1Special
CALL AND NOTICE OF SPECIAL MEETING
NOTICE IS HEREBY GIVEN that pursuant to Government Code Section 54956, by delivery of this written notice as provided by law, the Mayor has called a special meeting of the Lomita City Council.
AGENDA
SPECIAL MEETING
LOMITA CITY COUNCIL
THURSDAY, MARCH 7, 2024
4:00 P.M.
UPSTAIRS ASSEMBLY ROOM
THE CITY COUNCIL HAS RESUMED IN-PERSON PUBLIC MEETINGS. AS A COURTESY,
THE CITY WILL ATTEMPT TO ALSO ALLOW PUBLIC PARTICIPATION DURING THE MEETING VIA A COMPUTER OR SMART DEVICE USING THE FOLLOWING ZOOM LINK:
https://us02web.zoom.us/j/81948905426
Telephone Option: (669) 900-6833 Meeting ID: 819 4890 5426
THE COUNCIL MAY SUSPEND PUBLIC PARTICIPATION VIA ZOOM AT ANY TIME, AND
THE MEETING WILL NOT BE CANCELLED NOR SUSPENDED IF TECHNICAL ISSUES PRECLUDE OR IMPACT THE ABILITY TO ACCEPT PUBLIC COMMENT OVER ZOOM.
SHOULD YOU WISH TO ENSURE YOU CAN PARTICIPATE IN THIS MEETING, OR
COMMENT ON AN ITEM ON THE AGENDA, YOU MUST SHOW UP IN PERSON AT THE MEETING.
Council Member Gazeley will participate via Zoom at the following address:
25225 Doria Avenue, Lomita CA, 90717
1. OPENING CEREMONIES
a. Call Meeting to Order
b. Roll Call
2. PUBLIC COMMENTS
Persons wishing to speak on agenda items are requested to do so at this time. Government Code Section 54954.2 prohibits the Council from discussing or taking action on a specific item unless it appears on a posted agenda.
LOMITA CITY HALL
COUNCIL CHAMBERS
24300 Narbonne Avenue
Lomita, CA 90717
Phone: (310) 325-7110
Fax: (310) 325-4024
Bill Uphoff, Mayor
Mark A. Waronek, Mayor Pro Tem
James Gazeley, Council Member
Cindy Segawa, Council Member
Barry Waite, Council Member
Lomita City Council Special Meeting Agenda March 7, 2024
3. SCHEDULED ITEMS
a. FISCAL YEAR 2023-2024 MID-YEAR BUDGET REVIEW
Presented by Susan Kamada, Administrative Services Director RECOMMENDED ACTION: Approve the recommendations contained in Attachment 1 and direct staff to make necessary expenditure and revenue budget adjustments to implement the recommendations.
4. ADJOURNMENT
I hereby certify under penalty of perjury under the laws of the State of California that the foregoing agenda was posted not less than 24 hours prior to the meeting at the following locations: Lomita City Hall, Lomita Park, and uploaded to the City of Lomita website http://www.lomita.com/cityhall/city_agendas/.
Date Posted: March 5, 2024
_______________________________
Kathleen Horn Gregory, MMC, City Clerk
1 TO: City Council
FROM: Joe Hoefgen, Interim City Manager
PREPARED BY: Susan Kamada, Administrative Services Director MEETING DATE: March 7, 2024
SUBJECT: Fiscal Year 2023-2024 Mid-Year Budget Review
RECOMMENDATION
Approve the recommendations contained in Attachment 1 and direct staff to make necessary expenditure and revenue budget adjustments to implement the recommendations.
BACKGROUND
Staff develops the annual budget based upon estimated revenues and expenditures.
Upon completion of the annual financial statements and final audit, staff analyzes the impact of the closing information, current revenue and expenditure trends, and economic data, and recommends adjustments to be approved by the City Council during the midyear budget review process. Revenues are adjusted based on this analysis and other sources to provide revised projections for the fiscal year. The City’s accounting staff continually monitors actual revenues received and compares them to the projected revenues approved in the annual budget; this information is then used to develop revised revenue projections to more accurately reflect the impacts of the current economic climate and any uncertainties and delays in receiving revenues.
