Staff Report
March 2, 2022
Respectfully submitted by: Prepared by:
Frank A. Lopez
Director of Public Works
City Engineer
Ulises Benavente
Civil Engineering Assistant
Reviewed by: Reviewed by:
Matt Hallock
Fire Chief
Martha Garcia
Director of Management Services
Approved by: Reviewed by:
Ron Bow
City Manager
Karl H. Berger
City Attorney
ATTACHMENT(S):
1. Notice of Completion
Staff Report
March 2, 2022
ATTACHMENT 1
Notice of Completion
City Gouncil Staff Report
DATE: March 2,2022
AGENDA ITEM NO:
TO:
FROM:
SUBJECT:
The Honorable Mayor and City Council
Matthew Hallock, Fire Chief
County of Los Angeles, Award of Measure B Funds
RECOMMENDATION:
It is recommended that the City Council consider:
1. Receiving and filing this report; and
2. Taking such additional, related, action that may be desirable.
EXECUTIVE SUMMARY:
The City of Monterey Park Fire Department (Department) staff applied for Measure B funds in 2021. staff was notified by the Measure B Advisory Board (MBAB) on February 7,2022, that both applications were recommended for funding. The total grant amount for the two proposed projects is $1 10,601. A final determination was made by the Board on February 21,2022. This one-time grant will be used to procure two monitor/defibrillators and one automated chest compression device. The equipment will replace dated units, currently on apparatuses.
BACKGROUND:
Voters in the County of Los Angeles (County) approved Measure B, in November of 2002, which imposes a special tax on building improvements. Monies collected are awarded and distributed for the countywide system of trauma centers, emergency medical services, and bioterrorism.
Per the July 17 , 2017, Board motion, the MBAB provides guidance and/or recommendations to the Board on unallocated Measure B dollars. The Board has sole and final discretion on the allocation of funds. Monies are allocated annually, with the proposal process beginning April 1 through July 15. The MBAB reviews and ranks all applications. ln 2021 52 projects were received and reviewed, 28 were recommended for funding.
Department staff applied for two projects in 2021, each individually ranked and recommended for funding by the MBAB. The one-time
Consent Calendar No. 3H
Staff Report
March 2,2022
award will assist the Department in updating vital equipment on its apparatuses. The total amount awarded is $110,601.
FISGAL IMPACT:
The City will receive $1 10,601 for purchase of MPFD equipment.
Respectfully submitted by: Prepared by:
/,(tßl t4¿u/.t-,
Matthew Hallock
Fire Chief
Angela Loera
Pri ncrpa I Management Analyst
Approved by Reviewed by
Ron Bow
City Manager
ATTACHMENT:
1. City of Monterey Park Proposed Measure B Projects
Karl H. Berger
City Attorney
Staff Report
March 2, 2022
ATTACHMENT 1
City of Monterey Park Proposed Measure
B Projects
Quote No: Q-25436 Version: 10
ZOLL Medical Corporation
269 Mill Road
Chelmsford, MA 01824-4105
Federal ID# 04-2711626
Phone: (800) 348-9011
Fax: (978) 421-0015
Email: [email protected]
Monterey Park Fire Department
320 Newmark Avenue
Monterey Park, CA 91754-2818
ZOLL Customer No: 118942
Andrew Respicio
9095662106
[email protected]
Quote No: Q-25436
Version: 10
Issued Date: February 17, 2022
Expiration Date: March 31, 2022
Terms: NET 30 DAYS
FOB: Shipping Point
Freight: Free Freight
Prepared by: Bryan Pank
EMS Territory Manager
[email protected]
+1 6179016565
Item Contract
Reference Part Number Description Qty List Price Adj. Price Total Price 1 601-2231112-01 X Series Advanced Monitor/Defibrillator - 12-Lead ECG, Pacing, SpO2, SpCO, EtCO2, BVM, NIBP,
CPR Expansion
Pack, Remote View
Includes: TBI Dashboard, 4 trace tri-mode display
monitor/ defibrillator/ printer, advisory algorithm,
advanced communications package (Wi-Fi,
Bluetooth, USB cellular modem capable) USB data
transfer capable and large 6.5in ( 16.5cm) diagonal
screen. Accessories Included: MFC cable and CPR
connector, A/C power cord, One (1) roll printer paper,
6.6 Ah Li-ion battery, Operators Manual, Quick
Reference Guide, and One (1)-year EMS warranty.
Parameter Details: Real CPR Help - Dashboard
display of CPR Depth and Rate for Adult and
Pediatric patients, Visual and audio prompts to coach
CPR depth (Adult patient only), Release bar to
ensure adequate release off the chest, Metronome to
coach rate for Adult and Pediatric patients. See-Thru
® CPR artifact filtering • Interpretative 12-Lead ECG
(Full 12 ECG lead view with both dynamic and static
12-lead mode display. 12-Lead OneStep ECG cable
- includes 4-Lead limb lead cable and removable
precordial 6-Lead set) • ZOLL Noninvasive Pacing
Technology • Real BVM Help: Dashboard provides
real-time ventilation feedback on both volume and
rate for intubated and non-intubated patients.
AccuVent Cable included. (Accuvent disposable
sensors sold separately) • Welch Allyn NIBP with
Smartcuff. 10 foot Dual Lumen hose and SureBP
Reusable Adult Medium Cuff • Masimo SpO2 &
SpCO with Signal Extraction Technology (SET),
Rainbow SET® • EtCO2 Oridion Microstream
Technology. Microstream tubing set sold separately •
2 $44,519.25 $35,673.86 $71,347.72
Monterey Park Fire Department
Quote No: Q-25436 Version: 10
ZOLL Medical Corporation
269 Mill Road
Chelmsford, MA 01824-4105
Federal ID# 04-2711626
Phone: (800) 348-9011
Fax: (978) 421-0015
Email: [email protected]
Item Contract
Reference Part Number Description Qty List Price Adj. Price Total Price 2 949804 8707-000502-01 X Series Accessory Carry Case - Printer Chute with Single Zipper
2 $535.34 $0.00 $0.00
3 8000-0580-01 Six hour rechargeable Smart battery 4 $519.75 $421.00 $1,684.00 4 904375 8000-001392 Masimo rainbow® RC-4 - 4FT, Reusable EMS Patient Cable
2 $252.35 $184.22 $368.44
5 8000-000371 rainbow® DCI® SpO2/SpCO/SpMet Adult
Reusable Sensor with connector (3 ft)
2 $870.35 $676.00 $1,352.00
6 949804 8000-0895 Cuff Kit with Welch Allyn Small Adult, Large Adult and Thigh Cuffs
2 $157.50 $133.87 $267.74
7 949804 8000-002005-01 Cable Sleeve, Propaq / X Series, ZOLL Blue 2 $52.45 $40.91 $81.82 8 8000-001128 Accuvent Flow Tube (Box of 10) 2 $643.75 $531.25 $1,062.50 9 8778-89044-WF X Series - Worry-Free Service Plan - 4 Years On- Site At Time of Sale
Includes: Annual preventive maintenance, 27%
discount on new cables, 27% discount on additional
lithium SurePower
Batteries, discount on parameter
upgrades, Lithium-ion SurePower II Battery
replacement upon failure, and accidental damage
coverage (see comments). Shipping and use of a
Service Loaner during repairs, no charge shipping.
