Resolution No. 2010-050RESOLUTION NO. 2010-50
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON AUTHORIZING THE CITY ADMINISTRATOR TO TAKE
APPROPRIATE ACTIONS TO REDUCE TOTAL GENERAL FUND
GOVERNMENTAL ACTIVITIES EXPENSES IN THE POLICE
DEPARTMENT AND FIRE DEPARTMENT, INCLUDING A
REDUCTION IN FORCE
WHEREAS, the City of Vernon's total general fund
governmental activities expenses currently exceed the total general
fund governmental activities revenues; and
WHEREAS, due to the current state of the national economy,
general fund revenues are not expected to grow substantially in the
near future; and
WHEREAS, the City Council of the City of Vernon expressed
its desires in Resolution No. 2010-47 to bring expenditures and
revenues into balance and authorized and directed the City
Administrator to submit and present, no later than the meeting of
April 12, 2010, the appropriate actions required to balance total
general fund governmental activities expenses ("Expenses") with total
general fund governmental activities revenues ("Revenues"); and
WHEREAS, on April 5, 2010, the City Administrator
'recommended to the City Council appropriate actions to reduce City
Expenses in all departments other than the Fire Department and the
Police Department, and the City Council adopted Resolution No. 2010-48
implementing those recommendations; and
WHEREAS, the meeting of April 12, 2010, was cancelled at the
direction of the City Council; and
WHEREAS, by staff report dated April 14, 2010, the City
Administrator has recommended appropriate actions to reduce City
Expenses in the Fire Department by $1,563,978 and the Police
Department by $3,344,002, such that the total Fire department budget
shall be $12,600,000.00 and the total Police department budget shall
be $7,920,366.00.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF VERNON AS FOLLOWS:
SECTION 1: The City Council of the City of Vernon does
hereby find and determine that the recitals contained hereinabove are
true and correct.
SECTION 2: The City Council of the City of Vernon hereby
authorizes and directs the City Administrator to take appropriate
actions to reduce Expenses in the Fire Department and the Police
Department to meet the targets set forth above. This authority
includes, without limitation, a reduction in force as necessary.
SECTION 3: The City Clerk of the City of Vernon shall
certify to the passage, approval and adoption of this resolution, and
the City Clerk of the City of Vernon shall cause this resolution and
the City Clerk's certification to be entered in the File of
Resolutions of the Council of this City.
APPROVED AND ADOPTED this 19th day of April, 2010.
Name: H.;larin Gonzales
Title: Mayor /-�May��
2
STATE OF CALIFORNIA )
) ss
COUNTY OF LOS ANGELES )
I, Willard G. Yamaguchi, City Clerk of the City of Vernon, do
hereby certify that the foregoing Resolution, being Resolution
No. 2010-50, was duly passed, approved and adopted by the City Council
of the City of Vernon at a regular meeting of the City Council duly
held on Monday, April 19, 2010, and thereafter was duly signed by the
Mayor or Mayor Pro -Tern of the City of Vernon.
Executed this day of April, 2 0, at Vernon, California.
Wi lard G. a agubklCity Clerk
(SEAL)
3
CITY CLERK'S OFFICE
INTEROFFICE MEMORANDUM
DATE: April 20, 2010
TO: Donal O'Callaghan, City Administrator/Director of Light & Power
FROM: Willard Yamaguchi, City Clerk
RE: Resolution No. 2010-50 — A Resolution of the City Council of the City of Vernon
Authorizing the City Administrator to Take Appropriate Actions to Reduce Total General
Fund Governmental Activities Expenses in the Police Department and Fire Department,
Including a Reduction in Force
Transmitted herewith is a copy of Resolution No. 2010-50 referenced above, which was approved by City
Council on April 19, 2010.
Thank you.
WY:dj
c: Resolution No. 2010-50
RECEWPO
APR 1 5 2010
CITY CLERK'S OF
STAFF REPORT
CITY ADMINISTRATION OFFICE
DATE: April 14, 2010
TO: Honorable Mayor and City Council 1
FROM: Donal O'Callaghan, City Administrator
RE: Balanced Budget of General Fund
The City Administrator has implemented the appropriate actions required to balance the
general fund expenses with general fund revenues pursuant to Resolution No. 2010-47
and Resolution No. 2010-48.
To continue our task, we recommend pegging the total Police Budget at $7,920,366 and
the total Fire Budget at $12,600,000. Therefore, we recommend the following
expenditure reductions for the City's Police and Fire Departments: $1,563,978 for the
City's Fire Department and $3,344,002 for the City's Police Department.
Recommendation
Today I recommend Council approve the Resolution to implement a reduction in costs
within the General Fund specifically in the City's Fire Department for $1,563,978 and
the City's Police Department for $3,344,002.
