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Home My WebLink About21 - FY 2011-12 Budget Adoption�Ew aoRr CITY OF NEWPORT- BEACH °9 oaNP City Council Staff Report Agenda Item No. 21 June 28, 2011 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: City Manager's Office Dave Kiff, City Manager 949 - 644 -3002, dkiff @newportbeachca.gov PREPARED BY: Dan Matusiewicz, Administrative Services Deputy Director APPROVED: TITLE: Resolution 2011 -54: Fiscal Year 2011 -12 Budget Adoption ABSTRACT: The City Council is required by the City's Charter to adopt an annual budget by resolution each year prior to June 30th. RECOMMENDATION: 1. Hold the Public Hearing on the City Manager's Proposed Fiscal Year 2011 -12 Budget that was continued from June 14, 2011. 2. Conduct a straw vote on each checklist item (Attachment A). 3. Approve Resolution 2011 -54 adopting the City Manager's Proposed Fiscal Year 2011 -12 Budget as amended by Item 1 above (Attachment B). FUNDING REQUIREMENTS: The FY 2011 -12 Budget as proposed and including the attached recommended checklist items is balanced. The budget as a whole has a $250 million impact to the community. Given that it is balanced, there is no fiscal impact on reserves. DISCUSSION: Background Pursuant to Section 1102 of the Newport Beach City Charter, and Council Policy F -3 titled Budget Adoption and Administration, the Proposed Budget for the 2011 -12 fiscal year was first submitted to the City Council on May 10, 2011. The City Council held budget study sessions on May 10, May 24, and June 14, 2011, to review the City Resolution 2011 -54: Fiscal Year 2011 -12 Budget Adoption June 28, 2011 Page 2 Manager's Proposed Budget for the 2011 -12 fiscal year. The City Council held a Public Hearing as required by the City Charter on June 14, 2011. The Public Hearing was continued to June 28, 2011. The City Manager's Proposed FY 2011 -12 Budget sets key priorities based on Council goals and a commitment by the City Manager to focus resources on delivery of high quality services and programs. It also supports a continued focus on the transformation of the Newport Beach city government to a more accountable and performance -based organization. We are currently projecting that we will close FY 2010 -11 with an increase to fund balance reserves of approximately $2 million and the City Manager's Proposed FY 2011 -12 budget estimates that revenues will exceed expenditures by $1.8 million thereby following our fiscal sustainability policy of not using General Fund reserves to balance the budget. Position Changes The City Manager's Proposed FY 2011 -12 includes funding for 758 full -time and 123.27 full -time equivalent (part-time) positions, a reduction of 34 full -time and 9.34 full -time equivalent positions from FY 2010 -11. This is the result of departmental restructuring, realignment of functions, and contracting out. Additional position changes that were not included in the online version of City Manager's Proposed FY 2011 -12 Budget but are being submitted for consideration on the Budget Checklist include the following: Department Change Admin Services Change 1 Budget Analyst to 1 Budget Fellow (Limited Term — 2 years) City Manager Change Department Assistant+ 7.5% to Administrative Assistant City Manager /Fire Change funding of Emergency Preparedness Coordinator to 100% Fire Department Fire Change Budget Analyst to Administrative Analyst (lower level) Change Fire