Item 6 - CONSIDERATION OF A RESOLUTION AMENDING THE FY 2021-2022 BUDGETAGENDA ITEM NO.6
AGENDA STAFF REPORT
City of West Covina I Office of the City Manager
�14 EST CO�I��
DATE: August 16, 2022
TO: Mayor and City Council
FROM: David Carmany
City Manager
SUBJECT: CONSIDERATION OF A RESOLUTION AMENDING THE FY 2021-2022 BUDGET
RECOMMENDATION:
It is recommended that the City Council approve the following resolution:
RESOLUTION NO. 2022-86—A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA,
CALIFORNIA, ADOPTING A BUDGET AMENDMENT FOR THE FISCAL YEAR COMMENCING JULY 1,
2021 AND ENDING JUNE 30, 2022 (PRELIMINARY END OF YEAR ADJUSTMENTS)
BACKGROUND:
The City Council adopted the Fiscal Year 2021-2022 budget on June 15, 2021 through the adoption of Resolution
No. 2021-66. The budget covered the period from July 1, 2021 through June 30, 2022. Amendments must
periodically be made to the budget to conform to changed circumstances following adoption of the budget.
DISCUSSION:
A budget amendment is proposed to adjust revenue and expenditures based on preliminary activity through June
30, 2022. This amendment includes the following adjustments:
General Fund
• Salaries and benefits are proposed to be adjusted based on actuals to -date.
• Fuel: The price of gas has increased and thus expenditures have exceeded budgetary amounts across several
divisions.
*Contracted services: Building, planning and engineering permits have surpassed estimated numbers. Thus,
the revenue (Plan Check Fees) and associated expenditures is proposed to be increased as applicable.
Additionally, staff has corrected its accounting for sales tax auditing by adding an expenditure and increasing
sales tax revenue accordingly. This was previously accounted for within sales tax revenue. Lastly, due to
recent labor negotiations, legal and professional services within Human Resources have exceeded budgetary
amounts.
• Staff proposes increasing the budget for account overages in vehicle maintenance and utilities.
•A transfer to the Self Insurance General/Auto Liability Fund is also proposed to cover unexpected claims. This
transfer is offset by decreasing an expense.
• Overall, the net impact to the General Fund is Zero.
Proposition C Fund
*This is an administrative clean-up item. The City received notification of funding for the Traffic Signal
at Cameron/Barranca (Project No. 18040) in a prior year and the budget was not carried over. Therefore, staff
proposes re -appropriating the funds.
Gas Tax Fund
•Actuals for electricity and professional services are over budget and are recommended being increased.
CDBG Fund
*This is an administrative clean-up item. Partial funding for Friendship Park (Project No. 21035) from the prior
year was not carried over into FY2021-22. Therefore, staff proposes re -appropriating the funds.
Waste Management Enforcement Grant
*The cost of environmental services exceeded original budgetary estimates. Therefore, staff recommends
increasing the appropriation in this special revenue fund.
• Overtime for this program exceeded budget but will be reimbursed by the state.
IP Fund
*This is an administrative clean-up item. Funding to replace the sign at City Hall (Project No. 22028) was
included in the FY2022-23 budget, however staff was able to initiate and complete the project before the start
of the fiscal year. Therefore: funding needs to be moved back into the FY2021-22 budget.
Measure R
• Contract services for street sweeping has come in slightly over budget, however there is funding in this
Special Revenue fund to cover the overage.
Taskforce Regional Auto Theft Prevention Fund
• Overtime for this program exceeded budget but will be reimbursed by the county.
Debt Service Fund
• Cost for ongoing bond administration was not included in the budget, however there is funding within fund to
over the overage.
Self Insurance General/Auto Liability Fund
• Staff has been working with attorneys to actively address the list of claims against the city. As a result, the
amount claims paid this fiscal year exceeded the budget. Therefore, staff recommends increasing the budget
and transferring funds from the General Fund and Workers' Comp Fund to address this overage.
Self -Insurance - Workers' Como Fund
*The City has experience more workers' comp claims than budgeted. Funded is available within the fund to
cover these additional expenses.
Fleet Management Fund
• Fuel costs have been rising and continue to increase. As a result, fuel expenditures have exceeded
appropriations. The proposed amendment increases expenditures and offsetting revenue charged back to
various departments.
Successor Housing Agency
•The budget for the PIERS UAL payment was not included in the budget for this fund.
LEGAL REVIEW:
The City Attorney's Office has reviewed the resolution and approved it as to form.
Prepared by: Stephanie Sikkema, Finance Director
Fiscal Impact
FISCAL IMPACT:
The overall net impact of the proposed budget amendment to the City's General Fund is zero. The table below
summarizes the overall changes in the proposed budget amendment by fund.
Fund No.
