agenda - lomita · 07/03/2017 · i hereby certify under penalty of perjury under the laws of the...

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1Special

CALL AND NOTICE OF SPECIAL MEETING PLEASE TAKE NOTICE that the Mayor has called a special meeting of the City Council to take place at Los Angeles County Lomita Branch Library, Don Knabe Community Room, at 4:30 pm on Tuesday, March 7, 2017. The agenda for the meeting is set forth below.

AGENDA

SPECIAL MEETING OF THE LOMITA CITY COUNCIL

Tuesday, March 7, 2017 at 4:30 P.M.

Mid-Year Budget Workshop Don Knabe Community Room

24200 Narbonne Avenue

“Members of the Public are Advised that all PAGERS, CELLULAR TELEPHONES and any OTHER COMMUNICATION DEVICES are to be turned off upon entering the City Council Chambers.” If you need to have a discussion with someone in the audience, please step out into the lobby. Written materials distributed to the City Council within 72 hours of the City Council meeting are available for public inspection immediately upon distribution in the City Clerk’s office at 24300 Narbonne Avenue. In compliance with the Americans with Disabilities Act (ADA) if you need special assistance to participate in this meeting, you should contact the office of the City Clerk at (310) 325-7110 (voice) or the California Relay Service. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to assure accessibility to this meeting.

1. OPENING CEREMONIES

a. Call Meeting to Order b. Flag Salute c. Invocation d. Roll Call

LOMITA CITY HALL COUNCIL CHAMBERS 24300 Narbonne Avenue

Lomita, CA 90717 Phone: (310) 325-7110

Fax: (310) 325-4024

Mark Waronek, Mayor Michael Savidan, Mayor Pro Tem James Gazeley, Councilmember Henry Sanchez, Jr., Councilmember Ben Traina, Councilmember

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Lomita City Council Meeting Agenda March 7, 2017

2. ORAL COMMUNICATIONS Persons wishing to speak on Consent Agenda items or subjects other than those scheduled are requested to do so at this time. In order to conduct a timely meeting, a five minute time limit per person has been established. Amendments to Government Code Section 54954.2 Prohibit the Council from taking action or engaging in discussion on a specific item unless it appears on a posted agenda.

3. FISCAL YEAR 2016-2017 MID-YEAR BUDGET REVIEW

ACTION: Staff recommends that the City Council:

1) Approve general fund balance for FY 2016-2017 Mid-Year as outlined in the General Fund – Changes in Fund Balance worksheet (Attachment A);

2) Approve revised revenue estimates for FY 2016-2017 Mid-Year Budget as outlined in General Fund Revenue worksheet (Attachment B);

3) Approve budget amendments for FY 2016-2017 Mid-Year Budget as described in Mid-Year Budget Amendment Expenditures worksheet (Attachment C); and

4) Receive and file the Summary of Funds (Attachment D) 4. ADJOURNMENT

That the City Council meeting be adjourned to the Special Meeting to be held at 5:30 p.m. in the Council Chambers of City Hall, 24300 Narbonne Avenue, Lomita, CA. I hereby certify under penalty of perjury under the laws of the State of California that the foregoing agenda was posted in the City Hall lobby and bulletin board, and posted on the City’s website not less than 72 hours prior to the meeting. A copy of said Agenda is on file in the Office of the City Clerk. Dated this 2nd Day of March 2017 _________________________________________ Sandra M. Medina, MMC City Clerk

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TO: City Council FROM: Ryan Smoot, City Manager PREPARED BY: Susan Kamada, Administrative Services Director MEETING DATE: March 7, 2017 SUBJECT: FY 2016-17 Mid-Year Budget RECOMMENDATION Staff recommends that the City Council:

1. Approve general fund balance for FY 2016-2017 Mid-Year Budget as outlined in the General Fund – Changes in Fund Balance worksheet (Attachment A).

2. Approve revised revenue estimates for FY 2016-2017 Mid-Year Budget as outlined in General Fund Revenues worksheet (Attachment B).

3. Approve budget amendments for FY 2016-2017 Mid-Year Budget as described in

Mid-Year Budget Amendments Expenditures worksheet (Attachment C).

