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Home My Public Portal About17) 9A Draft City BudgetCity Council June 19, 2012 Page2 h) Approve a one-time carryover appropriation from the FY 2011-12 City Budget of $15,000 for the Public Arts Advisory Group for consulting services. BACKGROUND: 1. On January 1, 1997, SB 1683 made certain changes to AB 1600 setting forth a standard in which fees imposed on development projects are to be measured. Government Code Section 66000 requires the City Council to review the AB 1600 report which shows compliance with the provisions. 2. On June 29, 2011, the City Council adopted a two-year Budget Document for FY 2011-13, setting a trend for more comprehensive long range financial planning. However, the City Charter requires annual budget adoption. As a result, drawing upon the second year of the two-year Budget Document, staff prepared a comprehensive Draft FY 2012-13 City Budget document, which included a one-time supplemental funding allocation of $25,000 made to the Chamber of Commerce for capacity building and technical resources to support the Chamber's shift to a high performing organization. This supplemental funding has yet to be spent. 3. On April 3, 2012, the City Council received and filed the FY 2011-12 Mid-Year Budget Review Report. The Mid-year Budget Review Report provided the City Council with an opportunity to review and adjust original revenue projections and budget estimates based on six months of actual activity. Adjustments are a result of unanticipated expenditures due to information that was not previously available, as well as changes in revenue projections based on actual revenue received from July 1, 2011 through December 31, 2011. 4. On May 10, 2012, staff submitted the Draft FY 2012-13 City Budget to the City Council. 5. On May 12, 2012, the City Council held a Special Goal Setting Session and staff reviewed the Draft FY 2012-13 City Budget with the City Council. The City Council directed the Budget Ad Hoc Committee (i.e., Mayor Yu and Councilmember Blum) to complete a thorough review of the Draft FY 2012-13 City Budget and return to the City Council with any recommendations for modifications. 6. On May 18, 2012, the Budget Ad Hoc Committee and staff discussed all aspects of the Draft FY 2012-13 City Budget and an in-depth review was completed. The Budget Ad Hoc Committee requested clarification on certain items and made recommendations for modifications of the proposed spending plan. 7. On May 30, 2012, staff submitted the FY 2012-13 Budget in Brief to the City Council. This document is intended to provide a high level overview of the proposed spending plan for the following fiscal year in a format that is transparent and user friendly to the citizens of the City of Temple City. The Budget in Brief did include the recommendations for modifications made by the Budget Ad Hoc Committee at the May 18, 2012 Budget Ad Hoc Committee meeting. City Council June 19, 2012 Page 3 8. On May 31, 2012, the City Council held a Budget Study Session and staff submitted the detailed Draft FY 2012-13 City Budget, which included the recommendations made by the Budget Ad Hoc Committee. Staff presented an overview of the Draft FY 2012-13 City Budget, provided clarification and supplemental information to the questions the Budget Ad Hoc Committee had raised at their May 18, 2012 meeting, and discussed key budget measures. ANALYSIS: WHERE WE HAVE BEEN: Over the last several years, the City organization has faced some financial challenges due to the economic downturn. In FY 2010-11, the General Fund revenues experienced a $2 million or 17% decrease in sales and property taxes and the State of California raided over $300,000 from the City's community redevelopment agency. In response to these challenges, for the FY 2011-12 Budget process, a zero-based budgeting was implemented that reduced operating costs by approximately $800,000. Prudent planning in the unwelcoming fiscal environment protected and preserved core City services and increased efficiencies. Despite limited resources, the City improved its emergency preparedness, implemented a comprehensive community preservation program and leveraged General Fund dollars to capture multi-million dollar grant awards primarily for the Rosemead Boulevard Enhancement Project. In addition, the City Council adopted a comprehensive budget reserve policy to ensure adequate resources are available for emergencies, contingencies, liabilities and planned major capital projects that is discussed in more detail later. Significant growth in the property and sales tax