Division Chief (Fire Prevention) to Assistant Fire Chief Change Lifeguard Captain to Community Preparedness Coordinator Change Lifeguard Battalion Chief to Lifeguard Assistant Chief Eliminate Lifeguard Supervisor positions (4 positions at .43 FTE each) Add 4.4 F/T Lifeguard Officers (one split with Police to coordinate drug abuse prevention program in the schools) Police Add funding for .6 Lifeguard Officer (split with Fire, see above) Public Works Eliminate Public Works Inspector II The costs associated with these changes are included on the Budget Checklist, attached. Should the Budget Checklist be approved as attached, the FY 2011 -12 Budget will include funding for 761 full -time and 124.574 full -time equivalent (part-time) positions. Resolution 2011 -54: Fiscal Year 2011 -12 Budget Adoption June 28, 2011 Page 3 District Discretionary Grant Funds We recommend the reporting of District Discretionary Grant Funds be included in the City Manager's Quarterly Business Report for the period ending June 30, 2011. As the fiscal year is not over at this time, we do not have the final year -end expenditures yet. We will bring an update of Council Policy A -2 which covers District Discretionary Grant Funds to Council in July to reflect this plan. ENVIRONMENTAL REVIEW: Staff recommends the City Council find this action is not subject to the California Environmental Quality Act ( "CEQA ") pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. NOTICING: The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). Prepared by: Submitted by: -Dan Matusiewicz ' Dave \\ �»iff Administrative Services- Depu�y Director City Manager Attachments: A. FY 2011 -12 Budget Checklist B. Resolution C. Final Position Control Listing ATTACHMENT A June 21, 2011 Budget Checklist - Amendments to the Proposed Budget Fiscal Year 2011 -12 DepartmentlAccount Number/Description Deletions Additions Approved CHANGES TO THE PROPOSED BUDGET AS PRINTED - EXPENDITURES Administrative Services 0620 -7### Change Budget Analyst to Budget Fellow (shared with City Attorney and Recreation) $ 44,500 $ - City Council 0110 -8250 Balboa Island Historical Society $ - S 10,000 0110 -8250 _ Balboa Island Improvement Association $ - $ _ _ _ 5,000 City Manager 0310 -7#### Emergency Preparedness Coordinator 100% to remain in Fire Department $ S - 0310 -7#### Administrative Assistant position - Filled $ _63,356 - $ 104,869 0310 -7#### Eliminate Department Assistant + 7.5% $ 92,773 $ - Fire Department 2310 -7### Change Budget Analyst to Administrative_ Analyst $ 5,810 $ - _ 2320 -704# Additional overtime savings $ 16.0,461 $ - 2330 -7#4# Change Fire Division Chief (Fire Prevention) to Assistant Fire Chief $ 5,622 $ 2353 -8100 _ Reduce travel & meeting budget $ _ _ 12,000 $ - 2353 -8200 _ Reduce uniform budget $ 1_2,800_ - $ 2355 -7### Emergency Preparedness Coordinator .100% remains in Fire Department $ - $ 63,356 2356 -7### Change Lifeguard Captain to Community Preparedness Coordinator $_ - $ - 2360 -7### Change Lifeguard Battalion Chief to Lifeguard Assistant Chief $ - $ 45,883 2360 -7### Eliminate Lifeguard Supervisor PIT positions $ 223,682 $ - 2360 -7### Add 4.4 F/T Lifeguard Officer positions $ - $ 2360 -7#ft# Increase P/T Lifeguard staffing $ - $ _563,878 61,015 2360 -7082 Add back Marine Standby (reduced amount from prior FY) $ - $ 29,000 20 -7210 36 Incr ease LMA cafeteria allowance by $100 per month $ 15,600 2360 -7444 Additional retirement contribution (new total 9 %) _ $ 62,459 $ - 2360-8024 Reduce vehicle replacement $ 16,903 _ 2360 -8204 Reduce uniform budget $ 14,450 $ - 2360 -8080 _ Reduce backfill funding $ _ 75,000 $ - Municipal Operations 5400 -8080 Oil Field Assessment $ - $ 180,000 3140 -8080 Bus Shelters - San Miguel $ - $ 20,000 3180 -8080 _ Reduction in contract costs $ 150,000 $ - Police Department 1820 -7### 60% of Lifeguard Officer budget for funding of drug abuse prevention program $ - $ 82,657 Public Works Department 5100 -7### Eliminate Public Works Inspector II instead of holding position vacant to achieve . salary savings $ - $ 13,591 7014- C8002022 Agreement with City of Mission Viejo related to Southern California Edison Rule 20A Credits $ - $ 94,130 TOTAL CHANGES TO THE PROPOSED OPERATING BUDGET $ 939,617 $ 1,288,979 TOTAL CHANGES TO THE PROPOSED BUDGET BY FUND General Fund $ 939,817 $ 1,108,979 Tidelands Fund $ - $ 180,000 Total Changes to the Proposed Budget ........................... $ 939,817 $ 1,288,979 CAPITAL IMPROVEMENT PROGRAM REBUDGET BY FUND CAPITAL E G RAM - REBUDGETS General Fund Public Works 50,500 $ - Tidelands $ 7014- CB002000 CIP Project Management $ 43,000 $ 109,000 7014- C8002008 China Cove Slope and Drainage Improvements $ 7,500 340 $ 7231- C4402004 Rhine Channel Dredging $ 88,0.00 $ 3,8_87,5_00 7231- C4402005 Rhine Channel Private Marinas - $ $ 80,850 7281- C2002039 Harbor View Hills Street Rehabilitation $ 340 $ 202,000 7255- C5002005 Crystal Cove Parking Lot/Pond Area Improvements $ 109_,00.0 $ - 7255- C5002006 Newport Coast ASBS Water Quality Efforts Total CIP Rebudgets /Changes - $ 563,000 7255- C5002007 Newport Coast ASBS Runoff Reduction Program _ $ 795,000 7255- C5002008 Newport Coast AS_B_S Public Impacts _ $ 112,000 7410- C1002009 Civic Center _ _ $ 641,70.0_ 7410- CIO02034_ Civic Center OCIP Premiums _ _$ 40,00.0 7410- C1002035 Civic Center OCIP Loss_ Claims _ $ 62,600 7411- C4002002 Marina Park $ 59,000 7412 - 05100515 Sunset Ridge Park $ _61,400 7459- C5100879 Santa Ana Heights Utility Undergrounding $ 900 7531- C7001002 Sewer Pipeline Point Repairs and Lining $ 50,000 TOTAL CAPITAL PROJECT REBUDGETS $ 288,740 $ 6,515,050 CAPITAL IMPROVEMENT PROGRAM REBUDGET BY FUND General Fund $ 50,500 $ - Tidelands $ 88,000 $ 3,968,350 Contributions $ 109,000 $ 1,470,000 Measure M Turnback $ 340 $ 202,000 Civic Center $ 40,000 $ 704,300 Marina Park $ - $ 59,000 Sunset. Ridge Park $ - $ 61,400 Misc Santa Ana Heights Projects $ 900 $ - Sewer Enterprise Fund $ - $ 50,000 Total CIP Rebudgets /Changes $ 288,740 $ 6,515,050 Attachment B RESOLUTION NO. 2011 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH ADOPTING THE BUDGET FOR THE 2011 -12 FISCAL YEAR. WHEREAS, the City Manager of the City of Newport Beach has prepared and submitted to the City Council a preliminary annual budget for the 2011 -12 Fiscal Year; WHEREAS, the City Council has reviewed said preliminary budget, determined the time for the holding of a public hearing thereon, and caused a notice of said hearing to be published not less than ten (10) days prior thereto in the official newspaper of the City, and copies of the proposed budget were made available for inspection by the public in the Office of the City Clerk and the Administrative Services Department at least ten (10) days prior to said hearing; and WHEREAS, the City Council has held a public hearing on said preliminary budget on June 14, 2011, and continued to June 28, 