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Recommendation to approve the Fiscal Year 2005 third quarter departmental and fund budget appropriation adjustments in accordance with existing City Council policy.
DISCUSSION
On September 17, 2004, the City Council adopted the Appropriations Ordinance governing
City expenditures for Fiscal Year 2005 (FY 05). From time-to-time, changes in revenue or
operating conditions call for appropriation adjustments. In some cases, these changes
enable departments to expend newly received grant revenue for which there is no existing
appropriation. In addition, changes for multi-year grantslprojects are necessary to 'bring
appropriations in line with final grant/project award amounts. In accordance with the City's
practice, various adjustments are presented quarterly to the City. Council for consideration.
The third quarter appropriation adjustment requests for FY 05 are listed below alphabetically
by department. Please see Attachment A for a Fund Balance Analysis of impacted City
funds.
This letter was reviewed by Assistant City Attorney Heather A. Mahood on June 13, 2005.
TIMING CONSIDERATIONS
The following requests for adjustments to FY 05 departmental and fund appropriations are
necessary to reflect changes in operating conditions. City Council action is requested on
June 21, 2005 to authorize the timely processing of payments.
FISCAL IMPACT
Financial Management
On February 8, 2005 the City Council approved the refinancing of the Health Facilities
Financing Authority 1989 Tax-Exempt Variable Rate Loan/Lease. The budget adjustment is
necessary to record the payment to the California Health Facilities Financing Authority to pay
off the lease.
Increase appropriations in the Health Fund (SR 130) and in the Citywide Department
(XC) by $3,586,779.
Library Services
The Friends of the Long Beach Public Library have given the Library a $20,000 donation for
the purchase of book and material resources.
Increase appropriations in the General Grants Fund (SR 120) in the Department of
Library Services (LS) by $20,000.
Parks, Recreation and Marine
The Department of Parks, Recreation and Marine has submitted an application to the State of
California for execution of a non-competitive Proposition 40 Per Capita Grant for $250,000 to
fund remaining expenses related to the rebuilding of the Skylinks Golf Course. Due to delays
in the execution of the grant agreement, there are outstanding invoices for work already
completed at Skylinks. In order to pay these invoices in a timely manner, a budget
adjustment is requested to use park acquisition and development funds, which are derived
from park development projects, for the Skylinks Rebuild. Once State grant funds are
received, the park acquisition and development funds will be reimbursed. There will be no
impact on the General Fund as a result of this request.
Decrease appropriations in the Capital Projects Fund (CP) in the Department of Public
Works (PW) by $250,000.
Increase appropriations in the Capital Projects Fund (CP) in the Department of Parks,
Recreation and Marine (PR) by $250,000.
Public Works
The Fleet Services Bureau, Towing and Lien Sales Division receives approximately 26,000
Citywide tow service requests for motor vehicle, parking enforcement, special enforcement
and abatement violations annually. The division also stores, processes and auctions up to
8,700 unrecovered vehicles on site. Due to a 5.4 percent increase in tow requests and a
16.4 percent increase in lien sales revenues in FY 05, an appropriation increase is necessary
to fund payments to the Department of Motor Vehicles (DMV) associated with lien sales,
increased costs of supplemental contract tow services and fuel costs. Additional towing fees
and lien sales revenues offset this appropriation increase.
Increase appropriations in the Towing Fund (EF 340) and in the Department of Public
Works (PW) by $430,000
SUGGESTED ACTION
Approve recommendation.
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Respectfully Submitted,
[Respectfully Submitted,]