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HomeMy Public PortalAbout2002-04-18CC_sp~.. This Agenda contains a brief general description of each item to be considered. Copies of the Staff reports or other written documentation relating to each item of business referred to on the Agenda are on file in the Office of the City Clerk and are available for public inspection. A person who has a question concerning any of the agenda items may call the City Manager at (310) 603-0220, ext. 200. Procedures for Addressing the Council IN ORDER TO EXPEDITE CITY COUNCIL BUSINESS, WE ASK THAT ALL PERSONS WISHING TO ADDRESS THE COUNCIL FILL OUT A FORM PROVIDED AT THE DOOR, AND TO TURN IT IN TO THE CITY CLERK PRIOR TO THE START OF THE MEETING. FAILURE TO FILL OUT SUCH A FORM WILL PROHIBIT YOU FROM ADDRESSING THE COUNCIL IN THE ABSENCE OF THE UNANIMOUS CONSENT OF THE COUNCIL. AGENDA ITEMS ON FILE FOR CONSIDERATION AT THE SPECAL MEETING OF THE LYNWOOD CITY COUNCIL TO BE HELD ON APRIL 18, 2002 COUNCIL CHAMBERS 11330 BULLIS ROAD, LYNWOOD, CA 90262 7:00 P.M. ARTURO REYES MAYOR FERNANDO PEDROZA MAYOR PRO-TEM PAUL H. RICHARDS, II COUNCILMEMBER CITY MANAGER FAUSTIN GONZALES CITY CLERK ANDREA L. HOOPER CALL TO ORDER oS f r o CIlY Of LYNW00© CITY GI_ERK,S OFFICE Ada 17 2ot~~ ~ ~t~~~lltl~1t~$~4t5~g ~~ ~."~ 7 ~/1 LOUIS BYRD COUNCILMEMBER RAMON RODRIGUEZ COUNCILMEMBER INTERIM CITY ATTORNEY MICHAEL B. MONTGOMERY CITY TREASURER IRIS PYGATT OPENING CEREMONIES 2. CERTIFICATION OF AGENDA POSTING BY CITY CLERK ROLL CALL OF COUNCIL MEMBERS Fernando Pedroza Louis Byrd Paul H. Richards, II Ramon Rodriguez Arturo Reyes 4. PLEDGE OF ALLEGIANCE PUBLIC ORAL COMMUNICATIONS (Regarding Agenda Items Only) PUBLIC ORAL COMMUNICATIONS IF AN ITEM IS NOT ON THE AGENDA, THERE SHOULD BE NO SUBSTANTIAL DISCUSSION OF THE ISSUE BY THE COUNCIL, BUT IT IS ALL RIGHT FOR COUNCIL TO REFER THE MATTER TO THE STAFF OR SCHEDULE SUBSTANTIVE DISCUSSION FOR A FUTURE MEETING. (The Ralph M. Brown Act, Government Code Section 54950-54962, Part III, Paragraph 5.) 5. FY 2001-02 YEAR-END BUDGET REVIEW/ADJUSTMENTS ^ AMENDMENTS TO FY 2001102 ANNUAL OPERATING BUDGET ^ FINANCIAL CONDITION BASED UPON CURRENT EXPENDITURE LEVEL Comments: Staff has finalized ayear-end review of the City's FY 2001-2002 Budget and also completed a three year projection of each fund if present expenditure level is maintained. Based on the year- end review staff is recommending a total budget amendments of $453,700 in expenditures and total budget amendments $855,450 in revenues. Thus, the net effect of these adjustments after deducting the proposed adjustment in expenditures from revenues is a net increase in revenues of $401,750. These amendments if approved would assist the City in carrying out its current level of operations until the end of this fiscal year. Staff also completed athree-year projection of all funds based upon current expenditure level. Based on this analysis, staff finds that the General Fund is most vulnerable in FY 2003-2004 because of a projected deficit three-quarter into this fiscal year if current level of expenditure were maintained. Given that scenario, the preparation for the proposed FY 2002-2003 budget would take into consideration the potential impact on the funds if present level of expenditure were maintained. Staff is proposing to conduct a series of budget workshops in the month of May to provide the City Council an opportunity to hear from each Department of their current programs, activities, and tasks and to provide the City Manager an opportunity to receive guidance from the City Council in the programs, activities, and tasks to expand, delete, modify or introduce in the proposed budget. Recommendation: Staff respectfully recommends that the City Council to adopt the attached resolution entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD AUTHORIZING AND APPROVING AMENDMENTS TO THE ANNUAL OPERATING BUDGET FOR FY 2001/02." CLOSED SESSION 6. CLOSED SESSION ITEMS A. CONFERENCE WITH LEGAL COUNSEL- ANTICIPATED LITIGATION Significant exposure to litigation pursuant to subdivision (b) of Section 54956.9: Number of Cases: One (1) case ADJOURNMENT THE NEXT REGULAR MEETING OF THE CITY COUNCIL WILL BE HELD ON MAY 7, 2002 AT 6:00 P.M. IN THE COUNCIL CHAMBERS OF THE CITY HALL, 11330 BULLIS ROAD, CITY OF LYNWOOD, CALIFORNIA. 2 DATE: April 18, 2002 TO: THE HONORABLE MAYOR AND MEMBER~OF~THE CITY COUNCIL FROM Faustin Gonzales, City Manager t'1 V/ SUBJECT: FY 2001-02 YEAR-END BUDGET REVIE ADJUSTMENTS - AMENDMENTS TO FY 2001-02 ANNUAL OPERATING BUDGET AND FINANCIAL CONDITION BASED UPON CURRENT EXPENDITURE LEVEL PURPOSE: To have the City Council receive a presentation from staff with regards to the year-end budget review for FY 2001-2002 and the three-year projection on the financial condition of each fund and to adopt the attached resolution authorizing and approving the amendments to the Annual Operating Budget for the FY 2001-2002. BACKGROUND: On November 6, 2001, the City Council adopted the Annual Operating Budget for Fiscal Year 2001-2002. However, since its adoption, the need exists for divisional line-item budget adjustments to cover: 1) Maintenance and operational costs through June 30, 2002. 