CITY COUNCIL: Revisions to FY 2007/08 General Fund Budget

Date: January 8, 2008
Prepared by: Joyce Giuffre
Admin Services Director

City Council
Agenda Item Summary

Name: Consideration of a resolution adopting revisions to the fiscal year 2007-08
General Fund budget.

Description: The fiscal year 2007-08 General Fund budget needs adjustments to expenditures of $342,859, which can be offset by adjustments to revenues of $181,132 and transfers from reserve funds of $161,727, per the attached schedule, Exhibit A.

Staff Recommendation: Approve the FY 2007-08 General Fund budget adjustments. The adjustments are recommended to adjust for salaries and wages changes since July 1, 2007, to ensure the completion of projects previously approved by the City Council, and to maintain City services.

Important Considerations: The list of mid-year budget adjustments include paying off
WestAmerica note and lease balances, resulting in savings of $78,261 in debt service payments during FY 2007-08. The payoff of the WestAmerica debt is contingent on a resolution to approve the use of the FY 2006-07 General Fund surplus to be considered at the January 8, 2008 City Council meeting. The resolution to be considered includes provisions to pay off $325,500 in WestAmerica debt with a portion of the FY 2006-07 surplus.

Decision Record: Previous Resolution 2007-27 dated May 22, 2007 approved the Triennial budget for fiscal years 2007-08 through 2009-10.

Reviewed by:
______________________________ _________________
Rich Guillen, City Administrator Date


CITY OF CARMEL-BY-THE-SEA
STAFF REPORT
TO: MAYOR McCLOUD AND COUNCIL MEMBERS
FROM: JOYCE GIUFFRE, ADMINISTRATIVE SERVICES DIRECTOR
DATE: JANUARY 8, 2008
SUBJECT: CONSIDERATION OF A RESOLUTION ADOPTING REVISIONS TO
THE FISCAL YEAR 2007-08 GENERAL FUND BUDGET
______________________________________________________________________________
1. RECOMMENDED MOTION:
Adopt the resolution making revisions to the fiscal year 2007-08 General Fund budget.

2. BACKGROUND:
Each year, the annual budget is reviewed at the mid-year point and compared to the actual expenditures through December 31st. Staff recommends budget revisions that include: salary and wages adjustments for bargaining units’ MOUs changes, departmental line items adjustments, capital improvement and outlay adjustments, and changes to debt service. Exhibit A is a list of the recommended adjustments to General Fund expenditures in the amount of $342,859. These expenditure adjustments can be offset with adjustments to revenues of $181,132 and transfers from reserve funds of $161,727 to maintain a balanced budget.
General Fund Expenditure Adjustments
Many of the General Fund expenditure adjustments are for projects or contracts previously approved by City Council, including:
• Bargaining units new MOU’s effective July 1, 2007
• Contract with Ralph Andersen & Associates to recruit the Community
Planning & Building Department Director
• Replacement of 90 minute parking signs with 2 hour limit signs
• Forest Hill bathroom improvements
• Library branch repairs, including mold control in Park Branch basement
• Norton Court security equipment improvements
• Flanders Mansion repairs and maintenance
• Historic resource evaluation of Forest Theater

The list of mid-year budget expenditure adjustments also include paying off WestAmerica note and lease balances, resulting in savings of $78,261 in debt service payments during the current fiscal year. The payoff of the WestAmerica debt is contingent on a resolution to approve the use of the FY 2006-07 General Fund surplus to be considered at the January 8, 2008 City Council meeting. The resolution to be considered includes provisions to pay off $325,500 in WestAmerica debt with a portion of the FY 2006-07 surplus.

General Fund Revenues Adjustments and Transfers In/Out of General Fund
For the proposed revenue budget adjustments, staff projects that an additional $50,000 in interest income and $55,000 in business license tax receipts will be received by fiscal year end. In addition, the Transportation Agency of Monterey County (TAMC) has allocated $71,812 from its Fair Share Reserve for the City’s Mission Street improvements. The City will receive these funds upon completion of the Mission Street project. The transfers from reserve funds include a transfer from the Capital Project Reserve of $50,000 to fund the emergency sewer replacement project at Santa Fe and 4th. A $49,203 transfer from the Workers Compensation Reserve can be made to fund the self-insured workers compensation claims. This reserve is specifically set aside for the runout of the City’s self-insured claims. A $40,000 transfer from the Benefit Liability Reserve can be made to cover vacation/sick leave payouts for employees leaving service. The transfers from the Workers Compensation Reserve and the Benefit Liability Reserve offset the amounts shown as adjustments for these two items in the Salary and Wages section of Exhibit A.

3. SUMMARY:
The FY 2007-08 Mid-Year General Fund Budget adjustments are recommended to account for the salary and wage changes since July 1, 2007, to ensure the completion of projects previously approved by the City Council, and to maintain City services.

CITY COUNCIL
CITY OF CARMEL-BY-THE-SEA
RESOLUTION 2008 –
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA ADOPTING REVISIONS TO FISCAL YEAR 2007-08 GENERAL FUND BUDGET.

WHEREAS, the City Council approved the Triennial Budget for Fiscal Years 2007-08
through 2009-10 by Resolution 2007-27 dated May 22, 2007; and

WHEREAS, adjustments are needed for the Fiscal Year 2007-08 General Fund budget
based on the Mid-Year Budget Review; and

WHEREAS, the 2007-08 General Fund adjustments to expenditures total $342,859,
offset by an increase to revenues of $181,132 and by transfers from reserve funds of $161,727 per the attached schedule, Exhibit A.

NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA DOES:

1. Approve adjustments to the Fiscal Year 2007-08 General Fund budget, per the
attached schedule, Exhibit A.

PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA this 8th day of January 2008, by the following roll call vote:

AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
SIGNED,

_______________________________
Heidi Burch, City Clerk

________________________
ATTEST, SUE McCLOUD, MAYOR