Agenda Item: 1
CITY OF SANTA CLARITA
AGENDA REPORT
NEW BUSINESS
CITY MANAGER APPROVAL:
DATE: December 10, 2024
SUBJECT: FISCAL YEAR 2024-2025 MID-YEAR BUDGET ADJUSTMENTS DEPARTMENT: Administrative Services
PRESENTER: Brittany Houston
RECOMMENDED ACTION
City Council and the City Council acting as Successor Agency to the Former Redevelopment Agency of the City of Santa Clarita:
1. Adopt a resolution amending the budgets for Fiscal Year 2023-2024 and Fiscal Year 2024- 2025.
2. Adopt a resolution amending the classification plan and salary schedules, providing changes to benefit contributions for employees and retirees, and establishing a retirement health savings program for employees of the City of Santa Clarita.
3. Adopt a resolution to authorize a loan from the General Fund (100) to the Eastside Bridge & Thoroughfare District Fee Fund (452) in the amount of $7,000,000.
BACKGROUND
As the organization approaches the middle of the fiscal year (FY), City of Santa Clarita (City) staff evaluates the adopted budget, revenue projections, and economic conditions for the remainder of the fiscal year. It is standard procedure to perform a mid-year review of the City’s budgetary and financial position to ensure any deviations from the initial budget projections are proactively addressed. Staff also reviews requests for appropriations to address new priorities that are unfunded or under-funded.
Revenues
Recommended mid-year revenue budget amendments total $8,258,183. By fund, the revenue amendments are as follows:
General Fund (808,448)$
Other Revenue Funds 6,520,124$
Impact Fee Funds 4,331,392$
Various Grant Funds 1,921,417$
Hart Park Fund 736,328$
Gas Tax & SB 1 Funds 244,416$
Transit and Transportation Funds (4,687,046)$
Total Proposed Revenue Amendments 8,258,183$
In the General Fund, the recommended revenue adjustment is a net decrease of $808,448.
Included in this figure are decreases of $1.3 million in sales tax revenue due to slower than anticipated growth; $160,000 in film permits and fees as a result of continued impacts from recent industry strikes; $100,000 in right-of-way encroachment permits; and $100,000 in grading inspections due to project delays. It also includes increases of $170,000 in community preservation and parking citations due to enforcement activities remaining at consistent levels; $71,000 in field and facility rentals as a result of continued demand; $200,000 in record maintenance due to higher than anticipated residential tract and commercial permit activity; and $187,774 transfer in from the Fire Facilities Fund for the City’s five percent share of fire district administrative fees, and an $88,186 transfer in from the Eastside Bridge & Thoroughfare District Fee Fund for the reimbursement of prior year Vista Canyon Bridge project expenditures.
Recommended revenue adjustments in Other Revenue Funds for $6,520,124 represent a $5.2 million funding adjustment to utilize Measure M Active Transportation Program (ATP) funds in place of Prop A Local Return and TDA Article 8 funds for the Vista Canyon Bridge; California Energy Commission loan proceeds in the amount of $1.0 million related to the Energy Efficiency project; $211,256 Sheriff’s Station reimbursement to the Facilities Fund from the Law Enforcement Facilities Fund; and an increase of $61,435 for The Cube: Ice and Entertainment Center revenues.
Recommended revenue increases of $4,331,392 in the Impact Fee Fund include $1,442,732 in fire facilities fees and $136,984 in median fees. It also includes $2.4 million in Valencia Bridge and Thoroughfare (B&T) Fees from Los Angeles County for the Magic Mountain Parkway Beautification project and $487,591 from various projects in the Via Princessa, Eastside and Bouquet Canyon B&T Districts.
The recommended revenue increase of $1,921,417 in Various Grant Funds includes a $1.8 million increase to adjust revenues received later than estimated in FY 2024-25 for the Sierra Highway Traffic Signal, Vista Canyon Multi-Modal Center, Vista Canyon Road Bridge CIP projects and various grant project expenditures, as well as a $159,217 revenue correction for the Federal American Rescue Plan Act (ARPA) Funds for the Citywide Fiber and Museum and Cultural Center Capital Improvement Program (CIP) projects.
Hart Park revenues of $736,328 is a transfer in from the General Fund to support the operation of William S. Hart Park (Hart Park) as the City prepares for the transfer of ownership from Los Angeles County.
The recommended revenue increase of $244,416 in the Gas Tax and SB1 Funds account for updated state revenue estimates.
The recommended net revenue decrease of $4,687,046 in Transit and Transportation Funds includes funding adjustments for the Vista Canyon Bridge: decrease TDA Article 8 by $6.5 million and increase Transit Measure M by $2.0 million. It also includes a $1.0 million decrease in County contributions for transit services to the unincorporated areas in the City, as well as funding adjustments for the purchase of three zero emission local buses and five CNG Dial-A- Ride buses as follows: decrease federal grant revenues by $1.2 million and increase Prop C Municipal Operator Service Improvement Program (MOSIP), and Measure R Clean Fuel by $684,408 and $494,515 respectively. Additionally, increase TDA Article 8 by $880,000, to recognize revenues received later than estimated in FY 2024-25 for the 2023-24 Overlay and Slurry and Safe Routes to School projects.
