CITY OF CARMEL-BY-THE-SEA Council Report January 7, 2014

To: From: Submitted by:

Honorable Mayor and Members of the City Council Jason Stilwell, City Administrator Susan Paul, Administrative Services Director Paul Wood, Finance Manager

Subject:

Consideration of budget adjustment requests.

Recommendation:

Adopt Resolution making certain adjustments to the Fiscal Year 20132014 budget.

Executive Summary: On June 11, 2013 the City Council adopted the City's Fiscal Year 2013-

2014 Operating Plan and Budget. Throughout the fiscal year the budget is closely monitored by the staff to identify variances and to initiate early intervention to maintain a balanced budget. Budget adjustments can be necessary for a number of reasons. Changing economic conditions could necessitate adjustments to maintain a balanced budget, additional funding could become available that can be recognized for expenditure, or project grants or project timing may necessitate a change to the budget to meet schedule requirements. The budget adju stment requests for the City Council to consider at the January 7, 2014 meeting relate to project and grant timing adjustments and to required activities that were not anticipated in the adopted budget. No requests relate to changing economic conditions. As reported in the first quarter performance report revenue and expenditures are currently anticipated to meet budget expectations.
Analysis/Discussion: Attachment A of the Resolution to adjust the Fiscal Year 2013-2014

budget includes four proposed adjustments: BAR 2014-02- $13,600. This budget adjustment request is to appropriate funding from a rese rve designated for Sunset Center Roof repairs. The City ha s a balance of $75,352 designated for Sunset Center roof repairs. The roof repair project was budgeted in Fiscal Year 2012-2013 but was
1

46

not completed .

Sunset Center Inc. has proceeded with certain roof

repairs this fiscal year and requests reimbursement from the City's designation. The repair project is an obligation of the City under its agreement with SCC Inc. BAR 2014-03 - $270,000. This budget adjustment request is to

appropriate grant funding for the ASBS Dry Weather Diversion capital project (CPB-1213-03). This project is included in the 2013-2018 Capital Improvement Plan as a Fiscal Year 2013-2014 project but at the time of budget adoption was anticipated to be delayed and is in the Fiscal Year 2013-2014 Operating Plan and Budget as a fiscal year 2014-2015 project. The original budget request also only accounted for the City "matching" funds required for the entire project. This requested adjustment appropriates funding for approximately 60% of the construction phase of the entire project. The remaining appropriation will be made during the fisca l year 2014-2015 budget cycle. The project is able to commence this fiscal year if the City Council appropriates the previously awarded grant funding by approving th is budget adjustment request. BAR 2014-04 - $175,000. This budget adjustment request is to release litigation reserve from the Long Term Budget Stability Reserve to fund unanticipated legal and related professional services BAR 2014-05 - $150,000. This budget adjustment request is to release technology reserve from the Long Term Budget Stability Reserve to fund contractual obligations related to additional technology support staff required .
Previous Council Action/Decision History:

On June 11, 2013 the City Council adopted the City's Fiscal Year 20132014 Operating Plan and Budget. There has been one previous budget adjustment to the adopted budget for a total of $4,600.
Attachments:

Attachment A- Resolution Adopting Budget Adjustment Requests

Reviewed by:

City Administrator + -City Attorney

Asst. City Admin. Public Safety Dir

Administrative Services Dir of Public Svcs Other

D
D D
47

D D

Dir of CPB Library Dir

D
D

CITY COUNCIL CITY OF CARMEL-BY-THE-SEA RESOLUTION 2014A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA ADOPTING REVISIONS TO THE FISCAL YEAR 2013-2014 BUDGET

WHEREAS, the City Council approved the Fiscal Year 2013-2014 Operating Plan and Budget by Resolution 2013-25 dated June 11, 2013 ; and WHEREAS, adjustments are requested for the Fiscal Year 2013-2014 budget based on the actual and estimated sources and uses; and WHEREAS, the Fiscal Year 2013-2014 Budget adjustments requests include adjustments totaling $608,600 per the attached schedule, Attachment 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 2013-2014 Budget, per the attached schedule Attachment A. 2. Increase the total Fiscal Year 2013-2014 annual budget appropriation to $21,026,955. PASS ED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA this 7th day of January 2014, by the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: SIGNED,

ATTEST,

Jason Burnett, MAYOR

Daryl A. Betancur, CMC Deputy City Clerk

48

Fiscal Year 2013-2014 Budget Adjustment Requests January, 2014 Adjust# Department Account
01-70050 01-48013 13-89600 01-38990 01-61051 01-67051 01-24001 01-67053 01-24001

Account Description

Amount

Re ason for Adjustment

Current Budget

Proposed Adjusted Budget 93,600.00 (13, 600.00) 270,000.00 (270,000.00) 375,000.00 85,000.00 (175,000.00) 215,500.00 {150,000.00)

2014-02

Public Services Revenue: transfer

Outside Labor

13,600.00

sec roof repair

80,000 0 0 0 275,000 10,000 0 65,500 0

sec roof retainer

ASBS Dry Weather Grants Professional Services Professional Services Litigation Reserves Contract Services Technology Reserves

{13,600.00) Draw f rom retainer reserve 270,000.00 Future project this fiscal year (270,000.00) Prior grant award 100,000.00 Unanticipated legal services 75,000.00 Unanticipated investigative srvcs (175,000.00) General Fund Reserves 150,000.00 IT supplemental staff (150,000.00) General Fund Reserves

2014-03

CIP: CPB Revenue: grants Legal Admin Services Fund Balance Admin Services Fund Balance

2014-04

2014-05

Name

Date

Approved by Admin Services ------------------------------- Content Recommended by City Administrator ------------------------------------ Authorized by City Council -------------------------------

49