CITY OF COMMERCEAGENDA REPORTCITY OF COMMERCEAGENDA REPORT
CITY OF COMMERCE
AGENDA REPORT
CITY OF COMMERCE
AGENDA REPORT
Item No. Item No.
Item No.
Item No.
TO: Honorable City Council
FROM: City Manager
SUBJECT: A Resolution Amending the Annual Operating Budget for Fiscal Year 2024-25 Meeting Date: July 9, 2024
RECOMMENDATION:
Approve and adopt the proposed Resolution amending the annual operating budget for Fiscal Year 2024-25.
BACKGROUND:
The City Council entertained a presentation at the council meeting on June 25, 2024. Following staff’s presentation, several councilmembers provided feedback and recommendations – amending the proposed General Fund budget with some additional items. After some dialogue, it was concluded that all new items be deferred to the next meeting, presenting a full council the opportunity to discuss and deliberate whether any of the new items warrant funding.
Subsequent to the discussion, the City Council adopted a FY 2024-25 General budget totaling $70,074,927. The budget included the following elements:
June 27, 2023 -- An initial General Fund budget was adopted $63,962,083 July 18, 2023 – Wage & benefit (inclusive of Class and Comp) $ 3,573,200 September, 12, 2023 – Additional positions approved $ 1,543,127 July 1, 2024 – Employee Wage increase $ 1,235,750
Adjusted Baseline Budget ($ 1,350,000) Projected costs related to Public Safety / Public Works Contracts and Utilities $ 1,110,767
TOTAL $70,074,927
As noted at the last meeting, the City Manager will work with the City Council and City staff over the summer months and potentially return with some additional recommendations.
ANALYSIS:
This evening, the Council will be deliberating whether or not any of the following items warrant funding, thus amending the FY 2024-25 budget:
City 65th Birthday Celebration (2025) (ONE-TIME) $250,000 Service Appreciation Breakfast Saturday -- January 25, 2025 $12,000 (Council, Commissions)
City Birthday Kick Off Saturday -- January 25, 2025 $55,000 (Drone show and special event)
Senior Center Celebration – January 28, 2025 $ 5,000 Distribution of City-Wide Gift – January 28, 2025 $45,000 Family Fun Snow Day Saturday -- February (TBD), 2025 $35,000 Concert in the Park/Taste of Commerce -- TBD $50,000 Fiestas Patrias Saturday -- September 13, 2025 $25,000 Additional Promotional items
Street Pole/Park Banners $10,000
Logo T-shirts $ 8,000
Logo Lapel Pins $ 3,000
Bronze Plaque $ 2,000
Travel Team Excursion $75,000
Budget allocation details/structure is pending a meeting with all Coaches, Managers & Supervisors Camp Commerce – Replacement of the Wheelchair Lift (ONE-TIME) $72,500 The wheelchair lift at Camp Commerce is in dire need of replacement. Over the course of the last few years, several companies have been able to refurbish several of the parts to make it operable. However, these companies now have indicated that they will not try and fix the lift as it poses a liability for their companies. According to our records, the wheelchair lift is approximately 38 years old and has exceeded its lifespan. Per OSHA, the wheelchair lift is needed to continue operations at Camp Commerce and to be ADA compliant.
Bristow Park Events (Fiestas Patrias) $40,000
It is recommended that Council consider hosting Fiesta Patrias in 2025 as part of the 65th City Anniversary. Planning an event of this magnitude at this late notice will be very costly. In addition, scheduling entertainment for that weekend will be extremely limited as many of the entertainers may have already been scheduled for other Fiesta Patrias events. Note: a program of this nature takes approximately 6-7 months in advance to plan and organize.
If it is the desire of the Council to provide a program this upcoming September, it is recommended that the program be hosted on Sunday, September 15, 2024.
Addition of a Part-time Assistant Water Polo Coach $39,000 Special Olympics -- Programming $20,000
Sr. Center -- Reinstatement of Water Coloring Classes $17,000 Reinstatement of Karate Classes $15,000
Video Services $30,000
ALTERNATIVES:
Approve staff recommendation
Provide staff with further direction
FISCAL IMPACT:
If the City Council approves all the aforementioned items, the General Fund operating budget would need to be amended by $558,500, of which $322,500 would be defined as one-time expenditures.
Again, Staff will return to the City Council with a budget update report including projected FY 2024-25 revenues sometime in September. Moving some of the budget process to the summer will provide time for the new City Manager to become familiar with the budget and budget process.
RELATIONSHIP TO STRATEGIC GOALS:
This report is applicable to the following 2016 Strategic Plan Fiscal Sustainability Guiding Principle 1: Demonstrate fiscal responsibility through establishing financial policies, budgeting practices that meet the Financial Standards of Excellence requirements.
Recommended by: Vilko Domic, Assistant City Manager
Approved as to form: Noel Tapia, City Attorney
Respectfully submitted: Ernie Hernandez, City Manger
ATTACHMENT:
Resolution