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 �
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Paul S. Gibson, Finance Director J hn M. Wohlmuth, City Manager
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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)