City of South Pasadena Page 1
CALL TO ORDER: Mayor Jon Primuth
ROLL CALL OF CITY COUNCIL: Mayor Jon Primuth
Mayor Pro Tem Evelyn G. Zneimer
Councilmember Jack Donovan
Councilmember Michael A. Cacciotti
Councilmember Janet Braun
ROLL CALL OF FINANCE COMMISSION: Chair Ed Elsner
Commissioner Frederick A Findley
Commissioner Cynthia Quade
Commissioner Peter Giulioni Jr
Commissioner Sheila Rossi
CITY OF SOUTH PASADENA
SPECIAL JOINT MEETING OF THE CITY COUNCIL
AND FINANCE COMMISSION
AMENDED A G E N D A
WEDNESDAY, MARCH 15, 2023, AT 6:30 P.M.
AMEDEE O. “DICK” RICHARDS JR. COUNCIL CHAMBERS
1424 MISSION STREET, SOUTH PASADENA, CA 91030
South Pasadena City Council Statement of Civility
As your elected governing board, we will treat each other, members of the public, and City employees with patience, civility, and courtesy as a model of the same behavior we wish to reflect in South Pasadena for the conduct of all City business and community participation. The decisions made tonight will be for the benefit of the South Pasadena community and not for personal gain.
NOTICE ON PUBLIC PARTICIPATION & ACCESSIBILITY
The South Pasadena City Council Meeting will be conducted in-person from the Amedee O. “Dick” Richards, Jr. Council Chambers, located at 1424 Mission Street, South Pasadena, CA 91030.
Public participation may be made as follows:
• In Person – Council Chambers, 1424 Mission Street, South Pasadena, CA 91030 • Live Broadcast via the City website –
http://www.spectrumstream.com/streaming/south_pasadena/live.cfm • Via Zoom – Webinar ID: 825 9999 2830
• Written Public Comment – written comment must be submitted by 12:00 p.m. the day of the meeting by emailing to [email protected]. • Via Phone – +1-669-900-6833 and entering the Zoom Meeting ID listed above.
Meeting may be viewed at:
1. Go to the Zoom website, https://zoom.us/join and enter the Zoom Meeting information; or
2. Click on the following unique Zoom meeting link:
https://us06web.zoom.us/j/82599992830 or
3. By calling: +1-669-900-6833 and entering the Zoom Meeting ID listed above; and viewing the meeting via http://www.spectrumstream.com/streaming/south_pasadena/live.cfm Special Joint Meeting Agenda March 15, 2023
PUBLIC COMMENT GUIDELINES
The City Council welcomes public input. Members of the public may comment on the agendized items only. Members of the public will have three minutes to address the City Council, however, the Mayor and City Council may adjust the time allotted, as needed.
Public Comments received in writing will not be read aloud at the meeting, but will be part of the meeting record. Written public comments will be uploaded to the City website for public viewing under Additional Documents. When submitting a public comment, please make sure to include the following:
1) Name (optional), and
2) Agenda item you are submitting public comment on.
3) Submit by no later than 12:00 p.m., on the day of the City Council meeting. Correspondence received after this time will be distributed the following business day.
PLEASE NOTE: The Mayor may exercise the Chair's discretion, subject to the approval of the majority of the City Council, to adjust public comment time limit to less than three minutes, as needed.
Pursuant to State law, the City Council may not discuss or take action on issues not on the meeting agenda, except that members of the City Council or staff may briefly respond to statements made or questions posed by persons exercising public testimony rights (Government Code Section 54954.2).
Staff may be asked to follow up on such items.
PUBLIC COMMENT
1. PUBLIC COMMENT
Public Comment will be limited to three minutes per speaker for the agendized item only, and will be taken after staff presentation of the agendized item.
2. APPROVAL OF FY 2022-23 MID-YEAR BUDGET REPORT AND ADJUSTMENTS, CAPITAL
IMPROVEMENT PROGRAM CARRYOVERS, CITY COUNCIL BUDGET POLICIES,
CREATION OF THREE FUNDS, AND RESOLUTION
RESOLUTION
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOUTH PASADENA APPROVING FISCAL YEAR 2022-2023 MID-YEAR BUDGET AMENDMENTS AND
ADJUSTMENTS, CAPITAL IMPROVEMENT PROGRAM CARRYOVERS, CITY
COUNCIL BUDGET POLICIES, AND CREATION OF THREE FUNDS
Recommendation
Staff recommends that the City Council:
1. Approve the Fiscal Year 2022-23 Mid-Year Budget Report and Adjustments;
2. Approve of Fiscal Year 2021-22 Capital Improvement Program (CIP) Carryovers;
3. Approve of FY 22-23 Budget Policies;
4. Approve the creation of three new funds: State and Local Fiscal Recovery Fund (SLFRF) -206, Other Post-Employment Benefits (OPEB) 115 Trust Fund – 110, and Fund 209- Carlyle Library Bequest; and
5. Adopt A Resolution of The City Council of The City Of South Pasadena Approving Fiscal Year 2022-2023 Mid-Year Budget Amendments And Adjustments, Capital Improvement Program Carryovers, City Council Budget Policies, And Creation Of Three Funds.
ACTION/DISCUSSION
Special Joint Meeting Agenda March 15, 2023
ADJOURNMENT
FOR YOUR INFORMATION
FUTURE CITY COUNCIL MEETINGS
PUBLIC ACCESS TO AGENDA DOCUMENTS AND BROADCASTING OF MEETINGS City Council meeting agenda packets, any agenda related documents, and additional documents are available online for public viewing on the City’s website:
www.southpasadenaca.gov/CityCouncilMeetings2022
ACCOMMODATIONS
The City of South Pasadena wishes to make all of its public meetings accessible to the public. If special assistance is needed to participate in this meeting, please contact the City Clerk's Division at (626) 403-7230 or [email protected]. Upon request, this agenda will be made available in appropriate alternative formats to persons with disabilities. Notification at least 48 hours prior to the meeting will assist staff in assuring that reasonable arrangements can be made to provide accessibility to the meeting (28 CFR 35.102-35.104 ADA Title II).
CERTIFICATION OF POSTING
I declare under penalty of perjury that I posted this notice of agenda for the meeting to be held on March 15 2023, on the bulletin board in the courtyard of City Hall located at 1414 Mission Street, South Pasadena, CA 91030, and on the City website as required by law, on the date listed below. 03/09/2023 /S/
Date Mark Perez, Deputy City Clerk
April 5, 2023 Canceled due to Spring Break 7:00 P.M.
April 19, 2023 Joint Special Meeting with MTIC (State of Streets) 6:00 P.M.
April 29, 2023 Joint Special Meeting with Planning Commission (State of Housing) 9:00 A.M. 2 2 - 1
FY 2022-23 Mid-Year Budget Report, CIP Carryover, Budget Policies and Resolution March 15, 2023
As customary, the Mid-Year Financial Review primarily focuses on the General Fund since this is the fund that supports traditional municipal services the City provides for residents, such as law enforcement, fire protection, public works services, parks, and recreation.
Analysis
FY 2021-22 Year End
At the end of each fiscal year, the Finance Department begins its process of closing out the year. This process includes trueing up the budget, and ensuring all capital improvement project carryovers are processed and reflected in the new fiscal year. In addition, to avoid possible budget inflation, at the year end of each fiscal year, all purchase orders and encumbrances are closed out, excluding multi-year capital projects.
Once the City’s budget is adopted and committed in Springbrook, the City’s financial system, the new fiscal year is open for activity. Staff citywide has the ability to review the general ledger, enter requisition for services, and track department revenues and expenditures.
FY 2021-22 General Fund Year-End Performance
The FY 2021-22 General Fund Budget included expenditures in the amount of $36.3 million offset by $36.3 million in projected revenues. Based on the audited figures for FY 2021-22, the City ended the year with $34.2 million in expenditures, offset by $34.6 million in revenue and the use of $130 thousand in net transfers. The FY 2021- 22 ending fund balance is $24.6 million, however, only $18.9 million is spendable.
TABLE 1
FY 2022 GENERAL FUND YEAR-END
PERFORMANCE
FY 2022
Adopted
Budget
FY 2022 YearEnd (Audited)
Beginning Fund Balance $ 22,933,246 $ 24,355,619
Revenues 36,322,073 34,668,783
Expenditures 36,283,406 34,352,231
Operating Surplus (Deficit) 38,667 316,552
Ending Fund Balance $ 22,971,913 $ 24,672,171
Revenue and expenditure figures include transfers in/out. 2 - 2
FY 2022-23 Mid-Year Budget Report, CIP Carryover, Budget Policies and Resolution March 15, 2023
FY 2022-23 Changes from Original Approved Budget to Adopted Budget When staff presented the FY 2022-23 budget to Council for consideration in June 2022, economists were discussing concerns of inflation, a CPI increase of 8%, supply chain issues, and interest rate adjustments by the Federal Reserve Bank. However, actual economic activity as measured by job gains, industrial production, and retail sales were still indicating growth. As mentioned in the FY 2023 budget message, the current climate was not as damaging as it has been to other cities due to the fact that the City of South Pasadena has a different revenue base including a heathy property tax base and a City’s return of 24 cents to the property tax dollar. • The measure A – 75 cents sales transaction tax is now out-performing its traditional counterpart of the Bradley Burns 1% sales tax. • The American Rescue Plan Act of 2021 created the State and Local Fiscal Recovery Fund (SLFRF). The City received $6,059,235 SLFRF funds in the General Fund.
• The City built a status quo budget for FY 2022-23. The City experienced many closures and unusual expenditures during the pandemic.
