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HomeMy WebLinkAboutRes 2010-22 - Amnd FY 09-10 Budget (Mid-Yr Adjstmnts) CITY OF PALM DESERT FINANCE DEPARTMENT Staff Report REQUEST: APPROVAL OF RESOLUTION NO. 2010 22 AMENDING THE FISCAL YEAR 2009/2010 BUDGET AS A RESULT OF MID-YEAR ADJUSTMENTS DATE: APRIL 8, 2010 CONTENTS: RESOLUTION 201022AMENDING THE FISCAL YEAR 2009/2010 BUDGET EXHIBITS DEMONSTRATING REDUCTIONS TO FY 09/10 BUDGET Recommendation By Minute Motion, approve Resolution No. 2010Z2 amending the Fiscal Year 2009/2010 budget as a result of mid-year adjustments. Executive Summary The City Council directed staff to reconsider the City's 2009/2010 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 $2,263,147 in reductions from operating expenditures. The details of the changes are reflected in Exhibit "A" (attached) and departmental category detail on Exhibit "B" (attached). 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 payment" on aligning the City's revenues and expenditures for Fiscal Year 2010/2011. Background Staff has completed a mid-year analysis of the current budget and financial position of the City. Estimated revenues for the General Fund are $43.482 million (decrease in sales tax by 17% and Transient Occupancy Tax by 19%) versus estimated expenditures of $43.937 million (lower expenditures to original financial plan due to staff-recommended adjustments). Sales tax figures for the fourth quarter were received from the State, reflecting an increase of 1.5%. This figure did not increase enough to impact the projected revenues for the upcoming fiscal year. Mid-Year Oriqinal Budqet Revised Budqet Revenues $46,982,000 $43,482,000 Expenses $46,200,260 $43,937,113 Staff Report Approval of Resolution 2010-22 Amending the Fiscal Year 2009/2010 Budget April 8, 2010 Page 2 of 2 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. Following the most recent City Council meeting, Finance staff met with various department heads to reduce the expenditures by $3.5 million (staff identifies $2,263,147). Staff recommends budget adjustments in an amount totaling $2,263,147. Staff recommends approval of the resolution and attached exhibits amending the City budget for Fiscal Year 2009/2010, and recommends that the action be taken at this City Council meeting in order to ensure the additional budget savings. Fiscal Impact Approval of Resolution No. 2010-22 will result in budget adjustments to the General Fund in the amount of$2,263,147 for the fiscal year 2009-2010. Submitted By: p rov � c� . Paul S. Gibson, Finance Director J hn M. Wohlmuth, City Manager � PSG:nmo CiTY COUNCILAC�`ION APPROVED � bENiF.D RECEIVED OTHER MI;F.TI C DATE �� AYF,S. l�'OI:S: ,�LYiF „ A135CNT:��� - , .�.._ ,._._.r. � A PsSTAIN: VI�RIFiF.D 13Y: �y� Original on File with Ci lerk's Office RESOLUTION NO. 2010-22 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AMENDING THE FISCAL YEAR 2009-2010 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 2009-2010 budget; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Palm Desert, California, that the 2009-2010 budget is hereby revised as follows: 1. The amounts shown in the column entitled "Proposed Budget Adjustment" in the table entitled "Mid-Year Budget Adjustments, Fiscal Year 2009-2010", attached hereto as Exhibit A, are hereby appropriated to the departments, activities and projects identified therein as the Operating Budget for 2009-2010. 2. The amounts shown in the column entitled "Revised Estimated Revenue" in the table entitled "Mid-Year Budget Adjustments, Fiscal Year 2009-2010", attached hereto as Exhibit B, are hereby accepted as the Estimated Revenues for the 2009-2010 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 8th day of April, 2010, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: CINDY FINERTY, MAYOR ATTEST: RACHELLE KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA G:IFinancelNiamh OrtegalReso/utionslRES-Mid-Year Adjustments Fy 2009-2010 033010.DOCX Mid-Year Budget Adjustments Exhibit A Resolution No. 2010-22 Fiscal Year 2009-2010 Purposed Budget Department Category Adjustment Account Number Building&Safety Supplies $ 500.00 110 4420 422 2110 Supplies-Small Tools $ 500.00 110 4420 422 2180 Prof-Architectual/Engineering $ 15,000.00 110 4420 422 3010 Mileage $ 600.00 110 4420 422 3115 Conference,Seminars,Workshops $ 5,330.00 110 4420 422 3120 Local Meetings $ 1,000.00 110 4420 422 3125 R/M Office Equipment $ 800.00 110 4420 422 3330 Printing/Duplicating $ 5,000.00 110 4420 422 3610 Subscription/Publication $ 2,500.00 110 4420 422 3620 Dues $ 630.00 110 4420 422 3630 Total Building&Safety $ 31,860.00 Office of the City