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Home My WebLink About2004-05-18 City Council (7)City of Palo Alto City Manager’s Report TO: ATTN: HONORABLE CITY COUNCIL FINANCE COMMITTEE BUDGET ’04-’05 FROM:CITY MANAGER DEPARTMENT: ADMINISTRATIVE SERVICES DATE:MAY 18, 2004 CMR:273:04 SUBJECT:APPROVAL OF BUDGET AMENDMENT ORDINANCE TO ALIGN THE CAPITAL BUDGET WITH PROJECTED ANNUAL EXPENDITURES RECOMMENDATION Staff recommends that Council approve the attached Budget Amendment Ordinance (BAO) to amend the budget for fiscal year 2003-04 to return unspent Capital Improvement Program project balances totaling $4,321,436 consisting of $150,479 to the General Fund Budget Stabilization Reserve and $4,170,957 to the Infrastructure Reserve. BACKGROUND This year staff focused on reducing the Infrastructure Management Plan (IMP) project backlog while preserving City Council priorities and proposing some new funding for major City projects. This was done recognizing competing priorities for the staff of key City departments. The initial goal of the IMP was to spend $10 million per year on IMP projects. However, a significant project backlog has existed since the inception of the IMP program, because it took well over a year in some cases for the project staffmg to be put in place. DISCUSSION Staff intends to work aggressively in 2004-05 to reduce the project budget backlog while being realistic about what can reasonably be accomplished in new projects in 2004-05. Staff proposes to return to the Infrastructure Reserve (IR) approximately $4.2 million of appropriated but unspent dollars and delay about $2.0 million of proposed IR project funding one year. The resulting total of current project backlog plus proposed new project funding is still an ambitious $15.8 million, but staff believes that this work program can be accomplished. Reduction of Unspent Project Budget About $4.2 million of appropriated but unspent dollars are proposed to be returned to the IR (Attachment D). These funds include: CMR:273:04 Page 1 of 3 ¯Projects delayed until staff is available to complete them (e.g.; Lucie Stem and Cubberley Community Centers) ¯Projects awaiting full funding (e.g.; San Antonio Road Median Improvements and the E1 Camino/Venmra Traffic Signal) ¯E1 Camino Median Landscaping Project scope reduction due to "Trees for E1 Camino Group" raising less matching funding than anticipated ¯PAUSD requesting a delay in the implementation of the Jordan Middle School site irrigation project ¯Delay of the Mitchell Park Facilities Improvements to coordinate timing of construction with ongoing recreational uses $4.0 million in IR fimds will be carried forward in 2004-05 for the remaining ongoing IMP projects approved in prior years "Just-in-Time" Budgeting Staff also proposes to delay $2.0 million of construction funding for some projects initially scheduled for 2004-05 in the IMP until fiscal year 2005-06. If any of these projects are ready for construction earlier due to design work being completed ahead of schedule, staff will bring the project forward to the City Council for approval with a budget amendment ordinance (BAO) and accompanying staff report as a "just-in-time" budgeting exercise. Examples of projects that may be subject to "just-in-time" budgeting include: ¯Cubberley Community Center mechanical and electrical upgrades ¯Municipal Service Center renovations ¯Mitchell Park Library and Community Center improvements ¯PAUSD school site irrigation renovations ¯Park trail improvements ¯Open space parking improvements ¯Traffic signal improvements at E1 Camino/Ventura Avenue and San Antonio Road @ Hwy 101 While this process may result in BAO requests coming before Council for review, it represents an effort to align the annual capital budget plan with projected expenditures for each year. RESOURCE IMPACT The return of unspent CIP project balances to their respective reserves will result in a $150,479 increase to the General Fund Budget Stabilization Reserve and a $4,170,957 increase to the Infrastructure Reserve. CMR:273:04 Page 2 of 3 POLICY IMPLICATIONS Council approval of t_his BAO is consistent with existing City policies. ENVIRONMENTAL REVIEW This BAO is not a project as defined by the California Environmental Quality Act and is not subject to its requirements. ATTACHMENTS Attachment A: Attachment B: Attachment C: Attachment D: PREPARED BY: Budget Amendmem Ordinance Budget Amendment Ordinances Impacting the General Fund Budget Stabilization Reserve Approved-to-Date in 2003-04 Budget Amendment Ordinances Impacting the Infrastructure reserve Approved-to-Date in 2003-04 Schedule of CIP Project Balances to Return to their Respective Reserves MI~. EL SARTOR Assistant Director of Public Works MA~Y DIVINSKI Budget Analyst DEPARTMENT APPROVAL: CARL Director of Services CITY MANAGER APPROVAL: EMILY ;ON Assistant City Manager CMR:273:04 Page 3 of 3 ORDINANCE NO. Attachment A ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO _~!JEND!NG THE BUDGET FOR THE FISCAL YEAR 2003-04 TO RETURN UNSPENT CAPITAL IHPROVEMENT PROGRAM PROJECT BALANCES TOTALING $4,321,436 CONSISTING OF $150,479 TO THE GENERAL FUND BUDGET STABILIZATION RESERVE AND $4,170,957 TO THE INFRASTRUCTURE