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Recommendation to approve the Fiscal Year 2009 third quarter departmental and fund budget appropriation adjustments in accordance with existing City Council policy. (Citywide)
DISCUSSION
On September 9, 2008, the City Council adopted the Appropriations Ordinance governing the City's Adopted Budget for Fiscal Year 2009 (FY 09). 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 appropriation 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 09 General Fund Budget Adjustments.
This letter was reviewed by Assistant City Attorney Heather A. Mahood on August 3, 2009.
TIMING CONSIDERATIONS
The following requests for adjustments to FY 09 departmental and fund appropriations are necessary to reflect changes in operating conditions. City Council action is requested on August 18, 2009 to enable the timely processing of payments.
FISCAL IMPACT
Community Development
The Long Beach Redevelopment Agency (RDA) participates in City loan programs to the extent that it benefits project areas. Repayments on RDA loans are kept in separate Business Assistance Fund accounts and an appropriation increase is required for the funds to be transferred to the Redevelopment Fund from which the loans are made in the amount of $1,067,585. This appropriation is fully offset by fund balance.
An appropriation increase is also needed in the amount of $833,952 to accommodate additional loans to local businesses through the Commercial and Industrial Revolving Loan Fund Program. The source of the funding is principal and interest repayments received from previous and existing business loans.
· Increase appropriation in the Business Assistance Fund (SR 149) in the Department of Community Development (CD) by $1,901,537.
The US Department of Housing and Urban Development (HUD) announced the renewal funding allocation for the Housing Choice Vouchers (HCV) Program in a notice dated May 8, 2009. The notice confirmed an increase in funding eligibility for the calendar year 2009. The requested increase in appropriation to support additional voucher payments will be offset by the additional Housing Assistance Revenue payments (HAP) from HUD. There is no impact to the General Fund.
· Increase appropriation in the Housing Authority Fund (SR 151) in the Department of Community Development (CD) by $2,500,000.
Fire
On November 13, 2007, the City Council authorized the City Manager to receive and expend Department of Homeland Security grant funding for the 2006 Urban Area Security Initiative (UASI) grant at an amount not to exceed $6,367,040. Unspent funds originally allocated to the Department of Technology Services for radio equipment must now be allocated to the Police Department to cover purchase costs for Police Intelligence Investigative equipment. In order to correctly align each Department's share of the grant, a shift of UASI grant funding from the Technology Services Department to the Police Department is necessary. There is no net impact to the grant or to the General Grants Fund.
· Decrease appropriation in the General Grants Fund (SR 120) in the Technology Services Department (TS) by $7,955.
· Increase appropriation in the General Grants Fund (SR 120) in the Police Department (PD) by $7,955.
On July 8, 2008, the City Council authorized the City Manager 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. Unspent funds originally allocated to the Police Department must now be allocated to the Department of Technology Services to cover purchase costs for Police radio equipment. In order to correctly align each Department's share of the grant, a shift of UASI grant funding from the Police Department to the Technology Services Department is necessary.
There is no net impact to the grant or to the General Grants Fund.
· Decrease appropriation in the General Grants Fund (SR 120) in the Police Department (PD) by $350,000.
· Increase appropriation in the General Grants Fund (SR 120) in the Technology Services Department (TS) by $350,000.
Long Beach Development Services
On May 4, 2009, the Redevelopment Agency (Agency) approved and authorized the Executive Director to appropriate $300,000 for the Agency's commitment to infrastructure improvements and open space development at Atlantic Avenue and Pacific Coast Highway, immediately adjacent to Poly High School. The project will aid in the revitalization of a major corridor within the City and serve as a gateway to the school. Redevelopment funds for the project will be available through budgeted tax increment revenues.
· Increase appropriation in the Redevelopment Fund (RD 221) in the Development Services Department (DV) for the Poly High Project Area by $300,000.
