HomeMy WebLinkAboutResolution 2011-45 Amending Fiscal Year 2010 / 2011 BudgetCITY OF PALM DESERT
FINANCE DEPARTMENT
STAFF REPORT
Request: Approve Resolution No. 2011- 45 authorizing the Fiscal Year
2010-2011 Budget Amendment to provide transfer, appropriation and
estimated revenues from the Unobligated General Fund Reserves to Fleet
/ Equipment Replacement, Retiree Health, Building Maintenance / Capital
Replacement, Golf Course Capital Improvements, Parks & Aquatic Center
Capital Improvements, Community Contingency Reserve (Within General
Fund), and Land Acquisition Funds
Date: June 9, 2010
Contents: Resolution No. 2011- 45
Recommendation
By Minute Motion, that the City Council approve Resolution No. 2011-45
amending the 2010-11 budget to provide transfer, appropriation and estimated
revenues of unobligated funds from the Unobligated General Fund Reserves to
Fleet / Equipment Replacement, Retiree Health, Building Maintenance / Capital
Replacement, Golf Course Capital Improvements, Parks & Aquatic Center Capital
Improvements, Community Contingency Reserve (Within General Fund), and
Land Acquisition Funds.
Background
In response to a request at the budget study sessions of April 7, 2011 and April 29, 2011, the
following is a recommendation for the allocation of approximately $6 million currently available in
excess of the reserve requirement.
It is intended that these individual reserve accounts will initially be deposited; however, future
deposits are unlikely unless revenues significantly outpace expenditures. Therefore, these are
likely to be one-time deposits that may not be replenished and should last for several or more
years.
General Fund Unobligated Reserve
As of June 30, 2010
Fleet / Equipment replacement
Retiree Health
Building Maintenance / Capital replacement
Desert Willow capital improvements
Parks & Aquatic Center (capital improvements)
Community Contingency Reserve
Land Acquisitions
Future General Fund Unobligated Reserve
Required General Fund Unobligated Reserve
pursuant to policy (including Fire)
Difference
$ 63,847,586
1,000,000
500,000
1,000,000
1,000,000
1,000,000
500,000
1,000.000
$ 57,847,586
56, 588,653
$12
Staff Report
Approve Resolution Authorizing FY 2010-2011 General Fund Appropriations
June 9, 2011
Page 2 of 3
Fleet/Equipment replacement
This reserve is held in a separate fund to replace the current city vehicles and city equipment.
Staff typically transfers funds annually to this reserve to ensure sufficient funds to maintain the
fleet/equipment. Since the downturn to the economy, however, staff has not transferred any
funds. It is recommended that $1,000,000 be transferred to this fund to cover the three years of
capital.
Retiree Health
Yearly, the Finance department remits funds to the State retiree benefit trust based on our
actuarial requirement. However, over the last two years no funds have been transferred from the
General Fund to the separate fund to cover this liability. Staff's recommendation is to transfer
$500,000 to maintain the necessary funds to cover the retiree health payments.
Building Maintenance
In the current year, staff has exhausted the majority of the reserves established for repair and
maintenance of the Civic Center roof. The fund is responsible for covering all city building
maintenance including City Hall, three Fire stations, Portola Community Center, the old sheriff
station, Henderson and Chamber buildings, etc. Staff recommends reestablishing a reserve of
$1,000,000 for this purpose. As additional funds become available staff would recommend we
increase this reserve to over $5,000,000 due to the age of a number of the buildings.
Desert Willow capital improvements
Fund 241 was originally established to collect the revenue from Intrawest and Starwood and
cover expenditures for any necessary minor improvements to the complex. Since the downturn in
the economy, staff has instead been transferring the revenue to the General Fund to lessen the
impact of lower revenues in the General Fund.
However, the proposed legislation to eliminate Redevelopment or curtail its use of funds toward
golf courses will require the General Fund contribution for all major capital improvements. This
would include future renovations to Firecliff and Mountain View courses along with replacing well
pumps, plant material, etc. The next two years' forecast for capital improvements is well over
$2,000,000, therefore requiring the additional $1,000,000 transfer from the General Fund.
Parks & Aquatic Center
Over the years, our parks have grown tremendously and so has the need to replace park
equipment, replace plant materials, and repair restrooms and lighting destroyed by vandalism.
The addition of the swimming pool has created a further burden to the parks requirements. Over
the next ten years, major equipment such as pool pumps will require replacement. Therefore, staff
is recommending that a reserve be established for future needs for both the parks and the aquatic
center in the amount of $1,000,000.