2011, and has made such revisions in the preliminary budget as it deemed advisable; and WHEREAS, the City Manager has the authority to approve budget increases not to exceed $10,000 in any Budget Activity or Capital Project, in accordance with Council Policy F -3 (Budget Adoption and Administration), and WHEREAS, the City Manager may accept donations or grants of up to $10,000 on behalf of the City and appropriate the funds for the purpose intended, in accordance with Council Policy F -3 (Budget Adoption and Administration), and WHEREAS, all requirements of the City Charter relating to the preparation and consideration of the annual budget have been complied with. NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Newport Beach that the budget of the City of Newport Beach for the 2011 -12 Fiscal Year as revised by the City Attachment B Council via the Budget checklist is hereby adopted. The total approved appropriation of $255,552,477 ($236,100,736 with Transfers Out), plus any items on the approved Budget Checklist attached as Attachment A, has been allocated to the following funds in the amounts hereinafter shown: Fund General Fund Ackerman Fund CDBG Fund Asset Seizure Fund AQMD Fund SLESF Fund State Gas Tax Fund Traffic Cong. Relief Measure M Fund Tidelands Fund Contribution Fund Circulation Fund Bristol Street Relinquishment Building Excise Tax Environmental Liab. Newport Annexation Library Debt Service Bonita Canyon Dev. Civic Center Marina Park Sunset Ridge Park LG Headquarters Strategic Planning Santa Ana Heights Newport Bay Dredging Insurance Reserve Fund Retiree Medical Fund Comp. Absence Fund IT Strategic Fund Equipment Fund Water Fund Wastewater Fund Total Appropriations Operating Budget $143,866,906 5,000 314,972 39,060 9,000 0 0 0 0 3,392,623 0 0 0 0 139,286 1,200,000 10,626,967 0 7,500 0 0 0 0 0 0 4,884,705 6,259,000 2,154,247 4,271,669 5,015,565 19,138,975 3,050,262 $204,375,737 Capital Budget $4,567,100 0 50,000 0 0 3,800,000 0 6,573,040 2,000,000 2,711,900 2,941,500 0 0 0 0 0 68,200 2,550,000 9,000,000 9,500,000 400,000 300,000 1,176,500 0 0 0 0 0 4,637,000 901,500 $51,176,740 Total Budget $148,434,006 $5,000 $364,972 $39,060 $9,000 $0 $3,800,000 $0 $6,573,040 $5,392,623 $2;711,900 $2,941,500 $0 $0 $139,286 $1,200,000 $10,626,967 $68,200 $2,557,500 $9,000,000 $9,500,000 $400,000 $300,000 $1,176,500 $0 $4,884,705 $6,259,000 $2,154,247 $4,271,669 $5,015,565 $23,775,975 $3,951,762 $255,552,477 BE IT FURTHER RESOLVED that a copy of said approved budget, certified by the City Clerk shall be filed with the persons retained by the City Council to perform auditing functions Attachment B for the Council, and a further copy shall be placed, and shall remain on file, in the Office of the City Clerk where it shall be available for public inspection. BE IT FURT14ER RESOLVED that the budget so certified shall be reproduced and copies made available for the use of the public and of departments; offices and agencies of the City. ADOPTED the 28`h day of June, 2011. MAYOR ATTEST: CITY CLERK ATTACHMENT C FY 2010 -31 FY 2011 -12 Department Full -time I Part -time I Full -time Part-time Position Changes in FY 2011 -12 City Council 0.07 0.07 No change I Added Department Assistant -1 Eliminated Assistant City Clerk 1 Added Administrative Assistant 4.00 Subtotals City Clerk 3 0 (231) Eliminated 2.31 FTE Production Assistant (layoff) (0.50) Tronsferred.5 ofthe Emergency Services Coordinator position