Fund Name
Revenue
Expenditures
Re Less
110
General Fund
4,364,00
4,364,0001
0
1221
Proposition C
416,000
134,000
282,000
124I
Gas Tax
0
36,000
(36,000)
131
CDBG
100,000
(100,000)
145
Waste Mgmt Enforcement Grant
0
3,000
(3,000)
155
Cops/SLESF
55,000
50,000
5,000
160
CIP
0
125,000
(125,000)
224
233
Measure RTaskforce
p Autotheft
e entionRegional
6,000
29,600
6,000
29,600
0
300
Debt Service
5,000
5,000
0
361
Self Insurance Genri/Auto Liab
1,200,00
500,000
700,000
363I
Self -Insurance -Workers' Comp
130,000
800,000
(670,000)
365I
Fleet Management
200,000
200,0000
820I
Successor Housing Agency
0
35,000
(35,000)
TOTAL
$6,405,600
$6,387,600
$18,000
Attachments
Attachment No. 1 - Resolution No. 2022-86
CITY COUNCIL GOALS & OBJECTIVES: Achieve Fiscal Sustainability and Financial Stability
ATTACHMENT NO. 1
RESOLUTION NO. 2022-86
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF WEST COVINA, CALIFORNIA, ADOPTING A BUDGET
AMENDMENT FOR THE FISCAL YEAR COMMENCING
JULY 1, 2021 AND ENDING JUNE 30, 2022 (PRELIMINARY
END OF YEAR ADJUSTMENTS)
WHEREAS, the City Manager, on or about May 18, 2021, submitted to the City Council
a proposed budget for the appropriation and expenditure of funds for the City for West Covina for
Fiscal Year 2021-22; and
WHEREAS, following duly given notice and prior to budget adoption, the City Council
held public meetings, considered and evaluated all comments, and on June 15, 2021 adopted a
budget for the fiscal year commencing July 1, 2021 and ending June 30, 2022; and
WHEREAS, amendments must periodically be made to the budget to conform to changed
circumstances following adoption of the budget.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF WEST COVINA,
CALIFORNIA DOES RESOLVE AS FOLLOWS:
SECTION 1. The City Council hereby approves Budget Amendment No. 088, attached
hereto as Exhibit A, for Fiscal Year 2021-22.
SECTION 2. The City Clerk shall certify to the adoption of this resolution and shall enter
the same in the book of original resolutions and it shall become effective immediately.
APPROVED AND ADOPTED this 16th day of August, 2022.
APPROVED AS TO FORM
Thomas P. Duarte
City Attorney
Dario Castellanos
Mayor
ATTEST
Lisa Sherrick
Assistant City Clerk
I, LISA SBERRICK, Assistant City Clerk of the City of West Covina, California, do
hereby certify that the foregoing Resolution No. 2022-86 was duly adopted by the City Council of
the City of West Covina, California, at a regular meeting thereof held on the 16th day of August,
2022, by the following vote of the City Council:
AYES:
NOES:
ABSENT:
ABSTAIN:
Lisa Sherrick
Assistant City Clerk
EXHIBIT A
BUDGET AMENDMENT
BA # 088
CITY OF WEST COVINA
Posted By:
BUDGET AMENDMENT
Date Posted:
Date:
08/16/2022
Fiscal Year:
2021-2022
Requested by:
S. Sikkema
Amount:
6,387,600
Dept/Div:
Finance
Description:
Perliminary adjustments based
on end of year actuals to -date.
EXPENDITURES
Account Number
Dept/Account Description
Current Budget
Proposed
Amendment
Amended
I Budget
Fund 110, General Fund
110.32.3210.5110
Sworn Full Time Salaries
7,019,200
211,000
7,230,200
110.32.3210.5113
Overtime Salaries
2,450,000
900,000
3,350,000
110.32.3210.5129
Mutual Aid Overtime
900,000
70,000
970,000
110.32.3210.5151
Workers' Compensation
562,900
270,000
832,900
110.32.3210.5156
Retirement - Safe
1-1-5 12-
700
288,000
11800,700
110.32.3210.5160
Retiree Medical Benefit
550,000
195,000
745,000
110.31.3130.5110
Sworn Full Time Salaries
1,293,400
450,000
1,743,400
110.31.3130.5113
Over Time Salaries
402,600
115,000
517,600
110.31.3130.5151
Workers' Compensation
121,700
45,000
166,700
110.31.3130.5156
Retirement - Safety
240,000
127
000
367,000
110.31.3130.5180
Leave Lump Sum
-
66,000
66,000
110.31.3116.5113
Over Time Salaries
183,100
150,000
333,100
110.31.3110.5160
Retiree Medical Benefit
1,230,000
121,000
1,351,000
110.31.3125.5111
Full Time Salaries
30,900
11,000
41,900
110.32.3230.5180
Leave Lump Sum
-
3,1000
3
000
110.31.3120.5110
Sworn Full Time Salaries
6,407,100
(230,000)
6,177,100
110.31.3121.5110
Sworn Full Time Salaries
