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Resolution No. 2012-160RESOLUTION NO. 2012-160 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON AMENDING RESOLUTION NO. 2012-99, WHICH APPROVED A BUDGET FOR THE FISCAL YEAR 2012-2013, TO REFLECT CHANGES (AMENDMENT NO. 1) WHEREAS, on June 19, 2012, the City Council of the City of Vernon adopted Resolution No. 2012-99 which approved a budget for the fiscal year 2012-2013 (the "Budget Resolution"); and WHEREAS, the City Council of the City of Vernon wishes to amend the budget for fiscal year 2012-2013 to reflect certain increased requirements and changes for the fiscal year; and WHEREAS, pursuant to Chapter 8.5 of the City of Vernon Charter, the budget may be amended or supplemented by an affirmative vote of the majority of the members of the Council, at any meeting of the City Council after the adoption of the budget; and WHEREAS, the budget changes and increases approved by this Resolution will not cause the budget of the City to exceed the general government appropriations limit for fiscal year 2012-2013 established by Resolution No. 2012-99. 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 hereby finds and determines that the recitals contained herein above are true and correct. SECTION 2: The City Council of the City of Vernon hereby approves changes to the 2012-2013 budget pursuant to Exhibit A attached hereto and incorporated by reference to reflect certain increased requirements for the fiscal year 2012-2013 for the budget of the City of Vernon. SECTION 3: The City Council of the City of Vernon hereby finds and determines that the certain items set forth in Exhibit A are necessary, and the City.Council of the City of Vernon further finds and determines that the same is in the best interests of the City of Vernon and constitutes a reasonable expenditure of public funds. SECTION 4: The City Clerk, or the City Clerk's designee, is hereby directed to file this Resolution with the County Auditor of Los Angeles County, located at the following address, within sixty (60) days after its passage, to fulfill the purposes of §§ 53990 and 53901 of the Government Code of the State of California with respect to this amendment: County of Los Angeles Office of Auditor/Controller Hall of Administration 500 West Temple Street Los Angeles, CA 90012 SECTION 5: The provisions of Resolution No. 2012-99 not consistent with or in conflict with this resolution are hereby repealed; in all other respects Resolution No. 2012-99 shall remain in full force and effect.. - 2 - SECTION 6: 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 21st day of August, 2012. Name: William J. Davis Title: �a�/ Mayor Pro-Tem - 3 - 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. 2012-160, 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 Tuesday, August 21, 2012, and thereafter was duly signed by the Mayor or Mayor Pro-Tem of the City of Vernon. Executed this -� day of August, 2012, at Vernon, California. (SEAL) i llard*Yma' City Clerk - 4 - EXHIBIT A CITY OF VERNON EXPENDITURE BUDGET 2012-2013 - SUPPLIESI CAPITAL DEPARTMENT SALARIES BENEFITS SERVICES OUTLAY TOTAL CITY COUNCIL $ 250.296 $ 126,320 $ 74,755 $ - - $ 451,371 CITY ADMINISTRATION 277,178 93,084 1,009,589 1,379,851 CITY CLERK 223,166 103,842 80,320 407,328 FINANCE 400,447 123,125 406,424 928,996 TREASURER 306,809 128,349 5,250 1,200 441,608 BUSINESS SERV/PURCHASING 289,664 102,291 3,100 395,055 PERSONNEL 84,182 19,645 82,600 186,427 HUMAN