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HomeMy WebLinkAbout2000-06-19 City Council (17)BUDGET ’00- ’01 TO: City of Palo Alto City Manager,s R ortHONORABLE CITY COUNCIL ATTENTION: FINANCE COMMITTEE FROM:CITY MANAGER DEPARTMENT:ADMINISTRATIVE SERVICES DATE: SUBJECT: JUNE 19, 2000 CMR: 288:00 ADOPTION OF THE 2000-01 BUDGET AND APPROVAL OF A BUDGET ADOPTION ORDINANCE, INCLUDING THE 2000-01 CAPITAL IMPROVEMENT PROGRAM, CHANGES TO THE MUNICIPAL FEE SCHEDULE, UTILITY RATESAND CHARGES, AND’CHANGES TO COMPENSATION PLANS RECOMMENDATION Staff recommends that the City Council approve the following: 1. The Budget Adoption Ordinance (Attachment 1), which includes: a. The City Manager’s Proposed 2000-01 Budget: Volume I General Government Funds and Volume II Utility and Internal Service Funds (Exhibit A - previously distributed). b. All changes detailed in the "Amendments to the City Manager’s Proposed 2000-01 Budget" (Exhibit B), c. Proposed 2000-01 Municipal Fee Schedule (Exhibit C -previously distributed). d. Changes and revised pages to the Table of Organization (Exhibit D). Utility Rate Schedule Resolution increase in General Water Service Rates (Attachment 2). o Resolution Amending the Compensation Plan for Classified Personnel (Service Employees’ International Union, Local 715) (Attachment 3). Resolution Amending the Compensation Plan for Management and Confidential Personnel and Council Appointed Officers (Attachment 4). CMR: 288:00 Page 1 of 6 City of Palo Alto Statement of Investment Policy and Proposed Changes to the City’s Investment Policy (Attachment 5). BACKGROUND The City Manager’s Proposed 2000-01 Budget (Budget) was submitted to the Council on April 3, 2000. During the month of April, the Finance Committee held hearings and reviewed the Budget, together with the Municipal Fee Schedule. The Finance Committee also reviewed a rate schedule increase in the Water Fund and staff recommended changes to the Utilities Equity Transfer Methodology. These reviews resulted in some Finance. Committee and staff recommended changes to the Proposed Budget (Appendix 1). DISCUSSION Attached to this staff report is the Ordinance adopting the 2000-01 Budget and the related exhibits, attachments and appendices. The changes in Exhibit B as recommended by the Finance Committee and the adjustments suggested by staff are discussed below. The financial changes proposed for the General and. Utility Funds Proposed Budgets are summarized in Appendices 1, 2 and 3. Finally, there is a recommended change to a departmental key plan included in this report. Finance Committee Changes to the City Manager’s Proposed General Fund Budget ¯Wildlife Rescue Funding The Finance Committee recommended one-time funding for Wildlife Rescue ($24,541). ’ ¯Library Services The Finance Committee added $200,000 to address the needs of the libraries and asked staff to return with a recommendation on best use. Staff recommends the addition of 3.75 FTE to augment library services and the positions are reflected in Exhibit B and the Table of Organization (Exhibit D). City Manager’s Recommended Changes to the Proposed Budget Since Budget Wrap-up General Fund: Customer Service Desk/Central Telephone ¯ To improve customer service at City Hall, a receptionist ($55,274) will. staff a service desk in the lobby of the Civic Center from 8:00 to 5:00 Monday- Friday. The receptionist will answer a new main City phone number and route CMR: 288:00 Page 2 of 6 calls to proper departments, direct callers to non, City numbers when appropriate, greet and direct visitors, and distribute informational brochures. An additional $27,500 for associated expenses to set-up the desk and other supplies is proposed. These additions, totaling $82,774 in the City Manager’s budget, will provide a higher level of customer service to the community by having a central location for information. Community Newsletter As part of the overall effort to improve communications with the community, new funding for the production of a community newsletter ($25,000) is proposed in the City Manager’s budget. Public Communications will develop a printed newsletter to inform the public about City programs, initiatives, and events. Train Whistle Staff recommends funding $30,000 in the Planning Department’s budget to obtain consultant services for a train whistle noise study. Fire fighters The Fire Department budget includes three firefighter position slots that can be used as overfills during staffing shortages. Thisis an attempt tO reduce the number of overtime hours firefighters can be exposed to as a result of personnel not being available. The three slots will be funded from the Department’s overtime budget for one year and the program will be reevaluated during the next budget process. Capital Improvement Fund: Staff recommends new funding of $100,000 for CIP No.10106 Baylands Bike Trail Replacement (part of Appendix 4). The San Francisquito Creek Joint Powers Authority has approved a project to raise the creek levees downstream of Highway 101 to their original height, which will result in the removal of a portion of the paved Baylands Bike Trail. This project will replace the paved trail as part of the levee restoration project. Special Revenues Fund: Community Development Block Grant (CDBG) revenues as presented in the 2000-01 