Extended warranty is a continuation of the EMS One
Year Product Limited Warranty. • ACCIDENTAL
DAMAGE COVERAGE Includes one case
replacement per year per device. This coverage
excludes devices that are deemed beyond repair
and/or catastrophic damage. • BATTERY
REPLACEMENT PROGRAM - Batteries must be
maintained per ZOLL’s recommended maintenance
program. - Batteries are replaced upon failure, one
for one, throughout the term of the ExpertCare
Service contract, should the SurePower battery or
SurePower Charger display a fault. - Batteries must
be evaluated and confirmed of failure through ZOLL
Technical Support and/or an on-site field service
technician.
2 $6,750.00 $6,075.00 $12,150.00
10 7900-9902 ZOLL ALS Equipment M & E Series Trade In
Allowance (EMS Group)
See Trade Unit Considerations.
1 ($1,654.25) ($1,654.25)
11 8700-0730-01 AutoPulse® System with Pass Thru
Includes: Backboard, User Guide, Quick Reference
Guide, Shoulder
Restraints, Backboard Cable Ties,
Head Immobilizer, Grip Strips, In-service Training
DVD, and one year warranty.
1 $11,324.85 $10,995.00 $10,995.00
Monterey Park Fire Department
Quote No: Q-25436 Version: 10
ZOLL Medical Corporation
269 Mill Road
Chelmsford, MA 01824-4105
Federal ID# 04-2711626
Phone: (800) 348-9011
Fax: (978) 421-0015
Email: [email protected]
Item Contract
Reference Part Number Description Qty List Price Adj. Price Total Price 12 8700-0706-01 LifeBand 3 pack
Single-use chest compression band (3 per package)
2 $386.25 $375.00 $750.00
13 8700-0752-01 AutoPulse Li-Ion Battery 3 $849.75 $825.00 $2,475.00 14 8700-000850-40 AutoPulse Quick Case - Blue
All-in-one carrying case and patient moving sheet for
the Autopulse Resuscitation
System.
1 $509.85 $0.00 $0.00
15 8700-0753-01 AutoPulse SurePower Charger
Includes User Guide and U.S Power Cord. Standard
one (1) year warranty. U.S. Tests, Charges and
automatically verifies battery charge level
1 $2,363.85 $0.00 $0.00
16 8700-0717-01 AutoPulse Hygiene Barrier 1 $12.36 $11.76 $11.76 Subtotal: $100,891.73
Estimated Tax: $8,587.62
Total: $109,479.35
Trade Unit Considerations
Trade-In values valid through March 31, 2022 if all equipment purchased is in good operational and cosmetic condition and includes all standard accessories. Trade-In values are dependent on the quantity and configuration of the ZOLL devices listed on this quotation. Customer assumes responsibility for shipping trade-in equipment at the quantities listed on the trade line items in this quotation to ZOLL’s Chelmsford Headquarters within 60 days of receipt of new equipment. Customer agrees to pay cash value for trade-in equipment not shipped to ZOLL on a timely basis.
To the extent that ZOLL and Customer, or Customer’s Representative have negotiated and executed overriding terms and conditions (“Overriding T’s & C’s”),
those terms and conditions would apply to this quotation. In all other cases, this quote is made subject to ZOLL’s Standard Commercial Terms and Conditions (“ZOLL T’s & C’s”) which for capital equipment, accessories and consumables can be found at http://www.zoll.com/GTC and for software products can be found at http://www.zoll.com/SSPTC and for hosted software products can be found at http://www.zoll.com/SSHTC. Except in the case of overriding T’s and C’s, any Purchase Order (“PO”) issued in response to this quotation will be deemed to incorporate ZOLL T’s & C’s, and any other terms and conditions presented shall have no force or effect except to the extent agreed in writing by ZOLL.
1. Applicable tax, shipping & handling will be added at the time of invoicing.
2. All purchase orders are subject to credit approval before being accepted by ZOLL.
3. To place an order, please forward the purchase order with a copy of this quotation to [email protected] or via fax to 978-421-0015.
4. All discounts from list price are contingent upon payment within the agreed upon terms.
5. Place your future accessory orders online by visiting www.zollwebstore.com.
Monterey Park Fire Department
Quote No: Q-25436 Version: 10
ZOLL Medical Corporation
269 Mill Road
Chelmsford, MA 01824-4105
Federal ID# 04-2711626
Phone: (800) 348-9011
Fax: (978) 421-0015
Email: [email protected]
Order Information (to be completed by the customer)
[ ] Tax Exempt Entity (Tax Exempt Certificate must be provided to ZOLL) [ ]
Taxable Entity (Applicable tax will be applied
at time of invoice)
BILL TO ADDRESS SHIP TO ADDRESS
Name/Department: Name/Department:
Address: Address:
City / State / Zip Code: City / State / Zip Code:
Is a Purchase Order (PO) required for the purchase and/or payment of the products listed on this quotation? [ ] Yes PO Number: ____________ PO Amount: ____________ (A copy of the Purchase Order must be included with this Quote when returned to ZOLL) [ ]
No (Please complete the below section when submitting this order) For organizations
that do not require a PO, ZOLL requires written execution of this order. The person signing below represents and warrants that she or he has the authority to bind the party for which he or she is signing to the terms and prices in this quotation.
Monterey Park Fire Department
Authorized Signature: _1\
\s1\
Name: \n1\
Title: \t1\
Date: \d1\
City Council Staff Report
DATE: March 2, 2022
AGENDA ITEM NO: Consent Calendar No. 3I
TO: The Honorable Mayor and City Council
FROM: Matthew Hallock, Fire Chief
SUBJECT: 2019 State Homeland Security Grant Program Update RECOMMENDATION:
It is recommended that the City Council consider:
1. Receiving and filing this report, and
2. Taking such additional, related, action that may be desirable.
EXECUTIVE SUMMARY:
The City received a total of $106,444 in 2019 State Homeland Security Grant Program (2019 SHSP) funds and contingency or de-obligated funds for the Monterey Park Fire Department (Department). The Department identified two projects, for specialized hydraulic tools, costing $86,444 in total to be paid for by the 2019 SHSP. The tools are used in emergency circumstances to extract victims from vehicles. Currently, the Department does not possess the specialized equipment. Instead, firefighters must rely on more labor-intensive gear that can prolong victim extraction.
