TITLE
Recommendation to approve the Fiscal Year 2013 second quarter departmental and fund budget appropriation adjustments in accordance with existing City Council policy. (Citywide)
DISCUSSION
On September 4, 2012, the City Council adopted the Appropriations Ordinance governing the City's Adopted Budget for Fiscal Year 2013 (FY 13). 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 Summary of Proposed Adjustments of impacted City funds and Attachment B for a recap of FY 13 General Fund Expenditure Budget Adjustments.
This matter was reviewed by Assistant City Attorney Charles Parkin on April 11, 2013.
TIMING CONSIDERATIONS
The following requests for adjustments to FY 13 departmental and fund appropriations are necessary to reflect changes in operating conditions. City Council action is requested on May 7, 2013 to enable the timely processing of payments.
FISCAL IMPACT
City Manager
The Citizen Police Complaint Commission (CPCC) was established to provide an independent investigative commission to receive, administer and investigate allegations of misconduct against Long Beach Police Officers. The CPCC was among 93 charities and public service organizations named as eligible beneficiaries of the Louis C. Mirabile Revocable Trust and received a donation of $4,316. The CPCC will use the funds to help support its work as an independent investigative agency.
· Increase appropriations in the General Fund (GP) in the City Manager Department (CM) by $4,316 from donation revenue.
Library Services
The Long Beach Public Library has received revenue totaling $458,268, which is comprised of JetBlue payments in lieu of fines in the amount of $432,302, from the estate of John Crews to enhance the collection in the Main Library in the amount of $25,000, and from the Slaybaugh Endowment to enhance the collections in the main and branch libraries in the amount of $966. A budget adjustment is requested and is fully offset by a corresponding increase in revenue in the General Grants Fund.
· Increase appropriations in the General Grants Fund (SR 120) in the Library Services Department (LS) by $458,268 from donation revenue.
Parks, Recreation and Marine
The Department of Parks, Recreation and Marine (PR) has two trusts for the Animal Care Services (ACS) Bureau: the Teresa Trust Fund for Cats and the Derrickson Living Trust. In provision with the trust requirements, ACS recently purchased cat and puppy housing in the amount of $67,786 to help prevent the spread of disease and promote a healthier living environment for animals in the care of ACS.
· Increase appropriation in the General Fund (GP) in the Parks, Recreation and Marine Department (PR) by $67,786 from the Teresa Trust Fund for Cats and the Derrickson Living Trust.
Police
City Council previously authorized the City Manager to receive, expend and increase the award amount for an existing Department of Homeland Security FY 09 Urban Area Security Initiative (UASI) Grant. An adjustment to the first amendment to the Police Department's current allocations is necessary to align their share of the increased UASI 09 grant allocations. This adjustment is necessary to receive a larger grant in the future. This additional funding is not budgeted and an appropriation change is necessary and will be offset by grant revenue.
· Increase appropriations in the General Grants Fund (SR 120) in the Police Department (PD) by $3,336 from grant reallocation.
Public Works
In FY 12, the Utility Call Center was moved from the Financial Management Department (FM) to the Long Beach Gas and Oil Department (LBGO). Previous to FY 12, Call Center charges were part of the Billings and Collections MOU in FM. When LBGO took over the Call Center, there were no appropriations made for Call Center expenses in the Environmental Services Bureau. To correct this oversight for FY 13, an appropriation increase is requested. The Environmental Services Bureau's FY 13 portion for this operation is $558,793.
· Increase appropriations in the Refuse Fund (EF 330) in the Public Works Department (PW) by $558,793 from fund balance.
On November 1, 2011, the City Council approved and adopted a resolution authorizing the City Manager to submit a grant application to the California Strategic Growth Council (SGC), through the Urban Greening Grant Program (Program), for the Wilmore Courts and Ways Demonstration Project located at La Reina Way and Del Rey Court. The project includes closing a portion of La Reina Way between Chestnut Avenue and Del Rey Court to vehicular traffic and incorporating stormwater management features, native plants, removing pavement and replacing with permeable pavers and sustainable enhancements. On December 20, 2012, the SGC announced awards for the Program with $170,000 to Public Works for the Demonstration Project. The City's estimated match requirement is $48,112. Matching funds are budgeted in the Community Development Block Grant Fund (SR 150) in the Development Services Department (DV).
· Increase appropriations in the Capital Projects Fund (CP) in the Public Works Department (PW) by $170,000 from grant revenues.
Three years ago, in order to implement traffic calming measures in Downtown, the City initiated a pilot program of separated bikeways along 3rd Street and Broadway. The installation of the bikeways involved removing a travel lane on each street, constructing medians, modifying traffic signals and installing streetscape amenities. Due to the unique measures of the bikeways, the City received both State and Federal approval for experimentation of a variety of traffic control elements. This pilot is now coming to a conclusion. The Federal government has provided the City with $1,600,000 in SAFETEA-LU funding to finalize the implementation of traffic calming measures in Downtown, with a $320,000 match requirement from the City. Caltrans, the administrator of the Federal grant, has authorized the City to move forward with the evaluation and design phase of the project. During this phase, City staff will seek public input and will return to City Council to seek concurrence on the final project elements before proceeding to construction of any changes.
