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 City of Hermosa Beach --- 02-09-99
MIDYEAR BUDGET REVIEW 1998-99
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 (chart not available in this format) 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
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 AttorneyContract Services/Private $ 40,000 Hourly increase for City Attorney billings not budgeted. PoliceContract Service/Gov't $ 2,135 Account Increase offset by increased revenues in taxicab fingerprint account (001-3845). First year of taxicab program.
Crossing Guard Contract Service/Private $ 1,633 One additional Crossing Guard at 16th & Ardmore for CIP 8508, School Crossing Ramp (9/28 - 12/19/98). Community Development
Contract Services/Private $ 7,500 300' noticing for more Planning projects and City-sponsored projects. · Building Division Regular Salaries $ 23,718 On-going inspection workload in Bldg. Division; requires permanent employee per 97-98 CAFR report and current 98-99 activities. Part Time/Temporary $ (23,718) Position change to permanent status; corresponding to regular salary increase. Retirement $ 2,238 Building Inspector Position Employee Benefits $ 3,455 Building Inspector Position Medicare Benefits $ 344 Building Inspector Position
Community Resources Part Time/Temporary $ 11,828 $8,328: Addition of S. Bay CLO Plays - Technician & staffing fees; reimbursed by CLO to Account #3406 - Account #3406 had drop in rental due to free use of Civic Theater by CLO, so staffing fees did not increase overall projection. $3,500: For addition of youth employment and wage increases for summer park program.
GENERAL FUND (001) Community Resources Contract Recreation Classes $ 38,500 Directly corresponds with increase in class revenue of $55,000, due to over 30% increase in recreation program participation. Telephone $ 700 Additional modems for internet use.
Public Works · Street Maintenance/Traffic Safety Contract Service/Private $ 8,000 Additional, unbudgeted time required of traffic engineer for unanticipated traffic issues and neighborhood requested traffic control studies. Maintenance Materials $ 6,000 To purchase new signs, stickers and related materials for new parking regulations city-wide; these expenditures not included in FY98-99 budget. · P.W. Administration/Parks Contract Service/Private $ 3,500 For consultant to provide contract administration services for Greenbelt Project because staff time not available as previously planned. · Building Maintenance Contract Service/Private $ 12,000 Due to increased use, expanded maintenance is required at Community Center, including daytime janitorial service in all public rooms, especially restrooms. CIP 622 City Hall Remodel $ 54,425 Funds designated at year-end 97/98 from Prospective Expenditures to provide additional funding for the City Hall/Council Chamber Remodel.
TOTAL GENERAL FUND $192,258
LIGHTING AND LANDSCAPING FUND (105) Public Works Lighting and/Landscaping Division Contract Service/Private $ 5,000 Yearly City-wide median tree trimming. Original estimate does not reflect all tree trimming in FY 98/99.
TOTAL LIGHTING AND LANDSCAPING FUND $ 5,000
PARKING FUND (110) Finance Cashier Contract Services/Private $ 4,000 $3,700: To pay additional expense of Visa MasterCard payments by public. These payments increased from $795 in the first half of FY97/98 to $2,234 in the first half of FY98/99, a 62% increase. $300: To pay 6% increase for DMV registration record retrieval and hold attachments due to increase in parking citations written.
Community Services Maintenance Materials $ 10,000 $5,000: For ticketwriter repairs and batteries (based on FY97/98 expenditure to 1/99). $4,000: For parking meter repairs (old meters - increased repairs). $1,000: Miscellaneous items - Animal control supplies, building maintenance, typewriter repairs. TOTAL PARKING FUND: $14,000
4% UTILITY USERS TAX Fund (126) Public Works CIP 506 Park & Beach Improvements $ 30,000 Various parks and recreation facility improvements. CIP 508 Greenbelt Improvements $ 88,070 $69,900: To cover costs of approved change orders and quantity adjustments to the bid price for construction. $6,920: For design services; due to the changes suggested by the City Council, $11,250: For installation of curb along the west side of the Greenbelt between south of 11th Street and north of 8th Street. TOTAL 4% UTILITY USERS
TAX FUND $118,070GRANT FUND (150) Public WorksCIP 620 Pier Renovation $ 34,366 Additional FEMA funding for Pier retrofit. TOTAL GRANT FUND $ 34,366
SEWER FUND (160) Public Works CIP 508 Greenbelt Improvements $ 4,583 To cover the costs of quantity adjustments to bid unit prices for the storm drain construction. TOTAL SEWER FUND $ 4,583
EQUIPMENT REPLACEMENT FUND (715 ) Public Works Sewers/Storm Drains Vehicles $ 70,000 Large truck for towing trailer/Cat. Continued from FY 96/97; not appropriated for 98/99. Underground Storage Tanks Contract Services/Gov't. $ 27,849 To pay L.A. County for State-mandated removal of City yard underground tanks. No money appropriated for this project for FY 98/99. TOTAL EQUIPMENT REPLACEMENT FUND $ 97,849
ALL FUNDS (Allocated among funds receiving interest income) Investment Premium $ 4,000 Change in accounting procedure to account for investment premiums as expense. The expense is offset by investment discount revenue recorded for FY 98-99.
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 1999-2000 budget begins this month!
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