The 2019 SHSP performance period expired on February 28, 2022. Due to time constraints and the vendor purchasing process, staff procured the equipment in accordance with Section 9 of the Budget Resolution (Resolution No. 12251, adopted June 16, 2021). The alternative was to forfeit the purchase and return the $86,444 to the County of Los Angeles for redistribution to another agency.
To obtain the best price for the purchase, staff solicited bids from the following companies: Diamondback Fire & Rescue Inc., L&N Curtis & sons, Inc., HURST, and AM KUS Rescue Systems (the manufacturer of the hydraulic tools). Staff was informed by AMKUS that the local AMKUS dealer for the City of Monterey Park is Diamondback Fire & Rescue Inc. The other two vendors are not suppliers and therefore did not provide bids. In an effort to secure another bid staff contacted The Fire Store; however, no response was received.
Staff Report
March 2,2022
BACKGROUND:
The City of Monterey Park initially received a total of $56,444 in 2019 SHSP funds. The agreement between the City and County of Los Angeles (grant distributor) was executed on March 15,2021, with funded projects for training, procurement of hydraulic tools, and Community Emergency Response Team (C.E.R.T.) equipment.
On December 15, 2021 , the City Council was notified of additional cost-savings or de- obligated funds received by the Fire Department in the amount of $50,000 for the purchase of additional hydraulic tools. In total, the Fire Department received $86,444 to procure specialized hydraulic tools.
FISCAL IMPACT:
The City received a total of $106,444 in 2019 SHSP funds Respectfully submitted by Prepared by
L(rn, k<-t-1-
uattnew Hãllõõr-
Fire Chief
Angela Loera
Principal Management Analyst
Approved by: Reviewed by
Ron Bow
City Manager
ATTACHMENT:
1. Fire Department - 2019 SHSP Project List
2. Diamondback Fire & Rescue lnc. - Quotes
Karl H. Berger
City Attorney
Staff Report
March 2, 2022
AT
TACHMENT 1
Fire Department – 2019 SHSP Project List
City of Monterey Park
2019 SHSP Projects
Project # Project Title Funding Source Discipline Solution Area Total Budgeted 018 US&R Equipment HSGP-SHSP FS Equipment 36,444.00$
045
CERT Equipment for Cities
of Downey, La Habra
Heights, Los Angeles, Long
Beach, Monterey Park, and
San Gabriel
HSGP-SHSP FS Equipment 20,000.00$
Totals 56,444$
Project # Project Title Funding Source Discipline Solution Area Total Budgeted 018 US&R Equipment HSGP-SHSP FS Equipment 50,000.00$
Totals 50,000$
2019 SHSP TOTAL: 106,444$
De - Obligated Funds
Staff Report
March 2, 2022
AT
TACHMENT 2
Diamondback Fire & Rescue Inc. - Quotes
tu
Estimate #O2OL2O22-3
Ent lnrßtr
Diamondbøck Fíre & Rescue, lnc,
Fire Apparatus Solutions
7762 5 Sycamore Ave
Riatlo, CA,92376
909-879-7354
D r AM O N DBACK F t R ECA @ G M A I L. CO M
tstimate Created By: Jennifer Rodríguez
AÍfíce: {9a9} 879-73s4
cell: {909) 3at--3983
Email: Je n n Fasfi [email protected]
Address: L762 S SYCAMORE AVE
R'ALîO, CA 92376
Date: 2ltl2Ù22
Customer: Monterey Park Fire Dept
Contact: Richard Tullius
LIST
00 0,185.00
CUTTER (TOOL ONLY) NEXT GEN MODEL tc750LB L S ro,oar.zo S ro,ogr.zo q q
SPREADER LIGHTED HANDLE (TOOL ONLY) NEXT GEN MODEL ts320LB-L t s 11,907.00 S rr,goz.oo
EXTENDED REACH TIPS
(REQUIRED)
KS0029-KrT I 963.90s S soE.go
RAM (TOOL ONLY) NEW TELESCOPTC RAM lTR500 1 s 9,166.50 S g,roo.so Part Description PART NUMBER Qty
Parts
Each
Extended
Total
5ub-Total
Tax
Misc
Freight
Total
5 32,669.10
3,103 56
5o.oo
S
incl uded
535,777.66
tu
Estimare #LLL2022-3
ttnt ¡trßr
Diamondbøck Fire & Rescue, lnc,
Fire Apporotus Solutions
7762 S Sycomore Ave
Riatlo, CA 92376
909-879-7354
D t AMO N D BACK F t R E CA @ G M A r L. CO M
Estimste Created By: Jennifer Rodríguez
offíce: {9A9} 879-73s4
Cell: {909} 3a1-398j
Ena i l: Jenn Fasfire@g mail.com
Address: 1762 S SYCAMORE AVf
R'ALTA, CA 92J76
Customer: Monterey Park Fire Dept
Date: tltu2o22
Contact Richard Tullius
LIST
12,600.00
813.00
s10,785.00
5998.00
00 00
00 coMBr (TooL oNLY) NEXT GEN MODEL tc1716 7 s 11,340.00 S rt,g¿o.oo s S
CUTTER (TOOL ONLY) NEXT GEN MODEL tc750LB 1 S to,esr.zo S to,ogr.zo (, (
SPREADER (TOOL ONLY) NEXT GEN MODEL ts320LB 1 S rr,goz.oo s 11,907.00 EXTENDED REACH TIPS - AMK-24, AMK-3OCRT & ION Spreaders (1 Pair)
(REQUIRED)
KSo029-KrT 1 963.90s S gsg.go
RAM (TOOL ONLY) NEW TELESCOPIC RAM lTR500 7 s 9,166.50 5 g,roe.so cHArN PKG QUrCK ADJUST AMK-24/30CRT, tON SPREADERS
(oPTtoNAL ACCESSORY)
K-CHAtN24-30 898.20s s
s s
BATTERY KIT OPTIONS:
AMKUS RECOMMENDS USING gAH OR HIGHER FOR NEXT GEN TOOLS s
ION FLEXVOLT BATTERY CHARGER - t2OV (4 Bay Fast Charger) (oPTtoNAL ACCESSORY)
ICHRG-4FAST 3rr.40s s
SINGLE DEWALT 6OV 12 AH BATTERY IBATTFV-12 4 383.40s S t,sg¡.oo Part Description PART NUMBER Qty
Parts
Each
Extended
Total
Sub-Total
Tax
Misc
Freight
Total
5 45,s42.7o
s 4,126 56
50.00 rncr uded
5¿\9,869 26
City Council Staff Report
DATE: March 2, 2022
AGENDA ITEM NO: New Business No. 5A
TO: The Honorable Mayor and City Council
FROM: Martha Garcia, Director of Management Services
SUBJECT: FY 2021-2022 Mid-Year Financial Report
RECOMMENDATION:
It is recommended that the City Council consider:
1. Receiving and filing the FY 2021-2022 Mid-Year Financial Report;
2. Authorizing the increase of Committed Catastrophic-Event by $500,000 from $4.34 million to $4.84 million;
3. Authorizing an additional budget appropriation of $ 1,204,740 from various funds; and
4. Taking such additional, related, action that may be desirable.
EXECUTIVE SUMMARY:
The City’s Mid-Year Report compares the revenues and expenditures occurring during the first six months of the fiscal year against budgeted amounts to determine appropriate adjustments; provides links between the City budget, the financial records, and the independent financial audit and; compares revenues earned and expenses made during the first six months of the Fiscal Year (FY) 2021-2022 against the FY 2020-2021 figures.