The FY 2022-23 budget included significant clean up in overtime costs due to insufficient staffing, emergency measures and purchases to mitigate the effects of the pandemic. The proposed mid-year review and adjustments include additional measures to address the same issues. Revenues are adjusted by $540,000 to account for the increase in sales tax revenues. The total adjusted revenues for FY 2023 have changed from $42,224,170 to $42,849,230. Expenditures are adjusted from $41,721,612 to $44,688,982 for a net change of ($1,839,752). Transfers out of SLFRF Funds received in General Fund to its own Fund - $6,059,235, along with its related appropriations of $5,830,000.
Mid-Year General Fund appropriations adjustments are $2,006,620, broken down between ongoing adjustments of $251,700 and one-time adjustments of $1,754,920.
The tables below reflect the FY 2022-23 General Fund Approved and Revised budgets.
TABLE2
FY 2023 GENERAL FUND BUDGET
FY 2023 FY 2023
Approved
Budget
Revised
Budget
Beginning Fund Balance $20,810,029 $24,672,171
Revenues $42,224,170 $42,849,230
Expenditures $41,721,612 $44,690,482
Operating Surplus
(Deficit) $502,558 ($1,841,252)
Ending Fund Balance $21,312,587 $22,830,919
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FY 2022-23 Mid-Year Budget Report, CIP Carryover, Budget Policies and Resolution March 15, 2023
The ongoing adjustments are due to unforeseen contract costs i.e. increased landscape and maintenance costs after our existing contract was not renewed by vendor and the lowest new vendor was almost 2.5 times more than the existing contract. There are also adjustments to personnel costs necessitated by staffing shortages and requirements. The one-time adjustments in expenditures for the year are for unexpected and unbudgeted expenses occurring this FY 2023 including increased legal costs, unforeseen sewer repair costs and a vehicle purchase required to replace a non-working vehicle. Details of these adjustments are shown in Attachment A.
FY 2022-23 Mid-Year Financial Report
The table below shows the City’s revenues and expenditures incurred through the mid-year point of the two fiscal years (first two quarters), from July 1 through December 31 for both fiscal years 2022-23 and 2021-22 for comparison purposes.
TABLE 3
GENERAL FUND REVENUES & EXPENDITURES
JULY - DECEMBER
FY 2023
Budget
FY 2023
July -
December
Actuals
FY 2022
July -
December
Actuals
FY 2023
Mid-Year
Dollar
Increase
(Decrease)
FY 2023
Mid-Year
Percentage
Increase
(Decrease)
Revenues
Property Taxes $ 14,463,414 $ 5,791,504 $ 5,385,023 $ 406,482 7.55% Sales Taxes 5,466,000 2,038,278 1,802,001 236,278 13.11% Utility Users Taxes 4,299,703 1,752,502 1,738,100 14,402 0.83% Business Licenses & Permits 903,280 434,766 440,028 (5,261) -1.20% Charges for Current Services 3,777,200 2,273,986 1,744,872 529,114 30.32% Fines, Forfeitures & Penalties 500,000 195,145 146,419 48,725 33.28% Other Taxes & Revenue 12,814,573 868,397 1,074,872 (206,475) -19.21% Total Revenues $42,224,170 $13,354,578 $12,331,313 $1,023,265 8.30% Expenditures
Operational Expenditures $41,010,050 $17,394,033 $15,322,769 $2,071,264 13.52% Transfers Out 721,562 - 1,457,247 (1,457,247) -100.00%
Total Expenditures $41,731,612 $17,394,033 $16,780,016 $614,017 3.66% The table above shows the City's revenues and expenditures incurred through the mid-year point of the two fiscal years (first two quarters), from July 1 through December 31 for both fiscal years 2021-22 and 2022-23 for comparison purposes.
FY 2022-23 Mid-Year Revenue Performance
Overall, revenues for the City are up 8.3% ($1,023,265) for the first half of FY 2022-23 2 - 4
FY 2022-23 Mid-Year Budget Report, CIP Carryover, Budget Policies and Resolution March 15, 2023
compared to FY 2021-22. Outlined below is a summary of the revenue performance for the City's major revenues:
• Property Tax
Through the mid-year point in FY 2022-23, the City's largest revenue, Property Tax, was up 7.55% ($406,482) from FY 2021-22. The City has received 37% of the revenue and expects the largest amount to come in April 2023. For FY 2022-23, the City budgeted $14,463,414.
In respect to Secured Property Taxes, the City received its Property Tax installment in December 2022, representing 40% of what the State expects to receive for the whole year. Therefore, on an annualized basis, the City’s estimated Secured Property Taxes are on track.
Please note, the City received $1,722,008 in Property Tax and $1,856,596 of Property Tax in Lieu of VLF in January. These payments are not reflected in the December revenues. For FY 2022-23, it is anticipated that the City will receive a total $3,713,192 in Property Tax in Lieu of VLF revenue for the fiscal year. • Sales Taxes
Taxes (including Sales Tax Measure A) are up 13.11% ($236,278) through the first half of FY 2022-23 from last year. Sales Taxes makes up 16% of total General Fund revenues and is the City's second largest revenue stream. The City budgeted $5.5 million for FY 2022-23, however, we are updating this projection to reflect a forecast received from the City's sales tax consultant. The estimated budget will be increased by $540,000 to $6.0 million.
• Utility Users Tax (UUT)
UUT revenues are up 0.83% ($14,402) in FY 2022-23 from last year. UUT revenues for Electric and cable increased the first six months of the year while UUT revenues for water, gas, and telephone decreased. UUT - telephone will continue to decrease as people are no longer using landlines.
• Business License & Permits
Business Licenses and Permits decreased by 1.20% ($5,261) from last year. There was a decrease in business license, parking permits, street/curb permits, FOG wastewater permit, and street closure permits. Filming permits and fire permits increased in the first six months by $13,000. Staff is working closely with HdL, who we contract with for business license and FOG permitting, to gain further compliance. • Charges for Current Services
Charges for Services increased by 30.32% ($529,114) from last year. Charges for Services include various fees such as Plan Check Fees, Paramedic Fees, Filming, Planning Fees, Building Permits, Inspection and Recreation Fees. As we advance out 2 - 5
FY 2022-23 Mid-Year Budget Report, CIP Carryover, Budget Policies and Resolution March 15, 2023
of the Covid-era, the charges for current services revenue will continue to increase as the City is opening up more programs and activities for the public. Plan check and paramedic fees makes up the biggest increase from prior year. • Fines, Forfeits, & Penalties
Fines, Forfeitures, and Penalties increased by 33.28% ($48,725) from last year. The reason for this increase is due to processing of payment to Parking Citations vendor from September 2020 through July 2021 in FY 2021-22. This timing difference of payments caused the revenue to be understated in FY 2021-22. • Other Revenues
Other Taxes and Revenue decreased by 19.21% ($206,475) from last year. Interest and Rental income increased by $67,000. In FY 2021-22, there were miscellaneous receivables received of $108k that was not received this year. Also, the City contracts with San Marino Fire Department for a shared Division Chief. The City will receive a reimbursement from the City of San Marino in the near future for this reimbursement.
FY 2022-23 Mid-Year Expenditure Performance
The City expended 3.66% ($614,017) more than last year. The increase in expenditures can be attributed to increase in professional and contractual services, salary, liability insurance and legal services. The Finance Department will continue to monitor spending, address unanticipated needs for the current year, and help ensure that departments are adhering to the approved budget.
FY 2022-23 Financial Forecast
In addition to reporting on the fiscal condition of the City through the first half of the year, the FY 2022-23 Mid-Year Financial Review provides an updated FY 2022-23 Financial Forecast. Throughout the year, fiscal issues arise and budget adjustments may be required that may impact the FY 2022-23 Adopted Budget. When this happens, budget assumptions and year-end projections change. The Mid-Year Financial Review is usually a good time to present an updated FY 2022-23 Financial Forecast, as we become aware of new fiscal issues that arise subsequent to the budget adoption.
Refer to Table 4 below for an updated FY 2022-23 Financial Forecast:
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FY 2022-23 Mid-Year Budget Report, CIP Carryover, Budget Policies and Resolution March 15, 2023
TABLE 4
GENERAL FUND
ADJUSTED FY2022-23 FINANCIAL FORECAST
FY2022-23 Budget FY 2022-23 Adjusted Budget
Revenues
Adopted Revenues (including
Transfers In) $42,224,170 $42,309,230
Cell Tower Sales/Leaseback
Transfers In
Bradley Burns 1% Local Sales and
Use Tax 300,000
Measure A Sales Tax 240,000
Total Adjusted Revenues $42,224,170 $42,849,230
Expenditures
Adopted Expenditures (including
Transfers Out) $41,721,612 $41,721,612
1st Quarter Council Approved Budget
Adjustments 191,893
2nd Quarter Council Approved Budget
Adjustments 416,050
February Council Approved Budget
Adjustments 123,570
City Manager Operational Budget
(Proposed) 503,298
Community Development Operational
Budget (Proposed) 627,314
Community Services Operational
Budget Proposed 32,142
Finance & Administration Operational
Budget (Proposed) 330,786
Fire Operational Budget (Proposed) 5,000
Library Operational Budget (Proposed) 24,375
Management Services Operational
Budget (Proposed) 186,885
Police Services Operational Budget
(Proposed) 133,996
Public Works Operational Budget
(Proposed) 164,325
Reclass SLFRF Appropriations to new
Fud (5,830,000)
Transfer Out – State & Local Fiscal
Recovery Funds (SLFRF) 6,059,236
Transfer Out – Self Insurance Fund
Total Adjusted Expenditures $41,721,612 $44,690,482
Operating(Deficit)/Surplus $502,558 ($1,841,252)
Beginning Fund Balance $20,810,029 $24,672,171
Ending Fund Balance $21,312,587 $22,830,919
Minimum GF FB Reserve (30% of
Revenues) $12,667,251 $12,854,769
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FY 2022-23 Mid-Year Budget Report, CIP Carryover, Budget Policies and Resolution March 15, 2023
The second column on Table 4 represents the FY 2022-23 Adjusted Budget, considering all unanticipated expenditures and proposed budget adjustments. Based on the second column, the new FY 2022-23 ending fund balance is projected to be $22,688,535. The new reserve level is above the minimum General Fund reserve level of 30% of the current-year operating budget.
