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Home My WebLink About4.7 Amend Reso Adopt Budgetor 19 82 /ii � 111 DATE: TO: FROM: STAFF REPORT CITY COUNCIL October 15, 2013 Honorable Mayor and City Councilmembers Joni Pattillo City Manager""' CITY CLERK File #330 -20 SUBJECT: Resolution Amending Resolution 86 -13 Adopting a Budget for the City of Dublin for Fiscal Year 2013 -14 Prepared by Colleen Tribby, Director of Administrative Services EXECUTIVE SUMMARY: Staff recommends amending Resolution 86 -13 to allow for more administrative efficiency in transferring budgets already approved by City Council between departments as long as the amount remains within the same fund. Staff also recommends authorizing the City Manager to increase revenue and expense budgets for specific department activities, where there is no net budget impact. Finally, Staff proposes that the City Council authorize the City Manager to transfer budgets between capital improvement projects, provided the projects have the same funding source. A full accounting of any budget changes will be provided to the City Council at the quarterly financial reviews. FINANCIAL IMPACT: There is no financial impact from changing the City Manager's authority to administratively amend budgets as described in this report. RECOMMENDATION: Staff recommends that the City Council adopt Resolution Amending the Budget Resolution for the City of Dublin for Fiscal Year 2013 -2014. 4 r Submitted By Administrative Services Director Reviewed By Assistant City Manager Page 1 of 2 ITEM NO. 4.7 DESCRIPTION: The annual budget resolution adopted by the City Council formally approves the City budget, provides for the use of reserve funds for specific purposes, and specifies the authority of the City Manager to make certain budget transfers and increases during the year. Resolution 86 -13, governing the FY 2013 -14 budget, was approved by the City Council at the meeting of June 4, 2013. Upon review of the budget transfer process and related workflow, Staff is recommending some changes to the resolution that will allow for increased efficiency, without changing the City Council's ultimate authority to appropriate funds, and while maintaining transparency to the City Council and the community. As shown in the red -lined version of Resolution 86 -13 (Attachment 2), Staff proposes to make the following changes: Budget Resolution 86 -13, Item 3 This item specifies the City Manager's authority to transfer budgets between line items provided the transfer occurs within the same department activity, and to transfer the budgeted contingent reserve to departmental personnel budgets under certain conditions. Staff proposes to amend and clarify this item to allow the City Manager to transfer budgeted amounts between line items as long as the transfer is within the same fund, regardless of the specific department activity. This would include any transfer from the General Fund budgeted contingency amounts that are approved by the City Council during the annual budget adoption. Budget Resolution 86 -13, Item 9 This item authorizes the City Manager to increase appropriations for revenues and expenditures related to increased development activity. Staff proposes changing the language to include all departmental- specific revenues and expenditures that exceed estimates, and adds language to clarify that such budget changes will have no net budgetary impact. Budget Resolution 86 -13, Item 14 This item allows the City Manager to transfer line item budgets within the same project. Staff recommends adding language to further authorize the City Manager to transfer funds between projects, as long the transfer is within the same funding source. For example, if a street improvement project has $10,000 left over in Gas Tax funding, the City Manager could authorize that amount be transferred to another project that also has Gas Tax as a funding source. In that case, the total Gas Tax appropriation does not change, but the two project budgets change (one decrease, one increase). Any revisions which add funding from a new source would need City Council approval. With the changes above, Staff will be able to conduct routine, appropriate budgetary adjustments in a timely manner, and will provide a full accounting of those changes to the City Council during the quarterly financial reviews. NOTICING REQUIREMENTS /PUBLIC OUTREACH: None. ATTACHMENTS: 1. Resolution Amending the Budget Resolution for the City of Dublin for Fiscal Year 2013 -2014 2. Red -Lined Version of Resolution 86 -13 Adopting a Budget for the City of Dublin for Fiscal Year 2013 -2014 Page 2 of 2 RESOLUTION NO. - 14 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN * * * * * * * * * * * * * * * * * * * * * * * * * ** AMENDING THE BUDGET RESOLUTION FOR THE CITY OF DUBLIN FOR FISCAL YEAR 2013 -2014 WHEREAS, at the City Council meeting of June 4, 2013, the City Council of the City of Dublin adopted Resolution No. 86 -13 approving the Budget and Financial Plan for Fiscal Year 2013 -2014; and WHEREAS, Resolution No. 86 -13 included language that defines the authority of the City Manager to make certain departmental budget transfers and increases; and WHEREAS, the City Council has ultimate authority to set and amend budgets, and does so for items both specific and more general in nature such as the budgeted contingency funds; and WHEREAS, the City has a desire to conduct budgetary transactions in an efficient manner while maintaining transparency to both the City Council and the community; and WHEREAS, Resolution No. 86 -13 has been amended to improve the budget change process, with the changes detailed in the attached Red -Lined Version of the resolution (Attachment 2). NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does hereby find, determine, declare and resolve that Resolution No. 86 -13 governing the FY 2013 -14 budget is amended as follows: Budget Resolution 86 -13, Item 3 This is amended to allow the City Manager to transfer budgeted amounts between line items, provided that the transfer is within the same fund, regardless of the specific department activity. This includes the authority to transfer from the General Fund budgeted contingency amounts that are approved by the City Council during the annual budget adoption. A full accounting of any such transfers will be provided to the City Council during the quarterly financial reviews. Budget Resolution 86 -13, Item 9 This item is amended to authorize the City Manager to increase revenue and expenditure budgets for various departmental functions, when corresponding revenues come in over budget: this would apply to development activity, inspection activity, recreation program activity, and any other departmental activity which generates correlating revenues, as verified by the Administrative Services Director. Increased appropriations shall continue to be documented in the financial records and conveyed to the City Council as part of the on -going financial reporting. Budget Resolution 86 -13, Item 14 This is amended to authorize the City Manager to transfer funds between capital projects, within the same funding source. Any revisions which alter a project budget by adding a new funding source are to still be approved by the City Council. PASSED, APPROVED AND ADOPTED this 15th day of October, 2013. AYES- NOES- ABSENT- ATTEST- City Clerk Mayor ATTACHMENT 1 RESOLUTION NO. 86— 13 (Red- Lined) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN * * * * * * * * * * * * * * * * * * * * * * * * * ** ADOPTING A BUDGET FOR THE CITY OF DUBLIN FOR FISCAL YEAR 2013 -2014 WHEREAS, the City Council of the City of Dublin is desirous of establishing a Budget and Financial Plan for Fiscal Year 2013 -2014; and WHEREAS, the City Council has reviewed and considered the Budget documents and has received input from the public; and WHEREAS, the City Manager has prepared a balanced budget which continues with organizational adjustments and allocation of resources in a manner which aligns with available resources and the proposed Ten Year Strategic Plan; and WHEREAS, the General Fund Operating Budget is balanced without the need to draw from the Reserve for Economic Stability in order to balance funding with planned expenditures; and WHEREAS, the City Council has the responsibility to adopt a budget before the Fiscal Year begins July 1, 2013; and WHEREAS, the Summary of Appropriations (Exhibit A) attached hereto and made a part of this Resolution, reflects the Fiscal Year 2013 -2014 Program Budget (All Funds) for the City of Dublin; and WHEREAS, (Exhibit A) has been segregated to isolate a grant appropriation for a community organization, Dublin Partners In Education, (DPIE) which will be voted on as a separate Resolution as one City Councilmember is also a member of the community organization's Board of Directors; and WHEREAS, the action taken by this resolution shall approve the appropriation of all funds excluding the DPIE appropriation; and WHEREAS, the City Council also desires to confirm adjustments made administratively to Capital Project balances during the preparation of the Budget and accommodate the carryover of unspent 2012 -2013 Capital Project appropriations, for those projects where work and expenditures will continue in Fiscal Year 2013 -2014; and WHEREAS, the City Council also desires to accommodate a process for the carryover of unspent 2012 -2013 operating expenditures (excluding personnel costs) for activities where work and expenditures will continue in Fiscal Year 2013 -2014; and WHEREAS, the action taken by this resolution shall approve the adoption of Fiscal Year 2013- 2014 Strategic Plan Update. ATTACHMENT 2 NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does hereby find, determine, declare and resolve as follows: 1. The Dublin City Council does hereby adopt the Fiscal Year 2013 -2014 Budget Appropriation for the City of Dublin, as outlined in Exhibit A (Column A — Excludes DPIE Contribution). 