4. Receive and file the Summary of Funds (Attachment D).

BACKGROUND Staff develops the annual budget based upon estimated revenues and expenditures. Upon completion of the annual financial statements and final audit, staff analyzes the impact of the closing information and recommends adjustments to be approved by the City Council during the mid-year budget review process. Revenues are adjusted based on this analysis and other sources to provide revised projections. The accounting staff continually monitors actual revenues received, and compares them to the projected revenues approved in the annual budget; this information is then used to develop revised revenue projections to more accurately reflect the impacts of the current economic climate and any uncertainties and delays in receiving State revenues. ANALYSIS Mid-Year General Fund Balance The General Fund decrease illustrated at the bottom of the Mid-Year Budget column on Attachment A is $200,000. The decrease is due to a combination of transfers to other

Item No. SCH 3

CITY OF LOMITA CITY COUNCIL REPORT

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funds and projects as summarized in Attachment C. At mid-year, the actual fund balance information is available from the annual audit and is used by staff to assess the current condition of the General Fund. General Fund Revenue Amendments In Attachment B, staff updated the revenue projections to reflect the actual activity and anticipated receipts to the end of FY 2016-2017. The revised projection for the General Fund revenues is $8,620,754, an increase of $235,200. Below is a summary of the significant projected revenue increases and decreases included in this mid-year budget report.

REVENUE INCREASES AMOUNT Property Taxes $ 112,000 Other Taxes $ 62,200 Permit and Fees $ 38,000 Motor Vehicle In-Lieu $ 88,000 Prop A Exchange $ 125,000 Miscellaneous Revenues $ 10,000 REVENUE DECREASES AMOUNT Sales and Use Tax $(200,000)

Mid-Year General Fund Expenditure Budget Amendments The mid-year budget amendments being presented for City Council consideration total $154,200 and are summarized in Attachment C. Staff is recommending the following amendments:

• To increase expenditures by $79,500 to various departments for increased CalPERS benefit costs and 2% COLA approved in the MOU. This includes allocating $110,000 from the City Manager’s and Administrative Services Departments operating contingency budget.

• To increase transfers by $74,700 to Economic Development, Capital Improvement, Equipment Replacement, Park Equipment Replacement, Stephenson Center, Pension Stabilization, and OPEB Trust accounts.

Water Capital Reserve Fund The unassigned balance in the Water Capital Fund at June 30, 2016 is $1,443,455. In the past, the City has maintained an unassigned fund balance anywhere between $500,000 to $1,000,000+ in the Water Capital Fund in the event of an unforeseen significant repair at the Cypress Water Production Facility or as part of the City’s Water System. Staff is recommending that the City Council transfer $1,500,000 from the Water Operations Fund to the Water Capital Fund for future capital projects and decrease capital expenditures by $307,000 for projects that were partially funded in the last fiscal year. This will leave a balance of $1,006,238 for Water Capital projects for FY 17-18 and $750,000 in the Infrastructure Reserve funds and $175,847 is restricted for Debt Service.

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OPTIONS:

1. Approve staff’s recommendation. 2. Amend staff’s recommendation. 3. Provide further direction to staff.

FISCAL IMPACT The mid-year budget amendments will increase the General Fund Revenues in the amount of $235,200 and increase General Fund Expenditures in the amount of $154,200.The actual June 30, 2016 fund balance of $5,286,608 reflects an increase of $371,993 over the prior fiscal year. The estimated fund balance at the end of the 2016/2017 fiscal year is $5,086,608, a decrease of $200,000 from the prior fiscal year. This decrease is a result of transfers to Economic Development, Capital Improvement, Equipment Replacement, Stephenson Center, Pension Stabilization, and OPEB Trust accounts, as summarized in Attachment C. ATTACHMENTS

a) General Fund – Fund Balance Summary b) FY 16-17 Mid-Year – General Fund Revenues c) Budget Amendments – General Fund Expenditures d) Summary of Funds with Estimated FYE17 Fund Balances

Reviewed by: Approved by:

________ ___________________________ Gary Y. Sugano Ryan Smoot Assistant City Manager City Manager Prepared by: ________ Susan Kamada Administrative Services Director

Attachment A

2015-16Audited

2016-17 CurrentBudget

2016-17 RevisedBudget

Fund Balance, Beg. Of Year 4,917,039 5,289,032 5,289,032

Revenues 8,689,724 8,385,554 8,620,754

Expenditures 7,884,187 8,522,207 8,601,707

Operating Transfers Out: 433,544 144,347 219,047

Net change in Fund Balances 371,993 (281,000) (200,000)

Fund Balance, End of Year 5,289,032 5,008,032 5,089,032

Detail of Fund Balance:Nonspendable: 499,516 499,516 499,516Restricted:Committed:Assigned: Facilities ImprovementReserve Appropriations 4,000,000 4,000,000 4,000,000Economic Development 100,000Unassigned: 789,516 508,516 489,516Total Fund Balance 5,289,032 5,008,032 5,089,032

Changes in Fund Balances General Fund

City of LomitaFiscal Year 2016-2017 Mid-Year Budget Review

Attachment B

2015-16Actuals


Year to DateActuals

12/31/20162016-17

% of Budget


ProposedIncrease

(Decrease)

