HomeMy WebLinkAbout65B - 1ST QUARTER BUDGET UPDATEREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
NOVEMBER 21, 2017
TITLE:
RECEIVE AND FILE — FISCAL YEAR 2017-18
FIRST QUARTER BUDGET UPDATE;
APPROVE APPROPRIATION ADJUSTMENTS;
ADOPT A RESOLUTION TO AMEND THE
BUDGET TO ADD TWO POSITIONS; AND
RECEIVE AND FILE BUDGET PRINCIPLES.
(STRATEGIC PLAN NO. 2, 4; 4, 1; 3, 3)
'CIV MANAGER
RECOMMENDED ACTION
CLERK OF COUNCIL USE ONLY:
APPROVED
❑ As Recommended
❑ As Amended
❑ Ordinance on 151 Reading
❑ Ordinance on 2nd Reading
❑ Implementing Resolution
❑ Set Public Hearing For
CONTINUED TO
FILE NUMBER
1. Receive and file fiscal year 2017-18 First Quarter Budget Update. (Exhibit 1)
2. Approve an appropriation adjustment of $10,000 for the marketing of a youth internship
program.
3. Approve an appropriation adjustment of $420,000 in building permit and plan check revenue
and New Construction personnel and related expenditures to fund inspection positions.
4. Adopt a resolution to amend the budget to add two Combination Building Inspector
positions. (Exhibit 2)
5. Receive and file the Administrative Guidelines that identify the Budget Principles to be used
in preparing fiscal year 2018-19 Operating Budget. (Exhibit 3)
DISCUSSION
On June 6, 2017, the City Council directed staff to present an update on year-end results for FY
2016-17 along with a quarterly fiscal review for FY 2017-18, for the General Fund, and an update
on current citywide vacancies. Staff has also included Budget Principles outlining how the
Finance and Management Services Agency (FMSA) will use these principles when developing the
City Budget.
In addition, during the course of continued discussions with the Planning and Building Agency
(PBA) it was determined the City would be in receipt of additional Plan Check and Permit
revenue(s). As a result of the increase in revenue projections by PBA, a request has been made
6513-1
Fiscal Year 2017-18 First Quarter Budget Update
November 21, 2017
Page 2
for additional staff to assist in streamlining the development process as well as to assist with the
increased demand. PBA has determined the increase in revenue to be derived from the following
projects:
CURRENT LARGE PROJECTS IN ENTITLEMENTS - FUTURE PLANCHECK PROJECTS
PROJECT
Legado at the Met - 284 unit multifamily project
The Madison - 219 unit mixed use multifamily project
2222 E. First St. - 443 unit senior housing facility
Tom's Truck Residential Development
Shea Homes - 2001 W. MacArthur Blvd. - 42 single family homes
AMCAL Housing - Residential project 64 affordable housing units
AMG - Residential project 694 affordable housing units, mixed use
Eight Eight 8 - 888 N. Main adaptive reuse project
Hampton Inn - 2129 N. Main New 6 -story hotel
Wermer's Properties Elks Site - mixed use 601 -unit residential
666 Dyer - Shea Commercial Division 493,000 sq. ft. new industrial
Bridging the Aqua 317 E. Seventeenth St. 56 affordable housing units
Elk's Lodge 1701 E. St. Andrew PI.52,720 commercial building
FY 2016-2017 General Fund Overview and Year -End Results
During fiscal year 2016-2017, the City experienced significant impacts to the general fund
operations budget. In September 2016, City Council approved a reduction in the assessment from
the Water Enterprise Fund to the General Fund by approximately $2.4 million. Additionally, the
City approved nearly $1.2 million in General Fund expenditures for Graffiti Abatement Services.
Other major impacts include the termination of the jail rental contract for U.S. Immigration and
Customs Enforcement (ICE) detainees in February 2017. The action resulted in a revenue
reduction of nearly $1.5 million. Furthermore, the City Council approved funding for Civic Center
Security enhancements and along with the City's portion of construction for the Orange County
Animal Shelter which totals approximately $1.5 million.
