RPVCCA_CC_SR_2013_02_05_F_Median_Maintenance_Budget_Adjustment_FY12-13CrrvOF
MEMORANDUM
TO:
FROM:
DATE:
SUBJECT:
REVIEWED:
HONORABLE MAYOR &CITY COUNCIL MEMBERS
LES M.JONES II,INTERIM DIRECTOR OF PUBLIC W~
FEBRUARY 5,2013
MEDIAN MAINTENANCE BUDGET ADJUSTMENT FY 1 -13
CAROLYN LEHR,CITY MANAGER~C!L
RECOMMENDATION
1.Reaffirm the budgeted median maintenance expenditure for FY12-13,which will result
in a revised estimated June 30,2013 ending fund balance of $86,640 in the
Beautification-Recycling fund.
2.Approve Resolution 2013-_,A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF RANCHO PALOS VERDES,AMENDING RESOLUTION 2012-43,THE
BUDGET APPROPRIATION FOR FISCAL YEAR 2012-13,FOR A BUDGET
ADJUSTMENT TO THE CITY'S BEAUTIFICATION-RECYCLING FUND
BACKGROUND
On November 20,2012 the City Council directed City staff to cease the Neighborhood
Beautification Grants (NBG)Program.Additionally,Council directed staff to refund the
Recycling Revenue received from the City's two residential trash haulers,EDCO and Universal
Waste Systems,Inc.to residential ratepayers.These two haulers annually provide the total
amount of $296,000 to the City as recycling rebatelrevenues as a compensation for the sale of
recyclable materials collected at curbside.
As a result of the Council's direction,the remaining recycling revenue for the current fiscal year
and all future potential funds are to be returned as a rebate/credit to the residential trash
ratepayers in the City.This credit process is presently being coordinated with the trash haulers
and will be presented to the Solid Waste Subcommittee shortly.The ratepayer credit will be
retroactive to January 1,2013.Therefore,the City will receive only half of the revenue for FY12-
13,which is $148,000 less than the originally planned amount of $296,000.
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Median Maintenance FY 12-13 Funding
February 5,2013
Page 2
In the past few years the City has bUdgeted the recycling rebatelrevenue in the following
manner:a)approximately $96,500 of expenditures for the NBG program;and b)about
$193,000 is transferred to the City's median maintenance program in the Street Maintenance-
Non Pavement fund,based on a City Council decision during the 2009 budget process.
Currently,the FY12-13 budget includes appropriations for median improvements projects funded
with recycling money that have not yet been constructed,however,which are planned to be
constructed in the near future.
DISCUSSION
For several years,recycling revenues have been the income source for both the NBG program
to neighborhood groups,and for funding approximately $193,000 of the City's annual $238,000
median maintenance budget.Furthermore,based upon immediate plans for bUdgeted and in-
design median improvement projects,the median maintenance budget is expected to increase
from $238,000 to $285,000 in FY14-15.
The estimated June 30,2013 Beautification-Recycling fund balance based on the current FY12-
13 budget is $155,040.This fund balance is sufficient to absorb the reduced revenue,yet still
provide for a full year of median maintenance during FY12-13.As a result of this revenue loss,
the structural budget for median maintenance will need to be re-balanced for FY13-14 and
beyond.If the median maintenance program is to remain intact,it is likely that other ongoing
programs will need to be cut by about $200,000.
Staff is not requesting a decision regarding long-term median maintenance funding at this time;
however,it will be necessary to solve the structural deficit during the 2013 budget process or
prior to initiating bids for median improvements,whichever occurs first.
CONCLUSION
Approving staff's recommendations will allow for the continuance of current contracted median
maintenance services through the end of the fiscal year.The continuance and level of service
beyond that date will be an item of consideration for funding in the structural budget for the next
fiscal year.
FISCAL IMPACT
If City Council adopts Staffs recommendations,the Beautification-Recycling revenue budget
will be reduced by $148,000,and the Beautification-Recycling expenditure budget will be
reduced by $79,600 to reflect the cancelation of the NBG program.The revised estimated
Beautification-Recycling fund balance at June 30,2013 will be $86,640 ($155,040 budgeted
fund balance,less $148,000 revenue reduction,plus $79,600 expenditure reduction).