Fiscal Year 2023/2024 Adopted Budget
In June 2022 the City Council adopted the annual operating and capital improvement budgets. The adopted budget contains general fund revenues and expenditures of $14,200,427 and $14,156,877 respectively for Fiscal Year 2023-2024, reflecting a balanced budget in the general fund. This budget continues to provide the service levels that the Lomita community expects. In addition, the budget contains financial data for all the City’s operating and capital funds. Attachment 1 is a summary of the revenue and expenditure adjustments, which are described in more detail below.
Item No. SCH 3a
CITY OF LOMITA
CITY COUNCIL REPORT
2 Revenue Adjustments
Staff reviewed the status of the City’s major revenue sources to identify potential anomalies between budgeted and actual revenues, and to make recommendations for revenue budget adjustments. The City’s primary revenue sources include property, sales, and motor vehicle in lieu taxes. The other major revenue source is development related revenue. Property and motor vehicle in lieu taxes are not expected to exceed the original projected revenue. A review of other revenues found several variances in the budget versus actual amounts at mid-year. As a result, the following revenue account adjustments are being recommended:
General Fund:
Property Tax 100,000
Sales & Use Tax (200,000)
Business License Tax 27,000
Franchise Tax 50,000
Parking Fines 50,000
Administrative Citations 5,000
Technology Fees 4,000
Planning & Zoning Fees 10,000
Teen Program Registration 1,000
Interest 110,000
LEAP Grant 30,000
Vehicle License Fee 65,000
State Mandated Reimbursements 70,000
Property Damage Claims 5,000
Transfer From Other Funds (710,555)
Other Funds:
Street Improvement (191,089)
Facility Improvement 2,079
Equipment Replacement (100,000)
Sewer Replacement 100,000
3 Expenditure Adjustments
Staff reviewed the status of the City’s expenditures to identify potential anomalies between budgeted and actual expenditures, and to make recommendations for expenditure budget adjustments. A review of the expenditures found several variances in the budget versus actual amounts at mid-year. As a result, the following expenditure account adjustments are being recommended:
General Fund:
City Council $ 4,977
Legal Services 20,000
City Manager (5,214)
City Clerk (2,404)
Administrative Services (4,485)
Human Resources (2,919)
Safety Enforcement 2,446
Planning (1,929)
Economic Development (124,930)
Information Technology (55,000)
Public Works 5,394
Parks & Recreation (22,131)
Transfers to Other Funds (691,089)
Other Funds:
State Gas Tax $ (1,447,000)
Measure R (800,000)
Measure M (758,623)
Prop C (250,000)
Park Grant 58,200
Street Improvement (340,000)
Water Capital 1,281,865
The information provided in this report was shared with the Finance Sub-Committee (Mayor Uphoff and Mayor Pro Tem Waronek) at the meeting on February 26, 2024.
OPTIONS
1. Approve staff’s recommendation.
2. Amend staff’s recommendation.
3. Provide further direction to staff.
FISCAL IMPACT
The adjustments identified will decrease estimated revenues by $502,565 and decrease expenditures by $5,696,572.
