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Council Agenda Report City Council Meeting 06-24-19 Item 4.B. Council Agenda Report To: Mayor Wagner and the Honorable Members of the City Council Prepared by: Lisa Soghor, Assistant City Manager Reviewed by: Reva Feldman, City Manager Date prepared: June 11, 2019 Meeting date: June 24, 2019 Subject: Proposed Budget for Fiscal Year 2019-2020 RECOMMENDED ACTION: 1) Adopt Resolution No. 19-27 adopting the Annual Budget for Fiscal Year 2019-2020; 2) Approve the Annual Work Plan for Fiscal Year 2019-2020 and provide direction to staff on adding the Malibu Lagoon Management Plan; 3) Adopt Resolution No. 19-28 establishing the Appropriations Limit for Fiscal Year 2019-2020; 4) Adopt Resolution No. 19-29 approving the Fiscal Year 2019- 2020 Authorized Positions and Salary Ranges and the Recreation Assistant I, Recreation Assistant II, Media Assistant, Lifeguard, Pool Manager, Parks Maintenance Assistant and Assistant Planning Director Job Specifications; and 5) Adopt Resolution No. 19-30 directing the City Manager to waive certain fees for the period of November 8, 2019 through June 30, 2020 related to the rebuilding of homes on a property where the single-family residence was destroyed by the Woolsey Fire and finding the action to be exempt from the California Environmental Quality Act. FISCAL IMPACT: The Proposed Budget totals $48.00 million in revenue and $55.11 million in expenses, and includes the General Fund budget, which totals $31.02 million in revenues and $37.39 million in expenses. The decrease of the total Proposed Budget from the prior year is due to the acquisition of the three parcels of vacant land for $42.50 million in Fiscal Year 2018-2019. Pursuant to Council direction on April 24, 2019, revenue associated with permitting fees for all like-for-like and like-for-like plus 10% Woolsey Fire rebuilds has been removed from the Proposed Budget for Fiscal Year 2019-2020. As a result, the Proposed Budget requires a one-time appropriation from the General Fund Undesignated Reserve in order to achieve a balanced budget. There are additional one-time costs in the amount of $2.31 million attributable to the rebuilding efforts for the Woolsey Fire, which when added to the $31.67 million Page 1 of 15 Agenda Item # 4.B. 1 General Fund operating costs bring the total expenditure budget to $33.98 million, causing a $2.97 million shortfall from the annual expected revenue of $31.02 million. The $2.31 million is not recoverable from the Federal Emergency Management Agency (FEMA) or the California Office of Emergency Services (CalOES). Staff recommends making a one-time appropriation of $2.97 million from the General Fund Undesignated Reserve to maintain a balanced budget. DISCUSSION: On April 24, 2019, and May 28, 2019, the Council discussed the Proposed Budget for Fiscal Year 2019-2020 and provided the following direction to staff, which has been included in the Proposed Budget for Fiscal Year 2019-2020 (Attachment 1): 1) Set Council Work Plan priorities as follows: 1. Public Safety 2. Woolsey Fire Recovery 3. School District Separation 2) Directed staff to bring back with the next budget consideration of waiving 100%, or at least 75%, of permitting fees for all (primary residency) like-for-like and like- for-like plus 10% Woolsey Fire rebuilds in Fiscal Year 2019-2020 3) Directed staff to investigate options for crediting applicants already in the queue for all like-for-like and like-for-like plus 10% Woolsey Fire rebuilds 4) Directed staff to bring back an item with the next budget consideration information on putting an increase of Transient Occupancy Tax to 15% on a special election ballot 5) Directed staff to maintain the Undesignated Reserve at 65% of the annual operating budget 6) Directed staff to keep Charmlee Wilderness Park closed during Fiscal Year 2019- 2020 7) Directed staff to bring back an item considering issuing business cards to all City Commissions 8) Directed staff to bring back a cost/benefit analysis of adding a fourth Volunteers on Patrol (VOP) vehicle 9) Directed staff to add funding to the Proposed Budget for Fiscal Year 2019-2020 for the following Fiscal Year 2019-2020 Work Plan items as presented: Page 2 of 15 Agenda Item # 4.B. 2 Coastal Vulnerability Assessment Clean Power Alliance (using 100% renewable energy at all City facilities) 10) Directed staff to remove funding from the Proposed Budget for Fiscal Year 2019- 2020 for the following Fiscal Year 2019-2020 Work Plan item as presented: City Hall Solar Project 11) Directed staff to bring back at the Fiscal Year 2019-2020 mid-year budget review the following Fiscal Year 2019-2020 Work Plan items as presented: Business Licenses Parking Meters Implementation Plan 12) Considered Planning Departmental Tasks listed in the Fiscal Year 2019-2020 Work Plan as presented with priorities beyond Woolsey Fire Recovery as follows: 1. Accessory Dwelling Unit Ordinance 2. Beachfront/Non-Beachfront Development Standards 3. Total Development Square Footage Mansionization Ordinance 4. Short-term Rental Ordinance and Enforcement Program 5. Parking as a Stand Alone Use 6. Overnight Parking Ordinance. 