local revenues were encouraging in the FY 2011-12 which provided immediate stability to the General Fund. Continued conservative growth is anticipated over the next year. Last year, the City also updated its cost allocation plan and adopted a comprehensive user fee schedule to adequately cover administrative costs and reduced a growing General Fund subsidy for various services and programs. A comprehensive plan of this type had not been completed since 1991. The State of California, in an attempt to address their own fiscal crises, has passed legislation which has been upheld in the California Supreme Court that eliminates the City's Community Redevelopment Agency. As a result there will be a loss of $880,000 in gross tax increment. After Agency obligations, there was approximately $200,000 for redevelopment and economic development activities which is no longer available. This was yet another blow to the local governments state-wide and the City has had to deal with the fiscal ramifications of this legislation both operationally and for the Rosemead Boulevard Enhancement Project which was anticipated to be funded with $1.8 million in City's Community Redevelopment bond proceeds. This item is being dealt with by the Temple City Successor Agency Oversight Committee and the California Department of Finance. City Council June 19, 2012 Page4 MOVING FORWARD FY 2012-13: Despite these challenges, the City is moving forward in a positive direction. In preparing this Draft Budget, the following considerations were made: • The continued shift in the organizational culture from "status quo" to "high- performing"; • A two-year work plan developed last year with significant input from the City Council will continue to move forward into FY 2012-13. The Council Identified Goals in the two-year work plan include: ';; Vision & Long Range Planning; ,. Sustainable Infrastructure; ,. Public Health and Safety; ;-Basic City Services; ,. Economic Development & Redevelopment; ,_ Citizen Education & Communications; -, Quality of Life; and ,.. Sound Fiscal Policy & Programs. • Continued the zero-based budgeting approach with on-going analysis of all expenditures. The total draft FY 2012-13 City Budget is $28,590,140 (Attachment "A"), of which the General Fund comprises roughly $12,121,015 (e.i. 42%) of the City's Budget. Special Fund expenditures are anticipated to be $3,149,005 (e.i. 11%), Capital Improvement (Attachment "B") and Outlay represents $13,320,120 (e. i. 4 7% ). The only change in this Budget from the Draft Budget presented at the Budget Study Session is $500,000 in Proposition C Funds have been added for the Design of Las Tunas Drive. Projected General Fund revenues and transfers in are $11,456,610 and budgeted expenditures are $11 ,441,840. This spending plan includes a 2% cost of living adjustment for all full-time employees. Staff is pleased that the FY 2012-13 City Budget as submitted has a projected General Fund operating surplus of $14,770. This is an accomplishment as the City is able to live within its means and is anticipating maintaining the current level of services with current revenue sources. It is recognized that the proposed one-time outlays of $679,175 for equipment purchases (i.e., $182,925) and capital improvement projects (i.e., $496,250) come from the current Undesignated Fund Balance. WHAT'S NEW: • Additional resources have been targeted to Communications and Economic Development. • There has been a consolidation and re-organization of programs to provide more transparency (i.e., Community Relations budget has been eliminated and City Council June 19,2012 Page 5 programs have been absorbed into the Management Services and Parks and Recreation budgets). • Personnel costs previously associated with the Community Redevelopment Agency have been absorbed primarily by the General Fund. • Annual street slurry seal and street maintenance has been moved from operations to Capital Improvement Program and more aggressive street maintenance is planned for next fiscal year. • Increased efforts for re-striping, re-painting of city streets and parking lots. • Technology upgrades in the City Clerk's office will provide for more efficiency in the storage of documents. • The General Fund budget does include resources for the local election in March 2013. • The Public Transportation Budget (Prop A Fund) includes $90,000 to add a fixed route shuttle services. • Two part-time Park Rangers (approximately 1,500 hours each) have been budgeted in the Parks Maintenance, Community Preservation and Public Safety program budgets. This program is still under development