Parks, Recreation and Marine
In November 1992 and November 1996, the voters of Los Angeles County approved Proposition A, the Safe Neighborhood Parks proposition. The City has received a number of grants from this program, including $87,617 for improvements at Martin Luther King, Jr. Park. This grant was originally appropriated in the Department of Parks, Recreation and Marine. In order to use the funds for improvements to the swimming pool at Martin Luther King, Jr. Park, this appropriation was transferred to the Department of Public Works in 2004. However, only $80,000 of the $87,617 was transferred in 2004. It is requested that the remaining $7,617 be transferred from the Department of Parks, Recreation, and Marine to the Department of Public Works.
· Decrease appropriation in the Capital Projects Fund (CP) in the Department of Parks, Recreation and Marine (PR) by $7,617.
· Increase appropriation in the Capital Projects Fund (CP) in the Department of Public Works (PW) by $7,617.
In 2003, sixteen waste oil underground storage tanks (USTs) in the marinas failed secondary containment testing and were taken out of service, emptied and cleaned, but are still out of compliance. An appropriation in the Marina Fund supported by Marina Fund balance is requested to cover the estimated cost to remove the sixteen tanks.
· Increase appropriation in the Marina Fund (TF 403) in the Department of Parks, Recreation and Marine (PR) by $572,217.
The Dwight Stuart Youth Foundation is providing $6,860 in funding to the Rancho Los Cerritos Foundation to help underwrite the cost of the Rancho Los Cerritos Teen Docent Program. Funds specifically underwrite staff hours to manage the program (recruitment, training, tour coordination, museum projects and kids workshops) and for teen docent manuals. The program serves 12 high school teens from area schools. Teens train as volunteer docents, then give specialized tours to youth groups, assist with weekend kids activities, special events and help with collections and education projects. A budget adjustment is required to expend these funds in the current fiscal year.
Signal Hill Petroleum has agreed to provide $25,000 per year for five years for the Department of Parks, Recreation and Marine to provide the Movies in the Park Program. This summer, this program will provide outdoor movies at 29 parks throughout the City and Signal Hill. Movies are shown on a 29-foot inflatable screen and are all rated G and intended for family audiences. The Department is requesting to increase its appropriation to expend this year's donation. This appropriation request is fully offset by new donations.
· Increase appropriation in the Department of Parks, Recreation and Marine in the General Fund in the amount of $31,860.
In February 1989, the City Council established the Park Impact Fee imposed on new residential development to mitigate the impact of increased population on parks and park facilities. Due to industry declines in new residential development, Park Impact Fee revenue has also declined. As a result, acquisition and development funds must be reduced to cover the shortfall, and some discretionary projects have been placed on hold.
Of greater concern is that the ability to pursue, or even be eligible for, future grant projects with match requirements will be seriously compromised.
· Decrease appropriation in the Capital Projects Fund (CP) and in the Department of Parks, Recreation and Marine (PR) by $389,000.
· Decrease appropriation in the Capital Projects Fund (CP) and in the Department of Public Works (PW) by $115,386.
Police
The Police Department (PO) has $25,755 in budgeted revenue for reimbursement of expenses incurred by the PO for Dive Team activities and training in the Port of Long Beach. The Port, as a part of the FY 09 port security MOU with the PO, has agreed to reimburse the PO for Dive Team overtime, training and equipment as specified in the MOU.
· Increase appropriation in the Tidelands Operating Fund (TF 401) and in the Police Department (PO) by $25,755.
Public Works
Two grants received from Los Angeles County Metropolitan Transportation Authority were budgeted in excess of the amount expended on the East-West Corridor Bus Speed Project. Therefore, appropriation must be reduced to align budget with actual expenditures and revenues received.
· Decrease appropriation in the Capital Projects Fund (CP) and in the Department of Public Works (PW) by $749,071.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
LORI ANN FARRELL
DIRECTOR OF FINANCIAL MANAGEMENT/CFO
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PATRICK H. WEST |
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CITY MANAGER |