Proposed Budget document are not aligned with expenditures. To correct the imbalance, staff recommends a $15,275 increase to CDGB revenues (source of funds) to match expenses, including a $9,500 transfer in from the Traffic Mitigation Fund and savings of $5,775 from a prior year allocation. The additional sources of funds were identified in the CDBG 2000-01 allocations staff report, but were inadvertently not entered into the financial system (Appendix 5). CMR: 288:00 Page 3 of 6 Storm Drainage Fund: Staff recommends an increase of $5,210 for JPA San Francisquito Creek project costs and $50,000 for levee restoration. These amounts would be recovered from the fee increase that will be presented to the voters in 2000-01. If the voter do not approve the fee increase, a transfer of $116,710 from the General Fund Budget Stabilization Reserve would have to be made to balance the Fund. In the meantime, the Storm Drainage Fund will continue to reflect a negative reserve .balance of the same amount. Other Budget Items The following items were presented and discussed with the Finance Committee and are included in this section due to their importance. Municipal Fee Schedule: The fees in the Municipal Fee Schedule (Exhibit C) will be effective once adopted by the Council with the exception of two development related fees, which will not take affect for 60 days. Amendments to the Municipal Fee Schedule are limited to a few with a low financial impact. Human Services Resource Allocation Process (HSRAP): Staff recommended to the Finance Committee the splitting of the HSRAP base budget into two components: Multi- year Contractors $1,028,672 and Limited-year Contractors $164,054 for total base funding of $1,192,726. The two new bases will be adjusted annually in future years by the Bay Area Consumers Price Index (CPI). Staff also recommended an additional one, time funding of $24,000 for a total HSRAP 2000-01 budget of $1,216,726 (Appendix 6). Revised Water Rates: Staff recommends revisions to Water Rate Schedules W-1 and W-4 (Attachment 2): The proposed rate increase is 11 percent for 2000-01. Equity Transfer: The Equity Transfer Study was finalized and presented to the Utilities Advisory Commission (UAC) and the Finance Committee. The UAC and Finance Committee recommended a change in the Utility Equity Transfer Methodology, which would result in a net increase of $28,820 in transfers to tile General Fund. Details of the staff proposals related to Utility Equity Transfers are outlined in CMR 223:00. Department Key Plans: There was a clarification made by staff to a key plan in the Public Works Department, during the Finance Committee budget hearing. A key plan in the Structures and Grounds Functional Area (page 411, Vol. 1) should read: Complete 60 1.00 percent of the design of the downtown parking structure.. CMR: 288:00 Page 4 of 6 Compensation Plans Several classification changes are requested in the Management and Confidential, and Classified Compensation Plans. New or changed classifications are included, along with the accompanying resolutions in Attachments 3 and 4. RESOURCE IMPACT The 2000-01 Proposed Budget as submitted to the Finance Committee resulted in a total increase to the General Fund Budget Stabilization Reserve (BSR) of $2 million and a decrease to the Utility Funds Reserve of $18.3 million in 2000-01. Based on changes made as a resultof the Finance Committee hearings and staff recommendations, the General Fund Budget being forwarded to the Council for adoption reduces the increase to the BSR to $1.07 million in 2000-01 (Appendix 2). Additional changes to the Utilities Funds Budget by staff results in a net decrease to the Utility Funds Reserve of $0.1 million totaling $18.4 million, in 2000-01 (Appendix 3). POLICY IMPLICATIONS These recommendations are consistent with existing City policies. ENVIRONMENTAL REVIEW Adoption of the budget does not represent a project under California Environmental Quality Act (CEQA). ATTACHMENTS Attachment 1: Exhibit A: Exhibit B: Exhibit C: Exhibit D: Attachment 2: Attachment 3: Budget Adoption Ordinance with the following Exhibits: City Manager’s Proposed 2000-01 Budget (Volume.I and Volume II) " Amendments to the City Manager’s Proposed 2000-01 Budget Proposed 2000-01 Municipal Fee Schedule Changes and Revised Pages in the Table of Organization Resolution of the Council of the City of Palo Alto Amending the Utili~ Rate Schedules W-1 and W-4 of the City of Palo Alto Utilities Rates and Charges pertaining to General Water Service. Resolution of the Council of the City of Palo Alto Amending the Compensation Plan for Classified Personnel (SEIU) Adopted by Resolution No. 7782 and Amended by Resolution Nos. 7812, 7837, 7872, 7904 and 7962, to change Certain Salaries and Classifications CMR: 288:00 Page 5 of 6 Attachment 4: Attachment 5: Appendix 1: Appendix 2: Appendix 3: Appendix 4: Appendix 5: Appendix 6: Resolution of the Council of the City of Palo Alto Amending the Compensation Plan for Management and Confidential Personnel and Council Appointed Officers Adopted by Resolution No. 7890, and Amended by Resolution Nos. 7897, 7902, 7907, 7914, 7927, 7945, . 