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Home My WebLink AboutSR - RES-10793 - PROPOSED FISCAL YEAR 2014-15 BUDGET & SEVEN YEAR CAPITAL IMPROVEMENT PROGRAMG�� AGENDA ITEM :< June 10, 2014 Meeting UNTx TO: Honorable Mayor and Members of the City Council FROM: John W. Sibley, City Manager ReviewedNerifi By: City Manager Finance Direct To Be Presented : City fWanager _Cons. Calendar _City Mgr. Reports _Council Reports _Legal Affairs Boards /Cmtes. X_Public Hearings Admin Reports _Plan/Environ. 1. SUBJECT Proposed Fiscal Year 2014 -2015 (FY 15) City of Orange Budget and Seven Year Capital Improvement Program including approval of salary adjustments, position reclassifications and other personnel actions. 2. SUMMARY Each spring, the City staff presents to the City Council an Annual Budget that serves as the City's financial and operational plan for the upcoming fiscal year. This budget document is prepared following two City Council study sessions in which various aspects of the proposed budget were considered and Council direction was given. As part of the adoption of the FY 15 budget, staff is recommending salary adjustments, position reclassifications and other personnel actions as a result of department restructuring and adjustments for certain positions that have salary inequities or are working out of class. As a clean -up item, due to the FY 14 sunset of the Gas Tax Exchange program between OCTA and the City of Orange, staff is requesting the transfer of $1.4 million from the General Fund (included as an expense in the FY 14 budget) to the Gas Tax Exchange Fund (273) to offset street maintenance expenses incurred in FY 14. 3. RECOMMENDATION For Fiscal Year 2014 -15 At the conclusion of the public hearing, three action items are recommended to adopt the FY 15 Budget. These are: ITEM A r 1 6/10/14 Acting as the City Council: 1. Approval of Resolution No. 10793 adopting the Budget for Fiscal Year 2014 -15; 2. Approval of Resolution No. 10794 adopting the Gann Appropriations limit of $149,458,738 for Fiscal Year 2014 -15; and 3. A motion making a finding that the portion of the Fiscal Year 2014 -15 Budget subject to the Gann limit is $83,520,502, and therefore within the limit. For Fiscal Year 2013 -14 4. Approve a budget transfer of $1,400,000 from account number 100.0000.57120.19700, General Fund - Transfer /Gas Tax Exchange to 273.0000.49010.00000, Gas Tax - Transfer from Other Funds to offset street maintenance expenses incurred in the Gas Tax Fund (273). 4. FISCAL IMPACT Fiscal Year 2014 -15 Adoption of the annual budget establishes the City fiscal plan for the year. Fiscal Year 2013 -14 Funds are budgeted and available to cover the cost of the budget transfer from the General Fund (100) to the Gas Tax Fund (273). 5. STRATEGIC PLAN 2a. Expend fiscal resources responsibly; 2b. Analyze future fiscal needs and potential revenue opportunities; and 2c. Provide appropriate reserves. 6. DISCUSSION and BACKGROUND Fiscal Year 2014 -15 Subject to testimony received this evening at the noticed public hearing, adoption of the FY 2014 -15 (FY 15) Budget and related documents will insure that the City has established a set of legally adopted appropriations, met all the requirements of the Gann Initiative, and complied with the Measure M and Transportation Congestion Relief Fund (TCRF) funding requirements (Maintenance of Effort) of a Seven Year Transportation Capital Improvement Plan. The FY 15 budget represents the City's spending plan for the coming fiscal year, which will begin on July 1, 2014 and ends June 30, 2015. In preparing the FY 15 budget, the City Council conducted two study sessions to discuss various aspects of the proposed budget. During these discussions, the City Council deliberated extensively regarding methods to balance the FY 15 budget while also recognizing the need to continue to restore the City's General Fund budget and establish a solid financial position. Through the leadership of the City Council, the resulting budget document has been developed in ITEM 6/10/14 a collaborative manner that included involvement from all City departments. The result is a proposed FY 15 General Fund Budget that is balanced using a combination of past operational budget reductions, savings from frozen and eliminated positions, and the continued savings from renegotiated labor agreements. The FY 15 budget also includes proposed salary adjustments, position reclassification, and other personnel actions that are needed to maintain optimum services levels and to address certain positions that have salary inequities or are working out of class. The attached Budget Message provides in detail how we are able to present a balanced budget for FY 15. The budget presented at this Public Hearing is an abbreviated version of the complete budget