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HomeMy WebLinkAboutReso 53-18 Adopting a Budget for the City of Dublin for Fiscal Year 2018-19 RESOLUTION NO. 53- 18 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN ADOPTING A BUDGET FOR THE CITY OF DUBLIN FOR FISCAL YEAR 2018-19 WHEREAS, the City Council of the City of Dublin desires to establish a Budget for Fiscal Year 2018-19; 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 provides for organizational adjustments and allocation of resources in a manner which aligns with available resources and the Strategic Plan elements; 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 is required to adopt a budget and financial plan before the Fiscal Year begins on July 1, 2018; and WHEREAS, the Summary of Appropriations (Exhibit A) attached hereto and made part of this Resolution, reflects the Fiscal Year 2018-19 Budget for Governmental and Proprietary Funds for the City of Dublin; and WHEREAS, the City Council also desires to confirm adjustments made administratively to the Capital Improvement Project balances during the preparation of the Proposed Budget and accommodate the carryover of unspent Fiscal Year 2017-18 Capital Improvement Project appropriations, for those projects where work and expenditures will continue in Fiscal Year 2018-19; and WHEREAS, the City Council also desires to accommodate a process the carryover of unspent Fiscal Year 2017-18 operating expenditures, both encumbered and unencumbered, excluding personnel costs, for activities where work and expenditures will continue in Fiscal Year 2018-19; and WHEREAS, the City Council also desires to delegate the authority to appropriate Committed fund balances that have been approved by the City Council for specific purposes to the City Manager in Fiscal Year 2018-19; and WHEREAS, the City Council desires to adopt an Interfund Loan Policy to create uniformed guidelines regarding the establishment, management and repayment of all Interfund loans. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does hereby: 1. Adopt the Fiscal Year 2018-19 Budget Appropriation for the City of Dublin, as outlined in Exhibit A; adjusted to incorporate the final community grants amount as shown in Exhibit B; 2. Authorize the City Manager to make expenditures 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; Reso No. 53-18, Adopted 5/15/2018, Item No. 6.1 Page 1 of 3 3. Authorize 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 budget adoption. A full accounting of any such transfers will be provided to the City Council during the quarterly financial reviews; 4. Recognize that the Budget as presented also includes a Contingency for Fiscally Responsible Adjustments, the utilization of which will be determined by fiscal outcomes of June 30, 2018; 5. Authorize the City Manager to increase revenue and expenditure budget for various departmental functions, when corresponding revenues comes in over budget: this would apply to developmental 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 quarterly financial reviews; 6. Authorize the City Manager to increase revenues and expenditures related to the award of grants, where there is no net impact to the City, 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 quarterly financial reviews; 7. Authorize the City Manager to make transfers among the various funds, consistent with the "Fund Balances FY 2018-19" as presented in the Proposed Budget. Fund transfers are reported as part of the regular financial reports provided to the City Council; 8. Authorize the City Manager to increase the appropriations for Fiscal Year 2018-19 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 the year-end but are expected to be expended in Fiscal Year 2018-19 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 was 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; 9. Authorize the City Manager to adjust the Fiscal Year 2018-19 appropriations to account for the carryover of unspent Capital Improvement Project appropriations from Fiscal Year 2017-18. 