8/9/2019 Item 8.D -Mid Year FY14-15 Budget Adj With Attachments

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To:

From:

Subject:

CITY OF CARMEL-BY-THE-SEA

Council Report

February

3

2015

Honorable Mayor and Members

of

the City Council

Douglas

J.

Schmitz, City Administrator

Paul Wood, Finance Manager

A Resolution adopting revisions

to

the Fiscal Year 2014-2015

Budget

RECOMMENDATION(S):

Receive Mid-Year review report for FY14-15, and approve mid-year supplemental

appropriation requests.

FY14-15 Revenue

and Expenditure

Update:

In the City's FY14-15 adopted budget, overall revenue was expected

to

grow by about 7

over FY13-14, and the first six months

of

the year is on pace to meet that rate. Led by strong

Property Taxes, Transient Occupancy Tax (TOT) and Sales and (Measure D) Use Taxes, the

General Fund has shown strength in all major revenue categories :

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Mid

-

ear

Review andSupplemental Appropriations StaffReport

February 3 2015

Page

General Fund expenditures also are trending positive in almost all functional areas , with the

exception

of

Administration, where labor issues (from both severance packages and legal

fees) have negatively impacted the overall positive variance

in

expenditures.

While the severance packages are hard costs that will not be recovered, the legal fees related

to labor relation settlements are being submitted as claims to our insurers for reimbursement.

We address this budget expenditure overage

in

our supplemental appropriations.

Expenditures

FY14-15 Annual FY14-15 Mid-Year

FY14-15 Mid-Year

Over/(Under)

Budget Actual Expected

Council & Admin

3,122,440

1,855,434 1,639,281 216,153

Planning & Building 939,851 431,812 469,926 (38,114)

Public Safety

5,774,789 2,668,475 2,771,899 (103,424)

Public Works

2,737,877

1,142,471

1,368,939 (226,468)

Library (+Community

Activities/Marketing) 2,176,929 1,035,099

1,088,465 (53,366)

Total

14,751,886

7,133,291 7,338,508 (205,217)

The City's Capital Projects program at mid-year reflects the completion (or near completion)

of

a variety

of

projects (Beach restrooms, Dry Weather Diversion, assorted streets and roads

projects) and the continuing work being performed

on

others (Forest Theater, Parking Study) .

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Sun

se

t Center

S

treets

&

Roads

Total

96,352

1,088,000

4 746.425

417,651

1 375 132

Mid Year Supplemental Appropriations Requests

98,176

{98,176)

522,240 {104,589)

2 351 453 {976 320}

Even though the financial performance

up to

mid-year

is

positive, there are a few areas that

will require supplemental appropriations. Exhibit A details those requests and their

respective funding sources.

The legal settlements expense (estimated at $145,000) is related to recent settlements with

former employees (Fenton, Perotti and legal counsel) that have been reinstated. These

expenses have been submitted to insurance carriers for reimbursement.

Capital projects totaling $475,000 have been added (funded by increased revenues projected

for the Measure D Use Tax) related to repairs/replacement of sidewalks and the retaining wall

at the Sunset Center parking lot (damaged by recent rain events).

Currently, the sidewalk repair capital project

is

funded for $75,000. Staff has identified several

locations that are in need of repair in order to address safety hazards. n addition to these

locations, two other areas have been identified in need

of

extensive improvements, which cost

more than the current sidewalk repair allocation . The first project, Dolores Street Sidewalk

Improvements includes replacing approx. 720 S.F. (approx.80' x approx. 9') of sidewalk,

including replacing the access ramp at the NE corner

of

Dolores and h, and replacing the

curb and S/W gutter

on

Dolores for $80,000.

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FISCAL IMPACT: 660,000

Budgeted yes/no) no

Funding Source general fund, grant,

state) general fund, TOT fund , Measure 0

As designated

PREVIOUS COUNCIL ACTION/DECISION HISTORY:

ATTACHMENTS:

1. Exhibit

A -

Mid-Year Budget Adjustments

2 Resolution

APPROVED:

Douglas

J

Schmitz, City Administrator

Date

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RESOLUTION 2015-

A RESOLUTION OF THE CITY COUNCIL OF

THE

CITY OF CARMEL-BY-THE-SEA

ADOPTING REVISIONS

TO

THE FISCAL

YEAR

2014-2015 BUDGET

WHEREAS, the City Council approved the Fiscal Year 2014-2015 Operating

Plan and Budget by Resolution 2014-044 dated June 10, 2014; and

WHEREAS, adjustments are requested for the Fiscal Year 2014-2015 budget

based on the actual and estimated sources and uses; and

WHEREAS, the Fiscal Year 2014-2015 Budget adjustments requests include

adjustments totaling 660,000 per the attached schedule, Exhibit

A.

NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE

CITY OF CARMEL-BY-THE-SEA DOES:

1. Approve adjustments to revenues and expenditures for the Fiscal Year 2014-

2015 Budget, per the attached schedule Exhibit A.

2. Increase the total Fiscal Year 2014-2015 annual budget appropriation to

19,65 ,232 .

PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF

CARMEL-BY-THE-SEA this 3rd day of February 2015, by the following roll call vote:

AYES:

NOES:

ABSENT:

COUNCIL MEMBERS:

COUNCIL MEMBERS:

COUNCIL MEMBERS:

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City of Carmel-by-the

Sea

Supplemental App

ro

pr ia tions

Req

uests

Mid-Year Bud

get

Adjustments

At 12 31 2014

Department

Legal

Public Work s

Public Works

Public

Works

Fire

Police

Police

Police

escription

Labor Settlements

Dolores St sidewalk

Mission

San

Car

lo

s si

dew

alk

Sunset Center Parking Lot wall

Safety Cover for SVCA air tanks

NGEN

legal fees

JEI

recor

der

911 sys tem )

taxi vouchers

mount

145,000

80,000

15,000

380,000

8,000

19,000

8,000

5,000

Reason Funding Source

settlement

expenses for labor issues

Insurance Reimbursements

unbudgeted sidewalk repair

Measure D Use Tax

unb udgeted sidewalk repair

Measure D

Use

Tax

Replace/repair wall collapsed

due

to recent rain

event

Measure D Use Tax

safety equipment expenditure not fo rseen

Current General Fund revenues

pro

rata share of

NGEN

legal fees

Current General Fund revenues

emergency equipment Current General Fund revenues

MST vouc

her

program expenses not budgeted Current General Fund revenues