Title
Adoption of Resolution Authorizing Fiscal Year-End Budget Amendments to Facilitate Closing Fiscal Year (FY) 2019-20; and
Adoption of Resolution Amending the FY 2020-21 Budget. (Finance 2410)
Body
To: Honorable Mayor and Members of the City Council
EXECUTIVE SUMMARY
As part of the fiscal year-end review, staff identified a number of funding sources that are available to be re-appropriated for operating programs in FY 2020-21 as well as other cleanup adjustments to the FY 2020-21 budget. Staff is seeking authorization for these amendments to the FY 2020-21 budget.
BACKGROUND
The City Council adopted the Biennial Budget for FYs 2019-20 and 2020-21 on June 18, 2019. After the first year of the budget cycle, City Council approved an update to the second budget year (Mid-Cycle Budget Update) on June 16, 2020.
In preparation for closing FY 2019-20, staff identified eight (8) funds that need adjustments through year-end budget adjustments in order to avoid audit comments, as well as funding available for carryforward into FY 2020-21, which is subject to appropriations approval by the City Council.
DISCUSSION
Fiscal Year-End 2019-20 Budget Adjustments
Several funds require adjustments in FY 2019-20 and need additional appropriations-:
|
Fund |
Fund Name |
Amount |
Issue |
Recommendation |
|
215 |
County Measures B/BB |
$722,126 |
Pavement Management CIP (91810) was double-budgeted in an earlier year. |
Appropriate an additional $259,000 and $464,000 in Measures B and BB Streets & Roads funds, respectively. |
|
248 |
HOME Repayment |
$13,283 |
Revenues and expenditures were under-budgeted. |
Increase revenue and expenditure appropriations by $13,500. |
|
279 |
Assessment Districts Admin |
$14,207 |
Revenues collected from Assessment Districts have not kept up with the increase in cost allocation. |
Increase transfer in from Bayport District 03-1 (Fund 278) by $14,500. |
|
362 |
CFD 13-1 Alameda Landing |
$97,000 |
A reimbursement payment of $250,000 was made to Catellus although only $150,000 was budgeted. |
Appropriate an additional $97,000 from fund balance. |
|
703 |
Fleet Maintenance |
$8,317 |
Expenditures for outside vehicle repair exceeded the budget resulting in overspending at the fund level. |
Appropriate an additional $9,000 from fund balance. |
|
715 |
Unemployment Insurance |
$19,527 |
Unemployment insurance claims increased due to furlough of part-time employees. |
Appropriate an additional $20,000 from fund balance. |
|
810 |
OPEB Trust |
$37,059 |
This fund had an expenditure budget of $0 in FY 2019-20, which appears to be an error. |
Appropriate $37,100 from fund balance. |
|
862 |
Alameda Landing CFD 13-1 Bond |
$226,824 |
This fund had an expenditure budget of $150,000 in FY 2019-20 but $376,996 was transferred. |
Appropriate an additional $227,000 from fund balance. |
FY 2020-21 Budget Re-Appropriations and Cleanup
As part of the fiscal year-end close of FY 2019-20, staff identified a number of funding sources that are available to be re-appropriated for operating programs in FY 2020-21 as well as other cleanup adjustments to the FY 2020-21 budget related to initiatives previously approved by City Council.
As part of this budget resolution, staff is seeking authorization for the following re-appropriations and cleanup items:
• Carry forward $642,600 of the Alameda County Homeless Emergency Aid Program (HEAP) grant.
• Appropriate $5,000 in the Public Art Fund for a new sign for the park formerly known as Jackson Park.
• Carry forward $143,500 in previously approved outstanding Public Art grant awards.
• Reduce the Commercial Revitalization contractual services budget by $125,000 to reflect the Small Business Relief Grants advance approved by City Council in April 2020.
• Carry forward $86,250 in spending authority for the Small Business Relief Grants from FY 2019-20 to FY 2020-21.