BACKGROUND:
General Fund Revenues
The City receives revenues from taxation, State or Federal intergovernmental transfers, and user charges. The following table depicts a comparison of FY 2020-2021 Mid-Year revenues received versus FY 2021-2022 Mid-Year revenues received.
General Fund Revenues
Mid-Year
FY20-21
12/31/2020
Mid-Year
FY21-22
12/31/2021
Percent
Difference
2021 VS 2022
Budget
Update
FY21-22
Percent
Revenue to
Date
Property Tax 5,154,738 4,997,793 -3% 20,133,826 25%
Sales Tax 3,282,728 3,197,830 -3% 9,508,660 34%
Transient Occupancy Tax 471,090 608,959 29% 1,522,398 40% Utility User Tax 1,149,641 1,619,240 41% 2,800,000 58%
Business License Tax 99,238 203,437 105% 915,000 22%
Other Tax 606,412 204,396 -66% 1,220,000 17%
Licenses & Permits 471,473 611,231 30% 1,279,060 48%
Service Charges & Fees 2,833,693 2,317,186 -18% 6,511,388 36% Other Revenue 1,259,310 2,057,603 63% 4,047,335 51%
TOTAL 15,328,323 15,817,676 3% 47,937,667 33%
Staff Report
March 2, 2022
Total General Fund revenue collections are at 33% of total estimated revenues with half of the year complete. This is below 50% because certain revenues have a delay in when they are received by the City; specifically, it only represents four months of Sales Tax revenue, four months of Franchise Fee revenue, and approximately 25% of property tax revenue. Because the City has a diverse revenue basis for total General Fund revenues, changes to a specific revenue source will not have profound impacts overall.
General Fund Expenditures
All departmental expenses are under the 50% budget mark with total FY 2021-22 expended at 39% of budget.
YTD Expended YTD Percentage
Budgeted 12/31/2021 12/31/2021
City Attorney $ 649,100 $ 208,903 32.18%
City Clerk 463,954 178,454 38.46%
City Council 219,041 92,651 42.30%
City Manager 1,116,035 385,299 34.52%
City Treasurer 30,763 10,226 33.24%
Community CIP* 120,000 120,000 100.00%
Community Development 1,105,833 329,710 29.82%
Fire 12,509,469 5,888,076 47.07%
HR & Risk Management 487,042 148,795 30.55%
Library 2,304,048 826,427 35.87%
Management Services 2,619,243 855,455 32.66%
Non-Department 1,736,375 571,915 32.94%
Police 18,868,415 7,569,743 40.12%
Public Works 3,204,095 988,047 30.84%
Recreation & Community 2,261,569 513,566 22.71%
YTD Total $ 47,694,981 $ 18,687,265 39.18%
*Community CIP has been expensed at 100% for the construction of Fire Station 62.
The City
is monitoring its revenues closely and is controlling its expenditures in a prudent and fiscally responsible manner.
Proposed Mid-Year Budget Changes:
General Fund – Budget Augmentation
• Police department additional overtime funds in the amount of $50,000. • Classification and compensation study in the amount of $50,000. • Salary and benefits for Senior Planner position effective April 1, 2022, in the amount of $47,740.
• Additional funds for plumbing services and supplies in the amount of $10,000. • Funds in the amount of $50,000 to implement the City’s Trip Hazard Program. • Replacement batteries in the amount of $15,000 for the Bruggemeyer Library Uninterrupted Power System.
Staff Report
March 2, 2022
ARPA Fund – Budget Augmentation
• Additional funding in the amount of $500,000 to replace aging police vehicles. • Replacement of 19 air conditioning units for a total cost of $250,000.
The City was allocated $15 million of ARPA funds for COVID-19 pandemic recovery efforts. The City received half of its allocation ($7,521,592) in June 2021 with the remaining amount to be received in June 2022. City Council has approved the budget appropriation of $6.2 million and through December 31, 2021, $1.2 million has been expended.
DESCRIPTION BUDGET
APPROPRIATION
MID-YEAR
APPROPRIATION
REQUEST
YTD
EXPENDED
AVAILABLE
BUDGET
COMMUNITY LITERACY
ENHANCEMENTS 132,000 0 6,060 125,940
COVID19 RESPONSE AND
PREVENTION 325,000 0 7,905 317,095
CYBER SECURITY AND
TECHNOLOGY 1,221,000 0 53,617 1,167,383
PUBLIC SAFETY VEHICLES 1,250,000 500,000 0 1,750,000
REPLACEMENT OF A/C UNITS 0 250,000 0 250,000
SECURITY SURVEILLANCE
CAMERA SYSTEM 1,312,127 0 826,650 485,477
STAFFING 1,935,710 0 271,828 1,663,882
TOTAL 6,175,837 750,000 1,166,060 5,759,777
Internal Service Funds:
• Shop funds in the amount of $40,000 to cover increased costs for vehicle repair parts.
• Shop funds in the account of $50,000 to cover increased and unanticipated costs for vehicle maintenance and repairs.
• Technology funds for salary and benefits for Information Technology Technician position effective June 1, 2022, in the amount of $10,370.
Enterprise Funds – Budget Augmentation
• Water funds in the amount of $25,000 for consulting services related to new Water Conservation Ordinance/ AMI Meter Installation Bid.
• Water funds in the amount of $52,000 for public outreach/education costs related to new water conservation ordinance.
• Water funds in the amount of $40,000 for unanticipated expenditures in water service.
• Refuse funds in the amount of $25,000 for consulting services to meet new state mandate - SB 1383.
Staff Report
March 2, 2022
Proposed Mid-Year Staffing Changes
Department Position FTE
Salary &
Benefits
Police Add Full-Time Evidence Officer 1 0.00
Police Delete Part-Time Evidence Officer (1) 0.00
Police Add Full-Time Animal Services Officer 1 0.00
Police Delete Part-Time Animal Services Officer (1) 0.00 Police Add Full-Time Community Services Officer 1 0.00
Police Delete Part-Time Community Services Officer (1) 0.00 Community Development Add Full-Time Senior Planner* 1 47,740.00 Management Services Add Full-Time Information Technology Technician** 1 10,370.00 Total FTE 2
*New
Senior Planner position budgeted to begin effective April 1, 2022. **New Information Technology Technician position budgeted to begin effective June 1, 2022.
