TITLE
Recommendation to approve the Fiscal Year 2011 first quarter departmental and fund budget appropriation adjustments in accordance with existing City Council policy. (Citywide)
DISCUSSION
On September 14, 2010, the City Council adopted the Appropriations Ordinance governing the City's Adopted Budget for Fiscal Year 2011 (FY 11). Periodically, changes in revenue or operating conditions require appropriation adjustments. For example, in certain cases these adjustments enable departments to expend recently awarded grant revenue for which there is no existing appropriation. In addition, changes for multi-year grants/projects are necessary to bring appropriations in line with final grant/project award amounts. In accordance with the City's practice, these adjustments are presented quarterly to the City Council for consideration. Please see Attachment A for a Fund Balance Analysis of impacted City funds and Attachment B for a recap of FY 11 General Fund Expenditure Budget Adjustments.
This letter was reviewed by Assistant City Attorney Heather A. Mahood on January 18, 2011.
TIMING CONSIDERATIONS
The following requests for adjustments to FY 11 departmental and fund appropriations are necessary to reflect changes in operating conditions. City Council action is requested on February 8, 2011 to enable the timely processing of payments.
FISCAL IMPACT
Fire
On February 9, 2010, the City Council approved a contract with Emergency Vehicle Group, Inc., of Anaheim, CA, for the purchase of five Advanced Life Support Ambulances and authorized the City Manager to execute a master lease-purchase agreement with Chase Equipment Finance, Inc., of Phoenix, AZ. The funds to cover the ambulance purchases were received from Chase Equipment Finance in September 2010, at which time the funds were reserved. An appropriations increase is necessary to release the funds to purchase the vehicles. Funds received in FY10 through the lease financing will offset the appropriation increase. There is no net impact to the General Fund. The annual lease payments of $180,561 are included in the FY 11 Adopted Budget.
· Increase appropriations in the General Fund (GP) in the Fire Department (FD) by $987,205.
On July 8, 2008, the City Council authorized the City Manager to execute a contract with the City of Los Angeles to receive and expend Department of Homeland Security grant funding for the 2007 Urban Area Security Initiative (UASI) Grant, at an amount not to exceed $6,671,216. In September 2010, a supplemental award of $2,586,343 was appropriated, bringing the total grant to $9,257,559. Since that time, an additional $175,000 in supplemental funds has been allocated to the City. The additional funds will be utilized to fund a strategic plan, which will be used to identify and coordinate regional homeland security needs, including training and regional cooperation enhancement, and coordinated service delivery issues. As these additional funds are not budgeted, an appropriations increase is necessary and will be offset by grant revenue. There is no net impact to the General Fund nor to the General Grants Fund.
· Increase appropriations in the General Grants Fund (SR 120) in the Fire Department (FD) by $175,000.
Long Beach Airport
On September 14, 2010, the City Council approved the Airport's operating budget for a Memorandum of Understanding (MOU) between the Police Department and the Long Beach Airport of $2,633,111 for police airport security support. Due to updated billable rates, and an increase to their indirect costs, the Police Department services are estimated at $3,274,140, requiring an increase of $641,029 to the Airport's FY 11 budget.
· Increase appropriations in the Airport Enterprise Fund (EF 320) in the Long Beach Airport Department (AP) by $641,029.
Parks, Recreation and Marine
The Department of Parks, Recreation and Marine (PRM) has replaced plastic conduits with rigid metal conduits on all 24 of the Daisy Lane trees that will help prevent vandalism against the trees. The total cost for the repairs was $7,350. A budget adjustment to increase the appropriation in this amount is requested.
· Increase appropriations in the General Fund (GP) in the Department of Parks, Recreation and Marine (PR) by $7,350.
During the FY 11 Budget Adoption process, general increases were not included for some non-career classifications specific to the Department of Parks, Recreation and Marine. To appropriately fund the fully loaded costs of these approved positions, it is necessary to increase appropriations in the Department. Sufficient funds are available in the General Fund to support this appropriations increase.
· Increase appropriations in the General Fund (GP) in the Department of Parks, Recreation and Marine by $61,921.
Police
During the FY 11 Budget Adoption process, the funding for a Police Sergeant was inadvertently removed from the Patrol Bureau. This appropriation request is a technical correction to better align the budget with actual staffing. Sufficient funds are available in the General Fund to support this appropriations increase.
· Increase appropriations in the General Fund (GP) in the Police Department (PD) by $134,204.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
WILLIAM YEOMANS
INTERIM DIRECTOR OF FINANCIAL MANAGEMENT
APPROVED:
PATRICK H. WEST
CITY MANAGER