Report to Mayor and City Council
Tuesday, September 20, 2022
Consent
SUBJECT:
Title
FISCAL YEAR 2021-2022 YEAR-END CONTINUING APPROPRIATIONS (CITY COUNCIL)
Body
I. SUMMARY
At the end of each fiscal year, Staff prepares a list of budgeted appropriations recommended for carryover into the next fiscal year. The list of Proposed Continuing Appropriations (Exhibit No. 1: Capital Improvement Projects; Exhibit No. 2: Special Revenues; Exhibit No. 3 General Fund) identifies Capital Projects that are incomplete or the start of which have been delayed and invoices received after year-end closing for services provided last fiscal year but were billed after the fiscal year ended. In some cases, the unspent expenditure budget needs to be carried forward to the next fiscal year to provide funding for the completion of the project.
The primary purpose of this report is to request continuing appropriations for a variety of projects from every department. There is no fiscal impact associated with the request.
II. RECOMMENDATION
Recommendation
Waive further reading and adopt:
1. RESOLUTION NO. 22-174, A RESOLUTION OF THE CITY OF CARSON CITY COUNCIL AMENDING THE FISCAL YEAR 2021-2022 BUDGET TO CONTINUE UNSPENT APPROPRIATIONS TO FISCAL YEAR 2022-2023; and
2. RESOLUTION NO. 22-194, A RESOLUTION OF THE CITY OF CARSON CITY COUNCIL AMENDING THE FISCAL YEAR 2022-2023 BUDGET TO CONTINUE UNSPENT APPROPRIATIONS FROM FISCAL YEAR 2021-2022.
Body
III. ALTERNATIVES
TAKE another action deemed appropriate by City Council.
IV. BACKGROUND
Staff has established a carryover review process during which departments are requested to submit justification and funding sources for unencumbered, available funds requested for carryover. The final list (Exhibit No. 1: Capital Improvement Projects; Exhibit No. 2: Special Revenues; Exhibit No. 3 General Fund) of continued appropriations is adopted by the City Council in September and becomes part of the City’s Fiscal Year 2022-2023 annual budget.
Each year during the budget development process, staff review and evaluate projects priorities, available funding, and make necessary adjustments to stay within the resources available. The CIP is a working program that is reviewed and updated annually to reflect changing community needs, priorities, and funding opportunities to ensure the infrastructure exists to advance the City Council’s mission, vision and priorities. The City of Carson ended Fiscal Year 2021-2022 with only 12% of its Capital Improvement Projects budget expended once all accounts were closed out late August. This table summarizes budget, actuals and remaining balance.
|
|
Adopted Budget |
Actual Expenditures |
Remaining Balance |
|
FY 2021-2022 CIP |
$67,491,819 |
$8,343,542 |
$59,148,277 |
Exhibit 1 to this report is the list of requests to carryover unused budget for Capital Projects that are incomplete or the start of which have been delayed and invoices received after year-end closing for services provided last fiscal year but were billed after the fiscal year ended. In FY 2021-2022, of the 26 CIP projects in development, 18 Projects are Construction in Progress, and the remaining 8 Projects are Design in Progress. The $1.3 million continue appropriation for On-Call contracts set to expire at the end of December. $2.7 million is budgeted in FY 22-23 for On-Call scheduled to be spent in January 2023.
Exhibit 2 to the report provide various departmental request for continued appropriation from Special Revenue Funds, and a summarized justification are as follows:
Community Services Department: $58,000 requested to be carryforward using Park Development Monies for remaining invoices from last year pertaining to Master Plan implementation. $346,000 in Proposition C monies to be used to purchase EV buses that were on back order last year. Vehicle delivery is expected in second half of FY 22-23. $200,00 in Air Quality monies will also be used to purchase EV buses that are back ordered.
Community Development Department: $1 million in ARPA funding earmarked for Small Business Grant Program, to assist businesses in recovery from Covid-19 shutdown. $605,000 of CDBG funds are various initiatives such Rehabilitation Program authorized during April 19th Council Meeting last fiscal year, continuation of Fair Housing Program, asbestos testing, title report and recording services for CDBG Projects. $4,000 in Housing Authority funds to continue providing underwriting services. $42,000 in Successor Agency funds for consultant services to continue providing financial disclosure reports.