General Fund Balance
The City Council has established an Unrestricted General Fund Balance of a minimum of two months of the General Fund regular revenues or operating expenditures, as recommended by the Government Finance Officers’ Association (GFOA).
The City’s Unrestricted General Fund Balance represents the available resources to provide funding
for future contingencies such as earthquakes, civil unrest, economic fluctuations, major infrastructure repairs and investment in capital for improved productivity and efficiencies. Inadequate reserves increase financial risk, negatively impact cash flow, and reduce the City’s ability to attract and sustain economic development and growth.
The City ’s General
Fund balance committed for catastrophic events is established at $4,340,000. The City Council may wish to increase or decrease this amount, with the goal of providing an amount equivalent to 15 to 20 percent of the City’s annual operating budget for the General Fund. This range should be sufficient to allow for a quick and decisive municipal response to events such as natural disasters, catastrophic accidents, or other declared emergency incidents. The City Council may, by the affirming vote of three members, change the amount of this commitment and/or the specific uses of these monies.
The City is recommending a $500,000 increase each year for the next four years to increase
the overall Committed Catastrophic Event reserves to 15 percent of the City’s annual General Fund operating budget or $6.3M. At this time, the City is requesting to increase its Committed-Catastrophic amount by $500,000 from $4.3M to $4.8M for the year ending 6/30/2022, to secure higher unrestricted reserves in the event of a catastrophic occurrence.
Staff Report
March 2, 2022
FISCAL IMPACT:
The City is requesting a mid-year budget
augmentation in the amount of $222,740 from
the General Fund, $750,000 from ARPA funds, $90,000 from Shop funds, $10,370 Technology funds, $117,000 from Water funds and $25,000 from refuse funds to add staff, purchase police vehicles and various other services and commodities. Total budget augmentation request equals $1,204,740.
Respectfully submitted by:
Martha Garcia
Management Services Director
Approved by: Reviewed by:
Ron Bow
City Manager
Karl H. Berger
City Attorney
ATTACHMENT:
1. Mid-Year Budget Report Fiscal Year 2021-2022
ATTACHMENT 1
Mid-Year Budget Report
Fiscal Year 2021-2022
Staff Report
March 2, 2022
City of
Monterey Park
Management Services Department
MID
-YEAR BUDGET REPORT
FISCAL YEAR 2021-2022
Mid-Year Budget Report FY2021-2022
March 2, 2022
T
able of Contents
Contents
Ov
erview…………………………………………………………………………..3
S
ummary of Key Points………………………………………………………..3-4
M
id-Year Budget Changes…………………………………………..…….......5-8
G
eneral Fund
Other Funds
G
eneral Fund Overview………………………………………………..……9–10
G
eneral Fund Balance…………………………………….……..…………..11-13
Co
nclusion……………………………………………………………………….14
Mid-Year Budget Report FY2021-2022
March 2, 2022
Overview
The City’s Mid -Year Report compares the revenues and expenditures during the first six months of the fiscal year against budgeted amounts to determine appropriate adjustments; provides links between the City budget, financial records, and the independent financial audit; and compares revenues earned and expenses made during the first six months of the Fiscal Year (FY) 2021-2022 against the FY 2020-2021 figures.
T
his information is provided in the following format:
• The starting point is the FY 2020-2021 ending fund balances, which is also the beginning Available Fund Balance for the FY 2021-2022. Combining the beginning Available Fund Balances with the estimated revenues, transfers, and appropriations adopted in the Budget and this report, provides the estimated ending fund balances.
As a result of a comprehensive review, adjustments are recommended where actual receipts and disbursements are materially different from the budgeted amounts.
Although budget adjustments are recommended across several City funds, typically the emphasis of the Mid -Year Budget Report is directed at the General Fund. The General Fund is deemed to be the most critical as it provides most services commonly associated with government (i.e., pub lic safety, recreation, parks, building, public works, planning, etc.) and is limited primarily by tax-generated revenues.
Th
e Mid-Year Report is based on the completed Annual Comprehensive Financial Report (ACFR) or audited financial statements. This year, the completion of the ACFR has been met with many delays most due to COVID 19 impacts. The ACFR is expected to be presented to City Council on March 16, 2022.
Summary of Key Points
• The COVID -19 pandemic continue s to bring unprecedented economic and social challenges in Fiscal Year 2020-21. Overall, the City experienced revenue losses over $6.1 million during calendar year 202 1. Recent increases observed in sales tax and transient occupancy tax revenues indicate that the economy is recovering from the financial impacts of COVID -19. However, with continued supply chain issues and the public’s hesitancy towards travel, the economy still has a way to go to return to pre-pandemic levels.
Through the Federal American Rescue Plan (ARPA), the City was allocated $15 million for COVID -19 pandemic recovery efforts. Half of the City’s allocation was received in June 2021 with the remaining amount to be received in June 2022. As the
Mid-Year Budget Report FY2021-2022
March 2, 2022
economy continues to recover from the uncertainty of COVID-19, the City deployed its first ARPA distribution towards governmental services aiding the community’s recovery, including rehiring part-time and full-time staff to its pre-pandemic levels, investing in public safety and cyber security.
• Pr
oposed Mid-Year Budget Changes
General Fund – Budget Augmentation
Police department additional overtime funds in the amount of $50,000. Classification and competition study in the amount of $50,000. Salary and benefits for Senior Planner position effective April 1, 2022, in the amount of $47,740.
Additional funds for plumbing services and supplies in the amount of $10,000.
Funds in the a mount of $50,000 to implement the City’s Trip Hazard Program.
Replacement batteries in the amount of $15,000 for the Bruggemeyer Library Uninterrupted Power System.
ARPA Fund – Budget Augmentation
Additional funding in the amount of $500,000 to replace aging police vehicles. Replacement of 19 air conditioning units for a total cost of $250,000.
Internal Service Funds:
Shop funds in the amount of $40,000 to cover increased costs for vehicle repair parts.
Shop funds in the account of $50,000 to cover increased costs for vehicle maintenance and repairs.
Technology funds for s alary and benefits for Information Technology Technician position effective June 1, 2022, in the amount of $10,370.
Enterprise Funds – Budget Augmentation
Water funds in the amount of $25,000 for consulting services related to new Water Conservation Ordinance/ AMI Meter Installation Bid. Water f unds in the amount of $52,000 for public outreach/education costs related to new water conservation ordinance.
Water funds in the amount of $40,000 for unanticipated expenditures in water service.
Refuse funds in the amount of $25,000 for consulting services to meet new state mandate - SB 1383.