FY 2022-23 Mid-Year Budget Adjustments
Staff is presenting the following Mid-Year Budget Adjustments for Council’s consideration to amend the FY 2022- 23 Budget:
General Fund:
• City Manager Operational Budget ($503,298 – All Funds) - An additional appropriation in the amount of $501,798 from General Fund reserves is needed to cover costs for SouthPas Mobile application and related annual license, adjust Membership Dues (Contract Cities), ICSC conference, City Manager Emergency Reserve, postage for additional mailers for City events and legal fees for increased PRA request, City Birthday celebration. • Community Development Operational Budget ($662,314 – All Funds) - An additional appropriation from General Fund reserves, $627,314 for prior year’s cost for Building & Planning Services, reclassification of a code enforcement officer to a Senior Code Enforcement Officer, payment for past and current year Outlook Newspaper publication services, present and future staff overtime cost, Code Enforcement Division equipment, office supplies, upgrade of an Associate Planner to Senior Planner position.
• Community Services Operational Budget ($39,741 – All Funds) - Additional appropriations from General Fund reserves, $32,142 for an additional Concert and Movie in the Park (June), increase cost in office supplies, CAPIO conference, Peafowl fliers, installation of new burglar alarm for Iron Works Museum, music licensing fees, past mayor’s bench, higher than expected cost for skate park repairs.
• Finance & Administration Operational Budget ($573,826 – All Funds) - Additional appropriation from General Fund reserves, $330,786 for CSMFO annual conference (training), additional contractors (due to vacancies), investment advisor fees and HDL tax collection fees.
• Fire Services Operational Budget ($5,000 – All Funds) - Additional appropriation from General Fund reserves, $5,000 for increased cost for medical supplies due to CPI.
• Library Operational Budget ($24,375 – All Funds) - Additional appropriations from General Fund reserves, $24,375 for payroll tax, overtime and holiday pay. 2 - 8
FY 2022-23 Mid-Year Budget Report, CIP Carryover, Budget Policies and Resolution March 15, 2023
• Management Services Operational Budget ($186,885 – All Funds) - Additional appropriations from General Fund reserves, $186,885 for NEOGOV, conversion of part-time Management Assistant to full-time position, office supplies, additional landline service, membership dues, PRA system implementation, temporary staffing services for; City Clerk, Human Resources, City Clerk publications. • Police Services Operational Budget ($133,996 – All Funds) - Additional appropriations from General Fund reserves, $133,996 for increased state mandated training, higher than expected crossing guard costs, vehicle maintenance and increased Injured On Duty (IOD) cost.
• Public Works Operational Budget ($500,679 – All Funds) - Additional appropriation in the amount of $164,325 from General Fund reserves, gopher abatement, additional facility maintenance cost, vehicle maintenance, increased utility costs.
Staff is also recommending Mid-Year Budget Adjustments for the City Council’s consideration to amend the FY 2022-23 Budget for other funds. The proposed FY 2022-23 Mid-Year Budget adjustments are listed in Schedule A.
Other Funds:
• Community Development Operational Budget ($35,000 – Facilities & Equipment Fund) - Additional appropriations from the Facilities & Equipment Fund for the purchase of new vehicle for Code.
• Community Services Operational Budget ($7,600 – Proposition a Fund) - Additional appropriations from Prop a Funds, Retrofit of EV charger. • Finance & Administration Operational Budget ($243,040) - Additional appropriations from Internal Insurance Fund ($232,040) for additional legal services, OPEB Trust Fund ($1,000) CEBRT administration cost, Water ($10,000) postage for water billing.
• Public Works Operational Budget ($336,354)- Additional appropriation in the amount of ($9,100) from Proposition C, Sewer Fund ($81,000), Street Light & Landscape ($98,0000), CalRecycle Local Asst. Grant ($37,204), State Gas Tax ($16,000), County Park Bond ($8,500), MSRC Grant ($4,550), Water ($82,000).
• Public Works Capital Improvement Program (CIP) Carryovers from FY 2021-22 Capital Budget ($5,005,415) - Carryover FY 2021-22 CIP appropriations for the following funds:
o Street Improvements Program $2,353,628
o Facilities & Equipment Replacement $280,000
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FY 2022-23 Mid-Year Budget Report, CIP Carryover, Budget Policies and Resolution March 15, 2023
o Local Transit Return (Prop A) $22,450
o Sewer $70,000
o Proposition C Exchange Funds $17,093
o Community Development Block Grant (CDBG) $216,597
o Park Impact Fees $51,255
o Highway Safety Improvement Program (HSIP) $69,397
o Water $1,780,000
o Water Efficiency Fund $120,000
State & Local Fiscal Recovery Fund (SLFRF)
The City received its allocation of SLFRF funds in July 2021 and 2022 totaling $6,059,236. The FY 2022-23 Adopted Budget reflected the grant revenue in the General Fund as well as the budgeted expenditures of $5,830,000. The Finance Department has reassessed how the SLFRF allocations should be recorded in the City’s financial system and determined that tracking the balance and expenditures on a separate Fund will offer better transparency and reporting of the grant fund. Fund 206 will be created to track the SLFRF program activity.
Since the revenue and expenditures were originally budgeted in the General Fund, the mid-year budget adjustment reflects the transfer of these revenues from General Fund to the new SLFRF Fund (206) and a reclassification of the appropriations from the General Fund to Fund 206. According to FY 2022-23 Adopted Budget, the SLFRF Funds are programed as follows:
• $1 million for COVID-19 Emergency Response – expended and seeking reimbursement via SLFRF and Federal Emergency Management Agency (FEMA)
• $1 million for Fire Department Air Utility (AU) 81 apparatus and replacement of ambulance
• $3 million for salaries and Capital Improvement Program (CIP) infusion • $300,000 for Public Works Automatic Asphalt Truck
• $530,000 for Citywide technology enhancements
o $160,000 – Library Radio Frequency Identification (RFID) Automated System
o $150,000 – Employee Engagement and Retention
o $100,000 – IT Master Plan
o $70,000 – Police Electronic Control Device (ECD) Replacements o $50,000 – Community Services Registration Software
Some of the allocated cost above may not be fully expended as planned, thus it should be mentioned that the programming of SLFRF funds are subjected to change based on re-assessment of the City’s needs and Councils’ approval.
Currently, these are expenditures that have already been incurred or encumbered:
• $70,000 – Police Electronic Control Device (ECD) Replacements • $50,000 – Community Services Registration Software
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FY 2022-23 Mid-Year Budget Report, CIP Carryover, Budget Policies and Resolution March 15, 2023
• $152,048 – Fire Department Air Utility (AU) 81 apparatus • $213,750 – One-time Stipend per each Bargaining Units MOU • $1,255,920 – Salary Increases
FY 2022-23 Budget Policies
To enhance fiscal transparency and maintain and improve fiscal sustainability, the City of South Pasadena annually adopts fiscal policies to establish a framework to ensure a balanced budget, maintain healthy reserves, appropriately fund the City’s infrastructure needs, establish fees and charges, and ensure compliance with City Council directives. This policy is adopted annually as part of the Budget adoption process and may be revised by City Council.
During the adoption of the City’s annual Operating and Capital budget for FY 2022-23 on June 15, 2022, a copy of the City’s Financial Policies were erroneously excluded from the budget document. Therefore, staff has included the policy for FY 2022-23 for City Council approval.
Fiscal Impact
These adjustments will serve to keep the General Fund and Capital Improvement Program (CIP) projects in line with the estimated year-end actual. The overall fiscal impact is a decrease to the General Fund reserve of $1,983,636. During the remainder of the fiscal year, if any material deficiencies arise, they will be brought forward to the City Council for adjustment.
Key Performance Indicators and Strategic Plan
This item is in line with the Finance Department’s Key Performance Indicator. The midyear adjustment is being presented in order to provide a more transparent Budget process.
Commission Review and Recommendation
This matter will be reviewed in a Special Joint Meeting of the City Council and Finance Commission on March 15, 2023.
Attachments:
1) Resolution
a. Attachment A- FY 2022-23 Mid-Year Expenditure Adjustments b. Attachment B – Capital Improvement Program (CIP) FY 2021-22 Project Carryovers
c. Attachment C – FY 2022-23 Budget Policies
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ATTACHMENT 1
Resolution
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ATTACHMENT 1
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SOUTH PASADENA APPROVING FISCAL YEAR 2022-
2023 MID-YEAR BUDGET AMENDMENTS AND
ADJUSTMENTS, CAPITAL IMPROVEMENT PROGRAM
CARRYOVERS, CITY COUNCIL BUDGET POLICIES, AND
CREATION OF THREE FUNDS
WHEREAS, on June 15, 2022, the City Council adopted the Fiscal Year 2022-2023 Budget;
WHEREAS, the since the adoption in June 2022, City Council has taken action to adjust the general ledger of the Fiscal Year 2022-2023 Budget to fund various projects across the agency;
WHEREAS, at the March 15, 2023 Special City Council meeting, the City Council considered recommended Mid-Year Budget Adjustments to the Fiscal Year 2022-2023 Budget;
WHEREAS, the City Council considered amending the Fiscal Year 2022-2023 Budget to include Capital Improvement Program (CIP) Carryovers from Fiscal Year 2021-22 to incorporate unspent monies for existing capital improvement projects appropriated in the FY 2021-22 Budget;
WHEREAS, the City Council considered Fiscal Year 2022-2023 Council Budget Policies;
WHEREAS, the City Council considered the creation of three new Funds which are necessary to properly manage the City’s finances:
a. Fund 206 - State and Local Fiscal Recovery Fund (SLFRF), b. Fund 110 - OPEB 115 Trust Fund, and
c. Fund 209 - Carlyle Library Bequest; and
WHEREAS, the City Council desires to amend the Fiscal Year 2022-2023 Budget; carryover unfinished Fiscal Year 2021-22 CIP Projects; adopt the Fiscal Year 2022-2023 Council Budget Policies; and create Funds 206, 110, and 209.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SOUTH PASADENA,
CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:
SECTION 1. The Fiscal Year 2022-2023 Budget is hereby amended to reflect those Adjusted Budget amounts for Fund Sources and Accounts as stated in the FY 2022- 2023 Mid-Year Expenditure Adjustments (Attachment A);
SECTION 2. The Fiscal Year 2022-2023 Budget is hereby amended to increase the budgeted amounts for the Account Titles stated in the Funds indicated in the Capital Improvement Program (CIP) FY 2021-2022 Project Carryovers (Attachment B); 2 - 15
RESOLUTION NO.
