TO:
Honorable Mayor and Members of the City Council
THROUGH:
Mark Danaj, City Manager
FROM:
Bruce Moe, Finance Director
Tony Olmos, Public Works Director
Henry Mitzner, Controller
Libby Bretthauer, Financial Analyst
SUBJECT:Title
Fiscal Year 2016-2017/2017-2018 Operating Budget and FY 2017-2021 Five Year Capital Improvement Plan: Final Direction in Advance of Public Hearing and Adoption on June 21, 2016 (Finance Director Moe/Public Works Director Olmos).
DISCUSS AND PROVIDE DIRECTION (CONTINUED FROM JUNE 7, 2016 REGULAR CITY COUNCIL MEETING)
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Recommended Action
RECOMMENDATION:
Staff recommends that the City Council provide final direction on the FY 16-17/17-18 Operating Budget and FY 2017-2021 Capital Improvement Plan in advance of the Public Hearing on June 21, 2016.
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FISCAL IMPLICATIONS:
The City’s fiscal year 2016-2017 Proposed Budget includes expenditures across all funds totaling $114,280,733. The General Fund is balanced with revenues of $67,822,465 and expenditures of $67,250,989 resulting in a projected surplus of $571,476. These funds are available for further allocation (one-time and on-going) by City Council.
The Proposed fiscal year 2017-2018 Budget includes expenditures across all funds totaling $133,108,379. The General Fund is balanced with revenues of $70,233,976 and expenditures of $69,607,107 resulting in a projected surplus of $626,869. These funds are also available for further allocation (one-time and on-going) by City Council.
BACKGROUND:
City Council has held three Budget Study Sessions to date (May 5, 23 and 31). Through those meetings, staff provided answers to the Community’s and City Council’s questions, and provided supplemental information as requested.
Tonight’s meeting is designed for City Council to direct final changes to the proposed budget and Capital Improvement Plan. Those changes will be reflected in the resolutions which will be presented for Council adoption at the June 21st public hearing during the regular City Council meeting.
DISCUSSION:
The City’s Proposed Budget is available on the City’s website at:
www.citymb.info/ProposedFY17BiennialBudget
Budget presentations and other documents are also available on the City’s website at:
www.citymb.info/city-services/finance/budget-and-accounting/2016-2018-budgetdevelopment <http://www.citymb.info/city-services/finance/budget-and-accounting/2016-2018-budgetdevelopment>
Information on the following items was requested at the May 31st Budget Study Session:
Q: How much Manhattan Beach property tax revenue does Beach Cities Health District receive annually?
BCHD receives $.00888 of every property tax dollar. For FY 2015-2016, this equates to approximately $1.36 million (this amount is gross and excludes any delinquencies from non-payment of property taxes).
Q: How much money has been allocated to Management/Confidential salary adjustments for FY16/17 and FY17/18?
The Management/Confidential merit pool for FY16/17 is based on the same 2.23% cost of living adjustment (COLA) in the Teamsters Memorandum of Understanding (MOU). This equates to $210,694. The FY17/18 amount for Management/Confidential, also based on the Teamsters MOU COLA of 3%, totals $291,012. These amounts are included in the annualized total cost of salary adjustments across all groups of $747,420 in FY16/17 and $1,006,614 in FY17/18. It is important to note that these costs include base wages, plus any costs directly related to salary increases such as pension contributions (adjusted by projected rate changes), Medicare, etc.
Q: How does the City of Manhattan Beach compare with other cities in the Stanford University Pension Report?
Staff has obtained the Stanford database utilized to create the report, which includes Manhattan Beach data. Staff will provide a comparison report as soon as possible in advance of the June 7 City Council meeting.
Other requests for which staff will report back to City Council as soon as answers are obtained include:
1. Explore possible grant funding opportunities for the Sepulveda Boulevard Specific Plan
2. Determine if Beach Cities Health District provides funding of similar Older Adults Coordinator positions in other cities
3. Return to City Council at a future date with an update on the Information Systems Master Plan, including expenditures
Tonight’s meeting is designed for City Council to direct final changes to the proposed budget and Capital Improvement Plan. Staff will memorialize all changes and incorporate such modifications in the resolutions presented for Council adoption at the June 21st public hearing.
PUBLIC OUTREACH/INTEREST:
Further questions and comments may be sent to Budget@citymb.info <mailto:Budget@citymb.info>.
ENVIRONMENTAL REVIEW:
Not Applicable.
LEGAL REVIEW:
Not Applicable.