GAFINA,NCEWIAMH ORTEGAISTAFF REPORTSISR-APPROP FROM GEN FUND 10-11.DOCX
Staff Report
Approve Resolution Authorizing FY 2010-2011 General Fund Appropriations
June 9, 2011
Page 3 of 3
Community Contingency Reserve
City Council has requested that a Community contingency reserve be established to provide for
unforeseen operating or capital needs of non-profit agencies and residents in an amount of
$500,000. As individual City Council members determine appropriate needs during the year, this
reserve should be used to address these issues. Staff recommends that each City Council
member have the ability to use up to $25,000 per year for their individual unforeseen items
contingent upon City Council approval at the next available meeting. Remember, a Council
member can request a community appropriation, but a majority of the Council must ultimately
approve.
Land
City Council has requested that reserves be set aside for the purpose of acquiring additional land
within the City limits. Staff recommends that $1,000,000 be allocated for this purpose.
Staff recommends transfer of reserves as outlined.
Fiscal Impact
Approval of this recommendation will result in the transfer of unobligated general fund reserves to
various accounts.
Submitted By:
4aulS. Gibson
Director of Finance/City Treasurer
Approval:
CITY COUNCTL A�TtON
APPROVED T)F.NTF.T)
RECEIVED OTHER-
,
Q.L.0 .
MEETING DATE
AYES:F4n�„i66,k.Krnaxi,WfeW pienWrl
NOES: N&-ve-
ABSENT: Nonf_ ...
ABSTAIN: None
VERIFIED BY:
Original on File with City Cler s Office
* Including an appropriation of $535,000 for
property acquisition.
G:IFINANCEWIAMH ORTEGAISTAFF REPORTSISR-APPROP FROM GEN FUND 10-11.DOCX
RESOLUTION NO. 2011- tom_
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT,
CALIFORNIA AMENDING THE FISCAL YEAR 2010-11 BUDGET TO PROVIDE
TRANSFER, APPROPRIATION AND ESTIMATED REVENUES OF
UNOBLIGATED FUNDS FROM THE UNOBLIGATED GENERAL FUND
RESERVES TO FLEET / EQUIPMENT REPLACEMENT, RETIREE HEALTH,
BUILDING MAINTENANCE / CAPITAL REPLACEMENT, GOLF COURSE
CAPITAL IMPROVEMENTS, PARKS & AQUATIC CENTER CAPITAL
IMPROVEMENTS, COMMUNITY CONTINGENCY RESERVE (WITHIN
GENERAL FUND), AND LAND ACQUISITION FUNDS
WHEREAS, it is desirable to appropriate said revenues from the Unobligated General
Fund Reserves to Fleet / Equipment Replacement, Retiree Health, Building Maintenance / Capital
Replacement, Golf Course Capital Improvements, Parks & Aquatic Center Capital Improvements,
Community Contingency Reserve (Within General Fund), and Land Acquisition funds.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Palm Desert,
California, that the 2010-11 Budget is hereby amended by appropriating from the Unobligated
General Fund Balance to the identified funds as follows:
Transfer Out Account Amount Transfer In Account Description
Fleet / Equipment 110-4199-499-5010 1,000,000 530-0000-391-0000 Transfer out from General Fund
Replacement to Fleet / Equipment
Replacement Fund for vehicle
and equipment replacement
Retiree Health
110-4199-499-5010 500,000
576-0000-391-0000 Transfer out from General Fund
to Retiree Health Fund for
actuarial requirement
Building
110-4199-499-5010 1,000,000
450-0000-391-0000 Transfer out from General Fund
Maintenance /
to Building Maintenance I Capital
Capital Replacement
Replacement Fund for City
buildings maintenance
Golf Course Capital
110-4199-499-5010 1,000,000
441-0000-391-0000 Transfer out from General Fund
Improvements
to Golf Course Capital
Improvement Fund for Desert
Willow golf course improvements
Parks & Aquatic
110-4199-499-5010 1,000,000
242-0000-391-0000 Transfer out from General Fund
Center Capital
to Parks & Aquatic Center
Improvements
Capital Improvement Fund for
equipment replacement
Community
110-0000-253-1000 500,000
110-0000-243-0900 Reserve within the General Fund
Contingency
for Community Contingency for
use at Council's discretion
Land Acquisitions
110-4199-499-5010 1,000,000
400-0000-391-0000 Transfer out from General Fund
to Land Acquisition Fund for
additional land acquisitions
Resolution No. 2011- 45
June 9, 2011
Page 2 of 2
PASSED, APPROVED and ADOPTED by the City Council of the City of Palm Desert, California,
at its regular meeting held on the 9th of June, 2011 by the following vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
JEAN M. BENSON, MAYOR
ATTEST:
RACHELLE D. KLASSEN, CITY CLERK
CITY OF PALM DESERT, CALIFORNIA
GARnanceftamh 0rtega\ResoIutionsTES-approp from gen fund 10-11.docx