SECTION 3. The Fiscal Year 2022-2023 Budget is hereby amended to incorporate the FY 2022-2023 Budget Policies (Attachment C);
SECTION 4. The Fiscal Year 2022-2023 Budget is hereby amended to create Fund 206 - State and Local Fiscal Recovery Fund (SLFRF);
SECTION 5. The Fiscal Year 2022-2023 Budget is hereby amended to create Fund 110 - OPEB 115 Trust Fund;
SECTION 6. The Fiscal Year 2022-2023 Budget is hereby amended to create Fund 209 - Carlyle Library Bequest, for the exclusive use of such monies for a capital improvement project for the construction of a library children’s wing amphitheater; SECTION 7. All other terms of the Fiscal Year 2022-2023 Budget, and prior adjustments to the general ledger of the Fiscal Year 2022-2023 Budget, not amended herein shall remain unchanged; and
SECTION 8. This Resolution shall take effect immediately upon its adoption.
PASSED, APPROVED AND ADOPTED ON this 15th day of March, 2023. __________________________
Jon Primuth, Mayor
ATTEST: APPROVED AS TO FORM:
__________________________ ___________________________
Mark Perez, Deputy City Clerk Andrew Jared, City Attorney (seal)
I HEREBY CERTIFY the foregoing resolution was duly adopted by the City Council of the City of South Pasadena, California, at a regular meeting held on the 15th day of March, 2023, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAINED:
___________________________
Mark Perez, Deputy City Clerk
(seal)
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ATTACHMENT A
FY 2022-23 Mid-Year Expenditure Adjustments
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THIS PAGE
INTENTIONALLY
LEFT BLANK
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3/9/2023
Fund Description Fund Total
General Fund 101 $ 2,008,120.56
Insurance Fund 103 $ 232,040.00
Street Improvements Program 104 $ -
Facilities & Equip. Cap. Fund 105 $ 35,000.00
OPEB Trust 110 $ 1,000.00
Local Transit Return 'A' 205 $ 7,600.00
SLFRF 206 $ -
Prop C - Local Transit Return "C" 207 $ 9,100.00
209 (Carlyle Library Bequest) 209 $ -
Sewer 210 $ 81,000.00
Street Light & Landscape 215 $ 98,000.00
CalRecycle 219 $ 37,204.00
Business Improvement Tax 220 $ -
State Gas Tax 230 $ 16,000.00
Street Light & Landscape 232 $ 8,500.00
MSRC Grant Fund 238 $ 4,550.00
Prop C Exchange Funds 242 $ -
CDBG 260 $ -
Park Impact Fees 275 $ -
HSIP Grant 277 $ -
Water 500 $ 92,000.00
Water Efficiency Fund 503 $ -
Total Mid-Year Adjustments $ 2,630,114.56
Departments General Fund GF Code Total
City Manager's Office 101 $ 503,297.56
Community Development 101 $ 627,313.89
Community Services 101 $ 32,142.00
Finance 101 $ 330,786.11
Fire 101 $ 5,000.00
Library 101 $ 24,375.00
Management Services 101 $ 186,885.00
PD 101 $ -
Public Works 101 $ 164,325.00
Total Mid-Year Adjustments $ 1,874,124.56
GF On-going $ 251,700.00
GF One-time $ 1,756,420.56
$ 2,008,120.56
City of South Pasadena
Mid-Year Appropriation Adjustment
S:\A1 STAFF REPORTS by date\03-15-2023\Finance\MidYear\Attachment A - Mid Year Expenditure Adjustments Page 1 of 11 2 - 19
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Departments Dept. Code Total
City Manager's Office 2010 $ 503,297.56
Community Development 7010 $ 662,313.89
Community Services 8020 $ 39,742.00
Finance 3010 $ 573,826.11
Fire 5010 $ 5,000.00
Library 8010 $ 24,375.00
Management Services 2030 $ 186,885.00
PD 4010 $ -
Public Works 6010 $ 500,679.00
Total Mid-Year Adjustments $ 2,496,118.56
S:\A1 STAFF REPORTS by date\03-15-2023\Finance\MidYear\Attachment A - Mid Year Expenditure Adjustments Page 2 of 11 2 - 20
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Public Works Sewer 210 210-9000-9407-9407-000 One-Time
PW Sewer CMMS/Work Order
System/GIS - 70,000.00 $ 70,000.00
Budget Carryover from FY 21-22 with additional appropriation, Capital Improvement Program Computerized Maintenance
Management System
System (CMMS) / GIS
Public Works Water 500 500-9000-9407-9407-000 One-Time
PW Water CMMS/Work Order
System/GIS - 50,000.00 $ 50,000.00
Budget Carryover from FY 21-22 with additional appropriation, Capital Improvement Program Computerized Maintenance
Management System
System (CMMS) / GIS
Public Works Facilities & Equip. Cap. Fund 105 105-9000-9206-9206-000 One-Time 825 Mission Yard Security Gate - 160,000.00 $ 160,000.00 Budget Carryover from FY 21-22, Capital Improvement Program 825 Mission Yard Security Gates
Public Works CDBG 260 260-9000-9264-9264-000 One-Time ADA Sidewalk Repairs 105,126.00 216,597.00 $ 321,723.00 Budget Carryover from FY 21-22, Capital Improvement Program ADA Sidewalk Repairs
Public Works Water 500 500-9000-9300-9300-000 One-Time Ann. Water Main Repairs 1,000,000.00 1,000,000.00 $ 2,000,000.00 Budget Carryover from FY 21-22, Capital Improvement Program Annual Water Main Repairs
Public Works Facilities & Equip. Cap. Fund 105 105-9000-9404-9404-000 One-Time City Hall Security Enhancement
Citywide Facilities Assessment/
Security Enhancement 100,000.00 100,000.00 200,000.00
Budget Carryover from FY 21-22, Capital Improvement Program Citywide Facilities Assessment/ Security Enhancement
• Update Account Name to "Citywide Facilities Assessment/ Security Enhancement"
Public Works Water Efficiency Fund 503 503-9000-9410-9410-000 One-Time Climate Action Plan - 120,000.00 $ 120,000.00 Budget Carryover from FY 21-22, Capital Improvement Program Climate Action Plan
Public Works Water 500 500-9000-9408-9408-000 One-Time Elevated Tanks-Raymond/Bilikie 40,000.00 80,000.00 $ 120,000.00 Budget Carryover from FY 21-22, Capital Improvement Program Elevated Tanks-Raymond/Bilikie
Public Works Prop C - Local Transit Return "C" 207 207-9000-9351-9351-000 One-Time Flashing Beacons - 22,450.00 $ 22,450.00 Budget Carryover from FY 21-22, Capital Improvement Program Flashing Beacons
Public Works Park Impact Fees 275 275-9000-9033-9033-000 One-Time Grevalia&Berkshire Pocket Park 825,000.00 51,255.20 $ 876,255.20 Budget Carryover from FY 21-22, Capital Improvement Program Grevalia & Berkshire Pocket Parks
• Transfer Remaining Funds from 275-9000-9263-9263-000
"Pocket Park Construction"
Public Works Facilities & Equip. Cap. Fund 105 105-9000-9404-9404-001 One-Time Library Security Camera System - 20,000.00 $ 20,000.00 Budget Carryover from FY 21-22, Capital Improvement Program Library Security Camera System
Public Works Street Improvements Program 104 104-9000-9203-9203-000 One-Time Street Repairs - 2,298,444.75 $ 2,298,444.75 Budget Carryover from FY 21-22, Capital Improvement Program Street Repairs
Public Works Water 500 500-9000-9409-9409-000 One-Time Westside Reservoir - 550,000.00 $ 550,000.00 Budget Carryover from FY 21-22, Capital Improvement Program Westside Reservoir
Public Works Street Improvements Program 104 104-9000-9192-9192-001 One-Time Fair Oaks Traffic Signal Const - 55,183.03 $ 55,183.03 Budget Carryover from FY 21-22, Fair Oaks Traffic Signal Construction
Public Works Prop A - Local Transit Return "A" 205 205-9000-9192-9192-001 One-Time Fair Oaks Traffic Signal Const - 24,995.00 $ 24,995.00 Budget Carryover from FY 21-22, Fair Oaks Traffic Signal Construction
Public Works Prop C Exchange Funds 242 242-9000-9192-9192-001 One-Time Fair Oaks Traffic Signal Const - 17,093.13 $ 17,093.13 Budget Carryover from FY 21-22, Fair Oaks Traffic Signal Construction
Public Works HSIP Grant 277 277-9000-9192-9192-001 One-Time Fair Oaks Traffic Signal Const - 69,396.84 $ 69,396.84 Budget Carryover from FY 21-22, Fair Oaks Traffic Signal Construction
Public Works Water 500 500-6010-6711-8170-000 One Time
PW Water Production Professional
Services 255,000.00 100,000.00 $ 355,000.00
Budget Carryover from FY 21-22, Westside Reservoir Seismic and Structural Evaluation
S:\A1 STAFF REPORTS by date\03-15-2023\Finance\MidYear\Attachment A - Mid Year Expenditure Adjustments 2 - 21
Atachment A
GL Account Number On-going/One Time Account Name Type of Appropriation Current Budgeted Amount Budget Amendment Request 101-0000-0000-42000-000 One Time Sales Tax Bradley Burns Revenue $ - $ 300,000.00 101-0000-0000-42000-002 One Time Meas. A Local Sales Tax Revenue $ - $ 240,000.00 209-0000-0000-5501-020 One Time Bequest - Carlyle Revenue $ - $ 2,800,000.00 219-0000-0000-5071-005 One Time
CalRecycle - Non-Federal
Grants - Pub. Wrks Revenue $ - $ 37,204.00
2 - 22
Attachment A
Department: Funding Source Div Name GL Account Number On-going / One Time
Account Name Current Budgeted
Amount
Budget
Amendment
Request
Adjusted Budget Comment
City Manager's
Office
General Fund City Manager 101-2010-2011-8060-000 One time Dues, Memberships, and Subscriptions
$ 44,100.00 $ 3,400.00 $ 47,500.00 True up accounting- Paid for past-due FY 21-22 Membership - Contract Cities
City Manager's
Office
General Fund City Manager 101-2010-2011-8020-000 On-going Special Department Expense
$ 15,000.00 $ 5,800.00 $ 20,800.00 True up accounting- Social Services Program & District Town Hall Event costs
City Manager's
Office
General Fund City Manager 101-2010-2011-8010-000 One time Postage $ 2,000.00 $ 2,000.00 $ 4,000.00 To account for extra mailers for city events City Manager's
Office
General Fund General Liability 101-2010-2501-8160-000 One time Legal Services $ 450,000.00 $ 445,139.73 $ 895,139.73 To account for services arising through the year, not anticipated at time of creating budget; estimating
$360k through end of FY 22-23.