• Carry forward $101,616 in the Commercial Revitalization Fund for outstanding Façade Grant Program awards.
• Carry forward $40,014 in the Base Reuse Fund for outstanding Façade Grant Program awards.
• Re-appropriate $90,000 in First 5 grant funds in the Human Services Fund for a contract with Alameda Family Services.
• Appropriate an additional $284,000 in Alameda County HOME funds for the development of affordable housing.
• Carry forward $900,000 of Community Development Block Grant (CDBG) entitlements and appropriate $597,000 from the third round allocation of CDBG Coronavirus Aid, Relief, and Economic Security (CARES) Act funding, for a total increase in CDBG appropriations of $1,497,000.
• Appropriate $10,000 from fund balance for utility costs for the Alameda Point Services Community Facilities District (CFD) 17-1.
• Increase Island City Maintenance Zone 4 revenues by $121,000 to align with the expected levy, and increase contractual services by $114,000.
• Reduce Waste Reduction Miscellaneous Revenues by $118,000 as previously approved by City Council.
• Transfer $531,278.45 in remaining budget for Shoreline Park Pathway Light CIP project 91856 from the Capital Projects Fund (310) to Facility Replacement Fund (706). Delete transfer budget of $536,638 from Facility Replacement Fund (706) to CIP (91856).
• Transfer $200,769.37 in remaining budget for Modular Restroom AP Gym CIP (91857) from the Capital Projects (310) to the Facility Replacement Fund (706). Delete transfer budget of $250,000 from Facility Replacement Fund (706) to CIP (91857).
• Reduce the grant revenue budget in the Community Development Fund by $300,000 due to deferral of the State LEAP planning grant.
ALTERNATIVES
• Authorize the budget amendments proposed in the staff report.
FINANCIAL IMPACT
Fiscal Year-End 2019-20 Budget Adjustments
The funds identified for additional appropriations for fiscal year-end 2019-20 have sufficient fund balances as described below:
• The County Measures B/BB - Streets & Roads Funds (215.1 and 215.11) have sufficient fund balance for the additional appropriations of $259,000 and $456,000 for the Pavement Management CIP. To ensure that these funds are not overdrawn going forward, staff intends to return with a recommendation for reducing the Pavement Management CIP (91810) budget in FY 2020-21.
• The HOME Repayment Fund (248) appropriations of $13,500 would not affect fund balance as the actual revenues balance the expenditures in FY 2019-20.
• The transfer of an additional $14,500 from Bayport Municipal Services District 03-1 Fund (278) to Assessment Districts Admin Fund (279) would reduce the fund balance in Fund 278 by $14,500, but would not exceed spending authority or result in an operating deficit for Fund 278. Fund 278 ended FY 2019-20 with available spending authority of approximately $327,000 and had an operating surplus.
• The CFD 13-1 Alameda Landing Fund (362) had a surplus of approximately $126,000 in FY 2019-20, so appropriation of an additional $97,000 would not draw down fund balance.
• The Unemployment Insurance Fund (715) has sufficient fund balance for the additional appropriation of $20,000. This fund is running an operating deficit and staff intends to revisit the internal service cost allocation for this fund in the next biennial budget cycle.
• The OPEB Trust Fund (810) had a surplus of approximately $1.1 million in FY 2019-20, so the fund has sufficient capacity for the appropriation of $37,100 for the costs of administering the trust.
• The Alameda Landing CFD 13-1 Bond Fund (862) has sufficient fund balance for the appropriation of an additional $227,000.
