HomeMy WebLinkAbout11 - PH-1 - Attachment 5 - 6/23/2015Attachment 5
SD15-042
CITY OF COSTA MESA
4a FINANCE DEPARTMENT
INTEROFFICE MEMORANDUM
TO: CITY COUNCIL MEMBERS
FROM: STEPHEN DUNIVENT, INTERIM FINANCE DIRECTOR
DATE: MAY 22, 2015
SUBJECT: Follow-up Items from the FY15-16 Budget Study Session
Thank you for your participation in the May 12, 2015 study session on the FY 15-16
Preliminary Operating and Capital Budget. The following information is in response to the
questions and comments raised during the session.
Public questions and comments:
1. City website upgrades: Staff has received input from several sources and is holding
internal discussions on what upgrades should be made.
2. Traffic signal pre-emption on Newport Blvd.: The signals on Newport Boulevard are
controlled by Caltrans. The City may implement preemption at these locations with an
encroachment permit, if City funding is available. There is a traffic signal
synchronization project underway on Newport Boulevard; preemption is not included in
the scope due to lack of funding.
3. Narcotics Asset Forfeiture revenue: Budgeted amount is lower than prior years due to
the policy of recognizing revenue when received rather than anticipating future revenue
producing cases.
Council Member questions and comments:
1. Vacant positions: Human Resources is preparing this report. It will be provided to the
Council separately and will be provided quarterly in the future.
2. Status of the carryover funds noted in the FY 14-15 mid -year budget report: Please see
the attached updated list of purchase orders and other items that were approved for
carryover in the mid -year budget report.
3. Summary of new part-time positions: The table on Page 2 shows the full-time
equivalent (FTE) part-time position counts by department. The primary increase is in
Parks & Community Services for the Senior Center, ROCKS and Aquatics programs.
City of Costa Mesa
Summary of FTE Part -Time positions
FY 14-15 FY 15-16 Increase/
Department
Adopted
Preliminary
Decrease
CEO
11.91
9.29
-2.62
Finance
2.21
2.71
0.50
Parks & Comm. Svs.
44.43
60.77
16.34
Information Technology
0.50
1.48
0.98
Police
18.90
19.63
0.72
Fire
2.75
3.25
0.50
Development Svs.
4.25
6.00
1.75
Public Svs.
8.37
7.77
-0.60
Total
93.33
110.90
17.57
4. Revenue/user fees associated with budget requests: Examples include:
a. A new revenue account for Senior Center revenues budgeted at $87,000.
b. A $50,000 increase in the internal charges going to the IT Replacement Fund
c. $150,000 in revenue to offset the cost of the bulky item pick-up program.
d. $106,710 for the Medical Services Transportation program grant for the Senior
Center.
5. CEO goals: Page 76 will be revised.
6. Why the large increase in the Street Cleaning program (page 47): A comparison was
made of the FY 14-15 Adopted budget ($462,469 running the programing with part-time
employees and old equipment) to the FY 15-16 Preliminary budget ($923,561). Please
see the table below. The Adopted budget did not include a partial year cost of the
contract because it had not yet been awarded. The FY 14-15 Amended column reflects
the partial year contract amount. The FY 15-16 Preliminary amount included the full
year contract and still contained the pre -contract maintenance and operations cost
which are now being removed. The FY 15-16 revised amount is $771,526. This is an
increase of $105,007 over the current amended amount and lower than the FY 08-09
amount of $800,871 when the program was fully staffed and run in-house.
City of Costa Mesa
Street Cleaning Program 20120
Budget Changes due to new contract
FY 14-15
FY 14-15
FY 15-16
FY 15-16
Increase/
Adopted
Amended
Prelim.
Revised
(Decrease)
Salaries & Benefits
$272,971
$272,971
$ 61,926
$ 61,926
$(211,045)
Maint. & Operations
189,498
189,498
152,035
-
(189,498)
Contract
-
204,050
709,600
709,600
505,550
Program Total:
$462,469
2 $666,519
$923,561
$771,526
$ 105,007
Fj
7. Detail of the City Council salaries & benefits amount on page 70: Page 71 provides
additional detail of this amount including non -sworn salaries, cafeteria plan, Medicare,
retirement cost and professional development. Professional development includes the
League of California Cities ($25,288), ACCOC ($20,347), LAFCO ($10,895), OC
Council of Governments ($7,500), conferences and training, ICSC Convention and
SCAG ($10,900).
8. Reason for the increase of 457% in CEOM/orker's Compensation program (page 88):
This increase was the result of an incorrect assignment of $1,336,143 in Liability
program costs being included in the Workers' Comp. program. The FY 15-16 column in
the table below shows the recommended correct assignment of costs:
Correction of Liability & Workers' Comp. Programs
9. Finance Department workload measurements will be amended to include the number of
Finance Committee and Pension Committee meetings supported.
