HomeMy WebLinkAboutCMR 280_09City of Palo Alto
MEMORANDUM
TO: City Council
DATE: June 15,2009
SUBJECT: CMR:280:09 -Adoption of an Ordinance Adopting the Fiscal Years 2010
and 2011 Budget, Including the Fiscal Year 2010 Capital Improvement
Program, Changes to the Municipal Fee Schedule, Utility Rates and
Charges, Equity Transfer Methodology Change and Changes to
Compensation Plans -(continued from 6/8/09)
The attached CMR 280;09 is being provided in this packet with noted attachments. There
have been three changes to the report since being distributed in the packet for June 8.
On page 4, The General Fund financial impact summary has been changed to reflect
rounding changes.
On page 9, a summary of the Municipal Fee Schedule has been included to remove the
proposed Foothills College parking fees at Cubberley Community Center.
On page 9, a summary of the Equity Transfer Methodology change has been included.
Additional information for this item can be found in CMR:260:09 (Attachment 12).
BUDGET
FY 2010 & FY 2011
TO; HONORABLE CITY COUNCIL
FROM: CITY MANAGER DEPARTMENT: ADMINISTRATIVE
SERVICES
DATE: JUNE 15, 2009 CMR: 280:09
REPORT TYPE: Public Hearing
SUBJECT: Adoption of an Ordinance Adopting the Fiscal Years 2010 and 2011
Budget, Including the Fiscal Year 2010 Capital Improvement
Program, Changes to the Municipal Fee Schedule, Utility Rates and
Charges, Equity Transfer Methodology Change and Changes To
Compensation Plans· (continued from 6/8/09)
EXECUTIVE SUMMARY
The documents attached outline the amendments to the City's Operating and Capital Fiscal Ycar
2010 and 2011 Proposed Budgets, Municipal Fee Schedule, Utility Rate changes, and
amendments to two of the City's Compensation Plans. The City Council will first review these
documents on June 8, 2009. The Public Hearing will be continued to June 15, at which point the
Council will be asked to adopt the FY 2010 and 20 II budgets and other associated actions.
RECOMMENDATION
Staff recommends that the City Council approve the following:
1. The Budget Adoption Ordinance (Attaclunent 1), which includes:
a. The City Manager's Fiscal Years 2010 and 2011 Proposed Budget (Exhibit A •
previously distributed)
b. All changes detailed in the Amendments to the City Manager's Fiscal Years 2010 and
2011 Proposed Budget (Exhibit B)
c. Fiscal Year 2010 Proposed MuniCipal Fec Schedule (Exhibit C -previously
distributed)
d. Revised pages to the Table of Organization (Exhibit D)
e. Amendments to the Fiscal Year 2010 Proposed Municipal Fee Schedule (Exhibit E)
2. Resolution Amending Utility Rate Schedules for a Refuse Rate Increase (Attaclunent 2)
3. Resolution Amending Utility Rate Schedules for a Water Rate Inerease (Attachment 3)
CMR:280:09 Page I ofl3
4. Resolution Amending Utility Rate Schedules for a Wastewater Colleetion Rate Increase
(Attachment 4)
5. Resolution Amending Utility Rate Schedules for a Gas Rate Decrease (Attachment 5)
6. Resolution Amending Utility Rate Schedules for an Electric Rate Increase (Attachment 6)
7. Resolution Amending Utility Rate Schedules for Utility Service Rate changes (Attachment 7)
8. Resolution Amending Utility Rate Schedules for Fiber Optic Rate increases (Attachment 8)
9. Resolution Amending Utility Rate Schedules for the Residential Rate Assistance Program
changes (Attachment 9)
10. Resolution Amending the Compensation Plan for Management and Professional Personnel
and Conncil Appointed Officers (Attachment 10)
11. Resolution Amending the Compensation Plan for Service Employees International Union
(SEIU)(Attachment 11)
12. Finance Committee Recommendation to Change the Methodology Used to Calculate the
Equity Transfer from the Utility Funds to the General Fund to the Utilities Enterprise
Methodology (Attachment 12)
BACKGROUND
The City Manager's Fiscal Years 2010 and 2011 Proposed Operating Budget and the Fiscal
Years 2010 and 2011 Proposed Capital Budget was initially submitted to City Council on April
27, 2009. During the month of May, the Finance Committee held hearings and reviewed the
Proposed Budget, including the General Fnnd, Enterprise Funds, Internal Service Funds, Capital
Improvement Programs, and the Municipal Fee Schedule. A total of seven public hearings were
held on May 5, 7,12,13,19,26 and 28 during which the Committee reviewed and discussed the
City's operating and capital expenditures for the next two years.