City Manager's
Office
General Fund City Manager 101-2010-2011-8090-000 One time Training Expense $ 15,000.00 $ 1,750.00 $ 16,750.00 ICSC Conference Registrations & travel City Manager's
Office
General Fund City Manager 101-2010-2011-8272-000 One time CM Emergency $ 25,000.00 $ 25,000.00 $ 50,000.00 True up accounting for CM Emergency Contingency fund-- funds used for emergent IT consultant work
City Manager's
Office
General Fund Economic Development 101-2020-2012-8020-000 One time Special Department Expense
$ 4,000.00 $ 3,180.00 $ 7,180.00 True up accounting for SouthPas Mobile App launch (flyers, t-shirts, street banners, etc.)
City Manager's
Office
General Fund Economic Development 101-2020-2012-8190-000 On-going Community Engagement
$ 20,000.00 $ 15,200.00 $ 35,200.00 True up accounting for annual SouthPas Mobile App cost - will increase by CPI each year - Originally
budgeted for in MSD and transfer overlooked to CMO
City Manager's
Office
General Fund Economic Development 101-2020-2012-8050-000 One time Printing & Duplicating $ 8,000.00 $ 327.83 $ 8,327.83 True-up postage expenses City Manager's
Office
General Fund Economic Development 101-2020-2012-8020-000 One time Public Events Promotion
$ 5,000.00 $ 1,500.00 $ 6,500.00 SP Birthday Celebration Community
Development
General Fund Community Development 101-7010-7011-8180-000 One Time Contract Services $ 900,000.00 $ 494,678.00 $ 1,394,678.00 True up accounting for $450,000 from Transtech, Rincon and Interwest ($44,678) for leftover past-due
invoices.
Community
Development
General Fund Community Development 101-7010-7011-7000-000 On-going Salaries $ 109,000.00 $ 15,000.00 $ 124,000.00 Reclassification of full-time Code Enforcement Officer to a Senior Code Enforcement Officer position.
Community
Development
General Fund Community Development 101-7010-7011-8000-000 One Time Office Supplies $ 3,000.00 $ 16,430.89 $ 19,430.89 Negative Balance adj as well as predicted expense for PT Code Enforcement equipment & resources
Community
Development
General Fund Community Development 101-7010-7011-8040-000 One Time Advertising $ 3,000.00 $ 71,205.00 $ 74,205.00 True up accounting for past-due (multi-year) advertisements for public notifications for Outlook
Newspapers ($61,205) and future meeting
publications ($10,000)
Community
Development
General Fund Community Development 101-7010-7011-7000-000 On-going Salaries - Permanent $ 1,029,544.00 $ 5,000.00 $ 1,034,544.00 Reclassification of an Associate Planner to Senior Planner ahead of recruitment.
City of South Pasadena
Proposed FY 2022-23 Mid-Year Expenditure Adjustments
FY 2022-23
2 - 23
Attachment A
Department: Funding Source Div Name GL Account Number On-going / One Time
Account Name Current Budgeted
Amount
Budget
Amendment
Request
Adjusted Budget Comment
City of South Pasadena
Proposed FY 2022-23 Mid-Year Expenditure Adjustments
FY 2022-23
Community
Development
General Fund Community Development 101-7010-7011-7020-000 One Time Overtime $ 5,000.00 $ 25,000.00 $ 30,000.00 To cover present and future projected overtime Community
Development
General Fund Community Development 105-7010-7011-8540-000 One Time Vehicle Purchase $ - $ 35,000.00 $ 35,000.00 Vehicle purchase for the department to replace an end-of-life fleet vehicle to be used by all staff.
Community
Services
General Fund After-School Day Care 101-8030-8032-8264-000 one time Special Events $ 17,000.00 $ 8,500.00 $ 25,500.00 Additional funds for 1 Concert and 1 Movie in the Park in June 2023, as Summer is starting earlier, and
to account for increased costs to programming
Community
Services
General Fund Senior Center 101-8030-8021-8090-000 one time Conference & Meeting Expenses
$ 2,000.00 $ 2,000.00 $ 4,000.00 Additional funds for CAPIO Conference, hotel and flight
Community
Services
General Fund Recreation 101-8030-8031-8180-000 one time Contract Services $ 66,003.00 $ 2,700.00 $ 68,703.00 Installation of Fire/Burglar alarm at IronWorks Museum
Community
Services
General Fund Recreation 101-8030-8031-8020-000 one time Special Department $ 14,830.00 $ 1,185.00 $ 16,015.00 New music and movie licensing fees Community
Services
General Fund Recreation 101-8030-8031-8050-000 one time Printing $ 200.00 $ 12,000.00 $ 12,200.00 True up accounting for the printing and mailing of Peafowl trapping flier and Hometown Holiday flier in
2022
Community
Services
General Fund Senior Center 101-8030-8021-8020-000 one time Special Department $ 30,600.00 $ 2,057.00 $ 32,657.00 Purchase bench for past mayor as discretionary funds are no longer available and Staff uniform shirt
purchase was higher by $257.00
Community
Services
General Fund After-School Day Care 101-8030-8032-8180.000 one time Contract Services $ 23,525.00 $ 3,700.00 $ 27,225.00 Skate park repairs were higher than budgeted: cost was $15,716.92 only budgeted $12,000. Need for
purchases of First Aid for Recreation.
Community
Services
Local Transit
Return 'A'
Transit Planning 205-8030-8024-8540-000 one time Automotive $ 169,000.00 $ 7,600.00 $ 176,600.00 EV Charger retrofit, $7,600 for transit vehicles Finance General Fund Finance 101-3010-3011-xxxx-xxxx $ 77,000.00 True up accounting for actual services of investment advisors at Western Asset and Morgan Stanley
Finance General Fund Finance 101-3010-3011-8090-000 One-Time Conference and Meeting Expense
$ 1,000.00 $ 4,000.00 $ 5,000.00 CSMFO Conference expenses Finance General Fund Finance 101-3010-3011-8180-000 One-time Contract Services $ 38,500.00 $ 242,250.00 $ 280,750.00 For temporary staffing in Finance (MV Cheng and Associates) previously approved at City Council
Finance General Fund Finance 101-3010-3011-7000-000 On-Going Salaries - Permanent $ 519,867.00 $ - $ 519,867.00 Reclass part-time Management Analyst to full-time Management Assistant; salary savings from budgeted
vacancies.
Finance General Fund Finance 101-3010-3011-8170-000 One-time Professional Services $ 80,141.00 $ 6,736.11 $ 86,877.11 HdL Collection of Transaction tax Finance General Fund Non-Departmental/Overhead 101-3010-3041-8335-000 One-time Property Tax Admin Fee
$ 176,300.00 $ 800.00 $ 177,100.00 True up costs
2 - 24
Attachment A
Department: Funding Source Div Name GL Account Number On-going / One Time
Account Name Current Budgeted
Amount
Budget
Amendment
Request
Adjusted Budget Comment
City of South Pasadena
Proposed FY 2022-23 Mid-Year Expenditure Adjustments
FY 2022-23
Finance Insurance Fund General Liability 103-2010-2501-8020-000 One-Time Special Department Expense
$ 1,167,960.00 $ 232,040.00 $ 1,400,000.00 True up to the insurance accounts for Carl Warren and Prism, and fund through end of year.