and staff will return to the City Council with a final plan, however staff felt it was important to secure the funding for this program in the FY 2012-13 City Budget. ONE-TIME CARRYOVER APPROPRIATION: On June 29, 2011, with the adoption of the two-year Budget Document for FY 2011-13 by the City Council, a one-time supplemental funding allocation of $25,000 was made to the Chamber of Commerce for capacity building and technical resources to support the Chamber's shift to a high performing organization. This supplemental funding has yet to be spent, however, the City Council will review a proposal from the Chamber of Commerce's Executive Director for how these funds are proposed to be spent at a Special Study Session tentatively planned for the week of June 25, 2012. As a result, staff is making a request for a one-time carryover of this appropriation into the FY 2012- 13 so that funding for this program remains as the project comes to fruition sometime after July 1, 2012. BUDGET ADOPTION REQUIREMENTS: Pursuant to Section 901 of the City Charter, the City Council is required to conduct a public hearing prior to the adoption of the Draft FY 2012-13 City Budget which includes the proposed revenues and corresponding expenditures. In addition, the City Council must review the compliance with provisions of Government Code Section 66000 (AS 1600) for development fees. City Council June 19, 2012 Page 6 Effective January 1, 1997, SB 1683 made certain changes to AB 1600, the Mitigation Fee Act. AB1600 was originally passed in response to concerns of the development community that local agencies were imposing development fees for purposes unrelated to development projects. AB1600 set forth a standard against which fees imposed on development projects are to be accounted for and spent. The Council is requested to review the attached report (Attachment "C") which shows compliance with the provisions of Government Code Section 66000 (AB 1600) for development fees. All required public noticing for these actions were completed on June 4, 2012 and June 11, 2012 by publishing in the legal notice section of the Temple City Tribune. CONCLUSION: The Draft FY 2012-13 City Budget provides funding for operations, equipment outlay and Capital Improvements for the following fiscal year. FISCAL IMPACT: Adoption of the FY 2012-13 Draft City Budget will ensure that the City's operations continue with funding appropriations for various programs and initiatives between July 1, 2012 and June 30, 2013. ATTACHMENTS: A. City of Temple City Statement of Estimated Fund Balances for FY 2012-13 B. City of Temple City Capital Improvement Project Recap for FY 2012-13 C. AB 1600 Compliance Report D. Resolution 12-4826 Adoption of the Budget for FY 2012-13 Project Number Description P12·02 Citywide Parks & Open Space Master Plan P13-01 Additional Concrete for the Performing Arts Pavillion Area P12-07 Citywide Traffice Calming Study Master Plan P12-06 Comprehensive Downtown Parking Study and Strategic Plan P08-07 Upgrade Sewer line on Longden from Muscatel to Encinita POB-11 Rosemead Boulevard Improvement Project Pll-01 Bicycle Master Plan P12-04 Citywide Upgrade Traffic Street Sign age PB-02 Repaving of Streets per Re-assessment Pavement Management Index P13-03 Generator for pump at Rosemead Boulevard PB-04 Redesign Las Tunas Drive Project P13-05 ADA Barrier Removal Program Pl0-05 Council Chamber Renovation P13-06 Remote/Motorizing Accesss Gate for City Yard PB-07 Reroof City Ha[( P13-08 Redesign City HaH Lobby, Conference Room & Management Office P13-09 City AM Radio Station Total CITY OF TEMPLE CITY ADOPTED BUDGET FY 2011-2013 CAPITAL IMPROVEMENT PROGRAM PROJECT RECAP FY 2012-2013 General Fund Prop A Prop C 100,000 20,000 1,500,000 3,961,825 500,000 2.50,000 15,000 60,000 25,000 26,250 496,250 1,500,000 4,461,825 SB821 Gas Tax Prop 1B CDBG (TDA) 687,710 22,000 750,000 100,000 100,000 850,000 687,710 100,000 22,000 ATTACHMENT "B" Page 1 of 2 Measure Sewer R Reconstr HSIP 50,490 54,900 400,000 443,700 340,000 300,000 849,090 400,000 340,000 Project Number Description Pl2·02 Citywide Parks & Open Space Master Plan Pl3-Q1 Additional Concrete for the Performing Arts Pavillion Area P12-07 Citywide Traffice Calming Study Master Plan P12·06 Comprehensive Downtown Parking Study and Strategi c Pl an POS-07 Upgrade Sewer line on Longden from Muscatel to Encinita POB-11 Rosemead Boulevard Improvement Project P11·01 Bicycle Master Plan Pl2-04 Citywide Upgrade Traffic Street Signage Pl3-02 Repaving of Streets per Re-assessment Pavement Management Index Pl3-03 Generator for pump at Rosemead Boulevard