Expenditures
Recommended mid-year expenditure budget additions total $3,051,857. By fund, the expenditure amendments are as follows:
General Fund (5,625,237)$
Other Revenue Funds 5,520,524$
Impact Fee Funds 9,820,851$
Hart Park Fund 736,328$
Gas Tax Fund 60,000$
Internal Service Funds 1,768$
Transit and Transportation Funds (5,213,354)$
Special District Funds (2,249,023)$
Total Proposed Expenditure Amendments 3,051,857$
In the General Fund, the recommended net expenditure decrease of $5,625,237 include funding reduction of $6,911,814 for the Vista Canyon Bridge Project from the General Fund Capital, increases of $115,268 for a new Code Enforcement Officer II position and an F-150 needed for the position; $133,218 for the increase in service costs for animal care and control; $150,000 for the increase in vehicle fuel cost; $75,000 for night-time and weekend overtime work attributed to large utility projects; $54,000 for the purchase and maintenance of four speed feedback trailers; $52,850 for facilities expenses at the former Business Incubator that now houses the City’s Arts and Events division; $16,000 to repair concrete contraction joints at the Sheriff’s Station; and $736,328 transfers out to support the operation of Hart Park.
Expenditure increases of $5,520,524 in Other Revenue Funds include $5,221,433 Measure M ATP funding for the Vista Canyon Bridge Project, which would reduce the use of Prop A Local Return and TDA Article 8 funding; $60,000 to replace the lighting control system at The Cube:
Ice and Entertainment Center; and $68,000 in Public Library Funds for Hart Park Museum supplies and Hart Park archive storage.
Recommended increases in Impact Fee Funds in the amount of $9,820,851 include a $6,911,814
funding adjustment to utilize Eastside Bridge & Thoroughfare District Fee Funds obligated on the Vista Canyon development in place of General Fund for the Vista Canyon Bridge Project; a $2.4 million increase for Magic Mountain Parkway Beautification construction in the Valencia B&T District; $211,256 for Sheriff’s Station reimbursement to the Facilities Fund from the Law Enforcement Facilities Fund; and a $187,774 transfer to the General Fund for the City’s five percent share of fire district administrative fee.
For the operation of Hart Park, an expenditure request of $736,328 from the Hart Park Fund is being recommended to facilitate the transfer of ownership and operation to the City. This request includes two Groundskeeper I positions ($30,272); one General Maintenance Specialist position ($23,925); one Animal Care Specialist position ($19,841); three F-150 vehicles for use by the two Groundskeeper I positions and General Maintenance Specialist ($176,850); one F-250 vehicle for use by the Animal Care Specialist ($86,850); two John Deere gators ($34,000) and one tractor for grounds maintenance ($49,500); park security system upgrades ($105,800); security cameras ($169,290); and network infrastructure ($40,000).
Gas Tax Funds of $60,000 are being recommended for the replacement of the Thermoplastic Melting Kettle, which is utilized by General Services staff for road-striping.
The net expenditure decrease of $5,213,354 to the Transit and Transportation Funds includes decreases of $6.5 million in TDA Article 8; $550,000 in Prop C Local Return; and $88,135 in Prop A Local Return; as well as an increase of $1.9 million to utilize Transit Measure M funds for the Vista Canyon Bridge project. It also includes an expenditure of $38,000 for security upgrades at the Transit Maintenance Facility.
The recommended net expenditure decrease of $2,249,023 to the Special District Funds includes a $2.4 million decrease to the Areawide Fund to utilize Valencia B&T Fees from Los Angeles County for construction of the Magic Mountain Parkway Beautification project; an appropriation of $176,000 for the purchase of a mini-excavator to replace failing equipment critical to the maintenance of drainage systems; and $15,515 for the replacement of damaged light poles at Central Park, Old Orchard Park, and Valencia Glen Park.
Amendment to the FY 2023-24 Budget
Upon review of the revenues and expenditures for the year ending June 30, 2024, and in anticipation of future facilities funding needs, it is staff’s recommendation to amend the FY 2023-24 budget and transfer funds from the General Fund to the Facilities Fund in the amount of $16.0 million.
Interfund Loan
At the June 25, 2024 City Council meeting, the City Council approved an appropriation of General Fund Capital (Fund 601) funds in the amount of $7,000,000 for the Vista Canyon Bridge project, noting the appropriation would be reimbursed through Eastside B&T Fees obligated on the Vista Canyon development. At the November 26, 2024, City Council meeting, the Eastside B&T District was amended to include the Vista Canyon Bridge. The loan resolution authorizes a loan from the General Fund to the Eastside B&T District in the amount of $7,000,000. The loan
will be repaid with future Bridge & Thoroughfare fees obligated on the Vista Canyon development.
Amend the Classification Plan and Salary Schedules, Provide Changes to Benefit Contributions for Employees and Retirees of the City, and Establish a Retirement Health Savings Program for Employees
This resolution amends the City’s classification plan and salary schedule, provides changes to City-paid benefit contributions for active and retired employees effective January 2025, and establishes a retirement health savings program for employees of the City of Santa Clarita.
ALTERNATIVE ACTION
Other action as determined by the City Council.
FISCAL IMPACT
Approval of the Fiscal Year 2024-2025 mid-year budget amendments will increase estimated revenues for all funds by $8,258,183 and budgeted expenditures by $3,051,857. Additionally, the Fiscal Year 2023-2024 budget will be amended by $16,000,000.
ATTACHMENTS
Resolution Amending the Budgets for FY 2023-24 and FY 2024-25 Resolution - Loan from General Fund to Eastside B&T District Resolution Amending Classification Salary Schedule, Benefit Change, and Establishing Retirement Health Savings Program