438,700
(220,000)
218,700
110.14.1410.5112
Part Time Salaries
-
30
000
30,000
110.14.1410.5113
Overtime Salaries
-
30,000
30,000
110.11.1120.5111
Full Time Salaries
304
500
85
000
389,500
110.61.5110.5160
Retiree Medical Benefit
13,000
13
000
110.61.4140.5125
Vacation Buy Back
-
5
000
5,000
110.61.4140.5152
Health/Flex Benefit
6,600
3,000
9,600
110.61.5150.5113
Over Time Salaries
9,700
10,000
19,700
Subtotal Salaries & Benefits
2,748,000
110.32.3210.8105
Fuel Usage Charges
109,200
75
000
184
200
110.31.3130.8105
lFuel Usage Charges
70,000
50,000
120,000
110.71.4120.8105
jFuel Usage Charges
5,000
5,000
10,000
Subtotal Fuel
130,000
110.71.4120.6120
Other Contractual Services
1,440,000
839
000
2,279,000
110.71.4130.6110
Professional Services
96,100
600
000
696
100
110.71.2110.6110
Professional Services
80,000
23,000
103
000
110.13.1310.6120
Other Contractual Services
14,400
100,000
114
400
110.14.1410.6110
Professional Services
125,000
40,000
165,000
110.14.1410.6111
Legal Services
100,000
55,000
155,000
Subtotal Contractual Services
1,657,000
110.61.5110.8104
Vehicle Maintenance Charges
1,800
12
000
13,800
110.61.4140.6142
Electricity
50,000
3,000
53,000
110.61.4140.6143
Water
ISupplemental
8,000
3
000
11,000
110.95.9500.9361
Transfer Out
-
700,000
700,000
110.13.1310.5168
Retirement Plan
2,362,000
889,000
1,473,000
Total General Fund
4,364,000
122.61.5142.8105
Fuel Usage Charges
35,400
12,000
47,400
122.61.5120.5113
Over Time Salaries
-
1
000
1,000
122.61.5120.5125
Vacation Buy Back
-
3
000
3
000
122.61.5120.5180
Leave Lump Sum
-
2000
2,000
122.80.7006.7800
Street Light & Traffic Signal
-
116
000
116,000
18040.122.7800
Traffic Signal Cameron/Barranca
Subtotal Fund 122, Prop C
134,000
124.61.4150.6142!Electricity
163
900
30
000
193
900
124.71.4131.6110
jProfessional Services
1 71
400
6,000
77,400
Subtotal Fund
124, Gasoline
Tax
36,000
Account Number
Dept/Account Description
Current Budget
Proposed
Amendment
Amended
Budget
131.80.7004.7700
CIP Park
100 000
100,000
21035.131.7700
Friendship Park Improvements
145.71.4182.6120
Other Contractual Services
115,700
3,000
118,700
155.31.3120.5113
Over Time Salaries
-
50,000
50,000
160.80.7001.7500
Buildings
-
125 000
125,000
22028.160.7500
City Hall Entry Signs
-
224.61.4153.6130
Service Contracts
588,300
6,000
594,300
233.31.3130.5113
Over Time Salaries
-
29,600
29,600
300.13.9000.6426
Ongoing Bond Costs
8,500
5,000
13,500
361.15.1520.6419
Claim Paid
1,750,000
500,000
2,250,000
363.15.1510.6419
Claim Paid
1,228,800
300,000
1,528,800
363.95.9500.9361
Transfer Out
-
500 000
500,000
Subtotal Fund 363, Workers' Comp
800,000
365.61.4170.6485
jFuel Usage
600,000
200,000
800,000
820.71.2210.5182
JPER5 UAL Pmt - Miscellaneous
-1
35,000
35,000
TOTAL EXPENDITURES
32,686 600
6 387 600
39 074 200
REVENUES
Account Number
Account Description
Current Budget
Proposed
Amendment
Amended
Budget
110.00.4014
Residual/Excess Tax Increment
2,300,000
1,300,000
3,600,000
110.71.4614
Plan Check Fees
475,000
2,324,000
2,799,000
110.00.4110
Sales And Use Taxes
22,800,000
100,000
22,900,000
110.00.4580
Prop A Exchange
1,710,000
390 000
2,100,000
110.32.4609
Ambulance Services
2 300 000
250,000
2,550,000
Subtotal Fund 110, General Fund
4,364,000
122.61.4110
Sales Tax
1,890,200
300,000
2,190,200
122.61.4535
lGrants From Other Agencies
-
116,000
116,000
Subtotal Fund 122, Prop C
416,000
155.31.4521
State Grant
205,002
55,000
260,000
361.00.9110
Transfer In
700,000
700,000
361.00.9363
ITransfer In
1
500,000
500,000
Subtotal Fund 361, Self Insurance Genrl/Auto Liab
1,200,000
365.61.4780
Interfund Charges - Fuel
600,000
200,000
800,000
224.61.4110
Sales Tax
1,331,700
6,000
1,337,700
233.31.4540
County Grants
176,800
29,600
206,400
300.00.4410
Interest Income
20,000
51000
25,000
363.15.4760
Interfund Charges
1,753,000
1 130,000
1,883,000
TOTAL REVENUE
35,561,700
6,405,600
41,967,300
APPROVALS
City Council Approval Date (if required, attach minutes):
Dept Head Approval:
Date:
Finance Director: Date:
Funds Available? ❑ Yes ❑No
City Manager: Date:
❑ Approval Not Required