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Home My WebLink About05 - CC-5 - Approve FY 2018/19 Year End Budget - 11/5/2019ATTACHMENT 1 Account Fund Org Prog Project Account Description Department Description Adjustment Description Appropriation Increase/ (Decrease) Revenue Increase/ (Decrease) Increase/ (Use) of Fund Balance Recommended Year-End Adjustments - GENERAL FUND 430200 101 16200 10210 n/a Revenue - Other State Grants Fire Department -$ 148,757$ -$ 501400 101 16200 10210 n/a Expenditure - Overtime Fire Department 148,757 - - 435900 101 16200 10230 n/a Revenue - Other Charges for Services Fire Department - 48,827 - 501400 101 16200 10210 n/a Expenditure - Overtime Fire Department 48,827 - - Total General Fund 197,584 197,584 - Recommended Year-End Adjustments - CAPITAL IMPROVEMENT FUND 500000 401 19200 50910 200063 Expenditure - City Council Chambers Remodel Public Services 75,000 - - 500000 401 19500 50910 200062 Expenditure - Building Modifications Public Services (75,000) - - 500000 401 19500 50910 200092 Expenditure - City Hall Fire Alarm System Upgrade Public Services 45,594 500000 401 19500 50910 200062 Expenditure - Building Modifications Public Services (45,594) - - 5 500000 401 19200 50905 200076 Expenditure - Fire Station #1 Public Services Increase appropriation for the Fire Station #1 CIP project in the Capital Improvement Fund to allow for final payments on the project prior to project acceptance 50,000 (50,000) 50,000 - (50,000) Recommended Year-End Adjustments - RENTAL REHAB PROGRAM FUND 420180 216 11320 20460 n/a Revenue - Grants, loans and subsidies Development Services - 171,748 171,748 535500 216 11320 20460 n/a Expenditure - Grants, loans and subsidies Development Services 80,000 - (80,000) Total Other Funds 80,000 171,748 91,748 GRAND TOTAL 327,584$ 369,332$ 41,748$ CITY OF COSTA MESA FY 2018-19 YEAR END BUDGET ADJUSTMENT DETAIL AS OF JUNE 30, 2019 Transfer budget from building mods to council chambers/community room project for unexpected firewall issues Increase Overtime and OES reimbursements for mutual aid Increase Overtime and revenue for Special Events Increase revenue for loan repayments made and increase appropriation for additional loans issued for the Rental Rehab Program Fund 1 2 3 4 6 Transfer budget from building mods to City Hall Fire Alarm System to account for all project related costs in one project number 1 CITY COUNCIL AGENDA REPORT MEETING DATE: NOVEMBER 5, 2019 ITEM NUMBER: CC-5 SUBJECT: APPROVE FISCAL YEAR 2018/19 YEAR END BUDGET ADJUSTMENTS AND TRANSFERS DATE: OCTOBER 21, 2019 FROM: FINANCE DEPARTMENT/ADMINISTRATION DIVISION PRESENTATION BY: KELLY A. TELFORD, CPA, FINANCE DIRECTOR FOR FURTHER INFORMATION CONTACT: KELLY A. TELFORD, FINANCE DIRECTOR, AT (714) 754-5243 RECOMMENDATION: Staff recommends that the City Council: 1. Approve Fiscal Year 2018-19 year end budget adjustments described in Attachment 1. 2. Approve interfund transfer from the General Fund to the Information Technology Replacement Fund totaling $150,000. BACKGROUND: The Finance Department is completing the year-end closing process for Fiscal Year 2018-19 which has been ongoing since the year ended on June 30, 2019. Certain technical adjustments and fund transfers need to be made to reconcile the budget to actual expenditures incurred and to comply with auditing, actuarial, accounting and/or legal requirements. ANALYSIS: Each year, as part of the annual fiscal year end closing process, the Finance Department posts final journal entries required to comply with auditing, actuarial, accounting and/or legal requirements. In addition, technical adjustments need to be made to reconcile the budget with unanticipated revenues received and/or amounts actually spent during the year. 2 As a result, the Finance Department is recommending the approval of budget adjustments as follows: 1. Increase appropriations for the Fire and Rescue Department to reflect overtime incurred on mutual aid responses and the related revenue estimates. 2. Increase appropriations for the Fire and Rescue Department to reflect overtime incurred for special events and the related revenue estimates. 3. Transfer available appropriation from the Building Modification CIP project in the Capital Improvement Fund to the Council Chambers/Community Room CIP project in the Capital Improvement Fund to pay for unexpected costs related to work required to meet current building code requirements in the Community Room. 4. Transfer appropriation from the Building Modification CIP project in the Capital Improvement Fund to the City Hall Fire Alarm System CIP project in the Capital Improvement Fund to properly account for all project related costs in one project number. 5. Increase appropriation for the Fire Station #1 CIP project in the Capital Improvement Fund to allow for final payments on the project prior to project acceptance. (Please note: This does not result in the project expenses exceeding the approved budget. During the FY 2019-20 budget adoption, $1.15 million was deprogramed from projects that were expected to have cost savings and transferred back to the General Fund to reduce the operating deficit. This project budget was reduced by $400,000 however, after final invoices were paid, only $350,000 was available. There is sufficient fund balance in the Capital Improvement Fund to cover this appropriation and a reduction in transfers to the General Fund is not necessary.) 6. Increase appropriations to reflect increased loan repayments resulting in the issuance of new loans in the Rental Rehab Program Fund and increase revenue estimates accordingly. None of these adjustments have a net impact on the General Fund’s Fund Balance. Adjustments are needed to more appropriately account for fully reimburse expenses in the Fire and Rescue Department and Rental Rehab Program repayments and loans. In addition, the Finance Department is seeking approval to transfer $150,000 in savings in the Information Technology Department to the IT Replacement Fund to pay for the purchase of new backup servers that are needed to improve operational issues with our current system. The Information Technology Department had sufficient budget savings in their operating budget in the General Fund to pay for this. ALTERNATIVES CONSIDERED: Do not approve the recommended action and direct staff accordingly. 3 FISCAL REVIEW: If approved, the Finance Department will process the budget adjustments included in Attachment A. A summary of the fiscal impact by fund is as follows: Fund Appropriation Increase (Decrease) Revenue Estimate Increase (Decrease) Fund Balance Increase (Decrease) General Fund (101) $ 197,584 $ 197,584 $ - Capital Improvement Fund (401) 50,000 - (50,000) Rental Rehab Program Fund (216) 80,000 171,748 91,748 Total All Funds $ 327,584 $ 369,332 $ 41,748 Subject to City Council approval, the Finance Department will also process an interfund transfer from the General Fund to the IT Replacement Fund of $150,000 in budgetary savings to pay for the purchase of new backup servers that are needed to improve operational issues with our current system. LEGAL REVIEW: The City Attorney’s Office has reviewed this report and approves it as to form. CITY COUNCIL GOALS & PRIORITIES: This item is in accordance with City Council Goals & Priorities No. 3 – Keep the City Fiscally Sustainable. To address our long-term obligations as well as immediate needs. CONCLUSION: Staff recommends that the City Council: 1. Approve Fiscal Year 2018-19 year end budget adjustments described in Attachment 1. 2. Approve interfund transfer from the General Fund to the Information Technology Replacement Fund totaling $150,000. _________________________________ _________________________________ KELLY A. TELFORD, CPA KIMBERLY HALL-BARLOW Finance Director City Attorney Attachments: 1. Fiscal Year 2018-19 Year End Budget Adjustment Schedule