13) Directed staff to: A) not include creation of an Environmental Commission in Fiscal Year 2019-2020 Work Plan but defer it to a future year; and B) schedule regular meetings of the Environmental Sustainability Subcommittee in lieu of creating an Environmental Commission 14) Directed staff to remove the following items listed in the in Fiscal Year 2019-2020 Work Plan and defer them to a future year: LCP ESHA Map Sign Ordinance ZTA Wireless Communications Facilities Ordinance Civic Center Specific Plan Electric Fleet Balloon Ban Plastic Dry-Cleaning Bag Ban No Smoking Ordinance Polystyrene Ban Additions Single Use Plastic Beverage Containers Ban Legacy Park Art Enhancement Plan Vacant Properties Page 3 of 15 Agenda Item # 4.B. 3 Metro Freeway Service Patrol (FSP) Pilot Program Mobile Command Post Utilities Undergrounding Assessment District Formation / Outreach Program The attached budget also reflects direction received from the Administration and Finance (A&F) Subcommittee on May 2, 2019, May 7, 2019, and June 10, 2019. Waiving Fees On April 24, 2019, the Council directed staff to develop a budget for Fiscal Year 2019-2020 that allows for the waiving permit fees for all like-for-like and like-for-like plus 10% of Woolsey Fire rebuilds while maintaining a 65% General Fund Undesignated Reserve. Additionally, Council directed that any fees paid by applicants in the current fiscal year that meet these criteria be refunded. On May 28, 2019, Council also directed that fee waivers will only apply to properties that were primary residences at the time of the Woolsey Fire. Resolution No. 19-30 establishes these fee waivers for the period of November 8, 2019 through June 30, 2020. Changes to the Proposed Budget since April 24 and May 28, 2019 Staff analyzed the budget implications of waiving 100% of permitting fees for all primary residency like-for-like and like-for-like plus 10% Woolsey Fire rebuilds in Fiscal Year 2019-2020. The projected fees totaled $2.56 million in General Fund revenue. Other budget expenditure increases were also necessary: Per Council direction, staff included $200,000 for the Coastal Vulnerability Assessment Per Council direction, the operating line items for electricity in the Proposed Budget were increased to account for the City opting in to 100% renewable energy under the Clean Power Alliance for all City properties The Los Angeles County Department of Animal Control is planning to raise its contract rates. Staff increased the projected contract amount for Fiscal Year 2019-2020. The projected amount for Animal Control in the current year was increased to reflect significantly higher bills as a result of the Woolsey Fire. The Professional Services items in the Community Services Department Park Maintenance and Legacy Park programs have been increased to reflect landscape maintenance costs received in the recent RFP for these services. The Professional Services item in Media Operations has been increased to reflect new outside services for the closed captioning of City Council and Planning Commission meetings. Page 4 of 15 Agenda Item # 4.B. 4 Staff implemented several measures to achieve a budget that allows for the waiving of fees and maintains a General Fund Undesignated Reserve of 65%: The City Hall Solar Carport capital project was postponed to a future year The Student Intern program was cut from 3.5 full-time equivalent positions to 0.5 positions All Department operating expense line items were reduced as much as possible Special Fund revenues, including Legacy Park Funds, South Coast Air Quality Management District (AQMD) funds and others, replaced the use of the General Fund wherever possible The current budget does not have any additional funding to allow for the purchase of a fourth VOP vehicle. Preliminary analysis does not indicate that a fourth vehicle would cover its costs. A third vehicle was added to the VOP program in the Mid-Year 2018-2019 budget, and it has not been in service long enough to evaluate its contribution to revenue. These changes and cuts alone did not maintain the 65% General Fund Undesignated Reserve. Staff also refined the revenue and expenditure projections for the current fiscal year, which increased the starting General Fund Reserve for the upcoming fiscal year. Staff reviewed fund balances in Special Revenue Funds and identified that the Proposition A fund had a large balance. The City receives approximately $200,000 annually from the Los Angeles County Metropolitan Transit Authority. These funds can only be used for transportation purposes. In Fiscal Year 2018-2019, the City is projected to spend $213,500 to provide Dial-A-Ride services and transit for senior center programming.
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