2. The City Council does hereby authorize the use of reserve funds, as outlined in Exhibit B. 3. The City Manager is hereby authorized to make expenditures and appropriations in accordance with the Budget as adopted, with the exception of those expenditures which require prior City Council approval, in accordance with the adopted City ordinances, rules and regulations. 4. The City Manager is authorized to transfer budgeted amounts between line items, provided that the transfer is within the same depaFtMeRt aGti ,,+" and fund. A full accounting of these transfers will be provided to the City Council during the quarterly financial reviews. A;, ��, 5. The City Council may also transfer appropriations from the Budgeted Contingent Reserve upon adopting a formal budget change at a public meeting. 6. The City Council recognizes that the Budget as presented includes a Contingency for Fiscally Responsible Adjustments ($270,000 appropriated in Activity 1901 — Line Item #81201), which is not scheduled to be used in Fiscal Year 2013 -2014. As determined by fiscal outcomes as of June 30, 2013 this funding may be available for appropriation in the subsequent fiscal year. The Fiscal Year 2012 -2013 Budget includes a Contingency for Fiscally Responsible Adjustments in the amount of $336,150. The City Manager is authorized to increase the appropriations for Fiscal Year 2013 -2014 by this amount to the extent the funds are available. 7. The City Council recognizes that the Budget as presented include a Contingency for fire contract service cost adjustment ($402,909 appropriated in Activity 1901 — Line Item #81201). The contingency is for potential Alameda County Fire Department 2013 COLA adjustment. The City Manager is authorized to transfer the amount to Fire Department budget (Department 2401) if needed. 8. The City Council recognizes that the Budget as presented also include a placeholder ($350,000 appropriated in Activity 1901 — Line Item #81201) for "Create a comprehensive marketing and branding plan for the City" strategic initiative. The City Manager is authorized to transfer the amount to Economic Development Department when Staff has identified the scope and estimated implementation cost. 9. When revenue estimates exceed the amount identified in the Budget due to increases in development applications and permit activity, inspection activity, recreation program activity, and any other departmental activity which generates correlating revenues, as verified by the Administrative ATTACHMENT 2 Services Director, the City Manager is authorized to increase the appropriations for Fiscal Year 2013- 2014 expenditures in an amount not to exceed the amount of increased permtrelated revenue. Increased appropriations shall be documented in the financial records and reported to the City Council as part of the on -going financial reporting. 10. When revenue estimates exceed the amount identified in the Budget due to increases in grant revenues, as verified by the Administrative Services Director, the City Manager is authorized to increase the appropriations for Fiscal Year 2013 -2014 expenditures in an amount not to exceed the amount of increased grant revenue. Increased appropriations shall be documented in the financial records and reported to the City Council as part of the on -going financial reporting. 11. The City Manager is authorized to make transfers among the various funds designated as Transfers. This shall be consistent with the "Summary Appropriations by Major Fund" as presented in the Preliminary Budget and Financial Plan; and fund transfers are reported as part of the regular financial reports provided to the City Council and public. 