April 19, 2022
HONORABLE MAYOR AND CITY COUNCIL
City of Long Beach
California
RECOMMENDATION:
Adopt the attached resolution decreasing appropriations in Fiscal Year 2021-2022 (FY 22) in the Water Fund Group in the Water Department by approximately $9,000,000. (Citywide)
DISCUSSION
The Long Beach Board of Water Commissioners adopted the Water Department’s Fiscal Year 2021 -2022 (FY 22) Budget on June 24, 2021, which represented the planned expenditures and projected revenues needed to execute the Department’s mission for the next fiscal year. The City Council subsequently approved a resolution approving the Water Department’s FY 22 Budget on August 24, 2021.
In December 2021, an appellate court ruled against the City of Long Beach in a lawsuit challenging the legality of the City’s Measure M charter amendment. On March 25, 2022, the California State Supreme Court denied a petition to review t he Measure M appellate court decision. As a result, the City is required, among other things, to transfer $9 million to the Water Fund within 30 days after the denial. The Department has terminated the Measure M transfer to the City, and will lower the c urrent budget appropriation in the Water Fund by approximately $9 million, reflecting the difference between the transfer amount previously authorized by Measure M and the transfer amount currently authorized by applicable law and supported by approved nexus studies.
TIMING CONSIDERATIONS
City Council action on this matter is required within 30 days of the State Supreme Court’s decision to not hear the City’s Measure M appeal.
R-27
HONORABLE MAYOR AND CITY COUNCIL
April 19, 2022
FISCAL IMPACT
The Water Department has ceased the Measure M transfer to the General Fund. The ongoing reduction in the transfer will decrease the Water Fund’s expenses . The impact upon the reserve balance will then be factored by the Board of Water Commissioners into future budget and rate deliberations.
SUGGESTED ACTION:
Approve Recommendation.
Respectfully submitted,
CHRISTOPHER J. GARNER
GENERAL MANAGER OF LONG BEACH WATER
Attachments: Adopted Water Commission Resolution WD-1461 City of Long Beach Resolution
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OFFICE OF THE CITY ATTORNEY
CHARLES PARKIN, City Attorney
411 West Ocean Boulevard, 9th Floor
Long Beach, CA 90802-4664
RESOLUTION NO. WD-1461
A RESOLUTION OF THE CITY OF LONG BEACH
BOARD OF WATER COMMISSIONERS ADOPTING THE
AMENDED AND RESTATED ANNUAL BUDGET FOR THE
LONG BEACH WATER DEPARTMENT FOR THE FISCAL
YEAR 2021-2022
The Board of Water Commissioners of the City of Long Beach resolves as follows:
Section 1. That the annual department budget of the Long Beach Water Department for the fiscal year 2021-2022, is hereby adopted as follows:
WATER
Estimated Fund Balance 10-1-2021 $10,423,987
Estimated Revenues $160,137,095
Total Estimated Resources $170,561,081
Estimated Expenditures $150,479,335
Estimated Fund Balance 9-30-2022 $20,081,746
SEWER
Estimated Fund Balance 10-1-2021 $9,159,521
Estimated Revenues $19,413,851
Total Estimated Resources $28,573,372
Estimated Expenditures $23,366,784
Estimated Fund Balance 9-30-2022 $5,206,588
The most up to date current year estimated expenditures and revenues are 2 RFA:bg A22-01003
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OFFICE OF THE CITY ATTORNEY
CHARLES PARKIN, City Attorney
411 West Ocean Boulevard, 9th Floor
Long Beach, CA 90802-4664
included in the estimated fund balances and were provided in detail at a Special Board Meeting held on May 13, 2021. Detailed schedules and other data which accompany the budget are provided for information purposes only and are not intended to limit expenditures.
Section 2.
This resolution shall take effect immediately upon its adoption by the Board of Water Commissioners, and the Secretary of the Board shall certify to the passage of this resolution, and cause copies of the same to be filed with the City Council, the City Auditor and the City Manager.
I hereby certify that the foregoing resolution was adopted by the Board of Water Commissioners of the City of Long Beach, at its meeting of March 31, 2022, by the following vote:
Ayes: Commissioners: _______________________________
_______________________________
_______________________________
Noes: Commissioners: _______________________________
Absent: Commissioners: _______________________________
_______________________________
_______________________________
Secretary
Board of Water Commissioners
ROBERT SHANNON, GLORIA CORDERO,
FRANK MARTINEZ, NAOMI RAINEY
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OFFICE OF THE CITY ATTORNEY
CHARLES PARKIN, City Attorney
411 West Ocean Boulevard, 9th Floor
Long Beach, CA 90802-4664
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF LONG BEACH APPROVING THE AMENDED AND
RESTATED ANNUAL BUDGET FOR THE LONG BEACH
WATER DEPARTMENT FOR THE FISCAL YEAR 2021-2022
WHEREAS, the amended and restated annual budget of the Long Beach Water Department for the 20 21-2022 fiscal year was adopted by the Board of Water Commissioners at its meeting on March 31, 2022 by Resolution No. WD-1461; and WHEREAS, it appears a dvisable to approve the amended and restated budget, pursuant to the provisions of Section 1405 of the Charter of the City of Long Beach; NOW, THEREFORE, the City Council of the City of Long Beach resolves as follows:
Section 1. That the amended and restated annual b udget of the Long Beach Water Department for the 20 21-2022 fiscal year adopted by the Board of Water Commissioners at its meeting on March 31, 2022 by Resolution No. WD -1461, is hereby approved pursuant to the provisions of Section 1405 of the Charter of t he City of Long Beach.
Section 2. The City Clerk shall file a certified copy of the budget, as approved, with the Board of Water Commissioners and the City Auditor.
Section 3. This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting this resolution. ///
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OFFICE OF THE CITY ATTORNEY
CHARLES PARKIN, City Attorney
411 West Ocean Boulevard, 9th Floor
Long Beach, CA 90802-4664
I hereby certify that the foregoing resolution was adopted by the City Council of the City of Long Beach at its meeting of _________________________, 2022 by the following vote:
Ayes: Councilmembers:
Noes: Councilmembers:
Absent: Councilmembers:
Recusal(s): Councilmembers:
City Clerk