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Appropriation Adjustment for Graffiti Abatement Services <br />and Reduction in Enterprise Fund Assessment <br />September 20, 2016 <br />Page 2 <br />Sanitation Fund <br />As a best practice the City periodically reviews expenditures incurred by its Enterprise operations <br />including the Sanitation Fund. Through a recent review, it was determined that Graffiti <br />Abatement services throughout the City including Public -Use Park facilities may be funded by the <br />City's General Fund. <br />Upon consultation with Public Works Agency, it was determined $1,200,000 in expenses are <br />attributable to Graffiti Abatement within the Sanitation Fund accounting unit (Graffiti <br />Abatement/Street Cleaning) totaling $1,601,440. Staff recommends the service to be continued; <br />however expenditures incurred since July 1, 2016 should be recorded and correspondingly <br />funded by the City's General Fund for an amount totaling $1,200,000. The balance in <br />appropriation related to the accounting unit (Graffiti Abatement /Street Cleaning), in the amount of <br />$401,440, will be funded within existing Sanitation Fund accounting units. <br />Funding <br />As a result of the reduction in assessment and reclassification of expenditures to the General <br />Fund, staff has identified the projected fiscal year 2015 -16 General Fund surplus as the funding <br />source for these initiatives and to address the related impact to the General Fund. The year -end <br />surplus is largely as a result of earlier than anticipated receipt of Sales Tax - Triple Flip revenues <br />from the State of California. Upon certification of the Audit Opinion in December 2016, Staff will <br />present the proposed Surplus spending plan projected for fiscal year 2015 -16 identifying the <br />funding sources and related amounts. Approval of this item will reflect inclusion of the Graffiti <br />Abatement Services within the proposed FY 2015 -16 surplus spending plan. <br />STRATEGIC PLAN ALIGNMENT <br />Approval of this item supports the City's efforts to meet Goal #4 — Maintain a stable, efficient and <br />transparent financial environment. <br />FISCAL IMPACT <br />Water Fund Assessment from the General Fund <br />Funds budgeted and available, in the amount of $2,388,082 will be reduced in both the Water <br />Enterprise Operating Expenses — General Fund Overhead (06017642- 65500) and also reduced <br />in the General Fund Miscellaneous Revenues account no. - (01117002- 57791). <br />20A -2 <br />