RESOURCE 243,624 72,485 316,109 INFORMATION TECHNOLOGY 462,490 153,175 428,600 164,750 1,209,015 RISK MANAGEMENT 110,048 275,941 - 606,226 992,215 SUB -TOTAL ADMIN 2,647,904 1,198,267 2,696,864 165,950 6,707,976 HEALTH/ENVIRONMENTAL CTRL 680,261 222,173 122,104 30,000 1,054,538 HEALTH - SOLID WASTE 94,001 27,639 321,000 442,640 SUB -TOTAL HEALTH 774,262 249,812 443,104 30,000 1,497,178 POLICE 6,774,448 3,745,262 504,205 11,023,915 CITY ATTORNEY 551,677 254,000 1,324,100 2,129,777 FIRE 9,427,840 4,160,955 770,228 18,000 14,377,023 CIVIL DEFENSE 48,138 17,131 238,000 89,000 392,269 SUB -TOTAL SAFETY 16,802,103 8,177,348 2,836,533 107,000 27,922,984 ADMIN-ENGR-PLANNING 252,411 94,993 17,800 1,300 366,504 BUILDING DEPARTMENT 467,529 155,747 219,900 4,550 847.726 STREET LIGHTING 334,600 334,600 PUBLIC WORKS 1,225,029 . 402,778 - 906,750, 3,252,250 5,786,807 INDUSTRIAL DEVELOPMENT 867,126 867,126 CITY GARAGE - 369,226 122,661 227,300 6,550 725,737 CITY WAREHOUSE 279,017 97,832 14,850 2,600 394,299 CITY HOUSING 30,224 11,734 104,050 146,008 CITY BUILDINGS 257,778 120,082 601,350 38,950 - 1,018,160 SUB -TOTAL COMM SER 2,881,214 1,006,827 3,293,726 3,306,200 10,486,967 TOTAL GENERAL FUND $ 23,105,483 $ 10,631,244 $ 9,269,227 $ 3,609,150 $ 46,616,104 TOTAL GENERAL FUND $ 23,105,483 $ 10,631,244 $ 9,269,227 $ 3,609,150 $ 46,616,104 EXHIBIT "A" Page 1 of 2 CITY OF VERNON EXPENDITURE BUDGET 2012-2013 SUPPLIES/ CAPITAL DEPARTMENT SALARIES BENEFITS SERVICES OUTLAY TOTAL REDEVELOPMENT AGENCY. 6,241,911 6,241,911 INDUSTRIAL DEVELOPMENT - HAZARDOUS WASTE FUND 264,144 80,494 129,500 474,138 PARCELTAXFUND 9,489{958 9,489,958 UTILITIES WATER FUND WATER OPERATIONS 1,209,037 398,080 4,773,097 1,225,800 7,606,014 RECYCLED WATER - 140,500 140,500 SUB -TOTAL WATER 1,209,037 398,080 4,913,597 1,225,800 7,746,614 LIGHT &POWER , FIELD OPERATIONS 542,287 162,223 330,528 283,100 1,318,138 SYSTEM DISPATCH 1,063,992 298,862 162,715 38,050 1,563,619 STATION A 107,913 36,160 112,875 50,000 306,948 TRANS/DISTRIBUTION 5,168,000 4,000,000 9,168,000 BUILDING MAINTENANCE 90,450 80,000 170,450 CUSTOMER SERVICE 190,514 95,138 204,505 490,157 ADMINISTRATION 679,395 192,674 70.737,114 1,477,376 73,086,559 ELECTRICAL ENG 616,083 147,762 205,560 5,687,000 6,656,395 RESOURCE MANAGEMENT 585,341 184,169 101,402,807 102,172,317 ENERGY MANAGEMENT 43,067 12,400 1,502,500 1,557,967 SUB -TOTAL L & P 3,828,592 1,129,388 179,917,044 11,616,526 196,490,660 GAS 418,590 102,779 53,644,020 774,000 54,839,389 FIBER -OPTICS 113,360 23,196 390,800 420,000 947,366 TOTAL UTILITIES 5,569,579 1,653,443 238,765,461 14,035,326 260,023,809 GRAND TOTAL $ 28,939,206 $ 12,366,181 $ 263,896,067 $ 17,644,476 $ 322,844,920 EXHIBIT "A" Page 2 of 2 EXHIBIT A AMENDMENT TO EXHIBIT A OF RESOLUTION NO. 2012-99 1. Decrease SALARIES for CITY ADMINISTRATION on Exhibit A - page 1 from $316,916 to $277,178. Net Decrease $39,738 2. Decrease BENEFITS for CITY ADMINISTRATION on Exhibit A - page 1 from $100,621 to $93,084. Net Decrease $7,537 3. Increase SUPPLIES/SERVICES for CITY ADMINISTRATION on Exhibit A - page 1 from $976,042 to $1,009,589. Net Increase $33,547 4. Decrease SUPPLIES/SERVICES for CITY ATTORNEY on Exhibit A - page 1 from $1,900,000 to $1,300,000. Net Decrease $600,000 5. Increase SALARIES for POLICE on Exhibit A -page 1 from $6,756,453 to $6,774,448. Net Increase $17,995 6. Increase BENEFITS for POLICE on Exhibit A -page 1 from $3,657,362 to $3,745,262. Net Increase $87,900 7. Decrease SUPPLIES/SERVICES for