4 ATTACHMENTS
1. Fiscal Year 2023/2024 Mid-Year Budget Amendments
Reviewed by: Approved by:
___________________________
Gary Y. Sugano Joe Hoefgen
Assistant City Manager Interim City Manager
Prepared by:
Susan Kamada
Administrative Services Director
Fiscal Year 2023-2024 Mid-Year Budget Review
City of Lomita
Revenues Budget
Amended
Budget as of
06/06/2023 Year to Date
Budget
Balance
Percent
Remaining
Budget
Adjustment
Revised
Budget
Fund: 100 - General Fund
100-000-4125.000 Property Taxes 1,857,084 1,857,084 1,012,954 (844,130) 45.45% 100,000 1,957,084 100-000-4210.000 Sales and Use Tax 4,820,721 5,200,000 1,943,585 (3,256,415) 62.62% (200,000) 5,000,000 100-000-4215.000 Business License Tax 669,646 669,646 513,126 (156,520) 23.37% 27,000 696,646 100-000-4220.000 Franchise Tax 365,000 365,000 74,654 (290,346) 79.55% 35,000 400,000 100-000-4221.000 Franchise Tax - Residential Trash 135,000 135,000 103,640 (31,360) 23.23% 15,000 150,000 100-000-4310.000 Parking Fines 385,000 385,000 241,449 (143,551) 37.29% 50,000 435,000 100-000-4320.000 Administrative Citations 5,000 5,000 8,900 3,900 -78.00% 5,000 10,000 100-000-4416.000 Technology Fees 6,000 25,000 23,346 (1,654) 6.61% 4,000 29,000 100-000-4420.000 Planning and Zoning Fees 120,000 150,000 138,761 (11,239) 7.49% 10,000 160,000 100-000-4460.339 Teen Program Registration - - 595 595 0.00% 1,000 1,000 100-000-4525.000 Interest 100,000 200,000 1,968,388 1,768,388 -884.19% 110,000 310,000 100-000-4607.339 LEAP Grant - Housing Element - - 28,935 28,935 0.00% 30,000 30,000 100-000-4629.000 Property Tax in Lieu of Vehicle Lice 2,700,000 2,700,000 1,459,267 (1,240,733) 45.95% 65,000 2,765,000 100-000-4640.000 State Mandated Reimbursements - - 67,465 67,465 0.00% 70,000 70,000 100-000-4936.000 Property Damage Claims - - 3,040 3,040 0.00% 5,000 5,000 100-000-4952.000 Transfer from Special Revenue 538,476 788,476 - (788,476) 100.00% (710,555) 77,921 General Fund Revenue Total: 14,200,427 15,003,706 8,804,056 (6,199,650) (383,555) 14,620,151 Attachment No. 1
Fiscal Year 2023-2024 Mid-Year Budget Review
City of Lomita
Revenues Budget
Amended
Budget as of
06/06/2023 Year to Date
Budget
Balance
Percent
Remaining
Budget
Adjustment
Revised
Budget
Fund: 311 - Street Improvement
311-000-4525.000 Interest 5,000 5,000 - (5,000) 100.00% 5,000 311-000-4951.000 Transfer from General Fund 750,000 391,089 - (391,089) 100.00% (191,089) 200,000 Street Improvement Revenue Total: 755,000 396,089 - (396,089) (191,089) 205,000 Fund: 312 - Facility Improvement
312-000-4951.000 Transfer from General Fund 100,000 100,000 - (100,000) 100.00% (100,000) - 312-000-4958.000 Transfer from ARPA 750,000 1,086,976 - (1,086,976) 100.00% 172,079 1,259,055 Facility Improvement Revenue Total: 850,000 1,186,976 - (1,186,976) 72,079 1,259,055 Fund: 610 - Equipment Replacement
610-000-4520.000 Proceeds from Sale of Property - - 343 343 0.00% - 610-000-4525.000 Interest 500 500 - (500) 100.00% 500
610-000-4951.000 Transfer from General Fund 300,000 300,000 - (300,000) 100.00% (100,000) 200,000 Equipment Replacement Revenue Total: 300,500 300,500 343 (300,157) (100,000) 200,500 -