RESERVE SECTION i. The City Council of the City of Palo Alto finds and determines as fol!ows: A. Pursuant to the provisions of Section 12 of Article III of the Charter of the City of Palo Alto, the Council on June 16, 2003 did adopt a budget for fiscal year 2003-04; and B. In 2003-04, staff focused on reducing the Infrastructure Management Plan (IMP) budget backlog while preserving City Council priorities and proposing some new funding for major City projects; and C. This was done recognizing competing interests from City Departments and the need to reduce the impact on the 2004-05 General Fund budget during the continuing lean budget climate the City is experiencing; and D. Staff worked diligently to reduce the project backlog while taking a hard !ook at what could reasonably be accomplished in 2004-05; and E. While this process may result in more frequent Capital BAO requests coming before Counci! for review, it represents an effort to align the annual Capita! budget plan with projected expenditures for each year; and F. City Council authorization is needed to return the capital appropriations to their respective reserves; and G. City Council authorization is needed to amend the 2003-04 budget as hereinafter set forth. SECTION 2. The City Counci! hereby authorizes the adjustments indicated to various Capital Improvement Projects as shown in Exhibit D attached hereto. These changes will impact the General Fund Budget Stabilization and the Infrastructure Reserve. SECTION 3. The General Fund Infrastructure Reserve shall be increased by Four Million One Hundred Seventy Thousand Nine Hundred Fifty-Seven Dollars ($4,170,957) for designated unspent CIP project balances as shown in Attachment D attached hereto. SECTION 4. The General Fund Budget Stabilization Reserve shall be increased by One Hundred Fifty Thousand Four Hundred Seventy- Nine Dollars ($150,479) for designated unspent CIP project balances as shown in Attachment D attached hereto. SECTION 5. This transaction wil! increase the General Fund Budget Stabilization Reserve from $21,050,175 to $21,200,654 as shown is Attachment B attached hereto. SECTION 6. This transaction will increase the General Fund Infrastructure Reserve from $32,887,000 to $37,057,957 as shown in Attachment C attached hereto. SECTION 7. As specified in Section 2.28.080(c) of the Palo Alto Municipal Code, a majority vote of the City Counci! is required to adopt this ordinance. SECTION 8. The Council of the City of Palo Alto hereby finds that this is not a project under the California Environmental Quality Act and, therefore, no environmental impact assessment is necessary. SECTION 9. As provided in Section 2.04.350 of the Palo Alto Municipa! Code, this ordinance shall become effective upon adoption. INTRODUCED AND PASSED: AYES: NOES: ABSTENTIONS: ABSENT: ATTEST: APPROVED: City Clerk Hayor APPROVED AS TO FORM:City Manager Senior Asst. City Attorney Director Services of Administrative Attachment B Budget Amendment Ordinances Impacting General Fund Reserves Approved-To-Date in 2003-04 Balance Homer Avenue Undemrossing Note Receivable Arastradero Preserve Gateway Facility Note Receivable Mid-year Reverse Homer Undercrossing (Yearend) General Fund CIP project balance to return to reserve BAO $21,395,000 ($3,011,500) (S163,825) ($181,000) $3,011,500 $150,479 BSR Balance After BAO’s ] $21,200,654 Attachment C Budget Amendment Ordinances Impacting Infrastructure Reserve Approved-To-Date in 2003-04 Balance Mid-year IMP CIP project balance to return to reserve BAO $33,376,000 (489,000) $4,170,957 Reserve Balance After BAO’s [ $37,057,957 .&ttachment D CIP Project Balances to return to Reserves Fiscal Year 2003-04 Generai Fund Corm’auNty Services Li~dn~, Enhancements CA-01014 32,458 BSR OS-00001 OS-00003 PE-95012 PF-O t 005 PF-040 l 2 PG-00009 PG-00010 PG-01013 PG-04010 PG-98001 PG-98003 PL-02005 !22.637 11%480 1!8,021 266.891 !54,808 458.000 1.082,000 948.000 154.652 121.000 684.490 Open Space Trails & ,~’nenities Open Soace Parking Improvements Civic Center Plaza Waterproofing Lucie Stem Communi~, Center Improvements ~Cubberley B!dg I Air Conditioning Medians/Island/Planters Park Facilities Improvements E1 Camino Median Landscape Athletic Field .,M~ificial Tuff/Lighting 8cheol Site In-igadon Mitchell Park Facililites Improvements iECR~&nmm Signal Im"rastructure Reserve Infrastructure Reserve General Fund BSR Jmnms tmcmre Reserve kffmstrucmre Reserve Infrastructure Reserve Infrastructure Reserve Infrastructure Reserve Infrastructure Reserve Infrastructure Reserve Irffrastmcmre Reserve Lrffrastmcture Return unused budget to General Fund BSR. Return unused budget to Infrastructure Reserve. Return unused budget to Infrastructure Reserve. Return unused budget to General Fund BSR. Return unused budget to Infrastructure Reserve. Return unused budget to Infrastructure Reserve. Return unused budget to Infrastructure Reserve. Return unused budget to Infrastructure Reserve. Return unused budget to Infrastructure Reserve. Return unused budget to Infrastructure Reserve. Return unused budget to Infrastructure Reserve. Return unused budget to Infrastructure Reserve. 60.999 Reserve Return unused budget to Infrastructure Reserve.