HomeMy WebLinkAbout2020-28 - Budget AdoptionRESOLUTION NO. 2020-28
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA,
CALIFORNIA, ADOPTING THE OPERATING AND CAPITAL IMPROVEMENT
BUDGET FOR FISCAL YEAR 2020-2021
THE CITY COUNCIL OF THE CITY OF COSTA MESA DOES HEREBY
RESOLVE AS FOLLOWS:
WHEREAS, the City Manager has prepared and submitted to the City Council a
proposed Operating & Capital Improvement Budget for Fiscal Year 2020-2021 in
compliance with Section 2-119 of the Costa Mesa Municipal Code; and
WHEREAS, Section 2-209 of the Costa Mesa Municipal Code requires the City to
allocate a minimum of five percent (5%) of the annual general fund revenue to the capital
expenditures account and a minimum of one and a half percent (1.5%) of the annual
general fund revenue to the information technology replacement account, for a combined
allocation of six and a half percent (6.5%), unless the City Council approves the exercise
of an emergency exception pursuant to Section 2-209.2 of the Costa Mesa Municipal
Code; and
WHEREAS, due to the global COVID-19 pandemic, declarations of Federal, State,
County and City emergencies, associated stay-at-home orders and closure of many
businesses in the City, the City is facing a severe economic downturn and unforeseen
circumstances, including loss and deferral of sales tax and property tax revenues, loss of
transient occupancy tax revenues, reduction in business license revenue and a lengthy
re -opening process for many businesses; and
WHEREAS, the City Council desires to exercise the emergency exception in
section 2-209.2 of the Costa Mesa Municipal Code in order to allocate less than the
required amounts to the capital expenditure account; and
WHEREAS, the City Council also finds it necessary to access the general fund
operating reserve, emergency contingency fund established by Ordinance 91-20 and as
provided in Costa Mesa Municipal Code section 2-206(a) and 2-207 to fill the
unanticipated budget deficit created by the emergency; and
WHEREAS, the City Council conducted a duly noticed public hearing at a special
meeting on June 9, 2020 and another discussion t its regular meeting on June 16, 2020
regarding the proposed Operating & Capital Improvement Budget for Fiscal Year 2020-
2021; and
WHEREAS, the City Council has considered the proposed Operating & Capital
Improvement Budget for Fiscal Year 2020-2021 and input from the public, and desires to
adopt the proposed Operating & Capital Improvement Budget for Fiscal Year 2020-2021,
as the Operating & Capital Improvement Budget for Fiscal Year 2020-2021.
Resolution No. 2020-28 Page 1 of 3
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Costa
Mesa as follows:
Section 1. The Operating & Capital Improvement Budget for Fiscal Year 2020-
2021 is incorporated by reference as if fully set forth herein.
Section 2. The City Council approves accessing the general fund operating
reserve, emergency contingency fund established by Ordinance 91-20 and as provided
in Costa Mesa Municipal Code section 2-206(a) and 2-207, and using those funds to
address unfunded emergency expenditures resulting from the COVID-19 emergency and
unanticipated revenue losses resulting therefrom.
Section 3. The City Council approves exercising the emergency exception set
forth in Section 2-209.2 of the Costa Mesa Municipal Code based on the emergency
caused by the COVID-19 pandemic, and the significant loss of, and delay in receipt of,
revenues from property taxes, sales taxes, transient occupancy taxes and business
license revenue, and the resulting economic downturn and unforeseen circumstances,
and approves allocating less than 5% of the general fund revenue to the capital
expenditures account for Fiscal Year 2020-2021.
Section 4. The Operating & Capital Improvement Budget for Fiscal Year 2020-
2021, as prepared and submitted by the City Manager, is hereby approved and adopted
in the amount of $160,759,831.
Section 5. The Operating Budget for Fiscal Year 2020-2021 shall be considered
amended upon the close of Fiscal Year 2019-2020 to include and reappropriate any
outstanding encumbrances carried forward.
Section 6. The Capital Improvement Program Budget for Fiscal Year 2020-2021
shall be considered amended upon the close of Fiscal Year 2019-2020 to include and
reappropriate funds for all previously approved projects that have not been initiated or
completed.
Section 7. The City Council authorizes the City Manager to make changes in
internal service fund allocations to departments to reflect any modifications made after
the Adopted Budget was presented.
Section 8. The City Manager, for the purpose of administrative necessity in
implementing the budget, shall have the authority to transfer monies to the appropriate
item, account, program, department, or fund to cover expenditures which have been
approved by the City Council, except where such transfer is expressly prohibited in a
resolution or ordinance approved by the City Council. The City Manager shall also have
the authority to transfer monies between and within funds to meet the operational needs
of the City within established spending limits.
Resolution No. 2020-28 Page 2 of 3
PASSED AND ADOPTED this 16th day of June, 2020.
ATTEST:
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss
CITY OF COSTA MESA )
Katr+6 Fol* Mayor
APPF#OVED AS TO FORM:
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Kimberly 411 Barlow, City Attorney
I, BRENDA GREEN, City Clerk of the City of Costa Mesa, DO HEREBY CERTIFY
that the above and foregoing is the original of Resolution No. 2020-28 and was duly
passed and adopted by the City Council of the City of Costa Mesa at a regular meeting
held on the 16th day of June, 2020, by the following roll call vote, to wit:
AYES: COUNCIL MEMBERS: CHAVEZ, GENTS, MANSOOR, MARK, REYNOLDS,
STEPHENS, AND FOLEY
NOES: COUNCIL MEMBERS: NONE
ABSENT: COUNCIL MEMBERS: NONE
IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the
City of Costa Mesa this 17th day of June, 2020.
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Brenda Green, tity Clerk
Resolution No. 2020-28 Page 3 of 3