2) Divisional personnel accounts to cover adjustments in employees' salary and benefits through June 30, 2002. 3) Projected increases/decreases in revenue receipts through June 30, 2002. ANALYSIS: Staff has finalized ayear-end review of the City's FY 2001-2002 Budget and also completed a three year projection of each fund if present expenditure level is maintained. Based on the year-end review staff is recommending a total budget amendments of $453,700 in expenditures and total budget amendments of $855,450 in revenues. Thus, the net effect of these adjustments after deducting the proposed adjustment in expenditure from revenues is a net increase in revenues of $401,750. These amendments if approved would assist the City in carrying out its current level of operations until the end of this fiscal year. The departmental budget amendment requests affect the following funds: 01 • General Fund ~ • $344,100 $544,650 02 Water Fund $7,000 $100,000 04 St. Li htin Maintenance $100,000 13 Public Finance Authori $40,000 $40,000 23 Self-Insurance Fund Line item offset of $100,000 32 Pro "A" Fund $44,000 33 Lansdca a Maint. Fund $42,600 55 COPS Pro ram $7,200 63 State Storm Dama a Grant $302,000 TOTAL AMENDMENTS $453,700 $855,450 Staff also completed athree-year projection of all funds based upon current expenditure level. Based on this analysis, staff finds that the General Fund is most vulnerable in FY 2003-2004 because of a projected deficit three-quarter into the fiscal year if current level of expenditure were maintained. Given that scenario, the preparation for the proposed FY 2002-2003 budget would take into consideration the potential impact on the funds if present level of expenditure were maintained. Staff is proposing to conduct a series of budget workshops in the month of May to provide the City Council an opportunity to hear h:\trancntr\grants\beverag\agenda.doc from each Department of their current programs, activities, and tasks and to provide the City Manager an opportunity to receive guidance from the City Council in the programs, activities, and tasks to expand, delete, modify or introduce in the proposed budget. Although the City may potentially realize one-time revenues in FY 2002-2003 it also faces one-time potential liabilities. There is a need to start planning now to address the potential deficit. The series of workshops is designed to seek City Council's direction on how the organization would look like given the existing revenue constraints. It would also provide opportunities to seek City Council's policy directions on expanding our revenue sources. RECOMMENDATION: Staff respectfully recommends that the City Council adopt the attached resolution entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITYOF LYNWOOD AUTHORIZING TAND APPROVING AMENDMENTS TO THE ANNUAL OPERATING BUDGET FOR FY 2001-2002." The following is a proposed schedule of City Council workshops: RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD AUTHORIZING AND APPROVING AMENDMENTS TO THE ANNUAL OPERATING BUDGET FOR FY 2001102 WHEREAS, the City Council adopted the Annual Operating Budget on November 6, 2001; and WHEREAS, the budget serves as an allocation plan for cost of services, programs and projects; and WHEREAS, certain budget amendments are requested to reflect changes in salary, benefits and maintenance and operational expenses. NOW, THEREFORE, the City Council does hereby find, order and resolve as follows: Section 1. That amendments to the Annual Operating Budget for FY 2001/02 are hereby approved. Section 2. That the City Manager or his designee is authorized to make the following budget amendments: DESCRIPTION FUND # AMENDMENT Expenditures/Transfers-Out: General Fund (01) 344,100 Water Fund (02) 7,000 Street Lighting (04} 100,000 Finance Authority (13) (40,000) Self Insurance Fund (23} Line-item. offset of $100,000 Landscape Maint. (33} 42,600 Revenue/Transfers-!n: General Fund (01) 544,650 Water Fund (02) 100,000 Finance Authority (13) (40,000) Prop "A" Fund (32) (44,000) COPS Program (55) (7,200) State Storm Damage (63) 302,000 Section 3. That this resolution shall take effect immediately upon its adoption. PASSED APPROVED and ADOPTED this day of April, 2002. Arturo Reyes, Mayor ATTEST: Andrea Hooper, City Clerk APPROVED AS TO FORM: City Attorney APPROVED AS TO CONTENT: Faustin Gonzales City Manager