As a result of the hearings, the Finance Committee and staff have recommended changes to the
Proposed Budget as detailed in Exhibit B. It is important to note that the Fiscal Year 2011
budget is adopted "in-conccpt" with the attached ordinance (Attachment I). The Fiscal Year
20 II spending plan will be reviewed and modified as necessary during the interim budget cycle
next year.
DISCUSSION
This staff report focuses primarily on the financial changes recommended by the Finance
Committee during the public hearing process and the budget adjustments proposed by staff
following submission ofthe original proposed budget. Certain key non-financial changes are also
highlighted in this rep0l1. All other non-financial recommended changes to the proposed budget
CMR:280:09 Page 2 of 13
are described in Appendix 4, which was distributed to the Finance Committee on May 26, and
will be incorporated into the Fiscal Years 2010 and 2011 Adopted Budget document.
Included in the City Manager's FY 2010 Proposed Budget is a $3 million placeholder credit for
anticipated employee compensation reductions. The Palo Alto Police Officers Association
(P APOA) has agreed to defer its previously negotiated 6 percent salary increase for one year.
This results in an expenditure reduction of $ 794,068 which reduces the placeholder credit to
$2.2 million. These changes have been noted in the Exhibit B attachment. The International
Association of Fire Fighters (IAFF) has proposed a similar reduction; however it has not been
finalized at this time. Staff will continue negotiations and discussions with the Service Employee
International Union (SEIU) and ManagementiProfessionallabor groups post budget adoption.
Additionally, the Finance Committee directed staff to report back during Fiscal Year 2010 on the
following issues:
• Evaluation of the future organization of the Office of Emergency Services (OES),
including consolidation and coordination
• Regionalization options for Public Safety functions
• A review of the Capital Improvement Plan review and selection process and to
incorporate input from the Planning and Transportation Commission and public
• Encourage staff to request price discounts on contacts
• Staff to return with Police and Fire Overtime trends and incorporation information into
quarterly financlial reports. The five-year trend information that was requested by the
Finance Committee has been included at the end of this report
• Staff to provide Planning and Transportation Commission with quarterly overtime reports
as it relates to PTC meeting coverage by non-exempt staff
• City Manager to review General Fund training budgets and reduce by 10 percent for
discretionary training where possible
• 'City Manager to review Enterprise Fund training and travel budgets and reduce by 10
percent for discretionary training where possible
CMR:280:09 Page 3 of 13
The following table summarizes the financial impacts to the General Fund due to the changes
presented in this memorandum:
General Fund
FY 2010 FY 2011
;I!j)gillnin2 balance $571,000 ($3,082,000)
Chan!!cs to Revenue
Remove New Parking Revenue for Foothills Pk. ($150,000) ($150,000)
Increase Golf Course Revenue $148,170 J148,170 ----Restore BLS Program Revenue $236,000 $236,000
Net Changes to Revenue -Increase $234,170 $234,170
Chanl!es to Expenditures
Increase to City Council Contingency ** $43,000 $43,000
~:ManagCr Contingency ** $84,100 $84,100
f .5 FTE from PWD to CIP** ($46,160) ($46,160) ... _--
• Remove Asst. Direetor of Planning ($236,280) ($236,280) ! ...................
• Inerease to City Manager Budget -Sustainability $32,000 $32,000
• Remove eost increase for CAO evaluator $11,000) ($11,000)
Restore Funding for Twilight Concerts $41,000 $41,000 "-
Decrease Golf C()urse Expenses ($11,099) ($11,099)
Restore BLS Program Expense $108,000 $108,000
Yo Estimated savings for sustainability efforts ($132,182) ... _--_ ... _ .. ($132,I821
I ~Qp~:r\)1;lnt travel reduction $35,500) ($35,500)
Miscellaneous (rounding) $6,709) ($ 6,709)
Reduce GF transfer to Capital Fund (additional) $1,000,000 !