On May 2, 2017, the City Council received a preliminary update regarding the projected year-end
(FY 2016-17) General Fund results. At that time an operational deficit of $2.2 million was
projected.
However, after finalizing year end expenditures along with revenues received, the General Fund is
currently projected to incur a deficit of $390,475. The reduced deficit is due in part to higher than
anticipated revenues collected in the fourth quarter from Residual monies (from the former
Redevelopment Agency) in the amount of $1.2 million, Permits of $275 thousand and Zoo
admissions of $138 thousand. Overall, general fund revenues were at 98.7% of budget and
expenditures were at 98.9% of budget. A final audit opinion of all of the City's finances will be
65B-2
Fiscal Year 2017-18 First Quarter Budget Update
November 21, 2017
Page 3
issued in December 2017, affirming the projected General Fund fiscal year 2016-17 operational
deficit.
CURRENT FINANICAL TRENDS FOR FISCAL YEAR 2017-2018
Since fiscal year 2012-2013, general fund revenues have increased on average by 2%. While the
"Top Six" general fund revenues have increased by 4%, other department revenues have primarily
remained unchanged. Furthermore, general fund expenditures have risen by 4% due to increasing
salary and benefit costs such as retirement and medical contributions.
As a result of some of the budget adjustments, along with the fact that revenues have been
growing at a slower rate than expenditures, the projected deficit for FY 17-18 climbed to $9.3
million. However, recent decisions have resulted in improving the City's overall budget outlook.
On August 1, 2017, the City Council approved terms and conditions with the US Marshals to
increase additional bed space over a two-year period. The projected result is a net positive impact
of $4 million during the current fiscal year.
Furthermore, on October 17, 2017 the City Council conducted a public hearing to adopt an
ordinance allowing for the regulated adult use/retail sales and expansion of cannabis commercial
activities. Upon adoption of the ordinance, an estimated range of projected net revenues (less
enforcement and prevention plan expenditures) is $3 million to $6.75 million.
Additionally, the City has successfully concluded negotiations with one bargaining unit (Police
Officers Association) with an estimated cost of $2.7 million. Currently the City is in negotiations
with the remaining bargaining units and as a result does not have a final figure for additional costs
that may occur.
The implemented actions noted above have resulted in an improved general fund financial position
specifically, Staff projects a budgetary deficit of $600,000 for fiscal year 2017-2018, instead of the
original projected deficit of $9.3M.
FISCAL YEAR 2017-2018 General Fund: 15t Quarter Update
General fund revenues collected during the first quarter (July — September) amounted to $22.6
million. This amount represents 10% of the general fund budget and is slightly below the first
quarter trend by 1%. While Sales Tax and Property Tax continue to demonstrate growth, the
City's Utility User Tax still remains impacted primarily in electric utility. The impact is attributed to
reduction in consumption due to cooler weather, and the Cap -and -Trade Program, while costs to
produce electricity remain low.
The'Business Tax on medical marijuana has displayed signs of improved growth largely resulting
from City Council directives allowing for the opening of additional operating dispensaries and
recent changes to the ordinance (signage, hours of operation, delivery services, etc.). Currently,
there are two additional dispensaries that are in the process of obtaining a business licenses which
will bring the total of dispensaries operating within the City to nineteen.
L•
Fiscal Year 2017-18 First Quarter Budget Update
November 21, 2017
Page 4
In general, overall first quarter expenditures exceeded last year's expenditures by $1.8 million or
3%. This is largely attributable to increases in labor costs (salaries, retirement, and medical costs).
Expenditures will continue to be monitored throughout the fiscal year.