P13 ·04 Redesign Las Tunas Drive Project P13-05 ADA Barrier Removal Program P1Q.OS Council Chamber Renovation Pl3-06 Remote/Motorizing Accesss Gate for City Yard Pl3-07 Reroof City Hall P13·08 Redesign City Hall Lobby, Conference Room & Management Office P13·09 City AM Radio Station Total CITY OF TEMPLE CITY ADOPTED BUDGET FY 2011-2013 CAPITAL IMPROVEMENT PROGRAM PROJECT RECAP FY 2012-2013 Park Acq l/LD RAC 2,000,000 110,250 2,000,000 110,250 STPL 1,007,565 1,007,565 SAFE LU EPA 194,000 719,920 719,920 194,000 ATTACHMENT "B" Page 2 of 2 Total 100,000 20,000 50,490 54,900 594,000 10,770,970 22.000 300,000 750.000 100,000 500,000 100,000 250,000 15,000 60,000 25 ,000 26,250 13,738,610 AB 1600 COMPLIANCE REPORT SEWER RECONSTRUCTION (Amounts reported are from Adopted Budgets) ATTACHMENT 11 Cn Page 1 of 3 FY 91-92 $11,198-Engineering design for sewer reconstruction on Broadway from Rosemead Blvd. to Encinita FY 92-93 $6,616-Sewer reconstruction on Broadway from Rosemead Blvd. to Encinita FY 93-94 $116,673-Sewer Reconstruction on Broadway from Rosemead Blvd. to Encinita FY 97-98 $20,000 -Construction of new sewer line as part of the project of the new facility at LOP FY 98-99 $2,100-Citywide Sewer Capacity Study FY 99-00 $50,000 -Citywide Sewer Capacity Study $97,000-New sewer system on Goldenwest (This project was a budget amendment in October 1999 in FY 99-00 ) FY 00-01 $41,950-Citywide Sewer Capacity Study FY 01-02 $11 0,000 -New sewer system on Craig lee FY 03-04 $20,000-Add'l funds for new sewer system on Craig lee $85,000-Blackley/Oiive Sanitary sewer improvement FY 04-05 $200,000 -Sewer Upgrade for Moratorium Area FY 07-08 $84,760-Blackley/Oiive Sanitary Sewer Improvement $75,000-New Sewer Master Plan Funds loaned from the General Fund Funds loaned from the General Fund Funds loaned from the General Fund Funds loaned from the General Fund Funds loaned from the General Fund Funds loaned from the General Fund Funds loaned from the General Fund $300,000-Upgrade Sewer Line on Longden from Muscatel to Encinita FY 08-09 $40,000-New curb and gutter on Longden and Lemon FY 10-11 $1 00,000 -Add' I funds for Upgrade Sewer Line on Longden from Muscatel to Encinita CONGESTION MANAGEMENT (Amounts reported are from Adopted Budgets) FY 02-03 $28,389-Installation of traffic signal left turn arrow on Las Tunas/Temple City Blvd. (This project was a budget amendment in February 2003 in FY 02-03 ) AB 1600 COMPLIANCE REPORT PARK ACQUISITION (Amounts reported are from Adopted Budgets) FY 88-89 $81,196 -LOP Improvements: -Purchase of four concrete picnic tables -Re-roof concession stand -Purchase of aluminiumplanking to prelace wooden planking on picnic tables and benches -Installation of additional concrete decking in picnic shelter area -Replace four exterior doors on Recreation Bldg. -LOP development & bldg expansion-relocation of maintenance storage shed, ATTACHMENT "C" Page 2 of 3 construction of restrooms and conversion of the multipurpose room to a community recreation facility FY 89-90 $139,130 -LOP Improvements -Repainting of exterior surfaces of auditorium facility -Installation of indoor/outdoor carpeting in the Recreation Office -Replacement of 4 exterior doors of the Auditorium Building -Installation of 2 concrete picnic tables -Replacement of Pony Glider play apparatus FY 90-91 $3,427-T.C. Park and LOP Improvements -Purchase of 2 concrete trash receptacles for TC Park -Repaint interior surfaces of Auditorium facility at LOP -Replacement of wooden fort play apparatus at LOP FY 92-93 $22,655 -LOP and TC Park Improvements -Develop architectural plans & specifications for the renovation of water irrigation system at LOP and TC Park -Renovate water irrigation system at LOP, including conversion to an electric system FY 93-94 $5,466 -LOP Improvements -Develop plans for construction of a new facility at LOP FY 95-96 $1,385 -LOP Improvements -Renovate wading pool FY 97-98 $142,000-LOP Improvements -Construction of a new facility for LOP FY 98-99 $22,070-LOP Improvements -Repair and Slurry seal all asphalt surfaces -Resurface Tennis Courts -Resurface Basketball Courts -Refurbish public restrooms located at maintenance bldg $3,500 -TCP Improvements -Installation of additional bandstand brick displays FY 99-00 $26,500-TCP and LOP Improvements -Repair and Slurry seal all asphalt surfaces -Refurbish public restrooms located at maintenance bldg $18,972-LOP Improvements (approved by budget subcommittee) -ADA Drinking Fountains -Pads for ADA Drinking Fountain -Replace 5 Barbecue Grills -Install Coin Machines(Basketball) -Upgrade Pool Drains AB 1600 COMPLIANCE REPORT