Mid-Year Budget Report FY2021-2022
March 2, 2022
• Proposed Mid-Year Staffing Changes
Department Position FTE Salary & Benefits
Police Add Full-Time Evidence Officer 1 0.00
Police Delete Part-Time Evidence Officer (1) 0.00
Police Add Full-Time Animal Services Officer 1 0.00
Police Delete Part-Time Animal Services Officer (1) 0.00 Police
Add Full-Time Community Services
Officer 1 0.00
Police
Delete Part-Time Community Services
Officer (1) 0.00
Community Development Add Full-Time Senior Planner 1 47,740.00 Management Services Add Full-Time Information Technology Technician 1 10,370.00
Total FTE 2
• The City’s General Fund balance committed for catastrophic events is established at $4,340,000. These funds should be sufficient to allow for a quick and decisive municipal response to events such as natural disasters, catastrophic accidents, or other declared emergency incidents. The City has prepared a strategic plan to increase the Committed Catastrophic Event reserves to 15 percent of the City’s annual General Fund operating budget or $6.3M by FY 2024-2025. The plan would consist of Council approval to commit $500,000 per fiscal year to catastrophic events for the next 4 years.
At this time, the City is requesting to increase its Committed-Catastrophic amount by $500,000 from $ 4.34M to $ 4.84M for the year ending 6/30/202 2, to secure higher unrestricted reserves in the event of a catastrophe.
Mid-Year Budget Changes
General Fund Revenues:
Unaudited
FY20-21
Mid-Year
FY20-21
12/31/2020
Adopted
Budget
FY21-22
Mid-Year
FY21-22
12/31/2021
Budget
Update
FY21-22
Property Tax 20,656,585 5,154,738 20,1 33,826 4,997,793 20,133,826 Sales Tax 9,063,297 3,282,728 8,563,084 3,197,830 9,508,660 Transient Occupancy Tax 953,200 471,090 1,982,568 608,959 1,522,398 Utility User Tax 2,931,943 1,149,641 2,800,000 1,619,240 2,800,000 Business License Tax 734,217 99,238 915,000 203,437 915,000 Other Tax 1,276,160 606,412 1,220,000 204,396 1,220,000 Licenses & Permits 1,115,614 471,473 1,279,060 611,231 1,279,060 Service Charges & Fees 5,086,038 2,833,693 6,511,388 2,317,186 6,511,388 Other Revenue 3,620,843 1,259,310 4,047,335 2,057,603 4,047,335 TOTAL 45,437,898 15,328,323 47,452,261 15,817,676 47,937,667
Mid-Year Budget Report FY2021-2022
March 2, 2022
Property Tax:
The City receives its property tax revenue from L.A. County during the months of December/January and April/May. These months coincide with the first and second installments paid to L.A. County by the property owners. The City received $5M in the month of December. The City is on track to receive the estimated revenue of $20.1 M for FY2021-2022.
Sales Tax:
The California Department of Tax and Fee Administration (CDTFA) issues monthly disbursements to the City after the quarter’s end. As of December 31, 20 21, the CDTFA has distributed to the City four of the twelve monthly disbursements; a total of $3.2M.
With the increase in gas prices and the reopening of retail stores and restaurants, the 1% Bradley Burns is expected to generate $9.5M revenue for the City for the current Fiscal Year.
Transient Occupancy Tax:
As of December 31, 2021, the City has received two of the four quarterly Transient Occupancy Tax (TOT) disbursements for a total of $608,959. This revenue includes the TOT from the newly opened Courtyard by Marriott. The updated estimated revenue is $1.5M.
Utility User Tax:
As of December 31, 2021, the City has received $1.6M of its FY 2021-2022 estimated Utility User Tax (UUT) revenues and is on track to receive the total estimated amount of $2.8M.
Business License Tax:
City business licenses are renewed each calendar year. Business owners are given until January 31 to renew their business license for the current calendar year without any penalties. The City is expecting most business license revenues to be received in th e month of January; thus, up -to-date figures are not reflected in this report. The City anticipates staying on target to realize its projected FY 2021-2022 revenues.
Other Tax:
This category consists of property transfer tax and franchise tax. The property transfer tax is the real estate transfer tax at a rate of $1.10 per $1,000 of value transferred. Cities and County share the tax equally. Franchise tax is collected by the City on gas, electric, and cable television utilities for the privilege of using City streets public property.
Revenues received by the City as of December 31, 2021, are $204,396. Projected FY2021- 2022 revenues are on target to be realized.
Mid-Year Budget Report FY2021-2022
March 2, 2022
Licenses and Permits:
Permits help to regulate the safety and establish minimum standards for construction in our homes, business, and community. Other licenses and permits issued by the City include, but are not limited to, yard sale, fireworks and tobac co retail. The City is on target to realize its projected FY 2021-2022 revenues.
Services Charges:
This category includes charges for fee-supported City services. As of December 31, 2021, the City has received $2. 3M of its FY 202 1-2022 estimated Service Charge revenues. The City is on target to realize or exceed its projected FY 2021-2022 revenues.
Other Revenue:
Interest income, rentals, and fines are included revenues in the Other Revenue category.
As of December 31, 2021, the City has received $ 2M of its FY 202 1-2022 estimated revenues. The City is on target to realize its projected FY 2021-2022 revenues.
G
eneral Fund Expenditures:
As part of the mid-year process, departments were asked to review their current budgets and determine if any adjustments should be proposed in this report. Since departments have been asked to closely monitor their budgets and spend only what is necessary, the City’s overall General Fund expense total at Mid-Year is 39%.
The City is recommending a budget adjustment for the following:
General Fund
The Police Department has not had an increase in overtime since 2008-2009 despite permanent salaries increasing several times. The department’s overtime budget is currently underfunded . In an effort to maintain minimum staffing levels and patrol services it is imperative to appropriate an additional $50,000 in overtime. The City of Monterey Park has not updated the classification specifications (a .k.a. job descriptions) through a comprehensive study f or some time. Updated and
ACCOUNT DESCRIPTION ORIGINAL
APPROP
TRANFRS/
ADJSMTS
REVISED
BUDGET YTD EXPENDED AVAILABLE
BUDGET % USED
51 Salary & Benefits 31,333,255 0 31,333,255 13,958,539 17,374,716 45% 52 Services 5,872,892 12,000 5,884,892 2,057,440 3,827,452 35% 53 Commodities 1,265,100 112000 1,377,100 382,436 994,664 30% 54 Internal Service Chg 8,544,724 0 8,544,724 2,137,034 6,407,690 25% 55 Capital Improvement 0 120,000 120,000 120,000 0 100% 56 Debt Service 435,010 0 435,010 31,816 403,194 7%
Expense Total 47,450,981 244,000 47,694,981 18,687,265 29,007,716 39%
Mid-Year Budget Report FY2021-2022
March 2, 2022
appropriate job descriptions are a foundational to recruitment efforts and filling critical vacancies with candidates who possess skills sets to assist the City and departments. Conducting a compensation study will assist the City with evaluating our current salary and benefits for compaction issues and for the City to see how competitive we are with other agencies as part of recruitment efforts.
