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HomeMy WebLinkAboutAgenda Report - February 20, 2019 H-01TM CITY OF LODI COUNCIL COMMUNICATION AGENDA ITEM AGENDA TITLE: Adopt Resolution Approving Fiscal Year 2018/19 Mid -Year Budget Adjustments MEETING DATE: February 20, 2019 PREPARED BY: Budget Manager and Deputy City Manager RECOMMENDED ACTION Adopt resolution approving the Fiscal Year 2018/19 mid -year budget adjustments. BACKGROUND INFORMATION: The City Council adopted the Fiscal Year 2018/19 Budget on June 6, 2018. The budget sets the priorities for funding services within the City of Lodi for the fiscal year. With the adopted budget, the City Council requires staff to provide a mid -year update on the status of the budget and to make any necessary adjustments at that time. General Fund Revenues: General Fund revenues are trending higher than originally budgeted. The adopted budget showed total projected revenues of $51,300,380. The mid -year budget estimates the year end revenue projection to be $51,959,490. The additional $695,110 in projected revenues is shown in Table 1. All other categories are trending on budget. Table 1 Revenue Category Variance Above Projection of Variance Fire Strike Team Reimbursement $201,000 191.4% Sales Tax $400,520 3.3% Public Safety -Prop 172 Business License Tax $68,820 $24,770 17.6% 1.8% TOTAL GENERAL FUND REVENUE VARIENCE $695,110 1.3% General Fund Expenditures: General Fund expenditures are trending overall at budgeted level. Recent MOU agreements have increased some department expenditures over original budget levels but are offset by savings in other departments. The overall General Fund expenses are projected to be $292,090 under budget. Table 2 shows the General Fund expenditure projections compared to budget by department. City Clerk, City Attorney, Fire Department, and Non -Departmental show cost overruns, however, savings in other departments more than offset those overruns. A portion of Fire's overrun is for additional Strike Team related expenses. Lodi Fire Department was called to serve in several substantial wildfires in Butte County, Stanislaus National Forest, Tahoe National Forest, Shasta County and Modoc County in 2018, The extent of these fires and Lodi Fire Department's service to these communities in need was greater than anticipated in the Budget. Staff is recommending a budget adjustment of $178,000 in the Fire APPROVED: bauer, City Manager Adopt Resolution Approving Fiscal Year 2018/19 Mid -Year Budget Adjustments February 20, 2019 Department for the additional Strike Team expenditures in 2018. The additional expenditures for Strike Team are 100 percent funded through a mutual aid agreement and will be reimbursed. Additionally, due to staff in academy, vacancies and absences, Fire has had to authorize more overtime to meet minimum staffing requirements. Table 2 Department 2018/19 Budget 2018/19 Estimate (Over) Under Budget City Attorney $540,280 $546,540 ($6,260) City Clerk $738,420 $760,570 ($22,150) City Manager $483,440 $483,240 $200 Economic Development $501,500 $475,710 $25,790 Fire $12,088,480 $12,554,550 ($466,070) Internal Services $4,231,320 $3,975,330 $255,990 Non -Departmental $9,372,150 $9,376,190 ($4,040) Police $20,852,850 $20,562,690 $290,160 Public Works $2,491,940 $2,273,470 $218,470 Total $51,300,380 $51,008,290 $292,090 Electric Utility Electric Utility revenues are expected to finish the year consistent with expectations at just 0.5 percent lower than budgeted. Expenditures are projected below budget by approximately $6 million as follows: $3.7 million in savings from the refinancing of the 2008 Certificates of Participation; $1.1 million in capital projects, most of which will shift into next year's budget as projects get underway this spring and summer; and $725,000 in vacancy savings. Wastewater Utility Operating revenues are projected slightly higher than budgeted, primarily from a projected increase of $255,070 from development impact fees. Expenditures are expected to be $7.2 million lower than budget of which $6.3 million is in capital projects that will shift into next year's budget as projects get underway. There is also $400,000 in vacancy savings. Water Utility Operating revenues are projected slightly higher than budgeted at $212,310 which is coming primarily from customer charges. Expenditures are expected to be $3.2 million lower than budget of which $2.7 million is the Water Meter Phase 8 Project that will shift into next year's budget. Personnel Adjustments Staff is recommending the addition of two full-time positions in the General Fund. One full time Risk Management Technician position in the City Attorney's office and one full time Confidential Administrative Secretary in the Internal Services Department. Risk Management Technician: In the last fiscal year, the City combined the duties of the Legal Secretary and Secretary to the City Manager into an Executive Administrative Assistant to the City Manager and City Attorney. In the year that has passed, it has become evident that additional staff is needed to provide much needed support to both the City Manager and City Attorney. Additionally, a part-time staff position in Risk Management has been vacant for several months. Staff is recommending a combined position to handle technician level duties of both Risk Management and Legal Services. Some of the duties this position would perform include: Adopt Resolution Approving Fiscal Year 2018/19 Mid -Year Budget Adjustments February 20, 2019 • Provide support for new risk management initiatives such as the citywide safety committee, online employee training solutions and an employee wellness program. • Consolidation of subrogation for damages to city property citywide. • Worker's compensation claims assistance and documentation processing. • Maintain workers compensation files. • Provide support for the PINS insurance database. • Perform a variety of complex, sensitive and confidential technical assistance to the operations of the City Attorney's office. • Maintain accurate and up-to-date office files, court records and logs. • Maintain legal reference materials. • Receive and screen communications, office visitors, telephone calls and correspondence. • Order office supplies and arrange for equipment repair. The annual cost of this position is estimated to be $66,230. Staff is requesting the addition of the position and authorization to move forward with hiring in the current fiscal year for an estimated cost of $16,560. This position will be split 50 percent in the City Attorney's budget, 30 percent in the Worker's Compensation fund and 20 percent in the General Liability fund. The cost of the position will be included in future cost allocation calculations. Confidential Administrative Secretary: The Internal Services Department consists of five Divisions and the Deputy City Manager. The department and its five mid managers and one executive manager currently do not have an allocation of clerical support. Duties, which are typically clerical in nature, are primarily done by mid -management staff. The addition of clerical support at the Administrative Secretary skill level will free up manager time to work on projects consistent with their responsibilities. Specifically, this position would provide the following assistance to the department: • Budget and CAFR document assistance — formatting, organizing, proofing, etc. • Cal -Card processing of manager statements. • Purchasing — ordering of supplies, requisition entry, PO receiving, department invoice entry (separation of duties from NP staff). • Personnel assistance — Biweekly time entry of staff into the Munis system; processing of personnel action forms. • Council reports — typing, submitting and monitoring review progress of council reports. • Reporting — prepare or gather data for quarterly purchases, investment reports. • Negotiation assistance — keep notes organized, typing MOU's, schedule meetings. • Travel assistance with conferences and trainings. • Create and maintain files. • Destruction of records annual process. • Department website maintenance. The annual cost of this position is estimated to be $93,930. Staff is requesting the addition of the position and authorization to move forward with hiring in the current fiscal year for an estimated cost of $23,350. This position will be included in future cost allocation calculations. FISCAL IMPACT: Offsetting revenue and expenses for Fire Strike Team activities is requested. Expense appropriations for the addition of two staff positions in the General Fund will be covered by budget savings in the current fiscal year. In future years, the new positions will be largely funded by cost allocations to benefitting funds throughout the City. Additional appropriations are requested in the General Liability and Worker's Compensation funds to cover these funds share of the new position. The funds have adequate revenues and fund balance to support in the current year. Adopt Resolution Approving Fiscal Year 2018/19 Mid -Year Budget Adjustments February 20, 2019 Andrew Key , p y Manager ger s D uta t Exhibit A Mid -Year Adjustments FY 2018-19 Current Mid -Year Revised Account Number Account Description Budget Adjustment Budget Mid -Year Ammendments 100 - General Fund Revenue Adjustment 10041100.57101 Total Revenue Adjustments Expense Adjustment 10041100.71002 Total Expense Adjustments Strike Team Overtime $ 105,000 $ 201,000 $ 306,000 $ 105,000 $ 201,000 $ 306,000 $ 100,000 $ 178,000 $ 278,000 $ 100,000 $ 178,000 $ 278,000 660 - General Liability Fund 66025000.71189 Personnel $ 