bock to Fire Dep t. (Checklist) (5.00) (0.25) Transferred Code& Water Quality personnel (5 full-time & .25 FTE) to other. departments (4.00) (1.67) Transferred Harbor Resources (4 full -time & 1.67 FTE) to PW, Rec, Finance Subtotals City Manager 17 4.23 7.50 -0.75 Eliminated .75 FTE Human Resources Analyst 1 Correction to FY 2010 -11 - Added 1 FIT Human Resources Specialist II Human Resources 10.00 1.50 31.00 0.75 Subtotals -1 Eliminated 1 F/T Paralegal (vacant) 0.1 Added .10 FTE Budget Fellow - Graduate Fellowship, Limited Term (2 years) -1 Eliminated 1 F/T Office Assistant (vacant) 1 Added 1 FIT Department Assistant Subtotals City Attorney 10.00 0.70 9100 0.80 -1 Eliminated F/T Parking Meter Supervisor (layoff) -1 Eliminated F/T Parking Meter Serviceworker (layoff) -1 Eliminated F/T Parking Meter Serviceworker (retirement) -0.72 Eliminated .72 FTE Parking Meter Serviceworker (layoff) 0.5 Added D.SO FTE Budget Fellow- Graduate Fellowship, Limited Term (2 years) (14.00) (0.50) Transferred ITpersonnel (14 full -time & .5 FTE) to IT Internal Service Fund (1.00) Eliminated I F/T Budget Analyst (Checklist) 1.00 Replaced 1 F/T Budget Analyst with 1.0 FTE Budget Fellow (Checklist) Subtotals Finance 54.00 12.07 36.00 12.35 -1 Eliminated Enivornmental Services Officer (position transferred to Patrol) -1 Eliminated Lieutenant Professional /Standards (transferred Lieutenant position to Patrol) -1 Eliminated Sergeant Community Relations 1 Added Sergeant Professional /Standards -1 Eliminated DARE Officer -0.49 Eliminated .49 FTE Crime Prevention Officer 1 Added 1 FTE Crime Prevention Officer (non- sworn) 0.6 Splitting funding for LG Officer - Junior Guards 40 %& school drug prevention program 60% -1 Eliminated Senior Community Services Officer -1 Eliminated Background Investigation Officer 1 Added 1 F/T Lieutenant to Patrol 2 Added 2 FIT Sergeant to Patrol 2 Added 2 FIT Officer to Patrol -1 Eliminated 1 F/T Animal Control Officer -1 Eliminated 1 F/T Accident Investigation Officer -1 Eliminated I F/T Motor Officer -2 Eliminated 2 F/T Police Captain 1 Added Civilian Support Services Administrator (replaces 1 Police Captain) 1 Added Assistant Police Chief (replaces I Police Captain) -3 Eliminated 3 FIT Police Officers from Detective Division (Court Liaison, vice, & Narcotics) 1 Added Community Services Officer for Court Liaison in Detective Division -5 -0.76 Transferred IT personnel (5 full -time & .76 FTE) to IT Internal Service Fund -3 Eliminated 3 FIT Community Services Officers (Parking Meters) Police 225.00 13.42 213.60 12.17 Subtotals .1 Eliminated 1 FIT Senior fiscal Clerk 4 Eliminated 1 F/T Fire Captain+ 7.5% -1 Eliminated I FIT Office Assistant -1 Eliminated I FIT Fire Support Services Manager 1 Changed 1 FIT Budget Analyst to 1 FIT Administrative Analyst (Checklist) -1 Eliminate I FIT Division Chief - Fire Marshal -1 Eliminate 1 FIT Division Chief - Training -1 Eliminated 1 FIT Deputy Chief 2 Added 2 PIT Assistant Fire Chief 1 Added 1 FIT Fire Battalion Chief +7.5 %. Training -4 Eliminated 4 FIT Lifeguard Battalion Chief -1 Eliminated Deputy Fire Marshal -1 Transferred ITpersonnel (1 full -time) to IT lnternal5ervice Fund 0.4 Added 1 P /T.40 FTE Lifeguard Officer- becomes PIT PD CPO in Off- Season (0.6) 2 Added 2 F/T Lifeguard Ops Managers -2 Eliminated 2 FIT LG Boat Captains 1 Added IF /T Assistant Chief (Lifeguards) -3 Eliminated 3 LG Captains 0.5 Transferred .5 of the Emergency Services Coordinator