%Increase

(Decrease)

Property Taxes 1,748,361 1,386,464 625,324 45% 1,498,464 112,000 7%Development Tax 4,000 15,000 2,000 13% 15,000 0 0%Sales and Use Tax 1,474,499 1,862,605 525,877 28% 1,662,605 (200,000) -12%Business License Tax 550,167 585,800 302,488 52% 600,000 14,200 2%Franchise Tax 400,033 360,000 49,427 14% 400,000 40,000 10%Refuse Tax - Residential 102,504 105,000 44,528 42% 105,000 0 0%Refuse Tax - Commericial 141,278 137,000 59,629 44% 140,000 3,000 2%TOT 150,091 135,000 43,618 32% 140,000 5,000 4%Total Taxes 4,570,933 4,586,869 1,652,891 36% 4,561,069 (25,800) -1%

Special Permit Fees 8,007 8,000 5,268 66% 10,000 2,000 20%2% Tech Fee 0 0 786 0% 1,500 1,500 100%Zoning & Subdivision Fees 69,168 49,500 48,028 97% 70,000 20,500 29%Encroachment Permit Fees 59,366 40,000 36,120 90% 50,000 10,000 20%Tow Impound/Storage Fees 10,900 8,000 6,300 79% 12,000 4,000 33%Museum Admission Fees 20,140 15,000 8,551 57% 15,000 0 0%Parks & Rec Fees 160,386 120,850 69,142 57% 120,850 0 0%Animal Housing Fees 36,463 50,000 4,301 9% 50,000 0 0%Building Dept Fees 800,893 450,000 169,700 38% 450,000 0 0%Other Fees 22,581 20,000 6,037 30% 20,000 0 0%Parkway Tree Fees 1,600 2,000 825 41% 2,000 0 0%Total License and Permits 1,189,503 763,350 355,059 47% 801,350 38,000 5%

Court Fines 130,492 120,000 37,340 31% 120,000 0 0%Parking Fines 234,243 250,000 123,859 50% 250,000 0 0%Misc Fines 0 2,000 0 0% 2,000 0 0%Admin Citation Fines 8,000 10,000 1,600 16% 10,000 0 0%Total Fines and Forfeitures 372,735 382,000 162,799 43% 382,000 0 0%

Park Rentals 39,579 35,000 15,670 45% 35,000 0 0%Lease/Rental Revenues 199,698 178,000 55,100 31% 178,000 0 0%Interest 136,696 60,000 (17,508) -29% 60,000 0 0%Interest on CD's 0 0 0 0% 0 0 0%Unrealized Gain/Loss LAIF 1,217 0 (3,067) 0% 0 0 0%Total Use of Money and Property 377,190 273,000 50,196 18% 273,000 0 0%

Refuse Franchise Fee 60,000 65,000 25,000 38% 65,000 0 0%BL Processing Fee 33,336 30,000 15,133 50% 30,000 0 0%BL DAAE Fee 753 1,000 369 37% 1,000 0 0%Law Enforcement Grant 114,618 100,000 93,285 93% 100,000 0 0%Recycle Grant 5,711 5,712 0 0% 5,712 0 0%Motor Vehicle in Lieu 1,939,675 1,950,623 0 0% 2,038,623 88,000 4%State Mandated Reimb 24,623 20,000 0 0% 20,000 0 0%Prop A Exchange 0 200,000 325,000 163% 325,000 125,000 38%Total Intergovernmental 2,178,716 2,372,335 458,787 19% 2,585,335 213,000 8%

Misc Revenue 406 5,000 15,271 305% 15,000 10,000 67%Souvenir Sales - City 0 1,000 0 0% 1,000 0 0%Insurance Recovery 0 0 0 0% 0 0 0%Property Damage Claims 0 2,000 0 0% 2,000 0 0%Total Other Revenue 406 8,000 15,271 191% 18,000 10,000 56%

Funds Transferred In 0 0 0 0% 0 0 0%Total General Fund Revenues 8,689,483 8,385,554 2,695,002 32% 8,620,754 235,200 3%