Net Changes to Expenditures -Decrease $1,170,830 ($170,830) I
Ntl~Gltan2e $1,405,000 .~405,000
Reduetion of Bridge (one-time) options ($1,900,000)
Endin2 Balance $76,000 ($2,677,000)
Staff RecommendatlOns* *
Finance Committee-Recommended Changes to the City Manager's Proposed Budget
The Finance Committee recommends the following changes based on new information following
submittal of the original proposed budget.
General Fund
Office of the City Manager
• Increase budget by $32,000 for both Fiscal Years 2010 and 2011 for the Sustainability
Program. The Finance Committee recommended the ongoing increase instead of a onc-
time transfer from the Council contingency account.
City Council
• Remove cost increase for outside CAO evaluator contract, results in an expense reduction
of ($11 ,000). The Finance Committee indicated that this expense should come out of the
CMR:280:09 Page 4 of 13
Council contingency account, if the Council moves forward with hiring an outside
evaluator,
Community Services Department
• Restore salary and benefit funding of $95,941 for 1.0 FTE Coordinator Recreational
Programs for the Family Resomces Program, This includes a Fiscal Year 20 I 0 one-time
revenue reimbursement of$95,941 from the Family Resomces Foundation, In addition, if
the Foundation is unable to meet the annual reimbursement expense, the difference would
be considered a loan for the next fiscal year,
• Restore the funding for the Twilight Concert Series in the amount of $41 ,000.
• Remove the recommended parking fee revenue for the Baylands and Foothills Park,
resulting in a ($150,000) decrease in revenue,
• Recommend an increase to revenue and/or reduce expenditures at the Golf Course to
bring it to a break-even point, resulting in a revenue increase of $148,170 and an expense
reduction of ($11 ,099),
Fire Department
• Restore revenue and expense for Basic Life Support (BLS) program, This results in a net
change of $108,000 which is comprised of a revenue increase of $236,000 and an
expense increase of $108,000. This includes the elimination of 3 EMT Basic/BLS
Transport FTE, with the on-going program staffed with temporary positions.
Planning and Community Environment Department
• Eliminate Assistant Director of Planning position, resulting in salary and benefit expense
reduction of$236,280.
Non-Departmental
• Include one-half of the estimated utility savings related to the General Fund for
sustainability efforts in the budget, resulting in an expense reduction of ($132,182).
Allocation to departments to be determined by the City Manager.
• Reduce travel expenditures by 20 percent resulting in an expenditure reduction of
($35,500). Allocation to departments to be determined by the City Manager.
• Reduce the General Fund transfer to the Infrastructure Reserve by an addition ($1
million). This anticipates cost savings or timing adjustments in capital programs resulting
in potential savings.
• In FY 2010, reduce the budgeted one-time bridging options credit of$3.1 million by ($1
million). This is based on savings in the previous bulleted item.
• Move $794,068 out of the budgeted $3 million placeholder for employee compensation
reductions out of non-departmental and in to the Police Department. This is to recognize
PAPOA's approved deferral of their FY 2010 negotiated salary increase of 6 percent.
Capital Projects Fund -Infrastructure/CIP
• Increase funding for the Highway 101 PedestrianlBicycle Overpass/Underpass project
(CIP PL-ll 000) in Fiscal Year 2010 by $100,000 and decrease funding for this project by
$100,000 in Fiscal Year 2011.
CMR:280:09 Page 5 ofJ3
• Reduce the Infrastructure Reserve transfer from the General Fund transfer by an
additional $1 million.
Enterprise Funds
• Include one-half of the estimated utility savings related to the Enterprise Funds for
sustainability efforts into the budget, resulting in an expense reduction of $202,609.
Allocation to Funds to be determined by the City Manager.
• Include one-half of the estimated City-wide utility savings for sustainability efforts into
the budget, resulting in a revenue reduction of $334,926.
Staff-Recommended Changes to the City Manager's Proposed Budget
Staff recommends the following changes based on new information following submittal of the
original proposed budget.