position (Checklist) ' Economic Development Coordinator and Economic Development Administrator positions outsourced in FY 2010 -11 resulting in two layoffs. ' Per Council request on May 24, 2011, Study Session, Public Works Inspector It eliminated via checklist. Position is currently vacant. FY 2010 -11 FY 2011 -12 Department Full -time Part-time Full -time Part-time Position Changes in FY 2011 -12 -1 Eliminated l F/T Department Assistant 2.59 Change in part-time Lifeguard hours -0.48 Eliminate .49 FTE Lifeguard Cadet Subtotals Fire & Lifeguards 156.00 33.13 144.90 35.24 1 Added Administrative Analyst -1 Eliminated Planning Director -1 Eliminated Building Director 1 Added Community Development Department Director 1 Added Deputy Community Development Director -1 Eliminated Senior Building Inspector 1 Added Subtrade Plans Examiner -1 Deleted Deputy Building Official 1 Added Building Manager /Building Official 4 0.25 Staff transferred to CDD from Code Enforcement (4 full -time and.25 FTE) Community Development' 51.00 1.56 56.00 1.81 Subtotals -1 Eliminated Administrative Analyst 1 Added Administrative Manager -1 Eliminated Equipment Operator 1 -3 Eliminated three (3) Facilities Maintenance Worker II 0.5 Added .5 FTE Temporary Laborer -1 Eliiminated Transfer Station Crew Chief 4 Eliminated GroundsworkerI 1 Added Park Maintenance Crew Chief -1 Eliminated Pest Control Technician -1 Eliminated Electrical Services Crew Chief -1 Eliminated Electrical Services Supervisor 1 Added Electrician 4 Eliminated Administrative Analyst 1 Added Management Assistant -1 Eliminated Utilities Director -1 Eliminated Deputy Utilities Director 1 Added Utilities General Manager 1 Added Utilities Crew Chief 1 Added Senior Utilities Specialist -1 Eliminated Utilities Equipment Specialist -1 Eliminated Video Technician -1 Eliminated Automotive Stock Clerk Subtotals Municipal Operations 164.00 3.50 155.00 4.00 5 Staff transferred to Public Works from Code Enforcement (2) and Harbor Resources (3) -1 Eliminated Public Works Inspector 11 (Checklist) -1 Eliminated Public Works Specialist -1 Eliminated GIS Analyst -1 Eliminated Senior Engineering Technician Subtotals Public Works' 32.00 2.58 33100 2.58 -3.53 Eliminate 3.53 FTE Librarian I -1. Transferred lT personnel (1 full -time) to IT Internal Service Fund Eliminate balance of Librarian II -1.56 Eliminate 1.56 FTE Library Page positions -0.92 Reduce.92 FTE Library Clerk 1 -0.05 Reduce.05 FTE Department Assistant Subtotals Library Services 41.00 26.48 40.00 20.42 -0.73 Eliminate .73 FTE Recreation Leaders (Youth After School /Camp Program) -0.1 Eliminate .10 FTE Recreation Leader (Special Events) 0.66 Added .66 FTE Senior Recreation Leader (OASIS Fitness Center) 0.35 Added .35 FTE Recreation Leader (OASIS Fitness Center) 0.4 Added .4 FTE Budget Fellow - Graduate Fellowship, Limited Term (2 years) Subtotals Recreation & Sr Services 29.00 33.37 29.00 33.95 Information Technology 0 0 22 0.5 Tronsferred from Administrative Services, Police, Fire, and Library (no additional staffing) 792.00 132.54 761.00 124.57 Italics identifies positions Transferred between departments fora net -0- impaction positions city -wide. ' Economic Development Coordinator and Economic Development Administrator positions outsourced in FY 2010 -11 resulting in two layoffs. ' Per Council request on May 24, 2011, Study Session, Public Works Inspector It eliminated via checklist. Position is currently vacant.