79,070 $ 3,310 $ 82,380 Total Expense Adjustments $ 79,070 $ 3,310 $ 82,380 665 - Worker's Compensation Fund 665251000.71189 Personnel $ 118,600 $ 4,970 $ 123,570 Total Expense Adjustments $ 118,600 $ 4,970 $ 123,570 CITY OF LODI February 2019 RISK MANAGEMENT TECHNICIAN Job descriptions are intended to present a broad and general range of duties which includes, purpose, responsibilities, and scope of work. Job descriptions are not intended to reflect all duties performed within the job. DEFINITION Under general direction, performs a variety of complex, sensitive and confidential technical and clerical work in support of the City Attorney's office and Risk Management Division including in-person and telephone reception, typing, preparation, assembly and distribution of documents, mail processing, photocopying, and related tasks; Provides a wide variety of information to employees and the public on the department's programs and processes, interpretation and application of policies, procedures and regulations; Facilitates the workers' compensation claims process for employees; Processes documentation for new claims; Coordinates and tracks transitional duty assignments; Verifies wages and audits payroll codes; Administers the OSHA 300 log; Serves as a liaison between employees and the Third Party Administrator (TPA); Gathers information from employees, departments and outside agencies in the performance of assigned Risk Management studies and provides technical and legal support to Executive Management; including the City Manager, City Attorney, and Deputy City Manager; Acts as secretary for Citywide Safety Management Oversight Committee, prepares agenda/minutes and provide reports, tracks inspections and corrective actions, provides basic ergonomic evaluations, assists departments with equipment purchasing, coordinates annual hearing and other medical testing; Processes subrogation demands for damage to City property; Reviews police reports, gathers loss information and repair costs from impacted departments, contacts insurance carriers to file claims on behalf of the City, prepares invoices and demand letters, responds to probation restitution inquiries, tracks all claims for payment, compiles periodic reports; Provides support for federal Department of Transportation (DOT) random drug testing program, prepares confidential testing memos, maintains commercial driver database, and completes subsequent employer DOT records requests; Processes liability claims utilizing an electronic claim administration system for the purpose of entering claims into the system; Documents the electronic file with claim activity; Ensures accurate and timely processing of payments to vendors and claimants, Compiles periodic reports, Responds to claimant inquiries; Initiates or processes invoices and accounts payable documents to generate payments; receives, processes, and deposits insurance -related payments; Examines and reconciles remittance reports; monitors division budget and assist with developing division budget requests; Supports PINS insurance database, responds to staff and insurance agent questions, approves routine certificates of insurances for contracts, facilitates certificate of insurance requests from City departments, Maintains electronic and paper files; Provides administrative support for City Wellness program, tracks initiatives, coordinates committee meetings and takes minutes, provides reports; Composes and types confidential correspondence; Compiles data for use in a variety of special reports; Prepares and maintains a variety of records and files including federal and state reporting, training logs, court records, legal reference materials and related matters; Provides excellent customer service and demonstrates tact and diplomacy when discussing sensitive and confidential matters; Performs other duties related to the operation of the City Manager and City Attorney offices including providing back-up staffing and phone support for the Executive Administrative Assistant. Knowledge of: Fundamentals of applicable federal, state, and local laws pertaining to the field of Risk Management, and City policies and procedures; Various types of insurance required by public agencies; Principles and practices of workers' compensation and safety and loss control programs. General principles of public liability; Systems and methods for record keeping, and file maintenance; English usage, spelling, grammar, punctuation and composition; General office methods including the operation of personal computers and standard office equipment. Ability to: Interpret, explain, and apply complex regulations, rules, and agreements; Assist in the administration of various risk and liability programs; Maintain confidentiality of related materials and issues; Multi -task