BLUE FOLDER ITEM
Blue folder items are additional back up material to administrative reports and/or public comments received after the printing and distribution of the agenda packet for receive and file.
CITY COUNCIL MEETING
NOVEMBER 7, 2023
F.1 CONFERENCE WITH LEGAL COUNSEL AND LABOR NEGOTIATOR - The Closed Session is authorized by the Government Code Sec. 54957.6.
AGENCY NEGOTIATOR:
Mike Witzansky, City Manager
Diane Strickfaden, Director of Human Resources
EMPLOYEE ORGANIZATIONS:
Redondo Beach Professional and Supervisory Association, Redondo Beach City Employees Association, Teamsters, and Management & Confidential Employees • REDONDO BEACH CITY EMPLOYEES ASSOCIATION NEGOTIATIONS LETTER
November 7, 2023
Councilmembers,
When analyzing the ongoing structural costs to base salary increases in the upcoming miscellaneous contracts, RBPSA asks that you consider the following.
Each year since coming out of the recession in 2014, the City has closed out every fiscal year with an excess in its General fund balance. The only exception was 2020, due to revenue downturns as a result of COVID.
The excess fund balances ranged from around half a million to even as high as $4.2M in 2022, even after transfers to CIP and CalPERS Reserve.
Although the amounts have varied, one thing has remained consistent. The fund balances demonstrate that, structurally, salary increases for the miscellaneous employees could have been sustained, with maybe a one-time borrow from the CalPERS Reserve to fund the 2020 shortfall.
Most recently, for the fiscal year ending June 30, 2022, the City had enough year end balance to fund both $1M into CIP and $3M into the CalPERS Reserve.
In short, the pattern has clearly shown that enough General Fund revenues existed which would have funded employee compensation increases for reasonable COLAs.
RBPSA believes these revenues will continue into the foreseeable future.
Thank you,
Lina Carrillo
RPSA President
Attachments: Coversheets of Year End Fund Balance Administrative Reports 2014-2022
Redondo Beach
Professional &
Supervisory
Association
RBPSA
Lina Carrillo
President
Joyce Rooney
1 st Vice-President
Lauren Sablan
2 nd Vice President
Ruby Takahama
Secretary
Jesse Reyes
Treasurer
Representatives
Antonio Gardea
Jason Kilpatrick
Robert Rivera
Administrative
Report
N.6., File # 20-1672 Meeting Date: 11/17/2020
To: MAYOR AND CITY COUNCIL
From: MARNI RUHLAND, FINANCE DIRECTOR
TITLE
DISCUSSION AND POSSIBLE ACTION REGARDING RECOMMENDATION TO APPROVE ASSIGNMENTS OF GENERAL FUND BALANCE FOR THE FISCAL YEAR ENDED JUNE 30, 2020 ADOPT BY 4/5 VOTE AND BY TITLE ONLY RESOLUTION NO. CC-2011-091, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDONDO BEACH, CALIFORNIA, AUTHORIZING TO REBUDGET DEPARTMENTAL CARRYOVER REQUESTS AND CARRY OVER UNEXPENDED BALANCES AS OF JUNE 30, 2020, FOR DONATIONS, GRANTS AND CAPITAL PROJECTS
EXECUTIVE SUMMARY
Each year, the Financial Services Department presents budget carryovers from one fiscal year to the next and fund balance constraints to the City Council of its consideration. The carryovers and classifications are part of the City’s efforts, with independent outside auditors, to prepare the City’s Comprehensive Annual Financial Report (CAFR). The Budget and Finance Commission’s input on the carryovers and classifications will be included in the presentation to the City Council.
As shown on the General Fund Constraints schedule (Attachment 1) and described below, the City’s General Fund balance at fiscal year end June 30, 2020 is estimated at $10,750,000 (down from $15,000,000 at June 30, 2019 primarily due to the unfavorable financial impacts of the coronavirus).
Of this balance, $107,698 is non-spendable and $7,585,231 is committed as the 8.33% General Fund Reserve required by the City Council’s Financial Principles.
The General Fund constraints also include encumbrances and traditional budget assignments ($2,546,838) leaving a remaining fund balance of $510,233. This remaining fund balance only exists because the assignments exclude the annual transfers to the City’s CalPERS reserve and capital improvement program. Although this means there will be no additional set-aside funding for increasing employee pension costs, no replenishment is necessary at this time as a drawdown from the fund was not used as a FY 2020-21 budget balancing measure. And although the FY 2021-22 capital improvement program will be lacking this unrestricted funding, proceeds from the Community Financing Authority will be available to backfill a portion of the funding.
BACKGROUND
The following provides details of the General Fund constraints and answers questions that are likely to arise regarding the FY 2019-20 year-end report.
Administrative
Report
N.2., File #19-0444 Council Action Date:11/19/2019
To: MAYOR AND CITY COUNCIL
From: MARNI RUHLAND, FINANCE DIRECTOR
TITLE
APPROVE RECOMMENDED ASSIGNMENTS OF GENERAL FUND BALANCE FOR THE FISCAL YEAR ENDED JUNE 30, 2019
ADOPT BY 4/5 VOTE AND BY TITLE ONLY RESOLUTION NO. CC-1911-088, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDONDO BEACH, CALIFORNIA, AUTHORIZING TO REBUDGET DEPARTMENTAL CARRYOVER REQUESTS AND CARRY OVER UNEXPENDED BALANCES AS OF JUNE 30, 2019, FOR DONATIONS, GRANTS AND CAPITAL PROJECTS.
ADOPT BY 4/5 VOTE AND BY TITLE ONLY RESOLUTION NO. CC-1911-089, A RESOLUTION OF
THE CITY COUNCIL OF THE CITY OF REDONDO BEACH, CALIFORNIA, AUTHORIZING FISCAL YEAR 2018-2019 TRANSFERS BETWEEN FUNDS.
EXECUTIVE SUMMARY
Each year, the Financial Services Department presents budget carryovers from one fiscal year to the next and fund balance constraints to the City Council for its consideration. The carryovers and classifications are part of the City’s efforts, with independent outside auditors, to prepare the City’s Comprehensive Annual Financial Report (CAFR).
As shown on the General Fund Constraints schedule (Attachment 1) and described below, the City’s General Fund balance at fiscal year end June 30, 2019 is estimated at $15,000,000. Of this balance, $980,737 is non-spendable and $7,989,184 is committed as the 8.33% General Fund Reserve required by the City Council’s Financial Principles.
The General Fund constraints also include encumbrances and traditional budget assignments and transfers ($5,427,510) leaving a remaining excess of $602,569 (as compared to $494,585 at FY 17- 18 year end). This excess fund balance is after funding all traditional year-end budget transfers, including a $1,000,000 contribution to the Capital Improvement Program and a $1,151,475 contribution to the City’s CalPERS Reserve (a replenishment of the FY 19-20 adopted budget drawdown and the recent FY 19-20 additional drawdown).
BACKGROUND
The following provides details of the General Fund constraints and answers questions that are likely to arise regarding the FY 18-19 year-end report.