General Fund
City Council Contingency
• Proposed $43,000 increase in Fiscal Years 2010 and 2011 to the City Council
Contingency account to last year's level.
City Council Contingency Account Status
FY 2010 FY2011
Beginning balance $207,000 $207,000
Increase to Contingency base budget $43,000 $43,000
Ending Balance $250,000 $250,000
City Manager Contingency
• The City Manager's Contingency Account will be increased $84,100 in Fiscal Years
2010 and 2011 to last year's level.
City Manager's Contingency Account Status
FY 2010 FY2011
Bel!inninl! balance $165,900 $165,900
Increase to Contingency base budget $84,100 $84,100
Ending Balance $250,000 $250,000
Public Works Department
• Reallocate 0.5 FTE Administrative Associate III to the Capital Fund, resulting in an
expense decrease of $46, 160 to the General Fund Public Works Operating budget.
Budget Process -Finance Committee "Parking Lot" Issues
• During the Finance Committee's review of the Proposed Budget, items or ideas for
further budget changes were placed in a "parking lot" if two or more committee members
agreed. Parking lot items that received a majority vote were moved into the Finance
Committee recommended changes to the Proposed Budget and incorporated into the table
above. Other items were either withdrawn by the maker, or did not receive a majority of
CMR:280:09 Page 6 of 13
votes to become permanent reductions. Those items left in the parking lot are described
below.
o Review reducing I Attorney and I Support Staff from the Attorney's Office -
Withdrawn
o Reduce the Police Department expenditures by $500,000 (flat amount) -Defer
review until first quarter financial results
o Reduce the Police Department expenditures by $492,000 (specific changes) -
Defer review until first quarter financial results
o Plauning department to return with the impact of removing two planners in
current plauning Did not receive a m!\iority of votes
o Eliminate reduction for Comprehensive Plan extension incorporated into the
budget Did not receive a majority of votes
o Defer Storm Drainage Fund FY 20 I 0 short-term loan repayment to the General
Fund -Withdrawn
Capital Project Fund -Infrastructure/CIP
• The following items were presented to the Finance Committee with the May 19, 2009
"at-places" memo:
o New CIP Project Highway 101 Pedestrian/Bicycle Overpass/Underpass Project
(PL-IIOOO): Funding of $1 00,000 will be provided by infrastructure reserve.
o Additional funding of $300,000 to the Mobile Command Vehicle Project (PD-
07000) from Federal and Local agency grants.
o Additional funding of $135,513 to the Street Maintenance CIP Project (PE-
86070) from State Proposition 42 funds.
o Change to the Drying Beds, Material Storage and Transfer Area CIP Project (RF-
10003): Project start date is moved to FY 2011 from FY 2010 and funding is now
split between the Refuse and Wastewater Collection Fund. The Storm Drainage
Fund will not provide funding for this project.
o Increase funding for AS-I0000 (Salary and Benefits project) to reflect the
reallocation of 0.5 FTE Administrative Associate III from the General Fund,
$46,160
• Summary of Sources of Funding detailed above: Infrastructure Reserve $146,160;
Other Agencies/Outside funding $435,513
Enterprise Funds
Electric Fund
• Increase Other Income $100,000 in FY 2010 and $400,000 in FY 2011 to correct the
Central Valley Loan Repayment amount.
• Increase Utility Purchases $100,000 in FY 2010 and $400,000 in FY 2011 to correct the
Central Valley Loan Repayment amount.
• Increase Net Sales $2.5 million in FY 20 II due to an inadvertent omission.
Net Change to the Electric Fund: FY 2010 $0.00 FY 2011 $2.5 million increase in revenue
CMR:280:09 Page 7 of 13
Gas Fund
• Increase Net Sales $142,000 in FY 2010 and FY 2011
• Increase Demand-side program expenditures $135,700 in FY 2010 and $146,440 in FY
2011
Net Change to the Gas Fund: FY 2010 $6,300 FY 2011 ($4,440)
Water Fund
• Increase Demand-side program expenditures $45,300 in FY 2010 and $80,279 in FY
2011
Wastewater Collection Fund
• Increase Net Sales $20,000 in FY 201 0
• Decrease Operating Transfers to the Refuse Fund in FY 20 I 0 by $250,000 and Increase
Operating Transfers from the Refuse Fund in FY 2011 by $375,000. The stali date for
CIP RF-10003 (Drying Beds, Material Storage and Transfer Area) has been moved from
FY 2010 to FY 2011 and the funding for the project has changed from one-third to one-
half for the Wastewater Collection Fund.