PARK ACQUISITION (Con'tl FY 00-01 $24,000-TCP Improvement -Repair and Slurry seal all asphalt surfaces $92,650 -LOP Improvements -ADA Drinking Fountains -Resurfacing of basketball courts -Walkway lighting -Installation of roll-up door for maintenance shop FY 01-02 $36 ,800-LOP Improvements -ADA Drinking Fountains -Replace baseball fencing -Picnic Shelters $11,000-TCP Improvements -Relocate electrical panel FY 02-03 $6,000-LOP Improvements -Submeter for field lights -Tennis court wind screens $10,250 -LOP Improvements (This project was a budget amendment in February 2 003 in FY 02-03 ) -Athlet ic field renovation -Picnic shelters FY 03-04 $1 ,800 -TCP Improvements -Temporary power at picnic shelters $1 ,700 -LOP Improvements -Push-button controls for tennis courts FY 05-06 $8 ,750 -Security Lighting for Live Oak Park FY 06-07 $16 ,250-Add'l funds for Security Lighting for Live Oak Park $70,500 -Repair vinyl flooring at Live Oak Park Community Center FY 07-08 $25,000 -Security Lighting for Live Oak Park $35,000-New Infield for North Baseball Diamond at Live Oak Park FY 09-10 $30 ,000-New Walkway Lighting for Temple City Park $30,000-Renovation of circular planter at Live Oak Park ATTACHMENT "C" Page 3 of 3 FY 10-11 $10 ,000-Add'l funds for Renovation of circular planter at Live Oak Park, Temple City Park, and Monument Sign project $30,175-Add'l funds for Renovation of circular planter at Live Oak Park, Temple City Park, and Monument Sign project FY 11-12 $27,000-Add'l funds for Renovation of circular planter at Live Oak Park, Temple City Park , and Monument Sign project RESOLUTION NO. 12-4826 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMPLE CITY ADOPTING THE CITY BUDGET AND APPROPRIATING REVENUE OF THE CITY FOR THE FISCAL YEAR 2012-2013 ATTACHMENT 11D11 Page 1 of 3 WHEREAS, in accordance with Section 2207 of the Temple City Municipal Code, the City Manager has prepared and submitted to the City Council a proposed budget for the 2012-13 fiscal year starting July 1, 2012; and WHEREAS, the City Council, as the legislative body of the City has reviewed and modified this proposed budget; and WHEREAS, the City Council has determined that it is necessary for the efficient management of the City that certain sums of revenue of the City be appropriated to the various departments, programs and activities of the City. NOW, THEREFORE, the City Council of the City of Temple City does hereby resolve, determine and order as follows: SECTION 1. A certain document, which includes all reserves, revenues, appropriations and transfers, is on file in the office of the City Clerk of the City of Temple City being marked and designated "Adopted Budget, 2012-13 Fiscal Year". Said document, as prepared by the City Manager and amended by the City Council was adopted for the fiscal year commencing July 1, 2012 . SECTION 2. The following sums of money are hereby appropriated from the revenue of the City of Temple City to the following named departments, programs and activities of the City for expenditure during the 2012-13 fiscal year: SECTION 3. The City staff is authorize (by these appropriations) to expend such sums without further Council approval, subject, however, to any state laws or city ordinances. BUDGET APPROPRIATIONS DEPARTMENT/PROGRAM TOTAL EXPENDITURES MANAGEMENT SERVICES City Council ............................................................................................... $ 161,445 City Manager .................................................................................................. 900,305 City Attorney ................................................................................................... 222,700 Elections ........................................................................................................... 70,925 Council Support .............................................................................................. 290,505 Resolution No. 12-4826 Page2 ADMINISTRATIVE SERVICES ATTACHMENT "D" Page 2 of 3 Support Services ............................................................................................ 199,075 Insurance/Benefits ......................................................................................... 647,360 Insurance/Benefits (Performance Bonus) ...................................................... 175,000 Accounting ..................................................................................................... 480, 115 Purchasing ..................................................................................................... 