POLICE on Exhibit A - page 1 from $610,100 to $504,205. Net Decrease $105,895 8. Decrease SALARIES for FIRE on Exhibit A -page 1 from $9,587,599 to $9,427,840. Net Decrease $159,759 9. Increase BENEFITS for FIRE on Exhibit A- page 1 from $4,129,874 to $4,160,955. Net Increase $31,081 10. Decrease CAPITAL for FIRE on Exhibit A - page 1 from $127,500 to $18,000. Net Decrease $109,500 11. Decrease SUPPLIES/SERVICES for BUILDING REGULATIONS AND PLANNING on Exhibit A - page 1 from $231,400 to $219,900. Net Decrease $11,500 12. Decrease SUPPLIES/SERVICES for STREET OPERATIONS on Exhibit A - page 1 from $919,750 to $906,750. Net Decrease $13,000 13. Decrease CAPITAL for STREET OPERATIONS on Exhibit A - page 1 from $5,127,250 to $3,352,250. Net Decrease $1,875,000 EXHIBIT A AMENDMENT TO EXHIBIT OF RESOLUTION NO. 2012-99 14. Increase SUPPLIES/SERVICES for CITY HOUSING on Exhibit A - page 1 from $103,050 to $104,050. Net Increase $1,000 15. Decrease SUPPLIES/SERVICES for CITY BUILDING on Exhibit A - page 1 from $629,350 to $601,350. Net Decrease $28,000 16. Decrease CAPITAL for CITY BUILDING on Exhibit A - page 1 from $48,950 to $38,950. Net Decrease $10,000 17. Increase SALARIES for HEALTH on Exhibit A - page 1 from $642,071 to $680,261. Net Increase $38,190 18. Increase BENEFITS for HEALTH on Exhibit A - page 1 from $214,798 to $222,173. Net Increase $7,375 19. Decrease SUPPLIES/SERVICES for HEALTH on Exhibit A - page 1 from $131,104 to $122,104. Net Decrease $9,000 20. Increase SALARIES for HEALTH -SOLID WASTE on Exhibit A - page 1 from $4,733 to $5,108. Net Increase $375 21. Increase BENEFITS for HEALTH -SOLID WASTE on Exhibit A - page 1 from $27,567 to $27,639. Net Increase $72 22. Decrease SUPPLIES/SERVICES for HEALTH -SOLID WASTE on Exhibit A - page 1 from $354,000 to $321,000. Net Decrease $33,000 23. Decrease SUPPLIES/SERVICES for WATER OPERATIONS on Exhibit A - page 2 from $5,341,697 to $4,773,097. Net Decrease $568,600 24. Increase CAPITAL for WATER OPERATIONS on Exhibit A - page 2 from $1,025,800 to $1,225,800. Net Increase $200,000 25. Increase SUPPLIES/SERVICES for RESOURCE PLANNING on Exhibit A - page 2 from $98,950,807 to $101,402,807. Net Increase $2,452,000 26. Increase SALARIES for HEALTH-HAZ MAT on Exhibit A - page 2 from $5,771 to $7,839. Net Increase $2,068 EXHIBIT A AMENDMENT TO EXHIBIT OF RESOLUTION NO. 2012-99 27. Increase BENEFITS for HEALTH-HAZ MAT on Exhibit A - page 2 from $45,270 to $45,672. Net Increase $402 TOTAL BUDGET EXPENDITURE DECREASE: $698,524 CITY OF VERNON ESTIMATED REVENUES 2012.2013 GOVERNMENTAL FUND TYPE GENERAL FY2013 400110 SECURED PROPERTY TAX -CURRENT - $ 2,982,300 400210 PRIOR YEAR SECURED 1,000 400310 REAL PROPERTY TRANSFER TAX 40,000 400311 BNSF - 679,500 400500 PROPERTY TAX -INTEREST & PENALTIES 13,000 400610 PROP "A" FUNDS 1,200 400630 PROP "C" FUNDS 960 400700 HOMEOWNERS' PROPERTY TAX EXEMPTION 20,000 400800 AB 1389 - PASS -THROUGH PAYMENT 15,000 400820 PUBLIC SAFETY AUGMENTATION FUND 960 401200 SALES AND USE TAX 4,050,000 401600 ADMINISTRATIVE FEES - SB2557 (55,000) 410100 BUSINESS LICENSES 1,230.000 410210 BUILDING PERMITS 500,000 410211 FIRE PERMIT FEES 27,000 410212 ALARM PERMITS 21,000 410215 ENGINEERING PERMIT FEES 6,000 410240 PUBLIC HEALTH PERMITS 619,200 - 410250 HEALTH PERMIT LATE FEES 11,350 410270 FILMING PERMITS 11,350 410280 CONDITIONAL USE PERMITS 5,000 410290 ISSUANCE FEE 2,600 410300 FRANCHISES AND AGREEMENTS 25,000 410310 SOLID WASTE FRANCHISE FEES 1,000,000 410320 SOLID WASTE FRANCHISE LATE FEES 5,000 410330 FRANCHISE FEES, PRIOR YEARS 20,000 420100 VEHICLE CODE FINES 100,000. 