Storm Drainage Fund
• Decrease Operating Transfers from the Refuse Fund in FY 2010 by $250,000. This
results from changes to CIP RF-10003. The Storm Drainage fund will not be providing
funding for this project.
Refuse Fund
• Decrease Operating Transfers from the Wastewater Collection Fund in FY 2010 by
$250,000 and Increase Operating Transfers from the Wastewater Collection Fund in FY
2011 by $375,000. The start date for CIP RF-10003 has been moved from FY 2010 to FY
2011 and the funding for the project has changed from one-third to one-half for the
Wastewater Collection Fund. The Storm Drainage Fund will no longer provide funding
for this project.
Wastewater Treatment Fund
• Decrease allocated charges $3.8 million in the FY 2007-08 "Actuals" column on page
335 due to a posting omission.
Special Revenue Funds
Developer's Impact Fees
• Correction to the presentation of Community Development Funds CIP transfer. The
funding allocation for CIP PE-06007 Park Restroom Installation was deferred to FY 2011
and the funding allocation for CIP PE-07007 Cubberley was moved forward to FY 2009
during the FY 2009 midyear process.
Housing In-Lieu
• Allocate budget for affordable housing projects to be determined in FY 2010, $100,000.
CMR:280:09 Page 8 of 13
Compensation Plans
Five classification and two compensation changes are proposed in the Management and
Confidential and Service Employees' International Union (SEIU) Compensation Plans. New or
changed classifications are included, along with the accompanying resolutions in Attachments 10
and II.
Table of Organization
Amended pages to the Fiscal Years 2010 and 2011 Table of Organization are included with this
report (Exhibit D). The table has been revised to reflect the staffing changes presented in this
report. Changes reflected in the Table of Organization will be incorporated into the relevant
department organization charts and the revised organization charts will be published in the
adopted budget.
Contraets Greater Than $85,000
On May 26, 2009, the Finance Committee approved the Fiscal Year 20 I 0 contract scopes of
professional services agreements greater than $85,000 (CMR 248:09).
Municipal Fee Schedule
The Community Services Department has removed the proposed Daily Fee and Term Pass for
Foothills College Parking at Cubberley Community Center.
Equity Transfer Methodology Change
Based on a 4-0 vote, the Finance Committee recommended that Council change the methodology
used to calculate the Equity Transfer from the Utility Funds to the General Fund. On March 31,
2009 staff presented to the Finance committee recommendations for changes to the calculation
methodology for the Utility Equity Transfer to the General Fund (CMR: 190:09) using the
Utilities Enterprise Methodology (UEM). The Finance Committee approved staffs
recommendation in concept, and in addition requested staff to return with answers to additional
questions during the budget hearings. Staff returned on May 26, 2009 with responses
(CMR:260:09, Attachment 12) and the Committee voted 4-0 to recommend the Council approve
the UEM methodology ehange.
The UEM recommended by staff and consultant R.W. Beck, is a return on rate base
methodology. This requires a annual calculation of the rate base for the Electric and Gas Funds.
The rate base is then multiplied by an appropriate rate of return on equity to calculate the equity
transfer. R.W. Beck recommends using PG&E's approved rate of return on equity as a base, with
two adjustments for tax and risk to account for the differences between an investor owned utility
and a municipally owned utility. An investor in City bonds would not be taxed on the interest
earnings nor experience a higher rate of return due to the higher risk of default associated with an
investment in a corporate bond. The reeommended tax rate adjustment is 30 percent, and the
recommended risk adjustment is 15 percent.
The current FY 2009 Equity Transfers equal $15.17 million. The staff and R.W. Beck
recommended Electric and Gas Fund transfers for FY 2010 with a tax adjustment of 30 percent
and a risk adjustment of 15 percent, result in a transfer of $16.42 million, an increase of $1.35
million.