Soliciting Cost Saving/Revenue Generating Ideas
City staff has solicited input from City employees on revenue enhancement and cost saving ideas
and strategies. The result of this input has been a plethora of ideas that are both short term and
long term solutions. These strategies are continuing to be reviewed. However, implementation of
some of the revenue ideas will require additional analysis and evaluation to determine their
feasibility. The employee provided ideas include the sponsorship of parks, recreation
centers/facilities, and recreation events; advertising revenue on various city electronic signage;
and advertising and potentially marketing of the City logo on merchandise (cups, hats, etc.)
through a design competition.
Youth Internship Program
Additionally, the City is partnering with the Santa Ana Unified School District to market a youth
internship program to the local business community. This program will provide opportunities for
youth to gain valuable work training and experience to prepare them for the future. The additional
$10K appropriation will be used to cover printing and mailing costs.
FISCAL YEAR 2017-2018 Vacancy Status
The City has a net total of 42 citywide vacancies across all city funds residing mostly with the
Police Department. However, the Police Department has been actively recruiting for Police
Officers. At the September 12, 2017 Public Safety, Code Enforcement & Neighborhood
Empowerment Council Committee meeting, the Police Department reported that its recruiting
efforts have resulted in 21 new hires since January with a projected 14 new hires for the remainder
of the calendar year.
BUDGET PRINCIPLES
As part of the discussion on the fiscal year 2017-2018 budget adoption, Council directed staff to
prepare budget principles to establish guidelines for the budget process.
Some of these principles have been incorporated in the City's Financial Policy. The City Manager
will review and prepare a final draft of these administrative guidelines (Exhibt 3) for City Council
approval. The following is a listing of the current budget principles:
CITY OF SANTA ANA BUDGET PRINCIPLES
Structurally Balanced Budget
Multi -Year Forecasting.
Use of One -Time resources
Established Reserves
Debt Issuance
Employee Compensation (Negotiations)
Fees and Charges
L.
Fiscal Year 2017-18 First Quarter Budget Update
November 21, 2017
Page 5
Capital Improvements Projects
Grants
Performance Measures (Program funding)
CITYWIDE DEVELOPMENT ACTIVITY
Disparity Between Development Growth and Staffing Levels
Development activity in the City has been increasing since 2011 and data suggests it will continue
to do so for the foreseeable future. The upward trend in development is evident by the steady
increase in Building Safety revenues from fees for service, which have increased by over ninety
percent (90%) since FY2012-13. This has caused an increased demand for plan check and
building Inspection services. However, the Building Safety expenditure budget has only increased
by twenty-six percent (26%) since FY 2012-13. The net increase in positions performing plan
checks and inspections from FY 2012-13 to FY 2017-18 are two positions, which are not sufficient
to sustain the current demand for service.
The Negative Effects of Insufficient Staffing
■ Overall delayed construction timelines, which is particularly detrimental to medium to large
commercial, industrial, or mixed-use projects as delays drive up construction costs and
delays revenue to the general fund.
• Constant service requests by developers for expedited inspections or dedicated inspectors
for their projects, which is currently non-existent other than through in-house staff overtime,
which is unsustainable.
■ Rogue construction due to contractors not able to afford waiting for inspections that will
have life -safety implications and will necessitate costly future remediation.
• Reduction in the quality of inspections due to unrealistic staff workloads.
Industry Standard vs. Current Service Level
• Standard plan check service turnaround time is fifteen (15) business days, service levels
prior to recent supplemental contracted services have increased to thirty (30) to forty (40)
business days.
• Standard building inspection service turnaround time is 24-hour or next -day service, current
service levels have eroded to as much as three (3) weeks.
Recommended Action
Applying a conservative approach, the current recommended action is to add two additional
Combination Building Inspector positions starting January 2018 and appropriation of funds into the
Planning and Building, Building and Safety Division, contractual account. The additional staff and
funding will help increase response time, reduce backlog in inspections and plan check services,
and provide service levels that are closer to the Service Sustainability Model.