The current job market is competitive and conducting a classification and compensation study will provide the City with valuable information to compete for highly skilled candidates and enhance the City's ability to provide services for Monterey Park. The cost for the classification and compensation study is expected not to exceed $50,000.
A Senior Planner position is necessary to ensure that development applications are processed in a timely manner, and that current planning staff are trained to follow division policy and provide timely and efficient customer service . Salary and benefits for a Senior Planner to begin effective April 1, 2022, is $41,740. Funds are requested to cover increased costs for plumbing services and supplies.
Staff has had to resolve several plumbing issues that have incurred major expenditures including the repair of the old basement pump, P olice Department locker areas, and j ail waste line issues. The r equested amount would be used to cover year-to-date expenditures and estimated costs for services through the end of FY 2021-22, including the replacement of the City's commercial drain cleaning machine for an additional cost not to exceed $10,000.
Funds in the amount of $50,000 are requested to implement the City’s Trip Hazard Program. The Trip Hazard Program is being developed to provide the tools necessary to recognize, assess and control hazards that may result in a slip, trip or fall. The goal of this program is the prevention of injuries resulting from slips, trips and falls.
Funds are requested to purchase 92 replacement batteries for the Bruggemeyer Library Uninterrupted Power System (UPS). The need to replace these batteries was determined during staff's annual maintenance check in July 2021. The current budget includes $15,000. An additional budget augmentation of $15,000 is needed to cover the cost of the batteries for a total not to exceed amount of $30,000.
Mid-Year Budget Report FY2021-2022
March 2, 2022
Other Funds
• ARPA Funds
The City was allocated $15 million of ARPA funds for COVID-19 pandemic recovery efforts. The City received half of its allocation ($7,521,592) in June 2021 with the remaining amount to be received in June 2022. City Council has approved the budget appropriation of $6.2 million and through December 31, 2021, $1.2 million has been expended.
DESCRIPTION BUDGET
APPROPRIATION
MID-YEAR
APPROPRIATION
REQUEST
YTD
EXPENDED
AVAILABLE
BUDGET
COMMUNITY LITERACY
ENHANCEMENTS 132,000 0 6,060 125,940
COVID19 RESPONSE AND
PREVENTION 325,000 0 7,905 317,095
CYBER SECURITY AND
TECHNOLOGY 1,221,000 0 53,617 1,167,383
PUBLIC SAFETY VEHICLES 1,250,000 500,000 0 1,750,000
REPLACEMENT OF A/C UNITS 0 250,000 0 250,000
SECURITY SURVEILLANCE
CAMERA SYSTEM 1,312,127 0 826,650 485,477
STAFFING 1,935,710 0 271,828 1,663,882
TOTAL 6,175,837 750,000 1,166,060 5,759,777
The Police Department has numerous high -mileage vehicles that have exceeded their useful life and need replacement. At the November 3, 2021, Council Meeting, City Council approved the purchase of police vehicles in the amount of $1.1 million. Additional funding in the amount of $500,000 is needed to replace additional aging police vehicles.
Funds are requested to cover unanticipated costs for the replacement of 19 air conditioning units. The units are over 30 years old and have surpassed their end of service life. Staff determined it was most cost-efficient to replace the units as the costs to repair and maintain them far exceed the cost of new equipment. The requested amount of $250,000 would be used to cover these expenditures in addition to costs for future maintenance and repairs of the City's remaining AC units.
• Internal Service Funds
Shop Funds in the amount of $40,000 are requested to cover increased costs for vehicle repair parts. Additional funds are requested based on year -to-date expenditures and encumbrances surpassing the originally estimated budget. Shop Funds in the amount of $50,000 are requested to cover increased costs for vehicle maintenance and repairs due to significant increase in traffic collision repairs and related expenditures.
Mid-Year Budget Report FY2021-2022
March 2, 2022
An Information Technology (IT) Technician is necessary to begin the transition of bringing the information technology services in-house. Salary and benefits for an IT Technician to begin effective June 1, 2022, is $10,370 from the Technology fund. • Enterprise Funds
Water funds in the amount of $25,000 are requested for consulting services related to new Water Conservation Ordinance/ AMI Meter Installation Bid. These projects were not budgeted for in FY 2021-2022.
Water funds in the amount of $52,000 are requested for public outreach/education costs related to new water conservation ordinance.
Water f unds in the amount of $40,000 are requested for unanticipated expenditures in water service. This funds water services from another purveyor when a City well is down for repair or maintenance. Requested amount would be used to cover year-to-date expenditures and estimated costs for services through the end of the Fiscal Year.
Refuse funds in the amount of $25,000 are requested for consulting services to meet new state mandate - SB 1383.
General Fund Overview
Revenues are currently 33% collected and expenditures are 39% spent. This reflects the fact that not all revenues and expenditures occur evenly throughout the fiscal year.
Significant variances are discussed later in the report, but in general, this trend is consistent with prior years. As reflected on the following chart, collecting approximately 33% of the General Fund revenues by the mid-point of the fiscal year is consistent with prior year trends.
Mid-Year Budget Report FY2021-2022
March 2, 2022
General Fund Revenues:
Total General Fund revenue collections are at 33% of total estimated revenues with half of the year complete. This is below 50% because certain revenues have a delay in when they are received by the City; specifically, it only represents four months of Sales Tax revenue, four months of Franchise Fee revenue, and approximately 25% of property tax revenue. The table below presents a comparison of the top revenue accounts. Because the City has a diverse revenue basis for total General Fund revenues, changes to a specific revenue source here will not have prof ound impacts overall. Table shown on next page.
General Fund Revenue Table
• P
roperty Tax – Property tax is the City’s largest revenue source representing 4 2% of the General Fund FY 2021-22 Estimated Revenue. Property tax revenue received is 3% lower than at the same time last year and budgeted revenues are expected to be met.
• Sales Tax – Sales tax is the City’s second largest revenue source representing 20% of the General Fund FY 2021-22 Adopted Budget. Sales tax is 3% lower than at the same time last year and budgeted revenues are expected to be met. • Transient Occupancy Tax – Revenues are 29% more than the previous fiscal year, estimated revenue of $1.5M has been updated to reflect projected revenue at mid- year.
• U
tility User Tax – Revenues are 41% more than at mid-year from the previous fiscal year.