package, but contains all of the information and attachments required for adoption. As such, the essential elements that are included and required for adoption of the FY 15 Budget are: • Budget Message • Budget Resolutions • Selected Budget Worksheets • Fund Balances • Transfers • Revenues and Expenditures • Carryovers • Frozen Positions • Recommended Staffing Changes • Schedule of Positions • Successor Agency (Redevelopment Agency) Debt Issues • Capital Improvement Projects for FY 15 • Budget Workplans for FY 15 • Seven -Year Capital Improvement Plan (Separate Binder) Fiscal Year 2013 -14 Approximately 20 years ago the City of Orange and OCTA entered into an agreement to establish a Gas Tax Exchange Program in which OCTA would contribute $1.4 million for specific roadway maintenance and operation activities and retaining in exchange $1.4 million in General Fund monies. These maintenance costs were previously funded using General Fund dollars and budgeted in the Public Works Department. This allowed OCTA to have the use of unrestricted funds for their operational needs. In FY 14, the Gas Tax Exchange Program ended, thus FY 15 expenditures previously budgeted within the Gas Tax Exchange Fund (273) are proposed as part of the Public Works Department in the General Fund. This action has no net effect to the General Fund. Because the program ended in FY 14, the FY 14 budget was adopted with the street maintenance and operations expenditures within the Gas Tax Exchange Fund (273) however, the City will not receive the $1.4 million from OCTA. Therefore, as part of this report, staff is requesting a one- time transfer of $1.4 million from the budgeted expenditure in General Fund (Non - Departmental) to the Gas Tax Fund (273) to offset routine road maintenance expenditures within the Gas Tax Exchange Fund. 7. ATTACHMENTS • Budget Message ITEM 6/10/14 3 • Exhibit A — Salary Adjustments, Position Reclassifications, and Other Personnel Actions • Resolution No. 10793 • Resolution No. 10794 • Selected worksheets for the Proposed FY 15 Budget Historical Summary of Revenues and Expenditures by Fund Type Schedule of Changes in Fund Balance Schedule of Transfers Historical Schedule of Revenue Sources by Fund Type and Fund Summary of General Fund Revenues by Type Summary of All Fund Expenditures by Department Historical Schedule of Expenditures by Fund Type and Category Summary of General Fund Expenditures by Department Listing of Frozen Positions Schedule of Positions Schedule of Operating Carryover Appropriations Successor Agency Debt Issues and Inter -fund Loans Schedule of New Capital Improvement Funding by Fund • Workplans for FY 15 • Seven -Year Capital Improvement Plan ITEM 6/10/14 4 RESOLUTION NO. 10793 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ORANGE ADOPTING SAID CITY'S BUDGET FOR THE FISCAL YEAR 2014 -15 AND RELATING TO TRANSFERS OF FUNDS BETWEEN AND WITHIN APPROPRIATIONS, TRANSFERS BETWEEN FUNDS, AND ADDITIONAL APPROPRIATIONS. BE IT RESOLVED by the City Council of the City of Orange, California, as follows: SECTION I. Adoption of Budget The City of Orange budget for the Fiscal Year 2014 -15, as amended by the City Council and on file in the office of the City Clerk, is hereby adopted as the budget for the City of Orange for the Fiscal Year 2014 -15. Appropriations for the City Operating Budget are set forth in the Schedule of Operating Expenditures by Fund and the Schedule of Carryover Appropriations. Appropriations for the Capital Improvement Program and Debt Service, are listed in the Schedule of New Capital Improvement Projects and the Schedule of Debt Service Payments. Appropriations existing as of June 30, 2014 for CIP projects will be carried over to the 2014 -15 fiscal year with the exception of those projects which are completed, as determined by the City Manager, before the end of the 2013 -14 fiscal year. SECTION II. Transfer of Funds Within and Between Appropriations A. Transfer of Funds within an operating appropriation — Department Heads may transfer funds between non -salary object group classifications or programs within their operating departmental appropriation with the approval of the Finance Director. The City Manager's approval is required to transfer funds to or from salary accounts within a departmental appropriation. B. All other transfers between appropriations, including departmental budgets, capital projects, debt service or pass throughs, must be approved by the affirming vote of three members of the City Council SECTION III. Transfers of Funds Between Funds Transfer of funds between funds, as outlined in the Schedule of Transfers in the Budget document, shall be made as expenditures or revenues warrant such transfers. Other transfers may be made by the City Council by the affirmative vote of three members. 19