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HomeMy WebLinkAboutReso 43-21 Adopting FY 2021-22 BudgetRESOLUTION NO. 43-21 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA, ADOPTING THE FY 2021/22 FISCAL YEAR OPERATING AND CAPITAL BUDGETS THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City of Morro Bay is required to appropriate and expend funds, to conduct the day-to-day business activity of the City; and WHEREAS, the Morro Bay City Council finds and determines those appropriations and expenditures are necessary for continued efficiency, economy and effectiveness of the City government operations; and WHEREAS, the City Council recognizes Capital Improvement Projects, authorized and approved in the current and prior fiscal years, may not be completed by June 22, 2021; and WHEREAS, the continuing efforts of staff to operate the business of the City, within an approved budget, and to create savings, wherever feasible, are acknowledged by the City Council. WHEREAS, the Morro Bay City Council finds and determines that during the COVID-19 Pandemic there were significant negative economic impacts on the City's finances as well to many residents, business and non-profit organizations in our community and WHEREAS, the City Council recognizes that significant sacrifices were made to ensure the City was able to continue to provide essential public health and safety services during a time when city services and programs were eliminated reduced or changed to accommodate public health mandates from the Federal, State or San Luis Obispo County; and WHEREAS, the continuing efforts of staff to operate the business of the City, within an approved budget, and to create savings, wherever feasible, are acknowledged by the City Council. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, California: 1. The Fiscal Year 2021/22 Operating and Capital Budgets, including any amendments made during the City Council meeting dated June 22, 2021 are adopted and incorporated herein by reference; and 2. Staff is directed to prepare and publish a final budget document, with approved amendments; and 3. Subject to paragraph 4, below, the City Manager is authorized to transfer appropriations within the adopted budget including from and to capital projects or capital outlay items, so long as those changes do not significantly and negatively prevent implementation of any City Council direction or policy, and total appropriations are not exceeded, and 4. City Council approval is required to transfer appropriations between funds and may approve amendments to adopted budget by adoption of one or more resolutions and 5. City Council authorizes and directs the transfer of balances for capital projects, approved in the current and prior fiscal years, but not completed by June 30, 2021, to the Capital Improvement Project Fund(s) for the FY 2021/22 fiscal year; and 6. City Council approval is required for any proposed increase to the number of CaIPERS benefited, budgeted positions, hired; and 7. Per City Council minute order May 24, 2004, any expenditures, in excess of the assessments received for the Cloister Assessment District, will be subsidized by the General Fund, without additional request made to the City Council; and PASSED AND ADOPTED, by the City Council of the City of Morro Bay, at a regular meeting thereof held on the 22nd day of June 2021, by the following vote: AYES. Headding, Addis, Barton, Davis, Heller NOES. None ABSENT: None JOHN HEAD ATTEST: DANA SWANSON, City Clerk Page Number Fund (Fund Number) Program Department Summary of Change Amount of change New Total Justification 8-18 to B-21 All Several Several Modify Summary to reflect for adoption of Positions by Department corrections and actions proposed $ - $ - Required for the budget to meet GFOA standards C-1 to H-59 Variety Variety Variety Add allocation Departmental of percentages to Summary of FTEs $ - $ - Required for the budget to meet GFOA standards C-1 to H-59 Variety Variety Variety Add distribution of Part-time Departmental Summary of allocation of part-time staffing hours to FTEs to match budget $ - $ - Required for the budget to meet GFOA standards C-1 to H-59 Variety Variety Variety Modify Department Summary of FTEs, Accomplishments, Key Projects, Key Program Services and Activity and Workload Highlights to correct typographical errors or update to match approved Master Salary Schedule $ - $ - Required for the budget to meet GFOA standards C-41 to C-52 General Fund Administrative Services Finance Increase Sales Tax. Update all references as required to reflect this change throughout the budget. $ 55,737 $ 2,220,456 Represents full year of sales tax collected as a result of Cannabis outlets' sales. C-41 to C-52 General Fund Administrative