CC Resolution No. 16-018 Amending Operating Budget for Fiscal Year 2015-16 by Ratifying the Adequacy of Estimated Amended Revenues to the General and Special Funds to Cover Amended Appropriated Monies and Appropriating MoniesRESOLUTION NO. 16-018
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO
AMENDING THE OPERATING BUDGET FOR FISCAL YEAR 2015-16 BY
RATIFYING THE ADEQUACY OF ESTIMATED AMENDED REVENUES TO THE
GENERAL AND SPECIAL FUNDS TO COVER AMENDED APPROPRIATED
MONIES AND APPROPRIATING MONIES THEREFROM FOR SPECIFIED
ACTIVITIES AND ACCOUNTS
WHEREAS, the orderly administration of municipal government is dependent
on the establishment of a sound fiscal policy of maintaining a proper ratio of
expenditures within anticipated revenues and available monies; and
WHEREAS, the extent of any project or program and the degree of its
accomplishment, as well as the efficiency of performing assigned duties and
responsibilities, is likewise dependent on the monies made available for that purpose;
and
WHEREAS, the City Manager has submitted his estimates of amended
anticipated revenues, has determined that estimated amended revenues are adequate to
cover amended appropriations, and has recommended the allocation of monies for
specified program. activities
NOW, THEREFORE, BE IT RESOLVED that the City Council does hereby ratify
that the attached anticipated amended resources are to be received in the General and
Special Funds listed in the attachment during fiscal year 2015-16 and that such resources
are sufficient to cover the attached amended appropriations.
BE IT FURTHER RESOLVED that there is appropriated from the General and
special funds the sum of money set forth as amended expenditures for those funds, to
be used for the purposes as expressed and estimated in the report before the City
Council.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of
Cupertino this 1s1 day of March 2016, by the following vote:
Resolution No. 16-018
Page2
AYES:·
NOES:
ABSENT:
ABSTAIN:
Grace Schmidt, City Clerk
Members of the City Council
Chang, Vaidhyanathan, Paul, Sinks, Wong
None
None
None
APPROVED:
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Actuals
Amended
Budget
Year End
Actuals
Mid Year
Actuals
Amended
Budget
Year End
Actuals
Mid Year
Actuals
Amended
Budget
Year End
Actuals
Mid Year
Actuals Final Budget Amended
Budget
FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16
Revenue $19.3 $66.7 $54.7 $21.6 $52.2 $73.9 $48.7 $56.1 $83.5 $24.9 $68.2 $68.2
Expenditures $30.6 $66.5 $44.7 $26.4 $59.4 $64.4 $37.7 $89.7 $86.2 $28.1 $67.6 $79.0
Fund Balance $(11.3) $0.2 $9.9 $(4.8) $(7.2) $9.5 $11.0 $(33.6) $(2.7) $(3.2) $0.6 $(10.8)
$(40.0)
$(20.0)
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$40.0
$60.0
$80.0
$100.0
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On June 2, 2015, the City Council adopted the FY 2015-16 Budget, a $118.6 million spending
plan for the City of Cupertino. On November 17, 2015, Council received an update on the
City’s spending plan as part of the City Manager’s First Quarter Financial Report, which
revised the budget to account for encumbrances and carryover expenditure appropriations
from FY 2014-15. Council approved $3,164,029 in additional expenditures in the first two
quarters of the fiscal year resulting in an amended budget of $154,781,894.
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$17.5 $19.3 $21.6
$48.7
$24.9
$47.6 $51.1
$83.5 $83.5
$69.4
$43.3
$54.7
$88.4
$73.9
$68.2
$-
$10.0
$20.0
$30.0
$40.0
$50.0
$60.0
$70.0
$80.0
$90.0
$100.0
2011-12 2012-13 2013-14 2014-15 2015-16
6 Month Actual Year End Actual Budget
Property tax, sales tax, and transient occupancy tax (TOT) revenues are strong and projected to
exceed estimates by $4.7 million. This increase is offset by lower than anticipated revenues of
$3.4 million in development-related fees and charges. Overall, General Fund revenues are
projected to be $1.2 million above budgeted levels.