S.I.P.M. Department: $183,000 in ARPA Funding earmarked to Public Information Office division, to enhance Community Engagement.
Information Technology Department: $1.8 million in ARPA funding earmarked for Tyler Munis Upgrade to SaaS, and an additional $350,000 earmarked for Wi-fi for City Parks.
Public Safety Department: $330,000 in ARPA funding earmarked for Emergency Operations Center upgrades.
Public Works Department: $3.5 million in ARPA funding for Slurry Seal project PW 1763, and $500,000 in ARPA funding for Broadband RFP.
Non Departmental: $280,000 in unused ARPA funding ($235,000 leftover for Small Business Relief program where resident Small Business Loan issued from the City to mitigate the harm Covid-19 caused business were forgiven, and $45,000 from Premium Pay)
Exhibit 3 to the report provide various departmental requests for continued appropriation from General Fund, and a summarized justification are as follows:
City Clerk Department: $575,000 appropriated last year was not spent to pay invoice related to the Los Angeles County registrar’s Office, request amount to be carry forward to be spent this year pending negotiations with the Los Angeles County regarding payment plan.
Community Development Department: $393,000 to continue RRM services in providing the City an Economic Development Vision and Strategic Plan, $53,000 to continue providing Mobile Home rent review, and $58,000 in recovered cost from foreclosure registration services. $1 million for Community Development Façade program to which the City can reimburse business up to 50% of the cost for improvement.
Community Services Department: $75,000 to complete purchase of turf for Carson Event Center atrium and Early Childhood site. $159,000 to complete purchase to update workstations with new furniture, equipment, and cubicles to meet ergonomic requirements. $105,000 in outstanding repairs at parks, and unpaid invoices for materials and activities from previous year.
Information Technology Department: $142,000 for citywide computer replacement. Monies were transferred from savings from departments and centralized in the IT department last fiscal year. Purchases and installation will occur this fiscal year. $65,000 pertained to 4 different P.O.s that were not fully utilized in previous year, and continuing into current fiscal year.
Public Safety: $306,000 for Radio Project Phase 2. Phase 2 of the project include installation/programming of purchased radios and additional radio equipment to support the transition of the City’s UHF radio system to the Los Angeles Regional Interoperability Communication System. Due to turnover in Emergency Services staffing, the project was stalled and will need to be extended into FY 23-24. However, vacancies have been filled and Phase 2 is currently being implemented as planned. $275,000 pending deliver of 4 Automated License Plate Readers (ALPR), which was placed last year. $4,000 to pay final invoice from Bernel, $2,400 to unused Animal Necropsy Exam Histology from previous year, and $3,200 Dana Safety Equipment ordered last year, but not delivered.
Public Works Department: $182,000 for invoices from West Coast Arborist for services rendered, $127,000 for playground equipment not received, $55,000 for Stump Grinder/Trailer not received due to supply chain shortages,
There is no Fiscal impact associated with the Proposed Continuing Appropriations. The estimated June 30, 2022 fund balance presented during the 2023 budget process includes expenditures of these appropriations; and continuing them from one year to the next has no impact on the estimated fund balances.
Staff is requesting a total of $3,635,190 to be carried forward in the General Fund (Exhibit no. 2), and $10,095,167 of Special Revenues fund (Exhibit no. 3).
V. FISCAL IMPACT
There is no fiscal impact associated with the carryover requests. If approved, the budget will be reduced in Fiscal Year 2021-2022 and the budget will be increased in Fiscal Year 2022-2023; resulting in no change or impact to the General Fund estimated spending and fund balance.
VI. EXHIBITS
1. Exhibit (1): Capital Improvement Program 2021-2022 Continuing Appropriations (pg.5)
2. Exhibit (2): Special Fund Fiscal Year 2021-2022 Continuing Appropriations (pg.6)
3. Exhibit (3): General Fund Fiscal Year 2021-2022 Continuing Appropriations (pgs.7-9)
4. Resolution 22-174 of the City of Carson City Council amending the Fiscal Year 2021-2022 budget to continue unspent appropriations to Fiscal year 2022-2023 (pgs.10-12)
5. Resolution 22-194 of the city of Carson City Council amending the Fiscal Year 2022-2023 budget to continue unspent appropriations from Fiscal Year 2021-2022 (pgs.13-16)
Prepared by: Ralston Turner, Sr. Budget Analyst