Manager Disaster/Emergency $ 1,051.00 110 4130 411 2191 Dues $ 607.00 110 4130 411 3630 Special Events $ 1,400.00 110 4130 411 3061 Capital Office Equipment $ 5,000.00 110 4130 411 4040 Employee Recognition $ 600.00 110 4130 411 3095 Local Meeting $ 642.00 110 4130 411 3125 Subscription/Publication $ 200.00 110 4130 411 3620 Total Office of the City Manager $ 9,500.00 Special Programs Department Community Gardens $ 510.00 110 4132 411 3910 Capital Outlay $ 750.00 110 4132 411 4040 Telephone $ 5,000.00 110 4132 411 3650 Dues $ 750.00 110 4132 411 3630 Local Meetings $ 500.00 110 4132 411 3125 Mileage $ 200.00 110 4132 411 3115 Office Supplies $ 1,500.00 110 4132 411 2110 Postage $ 1,750.00 110 4132 411 3660 Printing $ 2,500.00 110 4132 411 3610 Subscriptions $ 500.00 110 4132 411 3620 Youth Committee $ 5,000.00 110 4416 414 3062 Total Special Programs $ 18,960.00 Finance Department Printing&Duplicating $ 9,000.00 110 4150 415 3610 Equipment Replacement(Transfer to Other Funds) $ 210,000.00 110 4199 499 5010 Retiree Health Premium(All Departments) $ 494,412.00 Otheraccounts $ 2,000.00 110 4150 415 2110 Total Finance $ 715,412.00 Police Department Police Services $ 376,216.00 110 4210 422 3040 Total Police Department $ 376,216.00 Legislation Legislation account $ 4,500.00 110 4112 410 3090 Total Office of Energy Management $ 4,500.00 Mid-Year Budget Adjustments Exhibit A Fiscal Year 2009-2010 Purposed Budget Department Category Adjustment Account Number Information Tech. Supplies $ 37,000.00 110 4190 415 2120 Professional-Other $ 25,849.00 110 4190 415 3091 Conferences&Seminars $ 4,000.00 110 4190 415 3120 Total Information Tech. $ 66,849.00 Parks&Recreation Civic Center Park Contracting $ 45,000.00 110 4610 453 3092 R/M Building $ 10,000.00 110 4610 453 3310 Total Civic Center Park $ 55,000.00 *** Parks Utilities-Water $ 40,000.00 110 4611 453 3510 Utilities-Electric $ 25,000.00 110 4611 453 3514 Landscape Services $ 100,000.00 110 4611 453 3320 Janitorial Supplies $ 2,000.00 110 4611 453 2130 OtherSupplies $ 15,000.00 110 4611 453 2190 Total Parks $ 182,000.00 *** Landscape Services Repair&Maintenance $ 250,000.00 110 4614 453 3370 Total Landscape Services $ 250,000.00 **" Public Works Professional Services-Architectural&Engineering $ 35,000.00 110 4300 413 3010 Professional Services-Other $ 25,000.00 110 4300 413 3090 Striping $ 50,000.00 110 4315 433 3320 Traffic/Striping $ 15,000.00 110 4250 433 3325 Curb/Gutter/ADA Retrofit Program $ 20,000.00 110 4312 433 3320 Storm Drain Maintenance $ 25,000.00 110 4314 433 3320 Conferences/Seminars $ 6,000.00 110 4300 413 3120 Total Public Works $ 176,000.00 *** Human Resources Recruitment advertising $ 10,000.00 110 4154 415 3215 Temporary Help $ 40,000.00 110 4154 415 3036 Total Human Resources $ 50,000.00 Community Promotions Convention Visitor Authority $ 100,000.00 110 4416 414 3220 Total Community Promotions $ 100,000.00 Marketing Promotional $ 84,000.00 110 4417 414 3090 Advertising Promotional $ 25,000.00 110 4417 414 3223 Media Buys $ 64,925.00 110 4417 414 3221 Office Supplies $ 200.00 110 4417 414 2110 Conferences&Seminars $ 2,000.00 110 4417 414 3120 Local Meetings $ 300.00 110 4417 414 3125 Subscriptions/Publications $ 150.00 110 4417 414 3620 Total Marketing $ 176,575.00 Mid-Year Budget Adjustments Exhibit A Fiscal Year 2009-2030 Purposed Budget Department Category Adjustment Account Number Visitor Center Capital Outlay-Equipment $ 1,500.00 110 4419 453 4040 ProfessionalOther $ 2,500.00 110 4419 453 3090 Conferences&Seminars $ 1,000.00 110 4419 453 3120 Other Supplies $ 500.00 110 4419 453 2190 Office Supplies $ 500.00 110 4419 453 2110 Special Events $ 500.00 110 4419 453 3061 Local Meetings $ 500.00 110 4419 453 3125 Dues $ 1,000.00 110 4419 453 3630 Total Visitor Center $ 8,000.00 City Clerk Advertising $ 5,000.00 110 4111 410 3210 Conferences&Seminars $ 2,000.00 110 4111 410 3210 Total City Clerk $ 7,000.00 Community Development Professional Services $ 15,000.00 110 4470 412 3090 Overtime $ 1,000.00 110 4470 412 1002 Conferences&Seminars $ 8,000.00 110 4470 412 3120 Printing&Duplicating $ 3,500.00 110 4470 412 3610 Office Supplies $ 2,000.00 110 4470 412 2110 Subscriptions $ 1,575.00 110 4470 412 3620 Dues $ 1,200.00 110 4470 412 3630 Postage&Freight $ 3,000.00 110 4470 412 3660 Total Community Development $ 35,275.00 Total City-wide Adjustments $ 2,263,147.00 Mid-Year Budget Adjustments Exhibit B Fiscal Year 2009-2010 Fund/Revenue Revised Estimated Revenue Chanse General Fund Sales Tax (2,300,000.00) Slower economy,slower retail sales T.O.T. (1,200,000.00) Slower economy,slower convention business Total General Fund Adj. (3,500,000.00)