STRATEGIC PLAN ALIGNMENT
Approval of this item allows the City to meet Goal #4 - City Financial Stability, Objective #1, (Maintain
a stable, efficient and transparent financial environment) and supports Goal #3 - Economic
L•
i
Fiscal Year 2017-18 First Quarter Budget Update
November 21, 2017
Page 6
Development, Objective #3 (Promote a solution -based customer
development and investment in the community).
focus in all efforts to facilitate
FISCAL IMPACT
Approval of the appropriation adjustment will transfer $10,000 to the Community Development
contract services account (no. 05218018-62300). Approval of the appropriation adjustment will
recognize $420,000 in various permit and plan check revenue accounts and appropriate $420,000
for various, personnel, contractual and other related expenditures as follows:
FY2017-18 REVENUE BUDGET
Accounting Unit
Account
Description
Revenue Change
01116002
51601
Building Permits
$ 124,315
01116002
51602
Plumbing Permits
$ 30,534
01116002
51603
Electrical Permits
$ 56,667
01116002
53600
Heating Permits
$ 37,809
01116002
53600
1 Building Plan Check
$ 138,811
01116002
53601
Electrical Plan Check
$ 14,197
01116002
53602
Plumbing Plan Check
$ 6,310
01116002
53603
Mechanical Plan Check
$ 11,357
$ 420,000
FY2017-18 EXPENDITURE BUDGET
Accounting Unit
Account
Description
Appropriation
01116520
61000
Salaries
$ 150,283
01116520
62000
Contractual
$ 217,049
01116520
63000
Commodities
$ 1,667
01116520
65000
Fixed Charges
$ 4,001
01116530
62000
Contractual
$ 47,000
GC
Candida Neal
Acting Executive Director
Planning and Building Agency
�l
Edward Raya
Executive Directo
Personnel Services Agency
$ 420,000
APPROVED AS TO FUNDS AND ACCOUNTS:
Francisco Gutierrez E&
Executive Director
Finance and Management Services Agency
Fiscal Year 2017-18 First Quarter Budget Update
November 21, 2017
Page 7
Exhibits: 1. Fiscal Year 2017-2018 First Quarter Budget Update
2. Classification and Compensation Resolution
3. Budget Principles
65B-7
1
0
C
N
(3)
•_
a�
v
O
ami
CES
0
m
CL
c
E
<LLLL
>
�
=3
-->,
Q
W
=3
a
c
E
c
c
Q)C
N
u
Q
D
==
M���
mcDiD>
a
c
m
a°
LL
cis
70
W
(
a
}
U
Co
T-4
CV
70
Q
�
O
0
n-
�
O
N
LL
>
O
LL
0
ear. n
x
�
i
N
(3)
•_
a�
v
O
ami
CES
0
m
CL
c
E
<LLLL
>
�
=3
-->,
Q
W
=3
a
c
E
c
c
Q)C
==
M���
mcDiD>
a
c
m
a°
ear. n
x
I
LL
0O
5.
Nk
q* O Ln
Ln
� 00 rn
01 M PA
Ln l0 v
N N
N N
O N N
O l0 Ln _
rl m N U
M r� R* z
MLO N ZI
O
N N w
U
Q) o
v
c
m v N
m m
04
c a o
a L
L O "-•
CL
O �C
04 N
c @
LLI O N U
� O
a) G O
. h 41
sdl Z m
LA 2 lL
G1'
i c0
7
cu
> Q. «
) X
OC W
a
Z
rT,
F+�I
Q
O
Z
^�
Q
Ln
LL
D
O
}
H
U
W
q* O Ln
Ln
� 00 rn
01 M PA
Ln l0 v
N N
N N
O N N
O l0 Ln _
rl m N U
M r� R* z
MLO N ZI
O
N N w
U
Q) o
v
c
m v N
m m
04
c a o
a L
L O "-•
CL
O �C
04 N
c @
LLI O N U
� O
a) G O
. h 41
sdl Z m
LA 2 lL
G1'
i c0
7
cu
> Q. «
) X
OC W
I
LL
0
9
m E
O
r
N
N
cq
O
N
N
d'
CU
N
N
H
N
06
O
N
>- L)
LL Q
M
GV N m
O 6) r Y
N r Q
LL
Q 0 It M N O cm Q �
N N N N N r
SLiOIiii�
P�
Im
LU
r
f]
z
LU
M
x
w
N
w
z
w
w
a�
.LO
LL m N
7 3 N
v �
o O
6)
LL
>
p = v
7OR
O
o v CD
L M
+' O
� � N
CN
c �
v
o
o > LL
41 C N
v
> N N
ra > w
c O
O
7
LL
a
z
a
LL
0
F-
u
C)
W
VT
75
N
Q>
z
O
�
.