General Fund Revenues
Mid-Year
FY20-21
12/31/2020
Mid-Year
FY21-22
12/31/2021
Percent
Difference
2021 VS 2022
Budget
Update
FY21-22
Percent
Revenue to
Date
Property Tax 5,154,738 4,997,793 -3% 20, 133,826 25%
Sales Tax 3,282,728 3,197,830 -3% 9,508,660 34%
Transient Occupancy Tax 471,090 608,959 29% 1,522,398 40% Utility User Tax 1,149,641 1,619,240 41% 2,800,000 58%
Business License Tax 99,238 203,437 105% 915,000 22%
Other Tax 606,412 204,396 -66% 1,220,000 17%
Licens es & Permits 471,473 611,231 30% 1,279,060 48%
Service Charges & Fees 2,833,693 2,317,186 -18% 6,511,388 36% Other Revenue 1,259,310 2,057,603 63% 4,047,335 51%
TOTAL 15,328,323 15,817,676 3% 47,937,667 33%
Mid-Year Budget Report FY2021-2022
March 2, 2022
• B
usiness License Tax - Business owners are given until January 31, to renew their business license for the current calendar year without any penalties. The City is expecting most business license revenues to be received in the month of January .
Thus, budgeted revenues are expected to be met.
• Li
censes and Permits - Revenues are 105% more than at mid -year from the previous fiscal year. B udgeted revenues are expected to be met or exceed forecasted revenue.
• Other Taxes – While revenues are 66% less th an prior year at midyear , the City expects projected revenue to be realized and will continue to monitor this funding source.
• All other estimated funds are expected to be realized by end of year.
G
eneral Fund Expenditures:
All departmental expenses are under the 50% budget mark with total FY 2021-22 expended at 39% of budget.
YTD Expended YTD Percentage
Budgeted 12/31/2021 12/31/2021
City Attorney 649,100 208,903 32.18%
City Clerk 463,954 178,454 38.46%
City Council 219,041 92,651 42.30%
City Manager 1,116,035 385,299 34.52%
City Treasurer 30,763 10,226 33.24%
Community CIP 120,000 120,000 100.00%
Community Development 1,105,833 329,710 29.82%
Fire 12,509,469 5,888,076 47.07%
HR & Risk Management 487,042 148,795 30.55%
Library 2,304,048 826,427 35.87%
Management Services 2,619,243 855,455 32.66%
Non-Department 1,736,375 571,915 32.94%
Police 18,868,415 7,569,743 40.12%
Public Works 3,204,095 988,047 30.84%
Recreation & Community 2,261,569 513,566 22.71%
YTD Total 47,694,981 18,687,265 39.18%
Mid-Year Budget Report FY2021-2022
March 2, 2022
General Fund Balance
The City Council has established an Unrestricted General Fund Balance of a minimum of two months of the General Fund regular revenues or operating expenditures, as recommended by the Government Finance Officers’ Association (GFOA).
U
nrestricted General Fund Balance:
Committed Fund Balance
The City Council, as the City’s highest level of decision-making authority, may commit fund balance for specific purposes pursuant to constraints imposed by formal actions taken, such as an ordinance or resolution. These committed amounts cannot be used for any other purpose unless the City Council removes or changes the specific use through the same type of formal action taken to establish the commitment. City Council action to commit fund balance needs to occur within the fiscal reporting period; however the amount can be determined subsequently.
Catastrophic Event - The City of Monterey Park’s General Fund balance committed for catastrophic events is established at $ 4,340,000. The City Council may wish to increase or decrease this amount, with the goal of providing an amount equivalent to 15 to 20 percent of the City’s annual operating budget for the General Fund. This range should be sufficient to allow for a quick and decisive municipal response to events such as natural disasters, catastrophic accide nts, or other declared emergency incidents. The City Council may, by the affirming vote of three members, change the amount of this commitment and/or the specific uses of these monies.
T
he City has prepared a plan to increase the Committed Catastrophic Event reserves to 15 percent of the City’s annual General Fund operating budget or $6. 3M. At this time, the City is requesting to increase its Committed -Catastrophic amount by $ 500K from $4.3M to $4.8M for the year ending 6/30/2022.
Working Capital - The City’s General Fund balance committed for the purpose of working capital for the delivery of City services during periods of severe operational budget deficits and to mitigate the effects of major economic uncertainties resulting from unforeseen change in revenues and/or expenditures is established at $3 M. The City Council may wish to increase or decrease this amount, with the goal of providing an amount equivalent to 10- 15 percent of the City’s annual operating budget for the General Fund. Th is range serves as a sufficient cushion, safeguarding the City’s fiscal health against fluctuations in revenues and costs due to economic volatility. City Council approval shall be required before expending any portion of this committed fund balance. Access to these funds will be reserved for economic emergency situations.
Mid-Year Budget Report FY2021-2022
March 2, 2022
E
conomic Development - The City’s General Fund balance committed for the purpose of economic development for the delivery of the Potrero Grande Street Improvement Project is established at $1,886,927. City Council approval shall be required before expending any portion of this committed fund balance.
Assigned Fund Balance
A
mounts that are constrained by the City’s intent to be used for specific purposes, but are neither restricted nor committed, should be reported as assigned fund balance. This policy hereby delegates the authority to assign amounts to be used for specific purposes to the City Manager for the purpose of reporting these amounts in the annual financial statements. A few examples of assigned fund balance follow. • E
ncumbrances – materials and services on purchase order and contracts which are unperformed
• Reappropriations – appropriated by the Council for specific projects or programs that were not completed and not encumbered by year end
• I nfrastructure Maintenance Projects – amounts to be transferred to the General CIP Fund for such projects in the subsequent fiscal year adopted budget Unassigned Fund Balance
These are residual positive net resources of the General Fund in excess of what can properly be classified in one of the other four categories.
Amounts held in Reserve
Funding of General Fund balance targets will come generally from one-time revenues, one-time expenditure savings, excess fund balance (e.g., unused or reversed assignment or commitments), and revenues in excess of projected expenditures. The total goal range for the City’s unrestricted fund balance (includes Commitments and Assignments of fund balance) is 50% of General Fund expenditures.
Mid-Year Budget Report FY2021-2022
March 2, 2022
Conclusions
The City has strong reserves and a diverse revenue stream, which are important as we continue to face the challenges associated with the impacts of COVID -19. The City has implemented a strategic plan to increase the Committed Catastrophic Event reserves to 15 percent of the City’s annual General Fund operating budget or $6.3M. At this time, the City is requesting to increase its Committed -Catastrophic amount by $500K from $4.3M to $4.8M for the year ending 6/30/202 2, to secure higher unrestricted reserves in the event of a catastrophic occurrence.
The City is monitoring its revenues closely and is controlling its expenditures in a prudent and fiscally responsible manner. The City is requesting a mid -year budget augmentation in the amount of $ 222,740 from the General Fund, $750,000 from ARPA funds, $90,000 f rom shop funds, $10,370 t echnology funds, $117,000 from w ater funds and $25,000 from refuse funds to add staff, purchase police vehicles and various other services and commodities.