Finance OPEB Trust Finance 110-3010-3011-8170-000 One-time Professional Services $ - $ 1,000.00 $ 1,000.00 CERBT Admin costs Finance Water Utility Billing 500-3010-3012-8010-000 One-time Postage $ 40,000.00 $ 10,000.00 $ 50,000.00 True up accounting and provide budget through end of the year due to increased cost of postage for water
billing
Fire General Fund Fire 101-5010-5011-8025-000 One-time Medical Supplies $ 119,060.00 $ 5,000.00 $ 124,060.00 Increased cost with medical suppliers due to inflation Library General Fund
Reserves
Library 101-8010-8011-7170-000 On-going FICA - Medicare $ 11,871.00 $ 21,375.00 $ 33,246.00 Add in 6.25% Percent for Part-Time Staff; Possibly
1.45% for Part-Time
Library General Fund
Reserves
Library 101-8010-8011-7020-000 On-going Overtime $ - $ 1,000.00 $ 1,000.00 Not previously budgeted; establishing budget where needed.
Library General Fund
Reserves
Library 101-8010-8011-7040-000 On-going Holiday $ - $ 2,000.00 $ 2,000.00 Not previously budgeted; establishing budget where needed.
Management
Services
General Fund Human Resources 101-2030-2034-8020-000 One Time Special Department Expense
$ 35,000.00 $ 3,000.00 $ 38,000.00 $21,962.29 payment to NEOGOV needs to be charged to 8180 (HR) & Adding funds for staff events
Management
Services
General Fund Management Services 101-2030-2031-7000-000 One Time Salaries $ 228,614.00 $ 14,885.00 $ 243,499.00 Reclassification of a part-time management assistant to a full-time management assistant position.
Management
Services
General Fund Management Services 101-2030-2031-8000-000 One Time Office Supplies $ 10,000.00 $ 6,000.00 $ 16,000.00 Additional office supplies needed through end of fiscal year.
Management
Services
General Fund Information Services 101-2030-2032-8150-000 One Time Telephone $ 300,000.00 $ 69,000.00 $ 369,000.00 Funds to cover ongoing landline expenses (VOIP transition in Fall 2023) and copier costs.
Management
Services
General Fund Human Resources 101-2030-2034-8060-000 One Time Dues & Memberships $ 4,000.00 $ 2,000.00 $ 6,000.00 Additional funds for negative balance in HR professional memberships
Management
Services
General Fund City Clerk 101-2030-2033-8180-000 One Time Contract Services $ 37,000.00 $ 5,000.00 $ 42,000.00 Public Records Request System implementation Management
Services
General Fund City Clerk 101-2030-2033-7010-000 On-Going Salaries - Temp Part Time
$ - $ 40,925.00 $ 40,925.00 Temporary staffing costs through June 2023 Management
Services
General Fund Human Resources 101-2030-2034-7010-000 On-Going Salaries - Temp Part Time
$ - $ 31,075.00 $ 31,075.00 Temporary staffing costs through June 2023 Management
Services
General Fund City Clerk 101-2030-2033-8040-000 One Time Advertising $ 5,000.00 $ 15,000.00 $ 20,000.00 Additional funds needed for publications by City Clerk Division
Police General Fund Police 101-4010-4011-8200-000 One-time Training Expense $ 30,000.00 $ 3,000.00 $ 33,000.00 State mandates for training have increased Police General Fund Police 101-4010-4011-8180-000 One-time Contract Services $ 637,241.00 $ 14,796.00 $ 652,037.00 Additional funds needed to maintain the crossing guard contract, including the pilot project previously
approved by City Council.
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Attachment A
Department: Funding Source Div Name GL Account Number On-going / One Time
Account Name Current Budgeted
Amount
Budget
Amendment
Request
Adjusted Budget Comment
City of South Pasadena
Proposed FY 2022-23 Mid-Year Expenditure Adjustments
FY 2022-23
Police General Fund Police 101-4010-4011-8100-000 One-time Vehicle Maintenance $ 80,000.00 $ 50,000.00 $ 130,000.00 Existing gas-powered vehicles (end of life) need significant maintance until fleet transition is
complete.
Police General Fund Police 101-4010-4011-7060-000 One-time IOD - Safety $ 10,000.00 $ 66,200.00 $ 76,200.00 Increased cost to injuries on-duty; department working with HR to predict total costs of expenses for
public safety.
Public Works General Fund Park Maintenance 101-6010-6410-8180-000 On-going PW Park Maintenance Contract Services
$ 560,000.00 $ 24,325.00 $ 584,325.00 Adding services for aggressive gopher abatement to support youth sports through LA County Department
of Agricultural Commissioner / Weights & Measures,
repair fence at Orange Grove Park due to traffic
accident.
Public Works General Fund Facilities Maintenance 101-6010-6601-8180-000 One Time PW Facilities Maintenance Contract
Services
$ 230,400.00 $ 50,000.00 $ 280,400.00 True up accounting for past-due maintenance payments.
Public Works General Fund Admin. & Engineering 101-6010-6011-8100-000 On-going PW Administration Vehicle Maintenance
$ 500.00 $ 1,500.00 $ 2,000.00 Adjust Vehicle Maintenance Accounts to FY 21-22 Budget Amounts - Accounts were Offset by FY 22-23
Fuel Budget Updates; Increase to fuel costs.
Public Works General Fund Facilities Maintenance 101-6010-6601-8100-000 On-going PW Facilities Maintenance Vehicle
Maintenance
$ 2,000.00 $ 8,500.00 $ 10,500.00 Adjust Vehicle Maintenance Accounts to FY 21-22 Budget Amounts - Accounts were Offset by FY 22-23
Fuel Budget Updates; Increase to fuel costs.
Public Works General Fund Facilities Maintenance 101-6010-6601-8140-000 On-going PW Facilities Maintenance Utilities
$ 160,000.00 $ 80,000.00 $ 240,000.00 Account for cost increases for electrical and natural gas utilities in City facilities
Public Works Local Transit
Return "C"
EV Charging Stations 207-9000-9402-9402-000 On-going Civic Ctr EV Charging Station
$ - $ 9,100.00 $ 9,100.00 Budget carryover form FY 21-22, issuing payment for EV Charging Station (EV Gateway) installed May 2022
(partially funded by Prop A)
Public Works sewer Sewer 210-6010-6501-8170-000 One-Time Professional Services $ 60,000.00 $ 66,000.00 $ 126,000.00 Sewer consent judgement related reports (approved by City Council on 12/21/2022 Item #12)
Public Works Sewer Sewer 210-6010-6501-8100-000 On-going PW Sewer Maintenance Vehicle
Maintenance
$ 10,000.00 $ 15,000.00 $ 25,000.00 Adjust Vehicle Maintenance Accounts to FY 21-22 Budget Amounts - Accounts were Offset by FY 22-23
Fuel Budget Updates; Increase to fuel costs.
Public Works Street Light &
Landscape
Street Lighting 215-6010-6201-8170-000 One Time PW Street Lighting Professional Services
$ 7,400.00 $ 10,000.00 $ 17,400.00 Budgeting for Assessment District Professional Services (LLMD). The process starts toward the end
of the Fiscal Year and finishes early in the following
Fiscal Year. This adjusted amount pays for the
completed FY 21-22 work and the upcoming FY 22-23
work.
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Attachment A
Department: Funding Source Div Name GL Account Number On-going / One Time
Account Name Current Budgeted
Amount
Budget
Amendment
Request
Adjusted Budget Comment
City of South Pasadena
Proposed FY 2022-23 Mid-Year Expenditure Adjustments
FY 2022-23
Public Works Street Light &
Landscape
Street Lighting 215-6010-6201-8100-000 On-going PW Street Lighting Vehicle Maintenance
$ 5,000.00 $ 2,500.00 $ 7,500.00 Adjust Vehicle Maintenance Accounts to FY 21-22 Budget Amounts - Accounts were Offset by FY 22-23
Fuel Budget Updates; Increase to fuel costs.
Public Works Street Light &
Landscape
Street Trees 215-6010-6310-8100-000 On-going PW Street Tree Maintenance Vehicle
Maintenance
$ 7,500.00 $ 3,500.00 $ 11,000.00 Adjust Vehicle Maintenance Accounts to FY 21-22 Budget Amounts - Accounts were Offset by FY 22-23
Fuel Budget Updates; Increase to fuel costs.