10. Relation of the Teen Programs goal statement and budget amount (page 105 vs. 114):
The goals regarding teen centers on page 105 is accurate. The intent is to increase
programming for this population by partnering with local non -profits, utilizing staff from
the DRC and NCC and the Recreation Leaders in Training (RLIT) Program
Participants. As a result of these partnerships and cross staffing, we can decrease the
amount of money need for salaries. The increase in program operation and
maintenance is to replace outdated equipment and purchase materials to operate the
teen centers, special events and programs.
11. Additional information on Police Department goals and objectives: Full staffing,
reinstatement of task forces, etc.: The following goal will be added for staffing: Achieve
full staffing through aggressive recruitment and processing of qualified applicants for
department vacancies; this includes entry-level, lateral and reserve police officers. The
following objective will be added for reinstatement of specialty assignments: Expedite
backfilling specialty assignments as staffing permits.
12. Where is the Police Department/Training Program cost accounted for?: The cost of the
training program is budgeted at $681,528 (compared to $622,967 in the current fiscal
year) and was mistakenly allocated among three other programs. This will be corrected
in the final printed budget book. The training program will be shown as a separate
program under Police Administration. The cost to send a recruit to the academy
includes academy tuition ($1,000), pay w/o benefits ($27,622), benefits ($2,700) and
related additional costs such as uniforms and duty gear, ammunition, etc.
3
FY 14-15
FY 15-16
Percent
FY 15-16
Percent
Adopted
Prelim.
Change
Revised
Change
Liability -50662
$1,820,143
$ 506,840
-72%
$1,842,983
1%
Workers' Comp. - 50663
Salaries & Benefits
2,055,800
2,055,800
0%
2,055,800
0%
Maint. & Operations
293,000
1,632,343
457%
296,200
1%
WC Program Total
$2,348,800
$3,688,143
57%
$2,352,000
0%
9. Finance Department workload measurements will be amended to include the number of
Finance Committee and Pension Committee meetings supported.
10. Relation of the Teen Programs goal statement and budget amount (page 105 vs. 114):
The goals regarding teen centers on page 105 is accurate. The intent is to increase
programming for this population by partnering with local non -profits, utilizing staff from
the DRC and NCC and the Recreation Leaders in Training (RLIT) Program
Participants. As a result of these partnerships and cross staffing, we can decrease the
amount of money need for salaries. The increase in program operation and
maintenance is to replace outdated equipment and purchase materials to operate the
teen centers, special events and programs.
11. Additional information on Police Department goals and objectives: Full staffing,
reinstatement of task forces, etc.: The following goal will be added for staffing: Achieve
full staffing through aggressive recruitment and processing of qualified applicants for
department vacancies; this includes entry-level, lateral and reserve police officers. The
following objective will be added for reinstatement of specialty assignments: Expedite
backfilling specialty assignments as staffing permits.
12. Where is the Police Department/Training Program cost accounted for?: The cost of the
training program is budgeted at $681,528 (compared to $622,967 in the current fiscal
year) and was mistakenly allocated among three other programs. This will be corrected
in the final printed budget book. The training program will be shown as a separate
program under Police Administration. The cost to send a recruit to the academy
includes academy tuition ($1,000), pay w/o benefits ($27,622), benefits ($2,700) and
related additional costs such as uniforms and duty gear, ammunition, etc.
3
13. Emergency response goals for both Fire and Police:
a. For the Fire Department: Page 141 of the budget book lists objectives/tasks
including three related to emergency response times. Goals for response times
related to these objectives will be added.
b. For the Police Department: Goals for response times related to these objectives
will be added.
14. Development Services and City goals and activities related to state lands (Fairview
Developmental Center, Fairgrounds): Development Services will prepare a staff report
with an update and various options for Council consideration.
15. Amounts of recreation grants to schools: The CEO continues to recommend three
grants of $50,000 each—for Estancia, Costa Mesa and Newport Harbor High Schools. If
the Council supports adding the third high school, an additional agreement and updated
grant process will be brought to Council for consideration.
16. Self -Insurance Fund revenues and expenses: Please see attached worksheet
containing a six-year history of this fund. The fund has a negative balance if all pending
claims were to be settled against the city at full value. The FY 15-16 budget is set to
include a $108,229 improvement in fund balance. Additional analysis will be done to
determine an appropriate balance for this fund and to develop a plan to achieve that
balance.
17. Parks & Community Services four-year personnel summary (page 108): The total on
this page seems large compared to the counts on the previous page because of the
final line containing 60.77 full-time equivalent of the part-time positions which, when
added to the 10 full-time positions brings the total to 70.77.
In addition to the above, the Parks & Recreation Commission provided a list of recommended
changes (additions) to the capital improvement program; nine projects that total $975,000.
Staff will consider how to fund these projects in future years. A copy of their letter was
included in the May 12 Study Session materials.
The next steps in the budget process are a Community Meeting on May 21 at 6:00 p.m. and
the public budget hearing on the June 16, 2015 Council meeting.
Please let me know if you have any questions regarding this information.
*dn�� A4�
Stephen Dunivent
Interim Finance Director
Copy to: Thomas Hatch, CEO
Department Heads
Department Budget Liaisons
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