This request is to appropriate $307,200 of SAFETEA-LU grant funds for the evaluation and design of the final traffic calming project. $76,800 in Measure R funds will be used to for the City's matching requirement. Measure R funds are appropriated in the Transportation Fund (SR 182) in the Public Works Department (PW).
· Increase appropriations in the Capital Projects Fund (CP) in the Public Works Department (PW) by $307,200 from grant revenues.
Council District 9 is working with stakeholders in North Long Beach to establish the Uptown PBID. Civitas Advisors was awarded the contract to establish the PBID and $50,000 in one-time Uplands Oil Funds was appropriated in FY 12 for this activity. A transfer of an additional $18,000 from Council District 9's Discretionary Funds in the Capital Projects Fund (CP) to the General Fund (GP) is requested as a result of unanticipated costs associated with the complexities of creating this PBID.
· Decrease appropriations in the Capital Projects Fund (CP) in the Public Works Department (PW) by $18,000 from One-Time Uplands Oil Funds.
· Increase appropriations in the General Fund (GP) in the Public Works Department (PW) by $18,000 from One-Time Uplands Oil Funds.
Citywide Activities
On April 2, 2013, the City Council allocated $5.4 million for one-time projects consisting of $3.6 million for Public Works street and sidewalk repairs, and $1.8 million for temporary Parks youth programs and/or Parks capital projects. The one-time allocation is funded by $4.4 million of FY 12 Uplands Oil revenue and $1 million from a previously budgeted FY 11 interfund transfer to the General Fund from the Towing Fund (EF 340) that was deferred for future action. Appropriation increases are needed to implement the transfers from the designated funding sources and to budget the expenditures for the Public Works street and sidewalk repairs. An appropriation increase is also needed for the Parks youth programs and/or capital projects. A spending plan for specific programs and capital projects will be established in consultation with each City Council District.
· Increase appropriations in the Uplands Oil Fund (SR 134) in the Long Beach Gas and Oil Department (GO) by $4,400,000 from FY 12 oil revenue.
· Increase appropriations in the Towing Fund (EF 340) in the Public Works Department (PW) by $1,000,000 from fund balance.
· Increase appropriations in the Capital Projects Fund (CP) in the Public Works Department (PW) by $2,600,000 for street repaving and slurry seal.
· Increase appropriations in the Capital Projects Fund (CP) in the Public Works Department (PW) by $1,000,000 for sidewalks.
· Increase appropriations in the Capital Projects Fund (CP) in the Parks, Recreation and Marine Department (PR) by $1,800,000 for temporary youth programs and/or capital projects.
Multi-Year Funds Carry-over
Each fiscal year, appropriation increases and decreases are necessary to make technical corrections related to grants and capital projects Citywide. Budget amounts not spent by the end of a fiscal year for multi-year grants are carried forward and re-appropriated in the ensuing fiscal year. The FY 13 Adopted Budget contained estimated amounts of carry-over balance from FY 12. The necessary corrections represent the difference between the estimate and the actual carry-over amount. Attachment C lists the corrections that require City Council approval by fund and by department for FY 13. The net adjustment for the affected funds and departments is an appropriation increase of $246,684,879. The single largest adjustment of $213.5 million is related to the establishment of the Successor Agency, which was done after the FY 13 budget was adopted. All of the funds are grant or bond proceeds and, therefore, restricted to their related projects and do not impact the General Fund. Please see Attachment C for department detail.
IAM Agreement PERS Savings
On January 15, 2013, the City Council approved an amendment to the Memorandum of Understanding with the International Association of Machinists and Aerospace Workers (IAM). As part of this amendment, the IAM agreed to pay an additional 6 percent of their employee contribution rate to CalPERS, for a total of 8 percent, which represents 100 percent of the employee's share to CalPERS. This additional CalPERS payment was effective January 26, 2013, and is estimated to save the City's General Fund approximately $2.5 million ($6.3 million in All Funds) in FY 13. In order to capture these savings, appropriations across all funds and Departments with IAM employees will be reduced to reflect the lower PERS contribution requirements. The Water Department and Harbor Department have indicated that each would reduce appropriations equal to their PERS savings through their own Board of Commissioners. Please see Attachment D for of all reduced appropriations by department and fund.
· Decrease appropriations by $6,330,845 in amounts equal to the IAM PERS savings in the relevant departments and funds.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
JOHN GROSS
DIRECTOR OF FINANCIAL MANAGEMENT
APPROVED:
PATRICK H. WEST
CITY MANAGER