420110 OTHER FINES 60,000 420120 DUI EMERGENCY RESPONSE 2.000 420130 VEHICLE INSPECTION FEE 1,200 420510 PARKING CITATIONS 30.000 420515 TRAFFIC CITATIONS 100,000 420520 COMMUNITY SERVICES INCOME 34,048 420525 IMPOUNDED VEHICLE RELEASE FEES 50,000 420530 DUI VEHICLE RELEASE FEES - 24,000 420535 REPOSSESSED VEHICLE RELEASE FEE 60 430110 INVESTMENT INCOME 19,000 431000 RENTS 215,000 440100 GRANT REVENUE - 2,529,288 441014 OVERTIME REIMBURSEMENT REVENUE 35,000 441015 TASK FORCE REIMBURSEMENT 129,000 442001 MOTOR VEHICLE IN -LIEU TAX 7,650 450110 FIRE SERVICE 24,000 450120 ENGINEERING INSPECTION FEES 15,000 450121 CONSTRUCTION REVENUE 15,000 459030 GROUP MEDICAL REVENUES 185,000 466000 P.O.S.T. REIMBURSEMENT 15,000 466200 PLAN CHECK FEES 248,000 466210 RECONSTRUCTION FEE 200 466220 GREEN BUILDING STANDARDS FEE 3,000 466600 COPIES AND PUBLICATIONS 3,080 466890 INTEREST AND PENALTIES 200 466900 MISCELLANEOUS 110,800 467000 STRIKE TEAM REIMBURSEMENT 274.500 468400 VARIANCES - 3,000 499700 CREDIT FOR GARAGE WORK ORDERS - 500,000 600910 OTHER INCOME 10,012.370 630055 LIGHT AND POWER IN -LIEU TAX 3,999,225 670010 SALE OF CAPITAL ASSETS 1 78,000 690100 TRANSFER IN - FROM OTHER FUNDS 20,864,758 SUB -TOTAL REVENUE ITEMS $ 50,919,699 EXHIBIT "B" Page 1 of 2 CITY OF VERNON ESTIMATED REVENUES 2012-2013 GOVERNMENTAL FUND TYPE GENERAL FY2013 SUB -TOTAL REVENUE ITEMS - $ 50,919,699 SPECIAL REVENUE: 407500 GAS TAX 2103 407600 GAS TAX 2106 407700 - GAS TAX 2107 407800 GAS TAX2107.5 SUB -TOTAL GAS TAX TOTAL GENERAL FUND. SPECIAL FUNDS 060 HAZARDOUS WASTE FUND 095 PARCEL TAX REVENUES SUB -TOTAL SPECIAL FUNDS FIDUCIARY FUND 022 RDATAXINCREMENT 022 RDA RENTS SUB -TOTAL FIDUCIARY FUND TOTAL GOVERNMENTAL TYPE FUNDS WATER DEPARTMENT 020 WATER -REVENUES LIGHT AND POWER 055 LIGHT AND POWER - REVENUES VERNON NATURAL GAS FINANCING AUTHORITY (VNGFA 058 VNGFA-REVENUES FIBER -OPTICS 057 FIBER -OPTICS - REVENUES GAS UTILITY 056 GAS - REVENUES SUB -TOTAL ENTERPRISE FUNDS GRAND TOTAL ALL FUNDS 1,300 5,700 800 1,800 9,600 50,929,299 560,000 9,489,958 10,049,958 5,646,291 595,620 6,241,911 67,221,168 7,645,000 161,878,709 25,351,000 516.420 55,369,741 250,750,870 $ 317,972,038 EXHIBIT'B" Page 2 of EXHIBIT B AMENDMENT TO EXHIBIT B OF RESOLUTION NO. 2012-99 1. Decrease OTHER INCOME for FINANCE on Exhibit.B - page 1 from $12,000,000 to $10,000,000. Net Decrease $2,000,000 2. Increase VEHICLE CODE FILES for POLICE on Exhibit B - page 1 from $86,000 to $100,000. Net Increase $14,000 3. Increase FRANCHISE TOWING FEES for POLICE on Exhibit B - page 1 from $20,000 to $100,000. Net Increase $80,000 4. Increase IMPOUNDED VEHICLE RELEASE FEE for POLICE on Exhibit B - page 1 from $48,000 to $50,000. Net Increase $2,000 5. Increase GRANT REVENUES -STATE for POLICE on Exhibit B - page 1 from $50,000 to $100,000. Net Increase $50,000 6. Increase P.O.S.T. REIMBURSEMENT for POLICE on Exhibit B - page 1 from $10,000 to $15,000. Net Increase $5,000 7. Increase MISCELLANEOUS for POLICE on Exhibit B - page 1 from $1,800 to $5,000. Net Increase $3,200 8. Increase GRANT REVENUES -STATE for STREET OPERATIONS on Exhibit B -page 1 from $445,000 to $522,000. Net Increase $77,000 9. Increase LIGHT AND POWER -REVENUES for LIGHT AND POWER on Exhibit B - page 2 from $159,426,709 to $161,878,709. Net Increase $2,452,000 TOTAL BUDGET REVENUE INCREASE: $683,200 E OFFICE OF THE CITY CLERK 4305 Santa Fe