Public Works Street Light &
Landscape
Traffic Signals 215-6010-6115-8140-000 On-going PW Traffic Signals Utilities
$ 68,000.00 $ 82,000.00 $ 150,000.00 Cost increases for electrical utilities related to street signals/lighting
Public Works CalRecycle Environmental Services 219-6010-6015-8020-000 One Time CalRecycle - Special Department Expense
$ - $ 37,204.00 $ 37,204.00 Establishing budget for SB 1383 Implementation Public Works State Gas Tax Street Maintenance 230-6010-6116-8100-000 On-going PW Street Maintenance Vehicle
Maintenance
$ 10,000.00 $ 16,000.00 $ 26,000.00 Adjust Vehicle Maintenance Accounts to FY 21-22 Budget Amounts - Accounts were Offset by FY 22-23
Fuel Budget Updates
Public Works Street Light &
Landscape
Prop "A" Park Maintenance 232-6010-6417-8140-000 On-going PW Prop A Maintenance Utilities
$ 11,500.00 $ 8,500.00 $ 20,000.00 Cost increases for electrical and natural gas utilities in City Parks
Public Works MSRC Grant Fund EV Charging Stations 238-9000-9402-9402-000 On-going EV Charging Station MSRC
$ - $ 4,550.00 $ 4,550.00 Budget carryover from FY 21-22, issuing payment for the EV Charging Station (EV Gateway) installed in May
2022 (partially funded by MSRC grant)
Public Works Water Water Distribution 500-6010-6710-8100-000 On-going PW Water Distribution Vehicle Maintenance
$ 2,250.00 $ 10,000.00 $ 12,250.00 Adjust Vehicle Maintenance Accounts to FY 21-22 Budget Amounts - Accounts were Offset by FY 22-23
Fuel Budget Updates
Public Works Water Water Production 500-6010-6711-8180-000 One Time PW Water Production Contract Services
$ 1,050,000.00 $ 35,000.00 $ 1,085,000.00 True up accounting; FY 21-22 invoice carryover expenditures from treatment systems carbon media
exchange
Public Works Water Water Distribution 500-6010-6710-8140-000 On-going PW Water Distribution Utilities
$ 43,000.00 $ 37,000.00 $ 80,000.00 Cost increases for electrical and natural gas utilities in City Water Facilities
$ 8,719,906.00 $ 2,630,114.56 $ 11,273,020.56
2 - 27
City of South Pasadena
Mid-Year Adjustments
ARPA
3/9/2023
Department: Funding Source Div Name GL Account Number On-going/One Tim Account Name Current Budgeted Amount Budget Amendment Request Adjusted Budget Comment Finance General Fund Non-Departmental/Overhead 101-3010-3041-8020-000 One-time SLFRF $ 5,557,952.00 $ (5,557,952.00) $ - SLFRF Transfer to fund 101 to 206-0000-0000-9911-000 Finance General Fund Police 101-4010-4011-8170-000 One-time Professional Services $ 259,250.00 $ (70,000.00) $ 189,250.00 SLFRF Transfer to fund 101 to 206-0000-0000-9911-000 Finance General Fund #N/A 101-8030-8031-8180-000 One-time Contract Services $ 58,050.00 $ (50,000.00) $ 8,050.00 SLFRF Transfer to fund 101 to 206-0000-0000-9911-000 Finance General Fund Fire 101-5010-5011-8134-000 One-time Saftey Clothing Equipment $ 183,048.00 $ (152,048.00) $ 31,000.00 SLFRF Transfer to fund 101 to 206-0000-0000-9911-000 Finance General Fund Non-Departmental/Overhead 206-3010-3041-8020-000 One-time SLFRF $ 5,557,952.00 $ 5,557,952.00 Finance General Fund Police 206-4010-4011-8170-000 One-time Professional Services $ 70,000.00 $ 70,000.00 Finance General Fund #N/A 206-8030-8031-8180-000 One-time Contract Services $ 50,000.00 $ 50,000.00 Finance General Fund Fire 206-5010-5011-8134-000 One-time Saftey Clothing Equipment $ 152,048.00 $ 152,048.00 S:\A1 STAFF REPORTS by date\03-15-2023\Finance\MidYear\Attachment A - Mid Year Expenditure Adjustments 2 - 28
City of South Pasadena
Mid-Year Adjustments
Transfers
3/9/2023
City of South Pasadena
Mid-Year Budget Amendment Form
GL Account Number On-going/One Time Account Name Type of Appropriation Current Budgeted Amount Budget Amendment Request S:\A1 STAFF REPORTS by date\03-15-2023\Finance\MidYear\Attachment A - Mid Year Expenditure Adjustments 2 - 29
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ATTACHMENT B
Capital Improvement Program (CIP) FY 2021-22
Project Carryovers
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Atachment B
City of South Pasadena
Capital Improvement Program
FY 2021-22 Project Carryovers
March 15, 2023
Funding Source Fund Account Titles Budget AmendmenComment Street Improvements Program 104 Street Repairs $2,298,444.75 Budget Carryover from FY 21-22, Capital Improvement Program Street Repairs Street Improvements Program 104 Fair Oaks Traffic Signal Const $55,183.03 Budget Carryover from FY 21-22, Fair Oaks Traffic Signal Construction Facilities & Equip. Cap. Fund 105 825 Mission Yard Security Gate $160,000.00 Budget Carryover from FY 21-22, Capital Improvement Program 825 Mission Yard Security Gates Facilities & Equip. Cap. Fund 105
City Hall Security Enhancement Citywide
Facilities Assessment/ Security
Enhancement $100,000.00
Budget Carryover from FY 21-22, Capital Improvement Program Citywide Facilities Assessment/ Security Enhancement
Update Account Name to "Citywide Facilities Assessment/ Security Enhancement" Facilities & Equip. Cap. Fund 105 Library Security Camera System $20,000.00 Budget Carryover from FY 21-22, Capital Improvement Program Library Security Camera System Prop A - Local Transit Return "A" 205 Fair Oaks Traffic Signal Const $24,995.00 Budget Carryover from FY 21-22, Fair Oaks Traffic Signal Construction Prop C - Local Transit Return "C" 207 Flashing Beacons $22,450.00 Budget Carryover from FY 21-22, Capital Improvement Program Flashing Beacons Sewer 210 PW Sewer CMMS/Work Order System/GIS $70,000.00 Budget Carryover from FY 21-22 with additional appropriation, Capital Improvement Program Computerized Maintenance Management System
System (CMMS) / GIS
Prop C Exchange Funds 242 Fair Oaks Traffic Signal Const $17,093.13 Budget Carryover from FY 21-22, Fair Oaks Traffic Signal Construction CDBG 260 ADA Sidewalk Repairs $216,597.00 Budget Carryover from FY 21-22, Capital Improvement Program ADA Sidewalk Repairs Park Impact Fees 275 Grevalia&Berkshire Pocket Park $51,255.20 Budget Carryover from FY 21-22, Capital Improvement Program Grevalia & Berkshire Pocket Parks Transfer Remaining Funds from 275-9000-9263-9263-000 "Pocket Park Construction" HSIP Grant 277 Fair Oaks Traffic Signal Const $69,396.84 Budget Carryover from FY 21-22, Fair Oaks Traffic Signal Construction Water 500 PW Water CMMS/Work Order System/GIS $50,000.00 Budget Carryover from FY 21-22 with additional appropriation, Capital Improvement Program Computerized Maintenance Management System
System (CMMS) / GIS
Water 500 Ann. Water Main Repairs $1,000,000.00 Budget Carryover from FY 21-22, Capital Improvement Program Annual Water Main Repairs Water 500 Elevated Tanks-Raymond/Bilikie $80,000.00 Budget Carryover from FY 21-22, Capital Improvement Program Elevated Tanks-Raymond/Bilikie Water 500 Westside Reservoir $550,000.00 Budget Carryover from FY 21-22, Capital Improvement Program Westside Reservoir Water 500 PW Water Production Professional Services $100,000.00 Budget Carryover from FY 21-22, Westside Reservoir Seismic and Structural Evaluation Water Efficiency Fund 503 Climate Action Plan $120,000.00 Budget Carryover from FY 21-22, Capital Improvement Program Climate Action Plan $5,005,414.95
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ATTACHMENT C
FY 2022-23 Council Budget Policies
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Attachment C
FY 2022/2023 Budget Policies
PURPOSE STATEMENT
To enhance fiscal transparency and maintain and improve fiscal sustainability, the City of South Pasadena annually adopts fiscal policies to establish a framework to ensure a balance budget, maintain healthy reserves, appropriately fund the City’s infrastructure needs, establish fees and charges, and ensure compliance with City Council directives. This policy is adopted annually as part of the Budget adoption process and may be revised by City Council action.
1. ANNUAL BUDGET
The City adopts an annual budget. The City’s fiscal year starts on July 1st and concludes on June 30th. The annual budget for the new fiscal year, will be adopted before June 30th.
The following are key elements of the City’s budget and budget process:
• Budgetary appropriations are made by the City Council, through formal budget adoption. • The City Manager submits the Proposed Budget to the City Council no later than the final City Council meeting in May.
• The budget is adopted by the City Council before June 30th, following a public meeting where constituents are given an opportunity to comment on the Proposed Budget. • Prior to consideration by the City Council, the Proposed Budget will be reviewed by the Finance Commission.
The policy was achieved for Fiscal Year 2022/2023, and the Proposed Budget was presented and discussed with City Council at the May 25, 2022, June 1, 2022 and June 15, 2022 City Council Meetings. The budget was formally approved and adopted on June 15, 2022.
2. BALANCED BUDGET
The City strives to maintain a balanced operating budget for all governmental funds (all funds except the enterprise funds), with total on-going revenues equal to or greater than total on-going expenditure, so that at year end all these funds have a positive fund balance and the General Fund balance is maintained.
• The budget is balanced at the individual fund level. The estimated revenue sources must be sufficient to cover proposed uses.
• Ongoing operations are funded by recurring revenues.
• City policies on reserve requirements for specific funds are adhered to in the budget. • If shortfalls are projected after the budget adoption, during quarterly financial reviews, the City Manager will present a plan to address such shortfalls with sustainable measures in order to achieve a balanced budget by fiscal year-end.
• Non-recurring revenues or one-time funding may be used to balance the budget during economic downturns, or as a result of unforeseen events.
The Adopted FY 2022/2023 Budget includes a balanced operating budget for the following funds:
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Attachment C
• The City’s General Fund is balanced.
Exceptions to this policy include:
• Fund 103 – Insurance Fund
• Fund 201 – Metropolitan Transportation Authority (MTA) Pedestrian Improvement Fund • Fund 207 – Successor Agency to California Redevelopment Agency (CRA) • Fund 215 – Street Light & Landscape Fund
• Fund 220 – Business Improvement Fund
• Fund 226 – Mission Meridian Public Garage Fund
• Fund 238 – Mobile Source Air Pollution Reduction Review Committee (MSRC) Grant • Fund 239 – Measure W
• Fund 241 – Measure H
• Fund 242 – Prop C Exchange
• Fund 245 – Bike & Pedestrian Paths
• Fund 248 – Bicycle Transportation Account (BTA) Grant • Fund 249 – Open Streets Grant
• Fund 274 – Homeland Security Grant
• Fund 277 – Highway Safety Improvement Program (HSIP) Grant • Fund 278 – Housing Element Grant
• Fund 310 – Sewer Capital Projects
• Fund 505 – 2016 Water Revenue Bonds
• Fund 550 – Public Finance Authority
3. APPROPRIATIONS AND BUDGETARY CONTROL
The City Council holds public hearings and adopts the City’s annual budget and may modify appropriations with majority approval. During the fiscal year, any budget adjustments (increases in appropriations at the fund level) that cannot wait for the Mid-Year review or that exceed the City Manager’s budget authority described below, must be submitted by the City’s departments for City Council review and approval. The review and approval may occur at any City Council meeting, at the request of staff or the City Council. The City Council approves any revisions that increase the total budgeted expenditures or revenues at the fund level, and any changes to permanent and full-time positions.
