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CC Resolution No. 17-054 Adopting Operating and Capital Improvement Budget for Fiscal Year 2017-18 RESOLUTION NO. 17-054 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO ADOPTING AN OPERATING AND CAPITAL IMPROVEMENT BUDGET FOR FISCAL YEAR 2017-18 BY RATIFYING THE ADEQUACY OF ESTIMATED REVENUES AND FUND BALANCES IN EACH FUND TO COVER APPROPRIATED MONIES,APPROPRIATING MONIES THEREFROM FOR SPECIFIED ACTIVITIES AND ACCOUNTS, AND SETTING FORTH CONDITIONS OF ADMINISTERING SAID BUDGET 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 anticipated revenues and fund balances, has determined that estimated revenues and fund balances are adequate to cover appropriations, and has recommended the allocation of monies for specified program activities, WHEREAS, the City has independently studied the proposed Capital Improvements Program (CIP) and has determined that the CIP is exempt from environmental review pursuant to the exemption in 14 Cal. Code Regs. §15601(b)(3) in that it can be seen with certainty that there is no possibility that this action will have a significant effect on the environment because approval of the CIP is a budgeting action, and does not involve approval of any specific project that may have a significant effect on the environment; WHEREAS, the City Council, using its independent judgment, before taking action on this Resolution, determines that the CIP is exempt from CEQA as stated above; NOW, THEREFORE, BE IT RESOLVED that the City Council does hereby adopt the following sections as a part of its fiscal policy: Resolution No. 17-054 Page 2 Section 1: The estimates of available fund balances and anticipated resources to be received in each of the several funds during fiscal year 2017-18, as submitted by the City Manager in his proposed budget and amended during the budget study sessions, are sufficient to cover appropriations. Section 2. There is appropriated from each of the several funds the sum of money set forth as expenditures for the funds named in the Fiscal Year 2017-18 Proposed Budget Financial Overview by Fund (Attachment 131), as amended during the budget sessions, and stated for the purposes as expressed and estimated for each department. Section 3. The City Manager is hereby authorized to administer and transfer appropriations between Budget Accounts within the Operating Budget when in his opinion such transfers become necessary for administrative purposes. Section 4. The Director of Administrative Services shall prepare and submit to City Council quarterly a revised estimate of Operating Revenues. Section 5. The Director of Administrative Services is hereby authorized to carry over, from the prior fiscal year, unexpended appropriations for Capital Improvement projects. Section 6. The Director of Administrative Services is hereby authorized to continue appropriations for operating expenditures that are encumbered or scheduled to be encumbered at year end. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino this 20th day of June, 2017, by the following vote: Vote Members of the City Council AYES: Vaidhyanathan, Chang, Scharf, Sinks NOES: None ABSENT: Paul ABSTAIN: None ATTEST: APPROVED: /'1' 4 Grace Schmidt, City Clerk Savita Vaidhyanathan, Ma or, City of Cupertino Resolution No. 17-054 Page 3 Attachment B-1 FISCAL YEAR 2017-18 PROPOSED BUDGET FINANCIAL OVERVIEW BY FUND Special Revenue Debt Service Capital Project Enterprise Internal Service 2017-18 Propol Revenue Categories General-Fund Fund Fund Funds Funds Funds BudgetTAI, Sales Tax $ 22,790,000 $ - $ - $ - $ - $ - $ 22,790,000 Property Tax $ 20,757,000 $ - $ - $ - $ - $ - $ 20,757,000 Transient Occupancy $ 6,708,000 $ - $ - $ - $ - $ - $ 6,708,000 Utility Tax $ 3,200,000 $ - $ - $ - $ - $ - $ 3,200,000 Franchise Fees $ 3,040,000 $ - $ - $ - $ - $ - $ 3,040,000 Other Taxes $ 2,850,000 $. 1,350,000 $ - $ - $ - $ - $ 4,200,000 Licenses&Permits $ 2,145,000 $ - $ - $ - $ - $ - $ 2,145,000 Use of Money&Property $ 1,647,790 $ 2,000 $ - $ - $ 231,200 $ - $ 1,880,990 Intergovernmental $ 484,000 $ 1,980,590 $ - $ - $ 15,000 $ - $ 2,479,590 Charges for Services $ 12,394,828 $ 384,100 $ - $ - $ 7,181,800 $ 4,167,492 $ 24,128,220 Fines&Forfeitures $ 600,000 $ 6,000 $ - $ - $ 56,000 $ - $ 662,000 Miscellaneous - $ 294,500 $ - $ - $ - $ - $ - $ 294,500 Transfers In/Other Financing Uses $ 2,000,000 $ 12,772,122 $ 3,167,538 $ 4,546,000 $ 400,000 $ 5,657,077 $ 28,542,737 TOTAL REVENUE $ 78,911,118 $ 16,494,812 $ 3,167,538 $ 4,546,000 $ 7,884,000 $ 9,824,569 $ 120,828,037 Special Debt Service Capital Project Enterprise Internal Service 2017-18 Appropriation Categories General Fund Revenue Fund Fund Funds Funds Funds , Employee Compensation $ 17,078,787 $ 936,733 $ - $ - $ 1,952,091 $ 2,336,566 $ 22,304,177 Employee Benefits $ 7,210,639 $ 511,493 $ - $ - $ 603,569 $ 1,830,031 $ 10,155,732 Materials - $ 4,784,228 $ 742,316 $ - $ - $ 534,167 $ 1,387,706 $ 7,448,417 Contract Services $ 18,165,196 $ 796,900 $ - $ 125,000 $ 6,135,360 $ 2,024,155 $ 27,246,611 Cost Allocation $ 7,812,849 $ 555,816 $ - $ - $ 759,543 $ 733,706 $ 9,861,914 Capital Outlays $ 85,000 $ 5,638,000 $ - $ 4,421,000 $ - $ - $ 10,144,000 Special Projects $ 1,727,400 $ 14,872,000 $ - $ - $ 95,000 $ 2,371,930 $ 19,066,330 Contingencies $ 1,253,931 $ 39,571 $ - $ - $ 273,496 $ 340,418 $ 1,907,416 Transfers Out $ 12,590,196 $ - $ - $ 12,184,000 $ 223,766 $ - $ 24,997,962 Debt Service/Other Uses $ 3,327,538 $ -- $ 3,167,538 $ - $ - $ 665,551 $ 7,160,627 TOTAL EXPENDITURES $ 74,035,764 $ 24,092,829 $ 3,167,538 $ 16,730,000 $ 10,576,992 $ 11,690,063 $ 140,293,186