CMR:280:09 Page 9 of 13
RESOURCE IMP ACT
The Fiscal Years 2010 and 2011 Proposed Budget as submitted to the Finance Committee
resulted in an increase to the General Fund Budget Stabilization Reserve (BSR) of $0.6 million
in Fiscal Year 20 I 0 and a $3.1 million decrease in Fiscal Year 2011. The changes resulting from
the Finance Committee hearings and staff recommendations resulted in a $1.9 million reduction
to the Bridge ( one-time) options in Fiscal Year 2010 and an $0.4 million increase to BSR
funding in Fiscal Year 2011 (Appendix 1). The projected ending balances for the BSR in Fiscal
Year 2010 and 2011 are $22.8 million and $20.1 million, respectively. As a result of the changes
to the capital budget, the projected ending balances in the Infrastructure Reserve (IR) for Fiscal
Year 2010 and 2011 are $5.2 million and $1.6 million, respectively. Additional changes to the
Enterprise Funds result in an approximate $0.6 million increase in reserve balances in Fiscal
Year 2010 and a $1.6 million increase in Fiscal Year 2011 from the proposed document
(Appendix 2).
POLICY IMPLICATIONS
These recommendations are consistent with existing City policies.
ENVIRONMENTAL REVIEW
Adoption of the budget does not represent a project under the California Environmental Quality
Act (CEQA).
ATTACHMENTS
Attachment I:
Exhibit A:
Exhibit B:
Exhibit C:
Exhibit D:
Exhibit E:
Attachment 2:
Attachment 3:
Attachment 4:
Attachment 5:
CMR:280:09
Budget Adoption Ordinance with the following Exhibits:
City Manager's Fiscal Years 2010 and 2011 Proposed Budget
Amendments to the City Manager's Fiscal Years 2010 and 2011 Proposed
Budget
Fiscal Year 2010 Proposed Municipal Fee Schedule
Revised Pages in the Fiscal Years 2010 and 2011 Table of Organization
Amendments to the Fiscal Year 2010 Proposed Municipal Fee Schedule
Resolution of the Council of the City of Palo Alto Amending Utility Rate
Schedules R-I, R-2, and R-3 of the City of Palo Alto Utilities Rates and
Charges Pertaining to Refuse Rates
Resolution of the Council of the City of Palo Alto Amending Utility Rate
Schedules W-I, W-4, and W-7 of the City of Palo Alto Utilities Rates and
Charges Pertaining to Water Rates
Resolution of the Council of the City of Palo Alto Amending Utility Rate
Schedules S-I and S-2 of the City of Palo Alto Utilities Rates and Charges
Pertaining to Wastewater Collection Rates
Resolution of the Council of the City of Palo Alto Amending City of Palo
Alto Utility Rate Schedules G-I, G-2, G-3, G-4, G-6, G-IO-, G-II, AND
Page 10 ofl3
Attachment 6:
Attachment 7:
Attachment 8:
Attachment 9:
Attachment 10:
Exhibit A:
Attachment II:
Attachment 12:
Exhibit A:
Appendix I:
Appendix 2:
CMR:280:09
G-12 of the City of Palo Alto Utilities Rates and Charges Pertaining to
Gas Rates
Resolution of the Council of the City of Palo Alto Amending City of Palo
Alto Utility Rate Schedules E-I, E-I-G, E-2, E-2-G, E-4, E-4-TOU, E-4-
G, E-7, E-7-TOU, E-7-G, E-14, E-18, AND E-18-G of the City of Palo
Alto Utilities Rates and Charges Pertaining to Electric Rates.
Resolution of the Council of the City of Palo Alto Amending City of Palo
Alto Utility Rate Schedules C-I, E-16 and W -2 of the City of Palo Alto
Utilities Rates and Charges Pertaining to Utility Service Rates.
Resolution of the Council of the City of Palo Alto Amending City of Palo
Alto Utility Rate Schedules EDF-I and EDF-2 of the City of Palo Alto
Utilities Rates and Charges Pertaining to Fiber Optic Rates.