Fund: 612 - Sewer Replacement
612-000-4951.000 Transfer from General Fund 100,000 - - - 0.00% 100,000 100,000 Sewer Replacement Revenue Total: 100,000 - - - 100,000 100,000 Total Proposed Revenue Amendments (502,565)
Fiscal Year 2023-2024 Mid-Year Budget Review
City of Lomita
Expenditures Budget
Amended
Budget as of
06/06/2023 Year to Date
Budget
Balance
Percent
Remaining
Budget
Adjustment
Revised
Budget
Fund: 100 - General Fund
100-110-5224.000 PERS Tier 3 Unfunded Liability 23 23 - 23 100.00% (23) - 100-110-5430.000 Conferences and Meetings 25,000 30,000 22,408 7,592 25.31% 5,000 35,000 100-120-5305.000 Legal Services 165,000 165,000 132,240 32,760 19.85% 20,000 185,000 100-125-5222.000 PERS Tier 1 Unfunded Liability 29,317 29,855 26,218 3,637 12.18% (3,637) 26,218 100-125-5223.000 PERS Tier 2 Unfunded Liability 922 951 - 951 100.00% (951) - 100-125-5224.000 PERS Tier 3 Unfunded Liability 598 626 - 626 100.00% (626) - 100-130-5210.000 Workers' Compensation 4,143 4,143 3,673 470 11.34% (470) 3,673 100-130-5222.000 PERS Tier 1 Unfunded Liability 11,513 10,976 9,639 1,337 12.18% (1,337) 9,639 100-130-5223.000 PERS Tier 2 Unfunded Liability 362 362 - 362 100.00% (362) - 100-130-5224.000 PERS Tier 3 Unfunded Liability 235 235 - 235 100.00% (235) - 100-210-5210.000 Workers' Compensation 7,101 7,101 5,925 1,176 16.56% (1,176) 5,925 100-210-5222.000 PERS Tier 1 Unfunded Liability 20,417 18,468 16,218 2,250 12.18% (2,250) 16,218 100-210-5223.000 PERS Tier 2 Unfunded Liability 642 642 - 642 100.00% (642) - 100-210-5224.000 PERS Tier 3 Unfunded Liability 417 417 - 417 100.00% (417) - 100-230-5117.000 Leave Payout 150,000 150,000 125,350 24,650 16.43% 10,000 160,000 100-230-5207.000 Medicare 802 802 2,195 (1,393) -173.65% 1,500 2,302 100-230-5222.000 PERS Tier 1 Unfunded Liability 434,074 434,074 381,183 52,891 12.18% (52,891) 381,183 100-230-5223.000 PERS Tier 2 Unfunded Liability 1,501 1,501 - 1,501 100.00% (1,501) - 100-230-5224.000 PERS Tier 3 Unfunded Liability 2,365 2,365 - 2,365 100.00% (2,365) - 100-230-5340.000 Professional Services 8,000 8,000 15,407 (7,407) -92.59% 10,000 18,000 100-230-5345.000 Contractual Services 3,700 23,700 19,305 4,395 18.54% 30,000 53,700 100-230-5460.000 Insurance - Liability and Vehicle 4,251 4,344 6,682 (2,338) -53.81% 2,338 6,682 100-335-5223.000 PERS Tier 2 Unfunded Liability 221 334 - 334 100.00% (334) - 100-335-5224.000 PERS Tier 3 Unfunded Liability - 220 - 220 100.00% (220) - 100-335-5505.000 Office Supplies and Expense 500 500 260 240 47.90% 1,000 1,500 100-335-5515.000 Uniform Expense 500 500 80 420 84.00% 1,000 1,500 100-335-5710.000 Equipment Maintenance 4,000 4,000 6,572 (2,572) -64.31% 3,000 7,000 100-335-5720.000 Fuel 2,000 2,000 - 2,000 100.00% (2,000) - 100-410-5210.000 Workers' Compensation 10,361 10,361 8,687 1,674 16.16% (1,674) 8,687 Fiscal Year 2023-2024 Mid-Year Budget Review
City of Lomita
Expenditures Budget
Amended
Budget as of
06/06/2023 Year to Date
Budget
Balance
Percent
Remaining
Budget
Adjustment
Revised
Budget