DO:rmt
Attachments
CITY OF VERNON, CALIFORNIA
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
For the Fiscal Year Ended June 30, 2009
l
Redevelopment Industrial a Total
Gene Agency Develo me ovemm tal Governmental
Fund Funds and Funds Funds
REVENUES:
Taxes $ 9,652,816 $ 9,990,833 $ $ 6,853,231 $ 26,496,880
Special assessments 11038,602 1,038,602
Licenses and permits 1,222 0 484,008 1,706,778
Fines, forfeitures and penalties 2,569 302,569
Investment income 25,677 251,209 25,078 - 301,964
Intergovernmental revenues 1,773,938 447,378 804 2,222,120
Charges for services to enterprise funds 2,541,019 2,541,019
Other revenues 9 , - 6,250 93 1,002,821
Total revenues 17,553,869 10,689,420 31,328 7,338,136 35,612,753
EXPENDITURES:
General government 16,716,155 633,589 785,156 18,134,900
Public safety 23,572,030 - - 244,538 23,816,568
Public works 5,276,794 - 5,276,794
Health services 1,468,191 - 193,490 1,661,681
Capital outlay 3,938,884 3,732,010 18,955 7,689,849
Principal retirement - - 4,426,241 - 4,426,241
Bond and note interest - 2,020,844 1,230,917 3,251,761
Total expenditures 50,972,054 6,386,443 6,442,314 456,983 64,257,794
Excess (deficiency) of revenues over(under)expenditures (33,418,185) 4,302,977 (6,410,986) 6,881,153 (28,645,041)
Other financing sources (uses):
Sale of property 17,729 17,729
Transfers in 33,555,856 33,5559856
Transfers out (1 1125,876) (338,000) (17,575,920) (19,039,696)
Total other financing sources (uses) 32,447,709 - (338,000) (17,575,820) 14,533,889
NET CHANGE IN FUND BALANCES (970,476) 4,302,977 (6,748,986) (10,694,667) (14,111,152)
FUND BALANCES, BEGINNING OF YEAR 1,291,507 35,421,038 27,500,353 28,800,070 93,012,968
FUND BALANCES, END OF YEAR $ 321,031 $ 39,724,015 $ 20,751,367 $$ 118,10� $ 78,901,816
u�
-ro�'q
See accompanying notes to the basic financial statements.
-21-
General Fund
Statement of Revenues and Expenditures
Where We
Where We
Where We
Difference
Were
Are
Will Be
Between
Where We
Will Be And
Where We
Are
A
B
C
D=C•B
2010
Annual
Trend
Trend
2009
Without
With
Actual
Budget Cuts
Budget Cuts
Budget Cuts
REVENUES:
Taxes
$ 9,652,816
$ 9,116,608
$ 9,116,608
$
Parcel taxes
6,853,231
7,416,823
7,416,823
Special assessments
1,038,602
774,260
774,260
License and permits
1,222,770
1,405,869
1,405,869
Fines, forfeitures and penalties
302,569
307,388
307,388
Investment income
25,677
13,502
13,502
Intergovernmental revenues
1,773,938
1,748,416
1,748,416
Charges for services
2,541,019
3,382,661
3,382,661
Other revenues
996,478
1,780,700
1,780,700
Total revenues
24,407,100
25,946,227
25,946,227
EXPENDITURES:
General government
16,716,155
20,465,449
16,700,065
(3,765,384)
Public safety
23,572,030
22,719,122
21,846,074
(873,048)
Public works
5,276,794
4,751,944
3,937,471
(814,473)
Health services
1,468,191
1,202,270
1,132,672
(69,598)
Capital outlay:
General government
123,539
92,117
-
(92,117)
Public safety
2,173,619
2,141,417
-
(2,141,417)
Public works
1,641,726
143,955
(143,955)
Health services
-
-
-
Total expenditures
50,972,054
51,516,273
43,616,281
(7,899,992)
Shortfall
$ (26,564,954)
$ (25,570,046)
$ (17,670,054)
$ 7,899,992
Now
Joaquin Leon 4/13/2010 : 4:45 PM
PAYROLL TOTAL COST - CALENDAR YEAR
Work Force2005
2006
2007
2008
,,.
-
Gross Earnings
$ 6,621,988.00
$ 6,827,229.00
$ 7,819,025.00
$ 9,567,924.00
$ 9,771,854.00
Medicare Tax
96,019.00
98,995.00
113,376.00
138,735.00
141,051.00
PERS Expense
2,068,434.00
1,915,223.00
2,045,909.00
2,216,088.00
2,694,366.00
Medical Insurance
308,451.00
369,193.00
378,696.00
960,635.00
1,093,603.00
Worker's Compensation
Not Compiled
Not Compiled
Not Compiled
Not Compiled
463,104.00
Total,Cost
$ 9,094,892.00
$ 9,210,640.00
$ 10,357,006.00
$ 12,883,382.00
$ 14,163,978.00
-�
ME
Gross Earnings
$ 5,658,708.00
$ 5,702,715.00
$ 6,402,075.00
$ 7,485,589.00
$ 7,732,992.00
Medicare Tax
82,051.00
82,689.00
92,830.00
108,541.00
96,345.00
PERS Expense
1,812,995.00
1,587,222.00
1,661,038.00
1,970,394.00
2,248,968.00
Medical Insurance
345,241.00
380,642.00
390,517.00
712,874.00
820,288.00
Worker's compensation
Not Compiled
Not Compiled
Not Compiled
Not Compiled
365,775.00
Total Cost
$ 7,898,095.00
$ 7,753,268.00
$ 8,546,460.00
$ 10,277,398.00
$ 11,264,368.00
Page 1 of 1 PayroO rtena_2005-2009.xis: Celculatibns
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