Resolution of the Council of the City of Palo Alto Amending City of Palo
Alto Utility Rate Schedule C-4 of the City of Palo Alto Utilities Rates and
Charges Pertaining to the Residential Rate Assistance Program
Resolution of the Council of the City of Palo Alto Amending the
Compensation Plan for Management and Professional Personnel and
Council Appointees Adopted by Resolution No. 8844 to Change the Title
of One Classification.
Fiscal Year 20 I 0 Compensation Plan Changes for Management and
Professional Personnel -related to Attachment 10
Resolution of the Council of the City of Palo Alto Amending the
Compensation Plan for Classified Personnel (SEIU) Adopted by
Resolution No. 8658 to Add Five New Classifications and Change the
Compensation for Two Existing SEIU Classifications
(
CMR:260:09 Recommendation to City Council to Change the
Methodology Used to Calculate the Equity Transfer from the Utility Funds
to the General Fund
Fiscal Year 20 I 0 SEIU Compensation Plan Changes -related to
Attachment II
Fiscal Years 2010 and 2011 General Fund Summary and Reserve
Balances
Fiscal Years 20 I 0 and 20 II Enterprise Fund Summary and Reserve
Balances
Page 11 of 13
Appendix 3:
Appendix 4:
Appendix 5:
Appendix 6:
Appendix 7:
Related Staff Reports:
CMR:280:09
Fiscal Years 2009-2014 Capital Improvement Fund Summaries and
Amended Projects
Fiscal Years 2010 and 201 I Special Revenue Funds Summaries
May 26, 2009 Memorandum to Finance Committee detailing ehanges to
Fiscal Years 2010 and 201 I City Manager's Proposed Budget to date
Memorandums distributed "at-places" during the Finance Committee
budget hearings
Budget Hearing Presentation Slides distributed during the Finance
Committee budget hearings
CMR:160:09;
CMR:J82:09;
CMR: I 87:09;
CMR:J90:09;
CMR:206:09;
CMR:248:09;
CMR:161:09;
CMR:185:09;
CMR:188:09;
CMR: 199:09;
CMR:209:09;
CMR:260:09;
CMR: 180:09;
CMR:186:09;
CMR:189:09;
CMR:205:09;
CMR:232:09;
CMR:261:09
Page 12 of 13
PREPARED BY:
ARONBOZMAN
Budget Manager
-==?f-~
DEPAKIMENT HEAD APPROVAL: ----'::=::::::::'=====-------
LALOPEREZ
Director of Administrative Services
CITY MANAGER APPROVAL:
City Manager
CMR;280:09 Page 13 ofl3
Class II-Governmental Agency and City-Sponsored Activities: No charge for facility rental for events or activities. however.
for attendants. equipment rental. and special uses may apply. (Note: City facility use for City co-sponsored groups will be
ICOlllsirien,d on a case by case basis.)
III -Non-Profi! Organizations: IRS recognized non-profit organizations may receive a 50 percent reduction on basic facility
rates upon verification. Only facility rental rates may be reduced and an other fees, such as staffing and equtpmentt are
Icbar,:ed at the full rate. Non-profit organizations cbarging or collecting fees or raising funds are not eligible for reduced rates and
fees will apply. This does not apply to class registration fees.
IV· Individuals, Groups, Organilr.ations, and Businesses not ehargbag fees: Basic rental fees apply. Upon verification,
Alto residents, gronps, organizations, and businesses may receive a 33 percent disconnt on basic facility ren!al rates.
facility rental rates may be reduced and all olber fees, snch as staffing and equipment, are charged at the full rate.
V -Business or Commere!al Use: Individuals, groups, organizations, and businesses charging. collecting. or raising funds
rent facilities and equipment at the basic rate plus 75 percent. The Art Center is not available for CLASS V usage.
Reservations are set by facility managers at respectivejacilities, The Director o/Community Services or designee, may
lalJ!th(lri,;e hourly facility rental discounts up to 25 percellt.