�
�
O
�
�
O
O
�
o
0
�
d
C:
IZ-
NO
O
._
-a
a
O
+'
U
},
U
co
m
O
�
U
�
~
(
C
L
X
C.
N
Z)
C ,
•n
O
C
N
O
O
+�
C
Q
N
L
C)
VT
z
o
0
�
d
._
a
O
�
z
•t
•
•
N
m
N
N
N
k.p
fYl
d
N
L1
X
W
M
ei
C
C
Ln
c
•- N i/}
-0 U
O
Q �O M
L C O
�O O N
m —
\
_
•
V
E
L
C-
O
u
L
Q1
X
M
O
�
m
�
•
o
Y
L n
"6 L?
@
O M
0 0
aM?
u --
O
6
v
v
t
Y
u
U
3
C
C
C
C
VI
:n
QJ
"
Q Ln
d
N
O
m n
3.6
C
N
O
Y i/}
Ol
N
�
m
O
N
N
O
ri
N
•3
fy1
m
ri
o
a,
C3
>
tw
a
to
z
m
O
m
*
O
•�,
�Gl
O
m
a+
Q
O.
L
H U
4
G
..
0
++
3 v
.•
C
p
J2
C
Q L
L
s
a
a
•
LLi
ati0i
Li
N
U
'
z
•
i
L
f0
L
C
= �
O
r
r
C p
-i
V)a°
=
a
.y-
co
a,
4
oi
d N N
N
N
a�
T d
N ``,N
r
} m
LL
`
N
N
� U
Q
W
LL
LU
W
V1
D
Q
O
fD
F-
~
Z
O
W
N R
Q
Z
Q
�
N
'Hr4 1-1
N
•
r .�.
}
W
a
Q
LLQ
W
Z
a
Q
N
N
o
LO (n
T
R
fn
Ll-
o
0 o
N
C) •
N
r .�.
LLa
W
Z
}
LU
w
_
�1T
u
N
Ln
• TQ
1
VL
N
>-
LL
a
M
N
r
Ln
T,
m R
N ® r
r1lO
Q } Q
LL
0 LO �
Cl)
N
r
O a)
N N N
N
N
N
N r
suoll A
a
z
a
LL
O
w
A
z
w
w
:Z)z
w
w
x
E-4
In ;01� M
d
W
G1
x
N
F
C
M
�o
W1
m
to
O
I
m
C)
O
V
7
O
D^1
D^j
On
cy
a
01
00N
a
n
00
N
Q
h
01
N
to
M
O
•
V.l
Q
to
O
^Wl
to
00
m
T^
LL
O
u1
O
N
U
T^JO
1 tM�1
I�
u V
J�J
1�
A0A'
V V
01
O
L !1
n
E-4
In ;01� M
d
LW
G1
x
N
F
C
M
�o
,n
m
to
O
m
O
7
7
O
D^1
D^j
On
cy
01
00N
m
n
00
N
Lo
01
N
to
M
O
tD
V.l
to
O
tD
00
m
0)
00
u1
O
N
01
O
L !1
n
O
Q^1
O
O
O
O
O
Ln
O
ZF
O
O
O
;F
to
O
-Zt
00
n
O
m
n
M
m
V1
I-
00
01
M
Lf1
O
Z
r-
Dj
V
O
N
Lf)
m
N
D1
N
LW
G1
x
N
F
C
m
O
F-
t t
CLC
7
7
O
LW
m
C5