Services Finance Increase Cannabis Tax. Update all references as required to reflect this change throughout the budget. $ 54,000 $ 278,000 Represents full year of 5% local tax collected as a result of Cannabis outlets' sales. Revised Estimate based on combined total of two months of operation of both outlets. C-43 General Fund Administrative Services Finance Accounting & Treasury Modify job titles, salaries and benefits to reflect reclassification of Accounting and Budget Manager to Finance Manager, new Senior Administrative Services Analyst and restoration of part-time hours for Accounting Clerk III to 720 hours a year. Update all references as required to reflect this change throughout the budget. $ 40,769 $ 806,210 These changes are consistent with internal and external positions. Additionally the job descriptions and salary ranges far the Finance Manager and Sr. Administrative Services Analyst have been reviewed and approved by Human Resources. These changes are critical to successfully recruiting staff for these positions. C-106 & C-139 General Fund Public Works - Administration (5205) and Community Development Public Works and Community Development Add funding for shared part-time administrative support that will assist at both public counters. Both department $ 34,416 Not applicable because a shared resource between two Departments Both departments have an on - going unmet need for administrative support to assist customers at the public counter. Having a shared resource is efficient and will free up other staff members to focus on their primary work tasks. (7105) D-1 to D-3 Risk Management Internal Service Fund (430) Risk Management Risk Management Transfer out on a one-time basis $600,000 to the General Fund Emergency Reserve (051) and $100,000 to the Information Technology Reserves (450). Update all references as required to reflect this change throughout the budget. $ (700,000) $ 1,077,486 Risk Management Unassigned Fund Balance was projected to be $1,777,486 at the end of FY 2021/22. Council Ad -Hoc Committee is recommending Minimum = $700,000 and Target = $1 million to ensure that there is sufficient reserves if a serious liability is incurred that is not covered by insurance. D-5 to D-7 Information Technology (450) Information Technology Information Technology Transfer in $100,000 from Risk Management Fund Unassigned Reserves $ 100,000 $ 147,755 To effectuate transfer from Risk Management Fund to the Information Technology Unassigned Fund Balance. If Council adopts new policy recommendation re: IT Fund Balance the Minimum = $200,000 and Target = $300,000 D-23 General Fund Emergency Reserve (051) General Fund Emergency Reserve General Fund Emergency Reserve Transfer in $600,000 from Risk Management Fund Unassigned Reserves $ 600,000 $ 3,929,811 To effectuate transfer from Risk Management Fund to the General Fund Emergency Reserve. If Council adopts new policy recommendation re: 33% operating reserve the minimum = $5.4 million, Target _ $8.1 million Page Number Program Deportment Summery of Change Amount of change New Total Justification Fund (Fund Number) E1 to E-8 MeasureQ&E Fund (003) Measure Q&E Revenues Increase in Sales Tat due to the two $ 135,859 $ 3,434184 Represents full year of sales tat collected as aresult of Cannabis outlets' sales No Measure Q &E salestax had cannabis outlets being open afull year. Update al rderenms as required to ref lect th is change throughout the budget previously been projected. El to E-8 Measure Q&E Capital Improvement Program Transfer the expenditure for Pavement Management Program to theAmeican Rescue Plan Act Fund (019). This expense is eligible for American Rescue P Ian Act acord ing to the U5 Treasury rules and regulations Update al t references as required to reflect th is change Nrwghoutthe budget 5 (500,000) $ - Toensure consistency with U.S. Treasury rules and regulations the expenditure for Street paring infrastructure that was suspended due to COV ID-19 Pandemic revenue declines Meastreq&E Fund (003) will be funded from the American Rescue P Ian Act fund (019) and removed from the Measures & E Fund (O03)for FY 2021/22 E-1toE-8 MeastreCI&E Fund (003) Measure Q&E General Fund Emergency Reseve Increase expenditure of MeasureQ&E $ 500,000 $ - Toenstreconsistency with funding by5500,0001or replenishment of the General Fund Emergency Reserve (GFER) in order to restore the GEFR due to use of General Fund operairg U.S.Treasury rulesand regulationsthe expenditure fa replenishing the General Fund Emergency Reserve has been moved to the Measure Q & E Fund 003) from the American Rescue Plan Act Fund (019). ex pen sesdur ing the COVID-19 Pandemic This expense w as criginalty budgeted in the American Rescue P Ian Act Fund (019) but U.S. Treasury rules and