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, 2018; 10. Authorize the City Manager to transfer funds between capital projects, within the same funding source. Any revisions, which alter the project's budget by adding a new funding source, are to be approved by the City Council; 11.Authorize the City Manager to appropriate funds from Committed fund balances that have been approved by the City Council for specific purposes; and 12.Approve the creation of an Interfund Loan Policy attached as Exhibit C to the Resolution. Reso No. 53-18, Adopted 5/15/2018, Item No. 6.1 Page 2 of 3 PASSED, APPROVED AND ADOPTED this 15th day of May 2018, by the following vote: AYES: Councilmembers Goel, Gupta, Hernandez, Thalblum and Mayor Haubert NOES: ABSENT: ABSTAIN: ; tk. ka.. ATTEST: U Mayor City Clerk Reso No. 53-18, Adopted 5/15/2018, Item No. 6.1 Page 3 of 3 EXHIBIT A FISCAL YEAR 2018-19 SUMMARY OF APPROPRIATIONS (Governmental and Proprietary Funds) OPERATING PROGRAM . APPROPRIATIONS (1) City Council $525,990 City Manager $2,463,581 City Clerk $754,868 Human Resources $1,357,101 City Attorney $1,187,780 Administrative Services $2,019,810 Non-Departmental $10,544,219 Community Development $6,779,767 Fire Department $14,318,937 Police Department $21,220,901 Parks & Community Services $9,380,108 Public Works $16,164,780 Total Operating IProgrant '`, . $86,717,841.: CAPITAL,IMPROVEMENT PROGRAM General $3,014,100 Parks $5,961,192 Streets $8,851,735 Total Capital Improvement Program $17,827,027.' INTERNAL SERVICES PROGRAM Information Services $1,530,268 Fire Department $297,668 Non-Departmental $3,019,128 • Parks & Community Services $49,571 Total Internal Service Program $4,896,615,: (1) Include final community grant amount shown in Exhibit B) EXHIBIT B FISCAL YEAR 2018-19 COMMUNITY GRANTS ADJUSTMENT CITY COUNCIL APPROVED RECOMMENDED FINAL ORGANIZATION NAME APPLICATION TITLE ,,,AMOUNT(2) ADJUSTMENT AMOUNT 'General Fund CALICO Center Dublin Child Abuse Intervention $333 ($333) $0 Chabot-Las Positas Community Back-to-Work Dublin $12,000 $25 $12,025 College District/Tri Valley One Stop Career Center Chabot-Las Positas Community Dublin VITA Grant 2018-19 $6,667 $33 $6,700 College District/Tri Valley One Stop Career Center Child Care Links Early Literacy Diaper Pantry/Car Seat $8,500 $25 $8,525 Program CityServe of the Tri-Valley CityServe of the Tri-Valley $14,333 $27 $14,360 Community Resources for Independent Living,Housing&Employment $9,333 $27 $9,360 Independent Living Services for People with Disabilities Deaf Counseling Advocacy and Deaf Access Services $9,000 $25 $9,025 Referral Agency(DCARA) Easter Seals Bay Area Easter Seals Kaleidoscope $12,667 $28 $12,695 Eden l&R,Inc. 2-1-1 Alameda County Communication System $10,000 $0 $10,000 Hope Hospice,Inc. Grief Support Center and Hospice Volunteer $14,833 $27 $14,860 Program Legal Assistance for Seniors Legal Services,Medicare Counseling and $6,967 $33 $7,000 Education for Dublin Seniors Senior Support Program of the Tri Case Management $13,167 $33 $13,200 Valley Spectrum Community Services Meals on Wheels for Dublin's Homebound $3,655 ($3,655) $0 Elderly Tri-Valley Haven Domestic Violence Services Program $1,600 $25 $1,625 Tri-Valley Haven Homeless Services Program $10,600 $25 $10,625 Total General Fund $133,655 ($3,655) $130,000 Community Development Block Grant- :, Aids Community Health Facility Project Loan Obligation $15,925 $37 $15,962 Aids Community Health Phase II Dental Capital Project $25,000 $0 $25,000 CALICO Center Dublin Child Abuse Intervention $9,000 $1,000 $10,000 Community Resources for Roof Replacement $4,667 $333 $5,000 Independent Living Open Heart Kitchen Dublin Meal Programs $15,845 $6,655 $22,500 Spectrum Community Services Meals on Wheels for Dublin's Homebound $9,345 $3,655 $13,000 Elderly Total CDBG Fund $79,781 $11,681 $91,462 Affordable'Housing Fund, . Tri-Valley Haven Domestic Violence Services Program $8,000 $0 $8,000 Total Community Grants $221,436 ' $8 026 ` $229,462 (2)Amount included in Exhibit A Exhibit C NUMBER ADMINISTRATIVE Page 1 of 3 POLICIES SUBJECT APPROVED BY EFFECTIVE DATE: May 15, Inter°fund Loan Policy City Council 2018 The practice of interfund loans is a recognized and necessary aspect of municipal finance. They are typically short term in nature, and constitute the allocation of resources between individual funds. Interfund loans should not be used to solve ongoing structural budget problems. A. POLICY OBJECTIVES Create uniformed guidelines regarding the establishment,management and repayment of all interfund loans. B. DEFINITIONS I. Interfund loans are loans from one City fund to another City fund for a designated purpose. II. Loans are accounted for as either short-term or long-term. A short-term loan has a term of one year or less, and a long-term loan has a term longer than one year. C. GENERAL I. Interfund loans should be considered temporary borrowing of cash and may be made for the following reasons: a. To offset timing differences in cash flow. b. To offset timing differences between expenditures and reimbursements, typically associated with grant funding. c. To provide for advance spending for a capital project prior to securing project financing. d. For other needs as deemed appropriate by the City Council. II. The term of the interfund loan may continue over a period of more than one year,but must be "temporary" in the sense that no permanent