The legal level of expenditures is controlled at the fund level, and appropriations lapse at the end of each fiscal year unless encumbered for re-appropriation by the City Council in the following fiscal year. Department Heads may, without Council approval, amend individual line items within any fund in the maintenance and operations portions of the budget without increasing total appropriations for that division. The City Manager may, without Council approval, amend individual line items within any fund, and between divisions and programs, in the personnel costs, maintenance and operations, capital outlay and capital projects portions of the budget without increasing total appropriations for that fund.
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Attachment C
4. ENTERPRISE FUND
The City requires the water, sewer, and golf course enterprise funds be self-supporting. The City recognizes that enterprise funds function with accounting practices that are different from those used by governmental funds. Therefore, for enterprise funds, the City will strive to maintain operating budgets that produce annual net revenues that meet or exceed the compliance requirements of debt coverage rations generally.
The sewer fund was recognized as an enterprise fund starting in FY 2009/10, with the requirement of self-supporting funding. Water and sewer rate increases will assure that revenues exceed operating expenditures, including debt service. Budgeted water capital projects will be paid from a $37.8 million 2016 Water Bond issuance. Bond debt service will be paid out of water revenues.
Sewer revenues along with a revolving loan from the State will pay for sewer capital improvements.
The Water Fund will maintain a reserve equal to 30% of revenues. This policy has been met or exceeded. The Sewer fund will maintain a reserve equal to 30% of revenues. This policy has been met or exceeded.
5. GENERAL FUND RESERVES
General Fund Reserves are described as:
• Unassigned Fund Balance - These reserves are in spendable form and are either restricted, committed, or assigned. The City strives to attain a General Fund undesignated fund balance equal to a minimum 30% of General Fund revenues at year end. • Assigned Fund Balance – These reserves are set aside or earmarked for particular purposes, and the authority to designate these reserves can be delegated, and may take less formal action to limit how the reserves are used.
• Restricted Fund Balance – These reserves are subject to restrictions that are legally enforceable by outside parties, such as bondholders.
• Committed Fund Balance – These reserves are designated by the City Council, and are designated for specific purposes, through formal action. Committed balances can be modified by the City Council taking formal action.
The current Committed (Designated) Fund Balances, or designated reserves have been established for FY 2022/2023 is as follows:
• Arroyo Golf Course; $600,000
• CalTrans Vacant Lot Purchases; $392,000
• Library Expansion; $200,000
• Renewable Energy Source Reserve; $700,000
• Stormwater; $600,000
• CalTrans Housing/626 Prospect Ave Litig. Reserve; $345,876 • Transportation Projects – Rogan Fund Match; $1,071,517 2 - 39
Attachment C
Committed (Designated) Reserves shall be reviewed and designated annually by the City Council prior to Budget adoption. Upon designation of a reserve for a specific purpose, the Council will ensure the following:
• The purpose of the reserve will be specified at the time of designation. • The City Council will also identify whether the designation is a one-time designation or whether an amount specified by the City Council will be added to the designated reserve on an annual basis.
• Nothing limits the City Council’s authority to un-designate, or re-designate any General Fund Designated Reserve for another governmental purpose, pursuant to formal City Council action.
6. INFRASTRUCTURE
The City maintains a long-range fiscal perspective through the use of a Capital Improvement Program to maintain the quality of City infrastructure, including streets, sidewalks, sewers, drains, lighting, buildings, parks, and trees. The City Council adopts capital projects budgets and may modify appropriations with majority approval. All changes in appropriations at the fund level during the year must be submitted to the City Council for approval.
Beginning in FY 2013/14, the City’s goal has been to commit a minimum of $2,000,000 per year towards street improvements. This amount has fluctuated based upon available resources. In Fiscal. For Fiscal Year 2023, a total of $2,504,708 has been budgeted from Fund 104, Street Improvement reserves, and additional funding for street improvements have been budgeted using Prop C funds.
7. ACCOUNTING AND REPORTING STANDARDS
The City will comply with all requirements of generally accepted accounting principles, and will publish an Annual Comprehensive Financial Report (ACFR) in compliance with generally accepted accounting principles, prepared in coordination with our independent auditors, no later than the first quarter of each calendar year. The ACFR, along with the Auditor’s report on internal controls and compliance, will be presented to the City Council at a public meeting, after first being presented to the Finance Commission. The City shall endeavor to achieve audits with minimal auditor findings in the form of significant deficiencies. The City shall swiftly and thoroughly respond, to auditor findings of material weakness.
The City currently in compliance with this policy. The City completed the FY 2021/2022 ACFR on February 15, 2023.
8. MIDYEAR AND INTERIM FINANCIAL REPORTING
The City will publish a midyear budget update in March of each year. The midyear budget update shall present estimated outcomes and the implications for the budget year. The report shall give attention to the financial issues and policy matters anticipated to have the most significant short and long-term financial planning importance to the City Council.
Pursuant to the content of the midyear report, the City Council shall provide specific and general direction to staff for short- and long-term budgetary planning. 2 - 40
Attachment C
To comply with the policy, the City Manager will ensure the following:
• The midyear budget update will be presented to the City Council in February or March of each year.
• At the midyear budget update, staff will present to the City Council any necessary adjustments to the budget. The adjustments are based on additional funding, or major changes in revenues or expenditures, or previously approved budget adjustments. • Quarterly budget updates will be provided to the City Council starting in the Spring of 2023.
9. RISK MANAGEMENT
The City will identify and quantify all areas of financial and operating risk, and prepare contingencies for those risks, including legal liabilities, infrastructure maintenance, emergency response, and contract and employee obligations. The City will work with the City’s insurance providers to seek full coverage of actuarially projected needs.
Liability and Workers Compensation liability is reported in accordance with GASB 10, and further explained below.
• The City manages risk through a combination of purchased insurance and self-insurance. • The City self-insures workers’ compensation claims with a self-insured retention of $125,000 and general/auto liability claims, with a self-insured retention of $100,000 per covered claim. Excess workers’ compensation and general/auto liability insurance coverage shall be purchased.
• An annual actuarial study shall be conducted to provide an estimate of the self-insured liability to be recorded by the City in accordance with Governmental Accounting Standards Board Statement No. 10. This statement requires the City to accrue a liability on its financial statements for a reasonable estimate of the cost of claims and expenses associated with all reported and unreported claims.
• The City’s goal is to maintain reserves to fund its outstanding self-insured liabilities at the minimum level of 70 percent. It is anticipated that this goal will be achieved incrementally, and fully achieved by Fiscal Year 2023-2024.
• The City shall maintain a Self-Insurance Fund to both fund the liability reserve and workers compensation, and recover all associated risk management costs, including claim payments, insurance premiums and any deductibles, and claim administration (internal and external). The fund’s revenues shall be generated through assessments to City funds based on their claim experience and outstanding liabilities. These departmental assessments shall be evaluated annually and adjusted as needed.
• Staff shall report to the Finance Commission and City Council at least annually on the claims processed, amounts paid, and steps taken to manage and reduce the City’s risk and liability.
10. DEBT AND INVESTMENTS
The City will consider the use of debt when the cost of debt is lower than the City’s investment return, and when operating revenues are available to pay the debt. We will maximize the investment return on City Cash balances within the higher concerns of safety 2 - 41
Attachment C
and liquidity. An investment policy will be submitted annually to the City Council for review and adoption in September or October of each year. The City shall at all times maintain compliance with the California Government Code with respect to the content and function of its Investment Policy.
Annually, the Investment Policy is reviewed by the City’s Finance Commission, prior to being approved by the City Council. Additionally, the City Treasurer shall provide monthly reports to the City Council which shall include all reportable elements specified in the City’s Investment Policy.
Staff will continue to contract with financial advisory services to evaluate various options to leverage existing revenue streams.
11. CONTROL OF FINANCIAL ASSETS
All financial assets will be under the direct authority of the City Treasurer and Finance Director. Regarding Capital Assets, the City will capitalize assets and equipment with individual minimum value of $5,000 for non-infrastructure assets, and $25,000 for infrastructure assets.
12. SCHEDULE OF FEES FOR SERVICES
The City will publish, and the Finance Department will update, the schedule of fees for services as a component of the annual budget. The Fee Schedule will be reviewed by the Finance Commission prior to implementation each July 1st. .
13. LONG-TERM LIABILITIES
The City shall evaluate long-term liabilities (debt borrowing, compensated absences, claims and judgements, pensions, post-employment benefits (OPEB), on a case by case basis. The City will work with the California Public Employee Retirement System and the City’s insurance providers to seek full coverage of actuarially projected needs.
Funding is budgeted on a pay-as-you-go basis for leave liabilities, and retiree health insurance costs. In accordance with GASB 45, a third-party actuarial valuation of the City’s liability for annual retiree medical costs has been completed every two years since FY 2008/09.
14. GANN APPROPRIATIONS LIMIT
The City will annually adopt a Resolution establishing the City’s appropriation limit (the Gann Limit) calculated in accordance with Article x111-B of the constitution of the State of California Government code and any other voter approved amendments or state legislation that affects the City’s appropriations limit. The Gann Limit will be adopted by Resolution.
The City is restricted to an amount of annual appropriations from proceeds of taxes, and if proceeds of taxes exceed allowed appropriations, the excess must either be refunded to the State Controller or returned to the taxpayers through revised tax rates or revised fee schedules. Alternatively, an excess of one year, may by offset against a deficit in the following year. 2 - 42