City of Palo Alto 2009-10 Proposed Municipal Fee Schedule 8·1
Attacmnent 1
*** NOT YET APPROVED ***
ORDINANCE NO. ____ __
ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO
ADOPTING THE BUDGET FOR FISCAL YEARS 2010 AND 2011
SECTION 1. The Council of the City of Palo Alto finds and
determines as follows:
A. Pursuant to the provisions of Section 6(g) of Article IV of
the Charter of the City of Palo Alto and Chapter 2.28 of the Palo
Alto Municipal Code, the City Manager has prepared and submitted to
the City Council, by letter of transmittal, a budget proposal for
Fiscal Years 2010 and 2011; and
B. Pursuant to the provisions of Section 12 of Article III of
the Charter, the Council did, on June 8 and 15, 2009, hold public
hearings on the budget after publication of notice in accordance
with Section 2.28.070 of the Palo Alto Municipal Code; and
C. In accordance with the provisions of Chapter 8 of Division
1, of Title 7, commencing with Section 66016 of the Government Code,
as applicable, the Council did on June 8 and 15, 2009, hold a public
hearings on the proposed amendments to the Municipal Fee Schedule,
after publication of notice and after availability of the data
supporting the amendments was made available to the public at least
10 days prior to the hearing.
SECTION 2. Pursuant to Chapter 2.28 of the Palo Alto Municipal
Code, the following documents , collectively referred to as "the
budget" are hereby approved and adopted for Fiscal Years 2010 and
2011 :
(a) The budget document (Exhibit "A") containing the proposed
operating and capital budgets submitted on or about April
27, 2009, by the City Manager for Fiscal Years 2010 and
2011, entitled "City of Palo Alto -City Manager's Fiscal
Years 2010 and 2011 Proposed Budget" covering General
Government Funds, Enterprise Funds and Internal Service
Funds, a copy of which is on file in the Department of
Administrative Services, to which copy reference is
hereby made concerning the full particulars thereof, and
by such reference is made a part hereof; and
1
(b) The Amendments to the City Manager's Fiscal Years 2010
and 2011 Proposed Budget, attached hereto as Exhibit "B,"
and made a part hereof; and
(c) The document entitled "Fiscal Year 2010 Proposed
Municipal Fee Schedule," attached hereto as Exhibit "C,"
and made a part hereof; and
(d) Changes and revised pages in the Table of Organization,
attached hereto as Exhibit "D," and made a part hereof;
and
(e) Amendments to the "Fiscal Year 2010 Proposed Municipal
Fee Schedule," attached hereto as Exhibit "E," and made a
part hereof; and
SECTION 3. The sums set forth in the budget for the various
departments of the City, as herein amended, are hereby appropriated
to the uses and purposes set forth therein.
SECTION 4. All expenditures made on behalf of the City,
directly or through any agency, except those required by state law,
shall be made in accordance with the authorization contained in this
ordinance and the budget as herein amended.
SECTION 5. Appropriations for the Fiscal Year 2009 that are
encumbered by approved purchase orders and contracts for which goods
or services have not been received or contract completed, and/or for
which all payments have not been made, by the last day of the Fiscal
Year 2009 shall be carried forward and added to the fund or
department appropriations for Fiscal Year 2010. ,
SECTION 6. The City Manager is authorized and directed to make
changes in the department and fund totals and summary pages of the
budget necessary to reflect the amendments enumerated and aggregated
in the budget as shown in Exhibit B and the Fiscal Year 2009
appropriations carried forward as provided in Section 5.
SECTION 7. As specified in Section 2.04.320 of the Palo Alto
Municipal Code, a majority vote of the City Council is required to
adopt this ordinance.
SECTION 8. As specified in Section 2.28.140(b) of the Palo
Alto Municipal Code, the Council of the City of Palo Alto hereby
delegates the authority to invest the City's funds to the Director
of Administrative Services, as Treasurer, in accordance with the
City's Investment Policy for Fiscal Year 2010.
2
SECTION 9. The Council of the City of Palo Alto hereby finds
that this is not a proj ect under the California Environmental
Quality Act and, therefore, no environmental impact assessment is
necessary.
SECTION 10. As provided in Section 2.04.330 (a) (3) of the Palo
Alto Municipal Code, this ordinance shall become effective upon
adoption; provided that all new increases in Planning Department
fees, more specifically described in Exhibit "C," shall become
effective sixty (60) days from the date of adoption.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSTENTIONS:
ABSENT:
City Clerk
APPROVED AS TO FORM:
City Attorney
3
Mayor
APPROVED:
City Manager
Director
Services
of Administrative