diversion of the lending fund results from the failure to repay by the borrowing fund. The maximum duration of the loan shall be determined on a per case basis and shall be included in the repayment plan. III.Interfund loans must have an identified repayment source and repayment plan. IV.Payments made on outstanding loans shall be reflected in the annual Budget, determined by the loan repayment plan, and Comprehensive Annual Financial Report(CAFR) V. Accounting for interfund loans shall governed by the Governmental Accounting Standards Board. D. AUTHORITY I. Interfund loans are subject to City Council approval, and shall be requested in adherence with the Procedures guidelines of this Policy. a. Exception: The City Manager has the authority to approve interfund loans for which the City Council has set aside Committed Reserves. E. REPAYMENT I. All interfund loans shall be required to have a repayment schedule that details terms of the repayment including but not limited to: a. The repayment start date b. The annual amount to be repaid(with interest at the current LAIF rate) c. The estimated repayment end date d. The funding source for the repayment II. Repayment of the loan is the top priority of the borrowing fund once the repayment period commences and cash is available. a. If the borrowing fund continues to maintain negative cash balance for a period beyond the term of the loan, scheduled payments should be postponed until the fund has a positive cash balance. Interest should continue to accrue and be added to the principal of the loan. III.The annual interfund loan repayment amount must be included in the City's annual budget. The City Council may, at their discretion, adjust the annual loan payment as part of the annual budget process. F. PROCEDURES The development of interfund loans requires coordination among several parties, including the department overseeing the fund with funding needs (receiving department), the Administrative Services Department, and the City Attorney. I. Identify Funding Need—(Receiving Department/Administrative Services Department) a. Upon determination that a need for an interfund loan may be necessary, the receiving department will contact the Administrative Services Department(ASD)to coordinate the preparation of the Request for Interfund Loan Form. b. The receiving department, in consultation with the ASD, will be responsible for completing the"Receiving Fund"portion, which shall include: i. The Loan Purpose, Amount, Duration, and Repayment Plan (a) The projected revenues and expenditures of the "Receiving" fund should be analyzed to determine if the funding need under consideration can be paid from monies within the existing fund by re-prioritizing both current and future expenditure items. II. Determine Appropriateness of Interfund Loan—(Administrative Services) Once the "Receiving Fund"portion of the Request for Interfund Loan Form is completed the receiving department will forward the request to the ASD. a. The ASD will review the status of the receiving fund to determine the appropriateness of an interfund loan. b. The.ASD will provide information on potential funding option(s) and the status of the fund(s) requested in loan. c. The ASD will review the repayment plan and determine the estimated loan and interest repayment calculation. i. Interfund loans should include an interest component that equals the investment earnings the providing fund would have received had the loan not occurred(LAIF rate). III.Identify potential legal issues—(City Attorney) a. Documents will be forwarded to the City Attorney by the ASD to determine if there are legal restrictions associated with the use of the identified funding source for the interfund loan, and to prepare the resolution with the loan terms,when necessary. IV.Prepare Loan Memorandum—(Receiving Department) • a. If the Request is approved by the ASD and the City Attorney, the receiving department will prepare a Memorandum that will include a description of the need for the interfund loan, identification of the fund providing the loan, and the terms of repayment. The Memorandum will be submitted with all back-up documentation to the City Manager. i. If specific funds have already been reserved as Committed for the purpose of the interfund loan, then the City Manager is authorized to approve the loan and a Staff Report does not need to be completed. The City Manager has authority to appropriate funds set aside in Committed Reserves for the use intended by City Council. ii. If there are no specific funds reserved as Committed for the purpose of the interfund loan, then the request must be brought to the City Council for approval via either a Staff Report or as part of the annual budget process.