Ln
0
Y
co
3
O
0
ao
LL
Q
00
CYS
co
I
O O
suoill1w
O
cq
00
rl y
gi
W W
y
0
�
O
Q0 z
y
L
m
cq
�m b
�cc 00
v c
>4 0.1
w
I
GVN ca
CD
i�
Y LO00
H
Go L'i
w
1-1 O C', c -N
IL
Cd
00
• rU-1 V M
L�
m ..- �
I 00 (y c00 X0
o
Q E
r y H
rr�I,
Q \ � N ^�• 6
Z ` W
Q OO O O O O O O O O
Q J O o0 c0 d� 0 OOi 1117 MCD
`(•TVS M N N N N N
Ospuesnogy
Z spuesnoyl
co
Q �
go
Jy
11 1�
0
N co wcd LO
+I LO y
� ■ �jry1 � /V m ■ ti U ,y�
Cd fsl d WPI
Oko00
r y
00 r'
a cE . bJD
M
w > ci y
�i of .: '•i o o cOo � � � o
spuesnoyl
spussnogy
�rYa
N o 00 l0 00 o W 00 I� V m V1 t!1 .+
lD Ol Vf W °1 M V O a °1 CO Ol N O
M O O rl W n N VI M O a W M 00
N �l1 N 4° O Vl 1p N u1 Op I� ti V N
ill 00 N V1 M O M N O 00 N O N l°
N N
ill V1 m .+ M °1 00 O CO M tl1 l0 O '+
V N N Ol Il1 Ol O rl O M ri O N V
�O �!1 Lr �D
iD eti l0 N Vl N V V a M °i
U
_
a
m Y
a Q c
u a
C
C N Oa0 a Y
t 7 O
E°° m a y r a m Q O o
> a
m a = a a D y c 3 = a
u Z u u O.
m m a 'u a 73 E
M V F
fi,
'O'^
O
vl
•1�
1�1
''^^
Ch
O
C
vl
Q
Q
LL
O
r --I
OPLO
U
�I
tii
O
v^IV,
1�
�rYa
N o 00 l0 00 o W 00 I� V m V1 t!1 .+
lD Ol Vf W °1 M V O a °1 CO Ol N O
M O O rl W n N VI M O a W M 00
N �l1 N 4° O Vl 1p N u1 Op I� ti V N
ill 00 N V1 M O M N O 00 N O N l°
N N
ill V1 m .+ M °1 00 O CO M tl1 l0 O '+
V N N Ol Il1 Ol O rl O M ri O N V
�O �!1 Lr �D
iD eti l0 N Vl N V V a M °i
U
_
a
m Y
a Q c
u a
C
C N Oa0 a Y
t 7 O
E°° m a y r a m Q O o
> a
m a = a a D y c 3 = a
u Z u u O.