and manage workload and priorities with frequently disruptions; Prepare a variety of written reports, records, and correspondence using a personal computer; Accurately enters, reviews, and maintains data and generates reports in various workers compensation, insurance and ERP systems; Perform complex arithmetical and basic statistical calculations accurately; Provide excellent customer service to internal and external customers; Establish and maintain effective working relationships with those contacted in the course of the work; Establish and maintain cooperative working relationships with other employees and the public. EDUCATION AND EXPERIENCE: Any combination equivalent to education and experience that would likely provide the required knowledge and abilities would be qualifying. A typical combination is: Education: Equivalent to the completion of high school, supplemented by college level courses related to human resource management, business administration or related field is highly desirable. Experience: Three years of increasingly responsible clerical experience in a Human Resources, Insurance or Legal office involving administering public agency insurance, claims and/or liability management activities with frequent contact with the public. Prior public agency experience is highly desirable. LICENSES AND CERTIFICATES: Possession of a valid Driver's License (Class C) issued from the California Department of Motor Vehicles. WORK/ENVIRONMENTAL CONDITIONS Work is generally performed in an office setting with extensive public contact and frequent interruptions. Primary functions require sufficient physical ability to work in an office setting; to stand or sit for prolonged periods of time; to occasionally stoop, bend, kneel, crouch, reach and twist; to lift, carry, push and/or pull light to moderate amounts of weight; to operate office equipment requiring repetitive hand movement and fine coordination including use of a computer keyboard; attending meetings and take notes; talk or hear, in person and by telephone; and using personal computers, cell phones, and/or hand held electronic devices. *FLSA Status: Non -EXEMPT RESOLUTION NO. 2019-22 A RESOLUTION OF THE LODI CITY COUNCIL AMENDING THE CITY OF LODI FISCAL YEAR 2018-19 BUDGET AND APPROVING THE ADDITION OF ONE CONFIDENTIAL RISK MANAGEMENT TECHNICIAN AND ONE CONFIDENTIAL ADMINISTRATIVE SECRETARY WHEREAS, the City Council adopted the Fiscal Year 2018-19 Budget (budget) on June 6, 2018; and WHEREAS, the 2018/19 Financial Plan and Budget was prepared in accordance with the City Council's goals, budget assumptions, and policies; and WHEREAS, the budget Resolution requires a mid -year update which was presented to City Council at its regularly -scheduled meeting on February 20, 2019; and WHEREAS, revisions to the budget are necessary to address circumstances unknown at the time of the budget adoption. NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Lodi approves: 1) All budget amendments to Fiscal Year 2018-19 Budget as outlined on Exhibit A; and 2) The addition of one new Confidential Risk Management Technician position with an estimated annual cost of $66,230 for the City Attorney's Office; and 3) The addition of one new Confidential Administrative Secretary position with an estimated annual cost of $93,930 for the Internal Services Department. Dated: February 20, 2019 I hereby certify that Resolution No. 2019-22 was passed and adopted by the City Council of the City of Lodi in a regular meeting held February 20, 2019, by the following vote: AYES: COUNCIL MEMBERS — Johnson, Kuehne, Mounce, and Mayor Chandler NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS — Nakanishi ABSTAIN: COUNCIL MEMBERS — None 2019-22 NIFER FERRAIOLO ity Clerk ,,,„,a Exhibit A Exhibit A Mid -Year Adjustments FY 2018-19 Current Mid -Year Revised Account Number Account Description Budget Adjustment Budget Mid -Year Ammendments 100 - General Fund Revenue Adjustment 10041100.57101 Strike Team $ 105,000 $ 201,000 $ 306,000 Total Revenue Adjustments $ 105,000 $ 201,000 $ 306,000 Expense Adjustment 10041100.71002 Overtime $ 100,000 $ 178,000 $ 278,000 Total Expense Adjustments $ 100,000 $ 178,000 $ 278,000 660 - General Liability Fund 66025000.71189 Personnel $ 79,070 $ 3,310 $ 82,380 Total Expense Adjustments $ 79,070 $ 3,310 $ 82,380 665 - Worker's Compensation Fund 665251000.71189 Personnel $ 118,600 $ 4,970 $ 123,570 Total Expense Adjustments $ 118,600 $ 4,970 $ 123,570 Fiscal Year 2018/19 Budget Mid Year Report Presented by: Andrew Keys, Deputy City Manager General Fund Overview General Fund Fund Balance Beginning Fund Balance Unreserved Revenues Expenditures Estimated Budget to 2016-17 2017-18 2018-19 2018-19 EstActuals Actuals Actuals Budget Actuals Variance 11436,771 10,888, 291 9,553,119 9,663,119 