12. The City Manager is authorized to increase the appropriations for Fiscal Year 2013 -2014 expenditures in an amount not to exceed the amount of funds encumbered or designated by the City Manager as needed for expenses that did not occur prior to year -end but are expected to be expended in Fiscal Year 2013 -2014 consistent with the original purpose. This ability to carry -over funding shall not apply to savings from personnel services and shall only occur if the Department Activity total for non - personnel expenditures were less than the amount budgeted for the same. This must also be evaluated on a fund by fund basis. The actual amount of the increased appropriation shall be reported to the City Council, and the City Manager may assign the fund balance in an amount sufficient to account for the increase. 13. The City Manager shall be authorized to adjust the Fiscal Year 2013 -2014 appropriations to account for the carryover of unspent capital project appropriations from Fiscal Year 2012 -2013. All such adjustments shall be clearly recorded in the City Financial records and shall only be for projects that remain incomplete as of June 30, 2013. 14. The City Manager is authorized to transfer budgeted capital project amounts between line items, provided that the transfer is within the same project and fund, or between capital projects but within the same funding source. Any revisions which alter a project budget by adding a new funding source, Whinh alteF the pF9je_„+'s total expo dituFe are to be approved by the City Council. 15. The total projected appropriations to reserves for all funds are shown in Exhibit A. 16. The Dublin City Council does hereby adopt the Fiscal Year 2013 -2014 Strategic Plan Update. PASSED, APPROVED AND ADOPTED this 4th day of June, 2013. AYES: NOES: ABSENT: ATTACHMENT 2 ATTEST: City Clerk Mayor ATTACHMENT 2 EXHIBIT A FISCAL YEAR 2013 -2014 SUMMARY OF APPROPRIATIONS Excluding DPIE DPIE Total OPERATING BUDGET General GENERAL GOVERNMENT City Council $433,930 Community Improvements $433,930 City Manager/City Manager/City Clerk 1,338,970 Parks 1,338,970 Elections 3,120 Streets 3,120 Central Services / Human Resources 507,180 TOTAL - Capital Improvements 507,180 Insurance 1,033,290 1,033,290 City Attorney 807,360 1 1 807,360 Administrative Services 2,274,140 2,274,140 Building Management 999,520 999,520 Non Departmental 1,494,810 1,494,810 TOTAL -General Government $8,892,320 $0 $8,892,320 PUBLIC SAFETY Police Services $16,100,660 $16,100,660 Fire Services 11,742,590 11,742,590 Disaster Preparedness 168,810 168,810 Crossing Guards 111,890 111,890 Animal Control 389,580 389,580 Traffic Signals & Street Lighting 964,160 1 964,160 TOTAL - Public Safety $29,477,690 $0 $29,477,690 TRANSPORTATION Public Works Administration $905,050 $905,050 Street Maintenance 509,770 509,770 Street Sweeping 125,400 125,400 Street Landscaping 1,484,630 1,484,630 Street Tree Maintenance 166,020 166,020 TOTAL - Transportation $3,190,870 1 $0 1 $3,190,870 HEALTH & WELFARE Waste Management $2,862,420 $2,862,420 Environmental Programs 384,030 384,030 Social Seances 286,440 $25,000 311,440 Housing Programs 701,020 701,020 TOTAL - Health & Welfare $4,233,910 $25,000 $4,258,910 CULTURE & LEISURE SERVICES Community TV $144,490 $144,490 Library Services 696,410 696,410 Park Maintenance 2,762,050 2,762,050 Heritage & Cultural Arts 1,237,870 1,237,870 Recreation & Community Services 4,188,810 4,188,810 Parks / Facilities Development 545,140 1 545,140 TOTAL - Culture & Leisure Services $9,574,770 $0 $9,574,770 COMMUNITY DEVELOPMENT Development Services (Planning & Building) $4,629,830 $4,629,830 Engineering 2,534,830 2,534,830 Economic Development 970,450 970,450 TOTAL -Community Development $8,135,110 $0 $8,135,110 TOTAL OPERATING BUDGET $63,504,670 $25,000 $63,529,670 CAPITAL IMPROVEMENT BUDGET General $9,856,440 $9,856,440 Community Improvements 86,130 1 $134,663 86,130 Parks 16,602,440 (14,916,660) 16,602,440 Streets 11,771,900 1 ($14,781,997) 11,771,900 TOTAL - Capital Improvements $38,316,910 $0 $38,316,910 INTERNAL SERVICE FUND BUDGET TOTAL - Internal Service Fund $1,560,330 $1,560,330 APPROPRIATIONS TO RESERVES General Fund 1 $134,663 1 $0 1 $134,663 Other Funds 1 (14,916,660) (14,916,660) TOTAL -APPROPRIATIONS TO RESERVES 1 ($14,781,997) $0 1 ($14,781,997) Exhibit B Approved Appropriations From General Fund Committed And Assigned Fund Balances As presented in the Preliminary Budget and Financial Plan (Fiscal Years 2013 -2014 Update) the source of funding includes allocations from reserves. In accordance with adopted policies related to Fund Balance the City Council must authorize the use of certain reserve funds. The following schedule identifies the reserves sources that are approved for use by the City Council as part of the funding sources in the proposed budget. Appropriations from Reserves Economic Stability Reserve Assigned For One -Time Initiatives (Operating) Open Space Funding Public Safety Complex Maintenance Facility Fiscal Year 2013 -2014 $0 $350,000 $2,000,000 $1,688,608 $3,765,865 ATTACHMENT 2