Avenue, Vernon, California 90058 Telephone (323) 583-8811 August 27, 2012 County of Los Angeles Office of Auditor/Controller Hall of Administration 500 West Temple Street Los Angeles, CA 90012 Re: Resolution No. 2012-160 - A Resolution of the City Council of the City of Vernon Amending Resolution No. 2012-99, Which Approved a Budget for the Fiscal Year 2012- 2013, to Reflect Changes (Amendment No. 1) To Whom It May Concern: Transmitted herewith is a copy of Resolution No. 2012-160 that was approved by City Council on August 21, 2012. If you have any questions regarding this matter, please call Rory Burnett at (323) 583-8811 ext. 262. Very truly yours, De or /R-Jarez Records Management Assistant Enclosure c: Rory Burnett Alex Kung Mark Whitworth Resolution No. 2012-160 Excfusivefy Industrial RECEIVED AUG 16 2W CITY Caw off IN STAFF REPORT CITY ADMINISTRATION DATE: August 16, 2012 TO: Honorable City Council FROM: Mark C. Whitworth, City Administrator _C RE: Proposed City Budget Amendment for Fiscal ar 2012-2013 Background On June 19, 2012 the City Council adopted Resolution 2012-99 which approved a budget for the fiscal year 2012-2013. During the meeting, Council instructed staff to review the budget to further reduce expenditures. Staff has reviewed the 2012-2013 budget and in working with the departments has further reduced the General Fund net expenditures by $2,914,394 equaling a 6% budget reduction. In addition, at the June 19th meeting City Council adopted Ordinance No. 1196 which submitted to the voter a proposition to levy a Utility User Tax UUT) with a maximum rate of 9.8%. The original maximum UUT rate proposed in the June 19` budget was 11%. The proposed amended budget reflects a projected $2,000,000 reduction in UUT revenues as a result of reducing the maximum rate from 11% down to 9.8%. Lastly, as you are aware the Light and Power Department is currently developing a proposed electric rebate program to ensure that businesses in the City maintain their competitive advantage. The proposed program, including the funding source, will be presented for your consideration at the next City Council meeting. The proposed program would include initial funding of approximately $2.4 million. Additional program funding may be available if the proposed UUT is passed by the voters on September 18, 2012. Listed below is a summary of the proposed budget amendments: General Government Expenditures: 1) Reduce General Government expenditures: ($641,728) 2) Reduce Public Safety expenditures: ($128,678) 3) Reduce Public Works expenditures: ($23,500) 4) Increase Health Services expenditures: $4,012 5) Reduce department wide Capital project expenditures: ($2.124.500) Total Expenditures Reductions: ($2,914,394) General Government Revenue: 1) Reduced Proposed Utility User Tax from 11 % to 9.8%: 2) Increase Public Safety revenues: 3) Increase Public Works revenues: Total Revenue Reduction PROPOSED ELECTRIC REBATE PROGRAM Enterprise Fund Revenues: 1.) Increase Light and Power Investment Income revenues: (Proposed Initial Funding Source) Total Revenue Increase: Enterprise Fund Expenses: 1) Increase Light and Power electric rebate program expense: Total Expense Increase: Recommendation ($2,000,000) $154,200 77 000 ($1,768,800) $2,452,000 $2,452,000 2 452 000 $2,452,000 Attached is the City's proposed amended budget for fiscal year 2012-2013. It is recommended that the City Council adopt the City of Vernon's proposed amended budget for fiscal year 2012- 2013.