FY 2020-21 Budget Re-Appropriations and Cleanup
Approval of the proposed resolution for the FY 2020-21 budget adjustments would result in the following revenue and expenditure adjustments. Adjustments with a balance of $0 would have no effect on projected fund balance; a positive balance would add to the projected fund balance and a negative balance would drawdown from projected fund balance.
|
Department (Fund) |
Type of Adjustment |
Description |
Revenue Adjustment |
Expenditure Adjustment |
Balance |
|
Comm Dev (001) |
Carry forward |
Alameda County HEAP Grant - Carry Forward / Contractual Services |
$642,600 |
$642,600 |
$0 |
|
Comm Dev (285) |
New appropriation |
Public Art for re-named park sign |
|
$5,000 |
$(5,000) |
|
Comm Dev (285) |
Carry forward |
Public Art - Carry Forward / Contractual Services |
|
$143,500 |
$(143,500) |
|
Comm Dev (227) |
Reduce appropriation |
Commercial Revitalization - Small Business Relief advance |
|
$(125,000) |
$125,000 |
|
Comm Dev (227) |
Carry forward |
Small Business Relief Grant - Carry Forward / Contractual Services |
|
$86,250 |
$(86,250) |
|
Comm Dev (227) |
Carry forward |
Commercial Revitalization Façade Grant - Carry Forward / Contractual Services |
|
$101,616 |
$(101,616) |
|
Comm Dev (858) |
Carry forward |
Base Reuse Façade Grant - Carry Forward / Contractual Services |
|
$40,014 |
$(40,014) |
|
Comm Dev (267) |
Carry forward |
Re-appropriate First 5 funds for a contract with Alameda Family Services |
$90,000 |
$90,000 |
$0 |
|
Comm Dev (235) |
Carry forward |
HOME Fund Carry Forward / Contractual Services |
$284,000 |
$284,000 |
$0 |
|
Comm Dev (236) |
Carry forward |
CDBG Entitlement Carry Forward / Contractual Services |
$900,000 |
$900,000 |
$0 |
|
Comm Dev (236) |
New appropriation |
CDBG CARES Act Allocation / Contractual Services |
$597,000 |
$597,000 |
$0 |
|
Pub Works (271) |
New appropriation |
Alameda Point Services CFD 17-1 Utilities |
|
$10,000 |
$(10,000) |
|
Pub Works (275.4) |
New appropriation |
Island City Maintenance Zone 4 Levy Update / Contractual Services |
$121,000 |
$114,000 |
$7,000 |
|
Pub Works (274) |
Reduce revenue |
Waste Reduction - Misc. Revenue cleanup |
$(118,000) |
|
$(118,000) |
|
Pub Works (310/706) |
Transfer budget |
Shoreline Park Pathway Light CIP (91856706) - Funding source cleanup |
$531,278.45 |
$531,278.45 |
$0 |
|
Pub Works (310/706) |
Transfer budget |
Modular Restroom AP Gym CIP (91857706) - Funding source cleanup |
$200,769.37 |
$200,769.37 |
$0 |
|
Planning (209) |
Reduce revenue |
State LEAP Planning Grant deferred |
$(300,000) |
|
$(300,000) |
MUNICIPAL CODE/POLICY DOCUMENT CROSS-REFERENCE
This action is in conformance with the Alameda Municipal Code and all policy documents.
ENVIRONMENTAL REVIEW
This activity is not a project and is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15378 (b) (4) of the CEQA Guidelines because it involves governmental fiscal activities which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment.
CLIMATE IMPACTS
There are no identifiable climate impacts or climate action opportunities associated with the subject of this report.
RECOMMENDATION
Adopt the resolutions (1) authorizing fiscal year-end budget amendments to facilitate closing fiscal year (FY) 2019-20; and (2) amending the FY 2020-21 budget.
CITY MANAGER RECOMMENDATION
In addition to recommending adoption of the Resolutions, I want to thank the new Finance Director, Budget Manager and former Interim Finance Director for all of their work in cleaning up these Funds as well as focusing on other improvements to the City’s financial system as well as working on changes in internal controls.
Respectfully submitted,
Annie To, Finance Director
By:
Jennifer Tell, Budget Manager
Exhibits:
1. FYE 2019-20 Budget Amendments
2. FY 2020-21 Budget Amendments