(;3(1',785(6
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$20.4
$30.6 $26.4
$37.7
$28.1
$41.3 $44.7
$64.4
$86.2 $82.7
$66.5
$59.4
$89.7
$79.0 $79.0
$3.2
$13.3
$7.3
$15.8
$7.5
$-
$10.0
$20.0
$30.0
$40.0
$50.0
$60.0
$70.0
$80.0
$90.0
$100.0
2011-12 2012-13 2013-14 2014-15 2015-16
6 Month Actual Year End Actual Budget Transfers Out
As of Mid-Year, several General Fund departments are requesting adjustments totaling $3.7
million. These requests include litigations costs, a traffic impact fee study, a water system audit,
equipment purchases, software and maintenance costs, contract services, staffing and transfer
out of unassigned fund balance. These requests would be funded by increases in revenue and
General Fund unassigned fund balance. These requests are summarized below:
*(1(5$/)81'83'$7( FRQWLQXHG
58%
68%
29%
41%36%35%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Revenue Expenditures
High Low FY 15-16
Fund Department Description
Expenditure Revenue Fund Balance
General Fund Administrative Services 50,000 - (50,000) Accountant I/II position
General Fund Administrative Services 191,000 (191,000) Litigation claims
General Fund City Manager Discretionary Fund (40,000) - 40,000 Transfer out to pay costs associated with backfilling a
position for employee working on a special project
General Fund Community Development 120,000 - (120,000) Anticipated litigation/code enforcement (closed session
item)
General Fund Public Affairs 41,160 - (41,160) Reallocation of employee costs for compensation and
benefits to the General Fund from Internal Service Fund
General Fund Commissions (5,145) - 5,145 Reallocation of employee costs for compensation and
benefits
General Fund Public Works 150,000 - (150,000) Traffic Impact Fee Study (Council Work plan item to
implement a citywide transportation plan and enact a
transportation impact fee for new developments to
ensure sustainable funding levels for the plan)
General Fund Public Works 100,000 - (100,000) Comprehensive Water System Audit
General Fund Public Works 41,000 - (41,000) Converting Safe Routes to Schools Coordinator position
from part-time to full-time
General Fund Recreation and Community
Services
20,000 - (20,000) Replacement of AED's for Disaster Preparedness/Citizen
Corps
General Fund Recreation and Community
Services
35,000 35,000 - New part-time Code Enforcement Officer
General Fund Non-Departmental 3,018,725 - (3,018,725) Transfers out to other funds
3,721,740 35,000 (3,686,740)
Recommended Adjustments
Total General Fund GENERAL FUND TRENDS
As of December 31, 2015, General Fund
expenditures are $28.1 million; this
represents 35% of the budgeted
appropriations. Expenditures at the mid-
year point of the prior three years were
between 41% and 68% of the final actual
expenditures, placing this year below the
range. This is primarily due to the
timing of expenditures in Capital
Outlays and Special Projects being
completed later in this fiscal year than in
previous fiscal years. General Fund revenues are at $24.9 million; this represents 37% of the
budgeted revenue. Revenues at the mid-year point of the prior three years were between 29%
and 58%, placing this year within the range.
As part of the Mid-Year Financial Report the City projects unassigned fund balance for Fiscal
Year 2015-16 is estimated at $.5 million, a decrease of $12.95 million or 96% under the first
quarter projection. This decrease is due to an increase in encumbered funds and the
recommendation to transfer out $2.8 million in unassigned fund balance to the Capital Reserve
per the City’s Reserve and One Time Use Policy.
General Fund - Fund Balance
Fund Department Description
Expenditure Revenue Fund Balance
3,721,740 35,000 (3,686,740)
Capital Fund Non-Departmental 2,791,725 2,791,725 Transfer in excess fund balance to capital reserve
Enterprise Funds Public Works 350,000 350,000 - International Disposal Corp unanticipated cost increases
Internal Service FundsPublic Affairs 12,000 12,000 - GIS Intern for the second half of the Fiscal Year (data
entry; assistance with Cityworks and easements for City
Clerk, Public Works and Planning)
Internal Service FundsPublic Affairs 5,000 5,000 - Freeance Software/Maintenance Cityworks Mobile
Internal Service FundsPublic Affairs 170,000 170,000 - IT (EPC Contractors) professional services for server
room upgrades, deployment of WiFi, deployment of VDI
and significant improvement of Help Desk support
Internal Service FundsPublic Affairs (36,015) - 36,015 Reallocation of employee costs for compensation and
benefits
Internal Service FundsPublic Affairs 40,000 40,000 - Transfer in costs associated with backfilling a position for
employee working on a special project
540,985 3,368,725 2,827,740
4,262,725 3,403,725 (859,000)
Total General Fund
Total Other Funds
TOTAL ALL FUNDS
Recommended Adjustments
STAFFING
Currently, the City has a total of 181.75 FTEs. As of Mid-Year, staff is requesting two additional
full-time positions, the conversion of a part-time Safe Routes to Schools Coordinator to a full-
time position and an additional Accountant I/II.
SUMMARY
City staff recommends adjustments of $4,262,725 in appropriations and $3,403,725 in projected
revenue resulting in an decrease use of fund balance of $859,000 across all funds. Staff will
continue to monitor the 2015-16 Fiscal Year Amended Budget and be prepared to make
recommendations and changes based on business needs and Council priorities before June 30,
2016 to ensure the City ends the year within budgeted appropriations.
Actual Actuals Final Budget 1st Qtr
Year End
Projection
CLASSIFICATION 2013-14 2014-15 2015-16 Estimates 2015-16
Total Non Spendable 3.36 1.10 1.10 1.10 1.10
Total Restricted - 0.76 0.76 0.76 0.76
Assigned - - - - -
Economic Uncertainty I 12.50 0.03 19.00 - 19.00
Economic Uncertainty II 1.40 12.50 - - -
Economic Fluctuation 2.00 2.00 1.40 - 1.40
CIP Future Project - 1.40 - - -
PERS 0.50 0.50 0.10 - 0.10
One Time Revnue - - - - -
Equipment Fund Loan for 1A - - - - -
Reserve for Encumbrances 1.27 7.00 2.08 - 10.00
Revenue Liability 3.92 - - - -
General Building 1.15 - - - -
Wolfe Road Transportation Study 1.00 1.00 1.00 - 1.00
I-280 Trail Study 0.25 0.25 0.25 (0.25) -
Total Assigned 23.99 24.68 23.83 32.83 31.50
Total UnAssigned 18.33 15.31 10.89 13.45 0.50
TOTAL FUND BALANCE 45.68 41.85 36.58 - 33.86
MID YEAR BUDGET REQUESTS – ALL FUNDS