100-410-5224.000 PERS Tier 3 Unfunded Liability 583 583 - 583 100.00% (583) - 100-410-5460.000 Insurance - Liability and Vehicle 37,604 37,604 37,432 172 0.46% (172) 37,432 100-410-5720.000 Fuel 500 500 639 (139) -27.83% 500 1,000 100-430-5416.000 Economic Development Incentive 20,000 220,000 23,000 197,000 89.55% (124,930) 95,070 100-440-5435.000 Training and Education 5,000 5,000 - 5,000 100.00% (5,000) - 100-440-5825.000 Equipment Over $5k 70,000 70,000 - 70,000 100.00% (50,000) 20,000 100-605-5222.000 PERS Tier 1 Unfunded Liability - 17,991 15,799 2,192 12.18% (2,192) 15,799 100-605-5223.000 PERS Tier 2 Unfunded Liability 446 573 - 573 100.00% (573) - 100-605-5224.000 PERS Tier 3 Unfunded Liability 290 377 - 377 100.00% (377) - 100-605-5420.000 Mileage Reimbursement - - 343 (343) 0.00% 500 500 100-605-5430.000 Conferences and Meetings - - - - 0.00% 2,000 2,000 100-605-5505.000 Office Supplies and Expense 200 200 1,079 (879) -439.66% 1,000 1,200 100-610-5223.000 PERS Tier 2 Unfunded Liability 439 439 - 439 100.00% (439) - 100-610-5224.000 PERS Tier 3 Unfunded Liability 285 285 - 285 100.00% (285) - 100-710-5210.000 Workers' Compensation 7,523 7,523 6,494 1,029 13.68% (1,029) 6,494 100-710-5222.000 PERS Tier 1 Unfunded Liability 22,123 20,714 18,190 2,524 12.18% (2,524) 18,190 100-710-5224.000 PERS Tier 3 Unfunded Liability 452 452 - 452 100.00% (452) - 100-710-5420.000 Mileage Reimbursement 1,250 1,250 - 1,250 100.00% (1,250) - 100-710-5710.000 Equipment Maintenance 450 450 1,895 (1,445) -321.04% 1,000 1,450 100-730-5222.000 PERS Tier 1 Unfunded Liability 30,976 23,185 20,360 2,825 12.18% (2,825) 20,360 100-730-5224.000 PERS Tier 3 Unfunded Liability 632 632 - 632 100.00% (632) - 100-730-5415.000 Communications 300 300 1,564 (1,264) -421.23% 1,500 1,800 100-735-5460.000 Insurance - Liability and Vehicle 18,596 18,596 2,727 15,869 85.34% (15,869) 2,727 100-740-5216.000 PERS Tier 2 (2%@60) 4,115 4,856 8,029 (3,173) -65.34% 5,000 9,856 100-740-5222.000 PERS Tier 1 Unfunded Liability 20,631 17,811 15,641 2,170 12.18% (2,170) 15,641 100-740-5223.000 PERS Tier 2 Unfunded Liability 649 649 - 649 100.00% (649) - 100-740-5224.000 PERS Tier 3 Unfunded Liability 421 421 - 421 100.00% (421) - 100-740-5515.000 Uniform Expense 4,000 4,000 7,630 (3,630) -90.74% 4,000 8,000 100-750-5210.000 Workers' Compensation 998 998 861 137 13.73% (137) 861 100-750-5460.000 Insurance - Liability and Vehicle 3,621 3,621 3,708 (87) -2.40% 87 3,708 Fiscal Year 2023-2024 Mid-Year Budget Review
City of Lomita
Expenditures Budget
Amended
Budget as of
06/06/2023 Year to Date
Budget
Balance
Percent
Remaining
Budget
Adjustment
Revised
Budget
100-990-5992.000 Transfer to Improvement Funds 950,000 591,089 - 591,089 100.00% (391,089) 200,000 100-990-5994.000 Transfer to Internal Service Funds 700,000 500,000 - 500,000 100.00% (300,000) 200,000 General Fund Expense Total: 14,156,877 15,497,435 7,422,757 8,074,678 (877,284) 14,620,151 Fund: 205 - State Gas Tax