47,953,872 51195,553 51,300,380 51959,490 559,110 49,501351 52,421.725 51,300.160 51,008,290 291090 Net Difference (Revenues Less Expenditures) (1.548,479) (1225,173) Fund Balance Ending Fund Balance Unreserved Fund Balance as a percentage of revenue: 951,200 951.209 10, 868, 291 9,563,119 9,553,119 10,514,319 951,200 2396 19% 19% 20% 2 General Fund Revenues • Overall revenues are anticipated to beat the budget by 1.3% Revenue Category Variance Above Projection % of Variance Fire Strike Team Reimbursement $201,000 191.40% Sales Tax $400,520 3.30% Public Safety -Prop 172 $68,820 17.60% Business License Tax $24,770 1.80% Total General Fund Revenue Varience $695,110 1.30% General Fund Expenses Department 2018/19 Budget 2018/19 Estimate (Over) Under Budget City Attorney $540,280 $546,540 ($6,260) City Clerk $738,420 $760,570 ($22,150) City Manager $483,440 $483,240 $200 Economic Development $501,500 $475,710 $25,790 Fire $12,088,480 $12,554,550 ($466,070) Internal Services $4,231,320 $3,975,330 $255,990 Non -Departmental $9,372,150 $9,376,190 ($4,040) Police $20,852,850 $20,562,690 $290,160 Public Works $2,491,940 $2,273,470 $218,470 Total $51,300,380 $51,008,290 $292,090 Requested General Fund Adjustments • Fire Strike Team - $201,000 offsetting revenue and expense • Confidential Administrative Secretary — New position — $23,350 estimate for FY 2018/19 — Funded in current year from budget savings • Risk Management Technician — New position — $16,560 estimate for FY 2018/19 — Funded in the current year from budget savings Conf Administrative Secretary • Provide secretary level support to the Internal Services Department including personnel assistance, council reports, miscellaneous reporting, maintenance of files • Budget and CAFR document assistance • Negotiation assistance — scheduling meetings, MOU changes, organization of notes and binders, proposal tracking • Destruction of records annual process • Department website maintenance • Cost is estimated at $94,000 annually Risk Management Technician • Provide support for Risk Management workload of worker's compensation claims and maintenance of files • Provide support for general liability claims, consolidation of subrogation for damages to city property • Provide support for the PINS insurance database • Provide support for Risk Management programs such as city-wide safety committee, online employee training solutions, employee wellness program • Cost is estimated at $67,000 annually Electric Utility Electric Utility Enterprise Fund Cash Balance Beginning Cash Balance Revenues Expenditures Estimated Budget to 2016-17 2017-18 2018-19 2018-19 Est Actuals Actuals Actuals Budget Actuals Variance 24.27a513 30,501,095 35,517,813 36,517,813 70,840,451 74,262804 73,515,090 73,252,910 (352180) 54,517,879 65246,086 75,301,153 179257,820 6,043,333 Net Difference (Revenues Less Expenditures) 5,22 582 5,016,715 ( 585,053) 4005090 5,691,153 Cash Balance Ending Cash Balance Fund Balance as a percentage of expenses: 30501,095 35,517,513 34,531,750 40,577,903 5,591,153 4795 54% 45% 59% 8 Water Utility Water Utility Enterprise Fund Cash Balance Beginning Cash Balance Revenues Expenditures Net Difference (Revenues Less Expenditures) Cash Balance Ending Cash Balance Fund Balance as a percentage of expenses: Estimated Budget to 2016-17 2017-18 2018-19 2018-19 E st Actu a l s Actuals Actuals Budget Actuals Variance 5,567,984 4,902„155 5,728.832 5328.832 53,818,334 19,561228 14448,540 14.1660,850 212,310 14,484,149 17,834, 561 14, 666,105 11,458220 3,197,885 (665,819) 1,826,657 (217,565) 3,192,630 3,410,195 4,902.165 6,728,832 5,511.267 9,921,462 3,410,195 3496 3896 4496 87% 9 Wastewater Utility Wastewater Utility Enterprise Fund Cash Balance Beginning Cash Balance Revenues Expenditures Estimated Budget to 2016-17 2017-18 2018-19 2018-19 Est Actuals Acdals Actuals Budget Actuals Variance 17,452,347 19,473,784 20,070,695 20,070,695 15,944, 258 19,280,054 19,824,644 20,122940 302.340 14,928,781 18,663,143 27,348,730 20,114,250 7,234,480 Net difference (Revenues Less Expenditures) 2011.477 595,911 (7,52$134) 8,690 (7,535,820) Cash Balance Ending Cash Balance Fund Balance as a percentage of expenses: 19,473,784 2007%695 12,542,565 20,079,385 (7,535,820) 13096 107% 4696 10096 10 Other Budget Requests • $3,310 increase in personnel appropriation in the General Liability Fund for funding portion of Risk Management Technician position • $4,970 increase in personnel appropriation in the Worker's Compensation Fund for funding portion of Risk Management Technician position Action Requested • Adopt resolution adjusting appropriations in various funds to address FY 2018/19 needs, approving the Confidential Administrative Secretary and Risk Management Technician positions. 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