease in seminars for Building Board of Appeals. • $ (3,000) Reduction of out-o�-town conferences for Planning. • $ (2,000) Reduction of out-of-town conferences for Code. • $(290,000) $100,000 for traffic striping, $50,000 in professional engineering, $140,000 for water conservation programs for current year. • $(100,000) Workers Compensation is lower due to prior year premium refund. • $(100,000) Retiree Health is lower due to actuarial calculation. • $(400,000) Decrease Sheriff Department budget due to several deputy positions not filled for the first 6 months. Eight of the nine positions currently fi I led. 110-4210-422-3040 • $(233,587) Civic Center Park maintenance and Parks budget savings. • $ (39,000) Reduce newsletter by two issues $24,000 and 15,000 emergency preparedness brochure. • $ (75,000) Human Resources reduction in advertising for recruitments, reduce citywide team building training and reduce temporary help. • $ (5,000) Cut Balloon Festival sponsorship. Staff is recommending budget cuts in the total amount of $1,265,887. It is also important to note that the five-year average of General Fund actual expenditures was lower than original budget by $2,183,011, constituting a substantial cost savings. Staff recommends approval of the resolution and attached exhibits amending the City Budget. Sub � ed By: Approval: /� c Paul S. Gibson J i McCarthy Director of Finance/City Treasurer nteri City Manager PSG:nmo G:\FinanceWiamh Ortega\Staff Reports�,Approval Of Resolution Amending Mid Year08-09 Budget.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 "B", 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 January, 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 CITY OF PALM DESERT RESOLUTION ' MID-YEAR 2008-2009 BUDGET REVIEW EXHIBIT"A" REVISED APPROPRIATIONS FUND/I��PARTIU��NT �,�,w CHA� ` , , � ,,1�� r �a ��VIS��► , . , � � . `i�� . ' w°,�,,; -�'',� 1�1�!{��}, , '� ti , `- APP�tE�PR1k'��15 �'. GENERAL FUND: City Council (2,700) Retirement Contribution and Health Benefit Increases City Clerk (4,600) City Manager (8,800) Salary Increase and Retirement Contribution Increase Community Services (62,900) Finance (18,000) Human Resoures (81,300) Salary Increase and Retirement Contributions Information System (8,700) Police Services (400,000) Vacant Sheriff Deputy positions Development Services (10,600) Public Works Admin. (323,000) Salary Increase and Retirement Contributions Public Works Streets (17,500) Public Building Maint (3,900) Unspent Street Resurfacing Funds Visitor Center (5,100) Building and Safety (44,500) Unspent Park Maintenance Funds Planning 8� Comm Devel (15,900) Office of Energy Managemenl (4,800) Unspent Comm. Dev. Funds Civic Center Park - Parks Maintenance (241,087) Portion of 200,000 that was added during Budget Session Landscape Services (12,500) TOTAL GENERAL FUND: (1,265,887) Estimated General Fund Expenditures = 51 Million Additional: 5 Year average of General Fund Expenditure lower than Original Budget = $2,183,011 CITY OF PALM DESERT Resolution No. MID-YEAR 2008-2009 BUDGET REVIEW Exhibit"B" REVISED ESTIMATED REVENUE FUND/REV�NU� CHAI�� ; R�VISED ' ,, �; ��'' �� NCC(QEC)'� '�ESTIMATECI�'RE�/ENU� �� GENERAL FUND: _ Sales Tax 2,600,000 Slower economy, slower retail sales Interest Earnings 2,500,000 Decrease due to Federal Reserve lowering interest rates from 5% to 0.25°/o Total General Fund Revenue 5,100,000