m m a 'u a 73 E
M V F
fi,
CA
EMA
otFM4
CA
W
a
z
O
Q
N
Q
I
ZLL
�
"
r-1
0
a
0
}
N
w
CA
EMA
otFM4
CA
v
F
c -I r -I O N N 1!1 O O� O Mr -I IN
it
M 0) 00
Ln
00
N OON LOIN
M Ln
rn
c -I Ql O lD ci l M
c- a-1
r
11 O N I,
m
N I� M n lD
lD ci
' O
N
a)
E
QN ci ci Ln O
M
u
d
�/�
V1
O
H {(
U
L
M
r- O O O l0 q V1
Z >
Qa)
Q
�
MN c -I .-i0
O
a
>
Z
N
U
U
'a0
0,04a+
v 0 O 1I1 * n
Y b ci c -I Ln
p c -I
CL
='
O
LL
O
W
W
T
}
OH
0
v
0
v
uou
U
u
vV
T
on
it
M 0) 00
Ln
00
N OON LOIN
M Ln
rn
c -I Ql O lD ci l M
c- a-1
r
11 O N I,
m
N I� M n lD
lD ci
' O
N
a)
�/�
V1
U
L
JJ
�i
C
a)
N
Oa)
U
U
—_
CL
='
O
T
Fy
0
0
v
0
v
uou
U
°c_°
aC)
T
on
r
V)
V1
T
aj
0
U
a)
M
>
C
F"
c
L
cn
-
:3
C
i
m
i
Q
V)
W
�p
coco
co
v
Q
a)
0
Q
C
O
C
Q
u
U
U
U
O
U
LL
-C:
vLO
d
d
O
d
af
a
7
tl
a)
U
C
@
U
h
U --j
co
O U 0 O
CL
U a @ O N
a° '0
ti
@ @ U N
0 0 a o
O h 0 N
E Q @ U Q
5,n m 0
Q) °=U�
aCOf -l)
)
o Q
f
X
a
z
a
a
z
a
LL
O
0
z
<
<
z
LL
0
A
PLO
Cd
m
m pio
a)o
DP4
�
a)
Cl) �
O
� O
U
O a)
cd a'
U
dN U
T- �
00
"m w
s4 o
Q
U
CO cd
4] �
cz
c
"rl)
a)
U
cz
a�
a�
m
o
�
cd
m
m
U
m
o
O
o
R$
cli
r
cq
06
r"
~
�+
4-j
C11
CZ
V
o
O
00
cd
v
!�I
�+
w
o
o
°c"cooc
W
o
O66
0�
CO
f�
C',
�
�11�
W
m
o
0
cd
b
aio
w
a)a�m
aoi
v
(a)
m
Cd
o
0
0
y
m
o
W
cid
ti
�"
bD
4
N
O
LO
cq
Oto
+�
.
a
o
�
�
Cd
O
�"
�
O
o
o
�-
O
o
�LOcoC
U
cq
a
a
o6S
o
4
cdCd
w
�
o
�00mo
F�
o
��
���au
U
Cd
oOC)
0
in
QED
Cd
m
m pio
a)o
DP4
�
a)
Cl) �
O
� O
U
O a)
cd a'
U
dN U
T- �
00
"m w
s4 o
Q
U
CO cd
4] �
cz
c
"rl)
a)
U
cz
a�
a�
m
EXHIBIT 2
LR 11.21.17
RESOLUTION NO. 2017 -XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SANTA ANA TO AMEND THE CURRENT ANNUAL BUDGET
TO ADD TWO COMBINATION BUILDING INSPECTOR
POSITIONS IN THE PLANNING AND BUILDING AGENCY.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS
FOLLOWS:
Section 1: The City Council hereby finds, determines and declares as follows:
A. On July 5, 2017, the City Council passed and adopted Ordinance No.
NS -2919, establishing the City's Annual Budget for Fiscal Year 2017-2018
and authorizing position allocations for Fiscal Year 2017-2018. The
Ordinance also sets forth the requirement that alterations in the allocation
of authorized positions be reviewed and approved by the City Council.
B. The Executive Director of Planning and Building Agency proposes adding
two full-time Combination Building Inspector positions to the Planning and
Building Agency budget to conduct inspections for upcoming development
projects.
C. It is now desired to amend the Annual Budget for Fiscal Year 2017-2018,
as amended, in order to effect this change, as shown below:
Section 2: The Santa Ana City Council hereby amends the Annual Budget for
Fiscal Year 2017-2018, as amended, to add two (2) full time Combination Building
Inspector positions in the Planning and Building Agency, at the monthly seven -step
salary rate range as indicated:
7 -Step Salary Rate Range Effective 07/01/16
Monthly Salary
Classification Title SSR Minimum -Maximum
Combination Building Inspector 655 $5114 - $6852
Section 3: All salary rate range classifications are set forth in the City's "Salary
Schedule" as periodically updated.