Attachments:
Resolution 2013-
Excerpt from the 2012 Five-Year Financial Model for the Beautification-Recycling Fund
W:\LAUREN\STAFFRPT\budgel\20130205 MEDIAN MAINT FINAL .doc
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RESOLUTION NO.2013-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS
VERDES,AMENDING RESOLUTION 2012-43,THE BUDGET APPROPRIATION
FOR FISCAL YEAR 2012-13,FOR A BUDGET ADJUSTMENT TO THE CITY'S
BEAUTIFICATION-RECYCLING FUND
WHEREAS,Section 3.32 of the Rancho Palos Verdes Municipal Code provides
that all expenditures in excess of budgeted allocations must be by supplemental
appropriation of the City Council;and
WHEREAS,on June 19,2012,the City Council of the City of Rancho Palos
Verdes adopted Resolution 2012-43,approving a spending plan and authorizing a
bUdget appropriation for the 2012-13 fiscal year;and
WHEREAS,the City of Rancho Palos Verdes desires that the budget
appropriation for the FY 2012-13 Street Maintenance-Non Pavement be increased;and
WHEREAS,a budget increase in the Street Maintenance-Non Pavement is
necessary to authorize the expenditure of additional funds for the maintenance of City
medians:
BE IT,THEREFORE,RESOLVED BY THE CITY COUNCIL OF THE CITY OF
RANCHO PALOS VERDES:
The following adjustment(s)be made to the following fund(s):
Recycling Fee Revenue
Grants to other Entities Expenditure
Public Works Overhead Charges Expenditure
Verified by Finance:\U)
212-3012-367-10-00 ($148,000)
212-3012-431-93-00 ($75,000)
212-3012-431-94-20 ($4,600)
PASSED,APPROVED,AND ADOPTED THIS FEBRUARY 5,2013.
MAYOR
ATTEST:
CITY CLERK
Resolution No.2013-
Page 1 of 2
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State of California )
County of Los Angeles )ss
City of Rancho Palos Verdes )
I,CARLA MORREALE,City Clerk of The City of Rancho Palos Verdes,hereby certify
that the above Resolution No.2013-was duly and regularly passed and adopted by
the said City Council at a regular meeting thereof held on February 5,2013.
CITY CLERK
CITY OF RANCHO PALOS VERDES
W:\LAUREN\STAFFRPT\budget\RESOLUTION NO.docx
F-4
CITY OF RANCHO PALOS VERDES
2012 FIVE-YEAR FINANCIAL MODEL -(BY FUND)
EXHIBIT B
To Street Maintenance fund (median maintenance)I (b)
~
~
296,000 296,000
3,110 4,254
299,110 300,254
14,6701 15,414 15,276 138 15,800 16,000
16,300 16,600 17,000 17,500
6,8331 75,000 0 75,000 150,000 75,000 75,000 75,000 75,000 75,000
4,300 I 6,400 61,100 (54,700)4,500 4,600 4,700 4,800 4,900 5,000
25,80311 96,81411 76,37611 20,4381 170,300 I 95,600 I 96,000 96,400 1 96,900 II 97,500
I I
21,582.1 111,300 186,460 189,750 195,090 I 200,900 a 207,610
480,754\500,500 I 0 500,500 500,500 250,000 0 0
210,000 I 165,200 165,200 0 116,000 193,000 196,800 201,000
690,75411 665,700 II 165,200 I 500,500 616,500 443,000 196,800 201,000
1,367,251 858,102 858,102 0 916,780 411,580 155,040 147,990 142,080 137,080
207,408 299,110 300,254 1,144 281,600 282,060 285,750 291,490 297,800 305,110
(25,803)(96,814)(76,376)20,438 (170,300)(95,600) (96,000)(96,400)(96,900)(97,500)
(690,754)(665,700) (165,200)500,500 (616,500) (443,000)(196,800)(201,OOO)(205,900)(211,400)
858,102 394,698 916,780 I 522,0821 411,580 I 155,040 a 147,990 a 142,080 II 137,080 a 133,290
(k)
(e)
(b)
(b)
Beautification Grants
Beautification revenue
Operations &maintenance
Personnel services
To CIP fund -Street Improvements (median projects)
Interest eamings
Plus:Revenues
less:Transfers Out
BEAUTIFICATION FUND SUMMARY
BEAUTIFICATION FUND NET BEFORE TRANSFERS
Beginning Fund Balance
Less:Expenditures
Total Revenue
Transfers Out
BEAUTIFICATION FUND DETAIL {Fund-212
Total Transfers Out
Ending Fund Balance
Total Expenditures
Revenues
Expenditures
F
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