Fiscal Year 2016-2017 Mid-Year Budget ReviewCity of Lomita

General Fund Revenue Detail

Attachment C

2015-16Actuals


Year to DateActuals

12/31/20162016-17

% of Budget


ProposedIncrease

(Decrease)Total Revenues 8,689,483 8,385,554 2,695,002 32% 8,620,754 235,200

Expenditures by Dept:City Council 56,082 51,005 41,252 81% 69,005 18,000City Attorney 90,877 127,000 54,925 43% 127,000 0City Manager 285,449 337,288 154,458 46% 294,288 (43,000)City Clerk 237,191 250,714 134,132 53% 260,714 10,000Administrative Services 472,181 559,364 272,956 49% 534,364 (25,000)Human Resources 370,550 263,284 124,141 47% 264,784 1,500Law Enforcement 2,827,368 3,017,935 1,014,428 34% 3,017,935 0Emergency Operations 4,062 14,504 16 0% 14,504 0Safety Enforcement 233,363 254,632 127,413 50% 270,632 16,000Animal Control 43,813 60,000 6,396 11% 60,000 0Planning 627,226 647,047 238,877 37% 647,047 0Neighborhood Preserv 75,719 90,741 38,729 43% 90,741 0Economic Development 96,337 151,835 59,395 39% 151,835 0Information Technology 131,551 319,188 56,918 18% 319,188 0Community Development 60,901 89,619 29,925 33% 89,619 0Public Works 80,148 137,311 82,495 60% 137,311 0Safety Compliance 30,611 35,454 17,514 49% 35,454 0Parks & Rec Adminstration 298,192 298,524 169,907 57% 298,524 0Recreation 645,706 641,648 383,152 60% 661,648 20,000Lomita Presents 13,071 19,502 7,577 39% 19,502 0Building & Parks Maint 1,091,483 1,086,001 643,196 59% 1,168,001 82,000Railroad Musuem 65,804 69,611 36,081 52% 69,611 0Total Expenditures 7,837,686 8,522,207 3,693,884 43% 8,601,707 79,500

Excess of Revenues Over(Under) Expenditures 851,797 (136,653) (998,882) 19,047

Operating Transfers Out:Special Revenues 33,544 16,901 0 0% 11,901 (5,000)Capital Improvement 175,000 28,627 0 0% 50,000 21,373Facilities Improvement 300,000 20,000 0 0% 20,000 0Equipment Replacement 100,000 45,000 0 0% 40,000 (5,000)OPEB Trust 25,000 33,819 0 0% 25,000 (8,819)Pension Stabilization 747,699 0 0 0% 57,146 57,146Stephenson Center 0 0 0 0% 15,000 15,000Total Transfers Out 1,381,243 144,347 0 219,047 74,700

Excess of Revenues Over(Under) Expenditures andOperating Transfers Out (529,446) (281,000) (998,882) (200,000) 154,200


General Fund Expenditure Detail

Attachment D

Beginning Balance as of July 1, 2016 Revenues Expenditures

Estimated Ending Balance as of June 30, 2017

General 5,289,032$ 8,620,754$ 8,820,754$ 5,089,032$ Capital Improvement 230,383 50,300 280,157 526 Equipment Replacement 134,592 34,100 - 168,692 Facilities Improvement 138,262 20,000 - 158,262 OPEB Trust 100,380 25,025 - 125,405 Park Equipment Replacement 50,000 10,000 15,000 45,000 Pension Stabilization 747,699 57,146 - 804,845 Stephenson Center 104,132 15,000 - 119,132 Street Improvement 980,432 425,400 741,000 664,832 Special Revenues 2,637,394 3,135,963 4,426,951 1,346,406 Water Operations 1,348,145 5,564,200 6,336,257 576,088 Water Capital 2,369,302 2,170,000 2,607,217 1,932,085 Total Fund Balance 14,129,753$ 20,127,888$ 23,227,336$ 11,030,305$

Detail of Fund Balance:Nonspendable: 499,516 499,516 Restricted: 3,563,241 2,272,253 Committed: 104,132 119,132 Assigned: 6,381,748 6,067,562 Unassigned: 3,581,116 2,071,842 Total Fund Balance 14,129,753 11,030,305


Changes in Fund Balances Summary of Funds

City of Lomita Mid-Year Financial Review

Fiscal Year 2016-2017

City Wide Expenditures as Adopted $21,219,373 FY 2016/2017

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General Fund 41%

Gas Tax 3%

Measure R 0%

Prop C 6%

Prop A 1%

Water Fund 36% Other/Grants

13%

General Fund Revenues

3

Taxes 53%

License & Permits

9%

Fines & Forfeitures

5% Use of

Money & Property

3%

Intergovernmental

30% Other Revenues

0%

Amended $8,620,754 Adopted $8,385,554

Taxes 55%

License & Permits

9%

Fines & Forfeitures

5% Use of

Money & Property

3%

Intergovernmental

28% Other Revenues

0%

General Fund Revenues $8,620,754

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Adopted Mid-Year Amended YTD Budget Adjustments Budget Actual %