regulations deemed this use ineligible. Update all references as requir ed to reflect this change ttroug hour th e budget E-5 MeasveQ&E Fund (003) Measure Q&E N/A Update the Chart of Measure Q&E Expenses by Department to reflect the payment for the Fire Engine =556,250 $ - $ - This amount was inadvertently left out of this chat. This expenditure is included in the Summary of Revenues and Expenditures on page E-4. See revised chat below. E-9 to E-12 American Rescue Plan Act Fund (019) COVID-19 Recovery Revenues Add revenues as aresult of theCity of Marro Bay's Al location being increased to $2,522,110. Update all references as required to reflect thischange thrwghoutthe budget $ 542,110 $ 2,522,110 Funding is expected in two trenches, one in lune 2021 and the second in June 2022 E9toE-12 AmaicanRescue Plan Act Fund (019) COVID-19Recovery Capital Improvement Program Add PavementManagement Program to 5 500,000 $ 500,000 Toensureconsistency with U.S. Treasury rutfa and regulationsthe expenditure for Street peeing irdrastructtre that was the American Rescue Plan Act Fund (019). This expense iseligiblefor American Rescue Plan Act according to the US Treasury Update rules and regutaiors all references as required to reflect this change throughout the budget suspended due to COV ID-19 Pandemic revenue declines will be funded by the American Rescue Plan Act funding. Allocatlonsofthe second trench could take place as early as FY 2021/22 Mid -Year Budget Review or with the FY 2022/23 budget E-9 to E-12 American Rescue COVID-19 Recovery Capital Improvement Program $ 250,000 $ 250,003 This infrastructure irtestmerawill enhence this Downtown park and community gathering plat This is male possi ble by the increase in allocation to the City of Morro Bay which now taals$1,26],055 forthe first tranx:he of f undirg. This Add Capital Infrastructure Investment in City Park to replace play equipment to Plan ActFund(O19) the American Rescue Plan Act Fund (O19). Update al I rderences as required to ref lea this change throughout the budget project iscurrently unfunded in the Capital Improvement Plan aid would not be possible without the use of ARPA funds This expense is eligible for American Rescue Plan Act acording to the US Treasury rulesand regulations. Page Number Fund (Fund Nuunber) Program Department Summary of Change Amount thangeof New Total Justification E-5 Measure Q & E Fund (003) Measure Q & E N/A Update by Department Fre the Chart of Measure Q & E Expenses to reflect the payment for the S - S - This amount was inadvertently left out of this chart TNs expenditure is included in the Summary of Revenues and Expenditures on page E-4. See revised chart below. Engne = S56,25O E-9 to E-12 American Rescue Plan Act Fund (019) N/A Add funding for grants to eligible non -profits impacted by COVID-19 Pandemic Update all references as required to reflect this change throughout the budget $ 25,000 At the request of nonprofits impacted by the COND-19 Pandemic and consistent with US. Treasury rules and regulations this new expendture is being proposed This is made possible by the increase in allocation to the City of Morro Bay which now totais S1,261,O55 for the first trench* of funding. The award of these grants wil be made through expanding the Bequest process which is also funded by S25,000 in the General Fund. COVID-19 Recovery S 25,000 E-9 to E-12 American Rescue Plan Act Fund (019) COVID-19 Recovery N/A Add development improvements the the Update this Capital infrastructure and economic investment in streetscape such as trash receptacles in S 25 000 S 25,000 In order to enhance the Downtown and Embarcadero (both areas' businesses suffered as a result of the COV1D-19 downs) S25,000 wil be invested in streetscape improvements in these two districts. This is made possible by the Increase in allocation to the City of Morro Bay which now totals S1,251,055 for the firsttratche of funding. This project is currently unfunded in the Capital Improvement Plan and would not be possble without the use of ARPA funds. Thus expense is eligible for American Rescue Plan Act according to the US Treasury Downtown and along the Embacadero to American Rescue Plan Act Fund (019). all references as required to reflect change throughout the budget rules and regulations. The City of Morro Bay has previously invested S134,00O in General Fund grants to businesses impacted by theCOND-19 Pandemic This economic development Investment in two of the Qty's critical G-12 Community Development Grants (200) Community Development Grants Community Development Department Change anountreported toCash Beams instead of Fund Equity which appears to represent these affordable housing loans/Tax Exedit match funding, etc S - S - Revise to in reflect arcuate cash balance.