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 City of Hermosa Beach --- 02-10-98
MIDYEAR BUDGET REVIEW 1997- 98
Recommendation: It is recommended that the City Council approve the revisions to estimated revenue, appropriations, budget transfers and fund balances as shown in the attached Budget Summary and Revenue Worksheet.
Background: The City has conducted a Midyear Budget Review annually since fiscal year 1981-82. The review is a good tool to ensure that assumptions and estimates originally used to prepare the budget ten months earlier remain realistic.
Analysis:
Overview The revenue changes recommended at midyear 1997-98 reflect a continuing improved economy and an enhanced revenue picture, primarily in tax revenue. Approval of midyear revisions results in additional funds of $248,886 in the General Fund, which will be added to the Prospective Expenditures account.
Revenue (see Revenue Worksheet) The net change in revenue in the General Fund is $385,667. Some of the most notable changes are mentioned below.
Taxes Secured and unsecured property taxes are being increased 2% and 10% over budget, respectively, based on the new levy. Transfer tax is being revised up 20% over budget. First-half receipts are up 45% over the first half of '96; the number of transactions is up 25%.
Sales Tax Sales tax for the first two quarters is up 12% over 96-97. As reported at the last City Council meeting, sales tax was up 10% overall last year. Based on the first half performance, the estimate is being conservatively increased by almost $100,000, or approximately 5%. The chart below compares sales tax for the first half of this year to first half of last year by the top ten categories.
Comparison of First Half of 1996/97 to 1997/98 Top Ten Categories
(NOTE: A portion of the page could not be formatted
to make it readable. The report is available at the Library
in printed form.)
Parking Fund Parking Fund revenue is being revised down $26,182 overall. The parking fine estimate is decreasing approximately 12% from last year. While we are collecting a larger percentage of the outstanding fines, the number of citations issued has dropped. Parking meter and permit receipts are being revised up 6% and 3%, respectively, based on the first half.
Additional Appropriations The following additional appropriations are requested. FUND/DEPARTMENT Amount Explanation GENERAL FUND (001)
City Council $8,750 Car allowance, City Councilmembers. Regular Salaries
City Clerk Part-time/Temporary Salaries $8,712 Part-time personnel, full year for records management conversion and storage reorganization
City Attorney Contract Services/Private $40,000 Increase for ongoing legal matters.
City Treasurer Contract Services/Private $2,400 Increase in bank service charges. The bank inadvertently did not charge for services relating to parking meter monies. Over 70% of this cost is being offset by higher balances kept at Bank of America.
Personnel Contract Services/Private $12,500 Increase in legal services due to unforeseen personnel matters.
Fire Materials/Supplies/Other $5,000 City is required to purchase all medical supplies as of 01/01/98. (Supplies were received from hospital previously).
Community Development/ Building Division Contract Services/Private $12,040 ½ time Building Inspector for remainder of year due to increased building activity.
Community Resources Advertising $2,000 Additional printing cost for brochures. Office Supplies $2,000 Additional mailing costs for brochures, copying. Part-time/Temporary $5,000 Increased program activities.
Public Works Traffic Safety Maintenance Materials $7,000 Preparation for 1997-1998 El Nino Storms: 15,000 extra sandbags; plywood for Strand openings; concrete and material; new concrete storm inlet; and new asphalt berms. CIP 160 Downtown Plan Contract Services/Private ($59,664)* Reduce funding to reflect work to be done this fiscal year - Phase II and minor pier upgrades.
Total appropriations $105,402 Designated for CIP 160 ($ 59,664) TOTAL GENERAL FUND $ 45,738
LIGHTING AND LANDSCAPING FUND (105)
Lighting and/Landscaping Division Maintenance Materials $8,000 1) Installed palm tree lights for Lower Pier Avenue grand opening. 2) Replaced knock-down poles on Hermosa Avenue and Valley park. 3) Replaced light fixtures on the beach restrooms, per the new contract with Los Angeles County. CIP 153 Traffic Signal (Hermosa/14th) Contract Services/Private ($115,000) Design complete. Construction will occur with other street improvements FY 98-99. CIP 156 Hermosa/13th St. Contract Services/Private ($115,000) Design complete. Construction will occur with other street improvements FY 98-99. CIP 620 Pier Renovation Contract Services/Private ($100,000) Reduce funding to reflect work to be done this fiscal year - design and completion of structural retrofit. TOTAL LIGHTING AND LANDSCAPING FUND $322,000
DOWNTOWN ENHANCEMENT FUND (109)
CIP 160 Downtown Plan Contract Services/Private ($152,880) Reduce funding to reflect work to be done this fiscal year - Phase II and minor pier upgrades. STATE GAS TAX FUND (115) CIP 160 Downtown Plan Contract Services/Private ($ 7,560) Reduce funding to reflect work to be done this fiscal year - Design and completion of structural retrofit. PROP A FUND (121) CIP 624 Downtown Parking Structure, Lot C Contract Services/Private ($2,800,000) Funds not needed until FY 98-99. Reduce funding to reflect work to be done this fiscal year. CIP 506 Park Improvements Contract Services/Private ($102,285) Reduce funding to reflect work to be done this fiscal year - Design and completion of structural retrofit. Skateboard Track design and construction, Valley Park design. CIP 620 Pier Renovation Contract Services/Private ($2,357,180) Reduce funding to reflect work to be done this fiscal year - design and completion of structural retrofit. TOTAL PROP A FUND $(5,259,465)
PARK & RECREATION FUND (125) CIP 515 South Park ($24,265) Improvements to South Park Contract Services/Private will occur FY 98-99. 4% UUT FUND (126) CIP 506 Park Improvements Contract Services/Private ($506,820) Reduce funding to reflect work to be done this fiscal year - Design and completion of structural retrofit. Skateboard Track design and construction, Valley Park design.
CIP 515 South Park Contract Services/Private ($20,000) Improvements to South Park will occur in FY 97-98. CIP 620 Pier Renovation Contract Services/Private ($200,000) Design completion and structural retrofit will most likely be the extent of work this fiscal year. TOTAL 4% UUT FUND ($726,820)
PROPOSITION "C" FUND (146) CIP 150 Street & Safety Improvements Contract Services ($120,000) This project will be designed FY 97-98 and will be constructed in FY 98-99. GRANT FUND (150) CIP 620 Pier Renovation Project ($200,000) Reduce funding to reflect work to be done this fiscal year - design and completion of structural retrofit. SEWER FUND (160) CIP 160 Downtown Plan Contract Services ($104,050) Reduce funding to reflect work to be done this fiscal year - Phase II and minor pier upgrades. CIP 620 Pier Renovation Project Contract Services/Private ($100,000) Reduce funding to reflect work to be done this fiscal year - design and completion of structural retrofit. CIP 408 Sanitary Sewer Contract Services/Private ($1,513,682) Reduce funding to reflect sewer work to be done this fiscal year. CIP 303 14th Street Storm Drain $115,000 City share of storm drain. TOTAL SEWER FUND ($1,602,732)
EQUIPMENT REPLACEMENT FUND (715)
CIP 625 Underground Storage Tanks Contract Services/Private $50,000 Additional funds needed for replacement of city yard tanks. ALL FUNDS (Allocated among funds receiving interest income) Investment Premium $2,269 Change in accounting procedure to account for investment premiums as expense. Summary
Midyear recommendations reflect the City's continued progress toward a sustainable organization with adequate funding levels for current operations, long term liabilities and future needs.
Work on the 98-99 budget begins this month!
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