Property Tax $1,386,464 $112,000 $1,498,464 $625,324 45% Other Taxes 3,200,405 (137,800) 3,062,605 1,027,567 32% Fines and Forfeitures 382,000 382,000 162,799 43% Permits and Fees 763,350 38,000 801,350 355,059 47% Use of Money and Property 273,000 273,000 50,195 18% Revenue other Agencies 2,372,335 213,000 2,585,335 458,787 19% Other Revenues 8,000 10,000 18,000 15,271 191%

Total $8,385,554 $235,200 $8,620,754 $2,695,002 32% YTD Actual based on the first 6 months of FY 2016-2017

General Fund Expenditures

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Administrative Services

6%

Parks & Recreation

25%

City Manager 13%

Public Safety 34%

City Clerk 6%

Public Works 2%

Community Development

10% Transfers Out

3% City Council 1%

Administrative Services

6%

Parks & Recreation

24%

City Manager 14%

Public Safety 35%

City Clerk 6%

Public Works 2%

Community Development

10% Transfers Out 2% City Council

1%

Adopted $8,666,554 Amended $8,820,754

General Fund Fund Balance FY 2016/2017

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2015-16 2016-17 2016-17 Audited Adopted Budget Amended Budget

Beginning Fund Balance $4,917,039 $5,289,032 $5,289,032

Revenues 8,689,724 8,385,554 8,620,754

Expenditures 7,884,187 8,522,207 8,601,707

Operating Transfers Out 433,544 144,347 219,047

Net Change – Fund Balance 371,993 (281,000) (200,000)

Ending Fund Balance 5,289,032 5,008,032 5,089,032

Restricted 499,516 499,516 499,516

Committed

Assigned 4,000,000 4,000,000 4,100,000

Unassigned 789,516 508,516 489,516

Total Fund Balance $5,289,032 $5,008,032 $5,089,032

Water Operations Fund FY 2016/2017

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Adopted Mid-Year Amended YTD Budget Adjustment Budget Actual %

Water Revenues $5,564,200 $ $5,564,200 $1,404,600 25% Salaries & Benefits 1,429,375 47,163 1,476,538 635,891 45% Water Purchases 2,066,000 130,000 2,196,000 1,060,570 51% Repairs & Maintenance 309,500 309,500 119,602 39%

Contract Services 458,636 (4,000) 454,636 134,456 29%

Travel & Training 18,550 18,550 4,173 23%

Other Expenses 381,033 381,033 238,603 63%

Transfer to Capital 1,500,000 1,500,000 0%

Total Expenditures 4,663,094 1,673,163 6,336,257 2,193,295 47% YTD Actual based on the first 6 months of FY 2016-2017

Summary of Fund Activity

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Fund Description Beg. Fund Balance Revenues

Mid-Year Contributions Expenditures

End. Fund Balance

General $5,289,032 $8,620,754 $8,820,754 $5,089,032 Equipment Replacement 134,592 4,100 30,000 168,692 Park Equipment Replacement 50,000 10,000 15,000 45,000 OPEB Trust 100,380 25 25,000 125,405 Pension Stabilization 747,699 57,146 804,845 Water Operations 1,348,145 5,564,200 6,336,257 576,088 Water Capital 2,369,302 670,000 1,500,000 2,607,217 1,932,085 Capital Imp 230,383 300 50,000 280,157 526 Street Imp 980,432 359,400 66,000 741,000 664,832 Facilities Imp 138,262 20,000 158,262 Stephenson Center 104,132 15,000 119,132 Special Revenues 2,637,394 3,124,062 11,901 4,426,951 1,346,406 Total All Funds $14,129,753 $18,342,841 $1,785,047 $23,227,336 $11,030,305

Summary of Mid-Year Adjustments

Decrease Tax Revenues $137,800 (General Fund)

Increase Permit & Fees Revenues $38,000 (General Fund)

Increase Intergovernmental Revenues $213,000 (General Fund)

Increase Miscellaneous Revenues $10,000 (General Fund)

Increase Total General Fund Revenues $235,200

Increase Total General Fund Expenditures $149,200

Increase Street Improvement Revenues $359,000

Increase Park Athletic Expenditures $3,200

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Summary of Mid-Year Adjustments, continued

Increase Park Athletic Expenditures $3,200

Increase Founder’s Day Expenditures $5,000

Increase Prop A Fund Expenditures $500,000

Increase Water Operations Expenditures $1,673,163

Decrease Water Capital Expenditures $307,000

Increase Water Capital Revenues $1,500,000 (Transfer from Operations)

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agenda - lomita · 07/03/2017 · i hereby certify under penalty of perjury under the laws of the...

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