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Home My Public Portal About2015.035 (02-17-15)RESOLUTION NO. 2015.035 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD RECEIVING AND FILING THE FY 2014 -15 MID -YEAR FINANCIAL REVIEW REPORT, APPROVING THE FY 2015 MID -YEAR BUDGET ADJUSTMENTS TO AMEND THE FY 2014 -15 ADOPTED BUDGET HERETO ATTACHED AS SCHEDULE A WHEREAS, the City Council of the City of Lynwood (the "City Council ") adopted the City of Lynwood's Fiscal Year 2014 -2015 (FY 15) Operating Budget on November 4, 2014; and WHEREAS, the City's adopted budget is based on certain assumptions and meeting expenditure and revenue projections at the time of budget adoption; and normally, at the mid -year point of the fiscal year, the Mid -Year Financial Review is presented to provide an updated Financial Forecast for the current -year; and WHEREAS, staff also presents an annual .Mid -Year Financial Review to the City Council to report on the City's fiscal performance through Mid -Year (July through December), comparing all revenues and expenditures incurred during the first two quarters of FY 15 to the same period in FY 14; and WHEREAS, further, the Finance Department meets with departments quarterly during the fiscal year to monitor spending, assess revenues and identify unanticipated or critical -need issues that may arise and require budget adjustment to the current -year budget; and WHEREAS, in addition, subsequent to the budget adoption, staff has identified several Citywide fiscal issues that were not included in the FY 15 Adopted Budget that will require amendments to the FY 15 Adopted Budget to avoid disruption of services and ensure proper funding levels; and WHEREAS, during the annual Mid -Year Financial Review, staff and the City Council have determined that the City's expenditures are exceeding its revenues in the General Fund and in other areas of the FY 15 Adopted Budget; and WHEREAS, as a result, staff 'is recommending the following proposed budget adjustments, hereto attached as Schedule A, which will amend the FY 15 Adopted Budget; and WHEREAS, if the recommended budget adjustments are approved by Council, the FY 15 projected ending fund balance will be $2.5 million; and WHEREAS, falling below the minimum reserve level raises "serious" and "alarming" concerns with regard to the City's fiscal condition and the City's ability to contended with unanticipated fiscal challenges that may arise from year to year;. and WHEREAS, the City should consider offering a "Golden Handshake" retirement incentive to eligible employees to achieve future cost savings, much in the same was as it did in 2005; and WHEREAS, we must identify corrective actions to address the City's fiscal issues so that the City does not end up in a state of fiscal distress; and WHEREAS, the City has reduced its budget drastically over the last several years, while dramatically reducing its workforce which has had an adverse effect on service levels we provide to the community. The City is now operating at "bare- bone" minimum services levels and cannot afford to reduce its operational budget any further without seeing a severe and detrimental impact to our services we provide to our residents. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LYNWOOD DOES HEREBY RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS: Section 1. By adoption of this Resolution, the City Council approves the FY 15 Proposed Budget Adjustments hereto attached as Schedule A and hereby amends the FY 15 Adopted Budget. Section 2. That the City Council authorizes the City Manger, or his designee to make the necessary budget adjustments to the City's financial system to reflect appropriate changes to the FY 15 Adopted Budget. Section 3. This Resolution shall go into effect immediately upon its adoption. Section 4. The City Clerk shall certify as to the adoption of this Resolution. PASSED, APPROVED and ADOPTED this 17th day of February, 2015. ATTEST: APPROVED AS TO FORM: David A. Garcia, City Attorney APPROVED AS TO CONTENT: J. Arnoldo Belt, City Manager . Amah49'Hall`12inance Director STATE OF CALIFORNIA ) ) SS. COUNTY OF LOS ANGELES ) I, the undersigned, City Clerk of the City of Lynwood, do hereby certify that the foregoing Resolution was passed and adopted by the City Council of the City of Lynwood at a regular meeting held on the 17th day of February, 2015. AYES: COUNCIL MEMBERS ALATORRE, HERNANDEZ, SANTILLAN -BEAS AND SOLACHE NOES: NONE ABSENT: COUNCIL MEMBER CASTRO ABSTAIN: NONE Maria Quinonez, City Clerk STATE OF CALIFORNIA ) ) SS. COUNTY OF LOS ANGELES ) I, the undersigned, City Clerk of the City of Lynwood, and the Clerk of the City Council of said City, do hereby certify that the above foregoing is a full, true and correct copy of Resolution No. 2015.035 on file in my office and that said Resolution was adopted on the date and by the vote therein stated. Dated this 17th day of February, 2015. Maria Quinonez, City Clerk City of Lynwood 4.pa" Schedule A FY 15 Proposed Budget Adjustments Pioposed Proposed # Proposed Adjustment General Fund Other Funds Department /Divisions Adjustment Amount Adjustment Amount 1 Salary & Benefit Adjustments $132,461 $23,957 Transportation Public Relations, Public 7,986 Litter Abatement Works, Recreation & 7,986 Water Community Services 7,986 Sewer Subtotal: $132,461 $47,915 2 Legal Fees $100,865 City Council, City Clerk, Human Resources, Public Relations Subtotal: $100,865 3 Recreation & Community $57,858 All Divisions Services Operational Budget Subtotal: $57,858 4 City Clerk's Operational Budget $8,500 All Divisions Subtotal: $8,500 5 Public Relations Operational $7,842 Public Relations Budget Administration, Parking Enforcement Subtotal: $7,842 6 Employee Buybacks of Unused $153,278 $3,657 HUD /CDBG All Divisions Leave Time 7,535 Landscape Maintenance 12,373 Traffic Safety 22,201 Water Subtotal: $153,278 $45,766 7 Employee Payouts /Contract $70,703 $4,463 HUD /CDBG All Divisions Settlements 22,313 Water 4,463 Sewer Subtotal: $70,703 $31,239 8 Animal Control Truck ($44,000) $44,000 Garage Public Works Subtotal: ($44,000) $44,000 (1) For fiscal Year end 2015, the Housing Rehabilitation Program projects tofu nd approximately 8 additional projects. In order to fund these projects, available HOME dollars need to be appropriated in the IDIS system to active funding accounts to complete and or fund these anticipated residential rehabilitation projects. Proposed Proposed # Proposed Adjustment General Fund Other Funds Department /Divisions Adjustment Amount Adjustment Amount 9 Crossing Guards ($12,469) $12,469 Gas Tax Public Relations Subtotal: ($12,469) $12,469 10 Vacancy Salary Savings ($430,711) ($1,294) Refuse All Divisions (146,213) CIP (2,362) Landscape Maintenance (94,497) Self Insurance (68,885) Water (10,991) Sewer (61,116) Traffic Safety (4,723) Garage Subtotal: ($430,711) ($390,081) 11 HUD HOME Appropriation" $200,000 HUD HOME Community Development Subtotal: $200,000 Total FY 15 Proposed Budget Adjustments: $44,327 ($8,692) (1) For fiscal Year end 2015, the Housing Rehabilitation Program projects tofu nd approximately 8 additional projects. In order to fund these projects, available HOME dollars need to be appropriated in the IDIS system to active funding accounts to complete and or fund these anticipated residential rehabilitation projects.