7958 and 7966, to change Certain Salaries sand Classifications Approval of the City of Palo Alto Statement of Investment Policy and Proposed Change to the City’s Investment Policy.. Summary of Changes to the 2000-01 General Fund 2000-01 General Fund Summary and Reserve Balances 2000-01 Utility Fund Summary and Reserve Balances Capital Improvement Fund Summaries and Amended Projects Special Revenue Funds - CDBG HSRAP Funding Related Staff Reports:CMR:197:00; CMR:205:00; CMR:211:00; CMR:223:00; CMR:213:00; CMR:224:00; CMR:235:00; CMR:244:00; and CMR:249:00 PREPARED BY: Lalo Perez, Budget Manager DEPARTMENT HEAD APPROVAL BY: CITY MANAGER APPROVAL: CARL YEATI Services EI~LY HARRISON Assistant City Manager CMR: 288:00 Page 6 of 6 ATTACHMENT 1 ORDINANCE NO. ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO ADOPTING THE BUDGET FOR THE FISCAL YEAR 2000-01 WHEREAS, pursuant to the provisions of Section 6(g) of Article IV of the Charter of the City of Palo Alto, the City Manager has prepared and submitted to the City Council, by letter of transmittal, a budget proposal for fiscal year 2000-01; and WHEREAS, pursuant to the provisions of Section 12 of Article III of the Charter, the Council did, on June 19, 2000, hold a public hearing on the budget after publication of notice; and WHEREAS, in accordance with the provisions of Chapter 8 of Division i, of Title 7, commencing with Section 66016 of the Government Code, as applicable, the Council did on June 19, 2000, hold a public hearing on the proposed amendments to the Municipal Fee Schedule, after publication of notice and after availability of the data supporting ~he amendments was made available to the public at least i0 days prior to the hearing. NOW, THEREFORE, the Council of the City of Palo Alto does ORDAIN as follows: SECTION I. 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 the fiscal year .2000-01: (a)The two volume document (Exhibit "A") containing the proposed operating and capital budgets submitted on or about March 27, 2000, by the City Manager for fiscal year 2000-01, enti.tled "City of Palo Alto - City Manager’s 2000-01 Proposed Budget - Volume I" (covering General Government Funds) and ~City of Palo Alto - City Manager’s 2000-01 Proposed Budget - Volume II, (covering Utility Funds and Internal Service Funds), a copy of which is on file in the Office of the City Clerk, to which copy reference is hereby made concerning the full particulars thereof, and by such reference is made a part hereof; and (b)The "Amendments to the Cihy Manager’s Proposed 2000-01 Budget, Volume I and II," attached hereto as Exhibit ~B," and made a part hereof; and (c) (d) The document entitled "2000-01 Proposed Municipal Fee Schedule," attached hereto as Exhibit ~C," and made a part hereof; and Changes and revised pages in the Table of Organization, attached hereto as Exhibit "D," and made a part hereof; and SECTION 2. 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 3. All expenditures made on behalf’ of the City, directly or through any agency, except those required to be made by .state law, shall be made in accordance with the authorization contained in this ordinance and the budget as herein amended. SECTION 4. Appropriations for the fiscal years 1999-00 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 1999-00 shall be carried forward and added to the fund or department appropriations for fiscal year 2000-01. SECTION 5. 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 and the 1999-00 appropriations carried forward as provided in Section 4. SECTION 6. 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 7. As specified in Section 2.23.140(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 2000-01. 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 2.04.375 of the Palo Alto Municipal Code, this ordinance shall become effective upon adoption. INTRODUCED AND PASSED: AYES: NOES: ABSTENTIONS: ABSENT: ATTEST:APPROVED: City Clerk Mayor APPROVED AS TO FORM: City Manager Senior Asst. City Attorney Director of Services Administrative Exhibit A This document originally distributed in 4-4-00 Council Packet. Additional copies available upon request: City .Manager’s Proposed 2000-01 Budget Volumes 1 & 2 II II+, COMMUNITY SERVICES DEPARTMENT 2000-01 HUMAN SERVICES CONTRACTS Expenditure Category Adopted Agency Budget Requests 1999-00 2000-01 LIMITED YEAR CONTRACTORS Alliance for Community Care - Homeless Outreach American Red Cross - Homelessness Prevention Children’s Health Council - Therapeutic After-School Program Community Assoc. for Rehabilitation - Disabilities Services Family Service Mid-Peninsula - Counseling Services Family Support Center of the Mid- Peninsula - Human Services Program MayView Community Health Center - Health Service for Low-Income Outreach & Escort - Senior Outreach Penin. Assoc. of Retarded Children & Adults - Rec. & Community Bldg. Penin. Center. for the Blind & Visually Impaired - Rehab. Services Project Match - Shared Housing Match Services Senior Adult Legal Services - Legal Assistance to Elders Social Advocates for Youth- Safe Place Support Network for Battered Women YMCA-Palo Alto Branch- Ventura Activity Center Youth Community Services - Summer of Service YWCA - Rape Crisis Center 7,486 30,000 10,783 12,000 20,280 42,524 52,450 12,879 20,000 45,000 10,277 16,918 6,1300 50,000 14,594 19,667 10,521 10,837 18,950 8,000 8,240 7,401 7,697 25;001 25,000 8,000 10,000 17,378 27,392 11,012 25,000 Limited Year Subtotal $191,856 $ 399,431