135,950 COMMUNITY DEVELOPMENT Planning ......................................................................................................... 612,750 Building ........................................................................................................... 402,050 Housing .......................................................................................................... 318 ,660 Public Safety Division Law Enforcement ........................................................................................ 3,661,650 Traffic Engineering ............................................................................................. 8,280 Animal Control. ............................................................................................... 196,530 Emergency Services ........................................................................................ 94,405 Community Preservation ................................................................................ 650,490 Parking Administration ................................................................................... 264,440 Public Works Division Administration and Engineering ..................................................................... 213,630 Street Cleaning .............................................................................................. 122,340 Traffic Signal Maintenance ............................................................................ 156,800 Traffic Signs & Striping Mtce .......................................................................... 172,325 Street Maintenance ........................................................................................ 262,500 Sidewalk Maintenance ................................................................................... 165,000 Solid Waste Management .................................................................................. 8,690 Street Lighting ................................................................................................ 349,630 Maintenance Division General Government Buildings ...................................................................... 247,035 Parking Facilities ............................................................................................ 216,775 Graffiti Abatement ............................................................................................ 33,620 PARKS & RECREATION Recreation/Human Services ....................................................................... 1,060,645 Public Transportation ..................................................................................... 755,010 Parks-Maintenance/Facilities ...................................................................... 832,085 Trees and Parkways ...................................................................................... 502, 125 TOTAL OPERATING EXPENDITURES ........................................................... $14,590,845 VEHICLE AND EQUIPMENT REPLACEMENT PROGRAM ............................... $260,685 ATTACHMENT "D" Page 3 of 3 Resolution No. 12-4826 Page 3 CAPITAL IMPROVEMENT PROGRAM Parks-Maintenance/Facilities ...................................................................... 120,000 Traffic Engineering ........................................................................................... 50,490 Parking Admininstration ................................................................................... 54,900 Street Construction I Maintenance ........................................................... 13,036,970 Sidewalk Maintenance ................................................................................... 100,000 General Government Buildings ...................................................................... 376,250 TOTAL CAPITAL IMPROVEMENT PROGRAM .............................................. $13,738,610 TOTAL ESTIMATED EXPENDITURES FOR FY 2012-13 ............................... $28,590,140 SECTION 4. The adopted reserves, revenues, transfers in, transfers out and appropriations are reflected on the "Statement of Estimated Fund Balances" for Fiscal Year 2012-13. SECTION 5. The City Clerk shall certify to the passage and adoption of this resolution. APPROVED AND ADOPTED this 19th day of June, 2012. MAYOR ATTEST: City Clerk I, City Clerk of the City of Temple City, hereby certify that the foregoing resolution, Resolution No. 12-4826 was duly adopted by the City Council of the City of Temple City at a regular meeting held on the 19th day of June, 2012, by the following vote: AYES: NOES: ABSENT: Councilmember - Councilmember - Councilmember - City Clerk