Resolution 2017 -XX
Page 1 of 2
65B-31
Section 4: This Resolution is operative from and after the date upon which it is
adopted.
ADOPTED this 215' day of November, 2017.
Miguel A. Pulido
Mayor
APPROVED AS TO FORM:
Sonia R. Carvalho
City Attorney
By: Akk-tL' A . (�co� r2. L
Laura A. Rossini
Senior Assistant City Attorney
AYES:
NOES:
ABSTAIN:
NOT PRESENT:
Councilmembers
Councilmembers
Councilmembers
Councilmembers
CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, MARIA D. HUIZAR, Clerk of the Council, do hereby attest to and certify the attached
Resolution No. 2017-_ to be the original Resolution adopted by the City Council of the
City of Santa Ana on November 21, 2017.
Date:
Clerk of the Council
City of Santa Ana
Resolution 2017 -XX
65B-32 Page 2 of 2
EXHIBIT 3
. City of Santa Ana
- Administrative Guidelines
Council Approval Date:
Subject
Budget Principles
PURPOSE
The Budget Principles ("Principles') are guides to be used in the development of the City of Santa Ana's
Annual Budget as well as to establish a framework for fiscal stability and accountability. It is intended to
promote transparency and the development of true, current and accurate information. These Principles
are in support of all other adopted fiscal policies.
GENERAL BUDGET PRINCIPLES
These guidelines establish the budget parameters which will be issued in preparation and monitoring of
the annual City budget.
Structurally Balanced Budget. The City's general operating budget should be structurally balanced,
which is defined as ongoing revenue should be equal to or exceed operating expenditures in both the
proposed and adopted budgets. If a structural imbalance occurs, a plan should be developed and
implemented to bring the budget back into structural balance.
Multi -Year Financial Forecasting. A general fund will consist of projected revenues and anticipated
expenditures over the course of five years and will take into consideration external factors and will be
presented on an annual basis to the City Council for consideration.
Use of One -Time Resources. One-time resources, including but not limited to: ending operating
balance, unallocated fund balance, or un -appropriated "Assigned" fund balance can be utilized upon
two-thirds approval by the City Council in the event that a structural budget deficit exists. Use of one-
time funds is allowable for one-year and may be eligible for two consecutive years upon further
consideration by the City Council.
Established Reserves. Reserves for all funds have been established in order to ensure operational
continuity, to guard against major disruption in services created by unforeseen economic events,
and/or be utilized for financial emergencies as described in the City's Budget & Financial Policies.
Debt Issuance. The City shall adopt a debt management policy that will establish parameters and limits
to ensure long-term financial stability.
Employee Compensation (Negotiations). Negotiations for employee compensation shall be focused on
all personnel services cost changes. Compensation costs shall be included in the five-year financial
forecast to gauge affordability.
Fees and Charges. Fees and charges should reflect the true cost of providing services in order to ensure
cost recovery. All departments should be responsible for updating fees and charges on an annual basis.
Opportunities should be explored to establish new fees for services where appropriate.
65B-33
Capital Improvement Projects. A detailed Fiscal Impact is to be incorporated in all Request for Council
Actions (RFCAs) for capital improvement projects exceeding $100,000 by Fiscal Year within the Fiscal
Impact section of the RFCA. The Public Works Agency and other departments will disclose maintenance
requirements in upcoming Capital Improvement Program updates.
Grants. The City shall seek federal, state and other grants in order to support programs and services;
provided that the implementation of the grant can be fully supported based on City resources.
Performance Measures (program funding). All requests for departmental funding shall include
performance measurement data to ensure funding requests can be reviewed and approved based on
service level outcomes.
BUDGET PRINCIPLES
65B-34
K