205-810-5806.368 Street Reconstruction-Zone G 400,000 1,347,000 - 1,347,000 100.00% (1,247,000) 100,000 205-810-5806.374 Narbonne South Pipe Replacemen 300,000 300,000 6,827 293,173 97.72% (200,000) 100,000 State Gas Tax Expense Total: 1,241,059 2,214,572 274,086 1,940,486 (1,447,000) 200,000 Fund: 207 - Measure R Local Return
207-810-5806.368 Street Reconstruction-Zone G 300,000 900,000 - 900,000 100.00% (800,000) 100,000 Measure R Local Return Expense Total: 355,680 955,680 - 955,680 (800,000) 100,000 Fund: 209 - Measure M
209-810-5806.374 Narbonne South Pipe Replacemen 300,000 1,058,623 6,827 1,051,796 99.36% (758,623) 300,000 Measure M Expense Total: 300,000 1,058,623 6,827 1,051,796 (1,558,623) 400,000 Fund: 212 - American Rescue Plan
212-990-5990.000 Transfer to General Fund 538,476 250,000 - 250,000 100.00% (172,079) 77,921 212-990-5992.000 Transfer to Improvement Funds 750,000 1,086,976 1,086,976 100.00% 172,079 1,259,055 American Rescue Plan Expense Total: 1,288,476 1,336,976 - 1,336,976 - 1,336,976 Fund: 225 - Proposition C Local Return
225-810-5806.326 Pavement Management Plan - 29,503 12,084 17,419 59.04% 225-810-5806.366 ADA Projects 250,000 250,000 - 250,000 100.00% (250,000) - Proposition C Local Return Expense Total: 250,000 279,503 12,084 267,419 (250,000) - Fiscal Year 2023-2024 Mid-Year Budget Review
City of Lomita
Expenditures Budget
Amended
Budget as of
06/06/2023 Year to Date
Budget
Balance
Percent
Remaining
Budget
Adjustment
Revised
Budget
Fund: 257 - Park Grant
257-830-5345.379 Contractual Services - - 32,520 (32,520) 0.00% 58,200 58,200 Park Grant Expense Total: - - 32,520 (32,520) 58,200 58,200 Fund: 311 - Street Improvement
311-610-5706.000 Street Repairs 25,000 25,000 - 25,000 100.00% 311-810-5806.368 Street Reconstruction Zone G 500,000 500,000 58,202 441,798 88.36% (400,000) 100,000 311-810-5806.373 Traffic Calming - - 57,139 (57,139) 0.00% 60,000 60,000 311-810-5806.380 Sidewalk Improvement Program 250,000 250,000 16,274 233,726 93.49% Street Improvement Expense Total: 775,000 775,000 131,615 643,385 (340,000) 160,000 Fund: 520 - Water Capital
520-840-5820.134 Emergency Generator - 406,385 186,126 220,259 54.20% 406,385 520-840-5821.239 Appian Way Roof - 63,674 21,553 42,121 66.15% 63,674 520-840-5821.357 246th-247th-247th Pl - Western - 1,864,916 347,409 1,517,507 81.37% 1,864,916 520-840-5821.365 CWPF Upgrades Project - 300,000 42,914 257,086 85.70% 300,000 520-840-5821.372 Annual Aged Pipeline R&R - 1,136,100 6,720 1,129,380 99.41% 1,136,100 520-840-5821.374 Narbonne South Pipe Replacemen 1,445,000 1,445,000 36,001 1,408,999 97.51% (1,345,000) 100,000 520-840-5821.375 Pipe Replacement - Other 250,000 250,000 46,845 203,155 81.26% 250,000 520-840-5821.377 Second Well Evaluation - - 5,904 (5,904) #DIV/0! 63,135 63,135 520-840-5825.000 Equipment Over $5k - 150,000 132,454 17,546 11.70% 150,000 520-910-7100.000 Debt Service - Principal & Interest 461,034 461,034 233,534 227,500 49.35% 461,034 520-910-7106.000 COP Administration Fees 5,000 5,000 - 5,000 100.00% 5,000 Water Capital Expense Total: 2,161,034 6,082,109 1,059,459 5,022,650 (1,281,865) 4,800,244 Total Proposed Expenditure Amendments (4,937,949)