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Home My WebLink AboutAgenda Report - November 2, 2022 H-03CITY OF ' Z!10 zt� C A L I FORN IA AGENDA ITEM H-3 COUNCIL COMMUNICATION AGENDA TITLE: Adopt Resolution Approving Final Budget Adjustments for Fiscal Year 2022 and Appropriating Funds ($1,180,816.55) MEETING DATE: November 2, 2022 PREPARED BY: Budget Manager RECOMMENDED ACTION: Adopt Resolution Approving Final Budget Adjustments for Fiscal Year 2022 and Appropriating Funds ($1,180,816.55). BACKGROUND INFORMATION The year-end closing process for each fiscal year takes many months to finalize all expenditures and journal postings. During the closing process for FY 22, additional budget was needed in Fleet Services, PRCS Grant Fund, Electric Utility Capital and the Asset Seizure Fund. Fleet Services was in need of an additional $190,818.39 in appropriations to cover increases in fuel and repair supplies due to inflation and supply demands. These costs are charged back to departments for the services used. No additional budgetary adjustments were needed in operating department budgets. PRCS Grants was in need of an additional $1,097.16 in appropriations for the Stocker grant. This grant is funded on an annual basis and is used to provide aquatic programming sponsorships for youth in need. In FY 22, a total of 127 program sponsorships were awarded which included 107 swim lessons participants, 18 summer swim participants and 2 lifeguard course participants. The Electric Utility capital program includes several maintenance projects that are needs -based driven. Annual budgets are created with expected expenditure needs. For FY 22, three projects were over spent due to an increase in service level demands and increased system maintenance efforts associated with safety and reliability. These costs totaled $641,461. These projects are: • Work for Others — need for $266,158 in appropriations for subdivision development. • Overhead Maintenance — need for $112,376 in appropriations for conductor projects. • Underground Maintenance —need for $262,927 in appropriations for inspections and cable. On October 6, 2021, City Council adopted resolution 2021-272 which authorized the use of $347,440 in Asset Seizure funds for the design work on the Police Training Facility. The resolution did not include facilitating the transfer of funds to the General Fund Capital Improvement Fund where the project is being expensed. The action requested is to provide the authorization to transfer the funds. APPROVED: - j. ligim rn'ct 14. 2022 16149 PDT) Stephen Schwabauer, City Manager FISCAL IMPACT: Fleet: The costs were recovered through charges to departments. All departments were able to accommodate the increased costs within their FY 22 budgets. PRCS Stocker Grant: Funding was received to cover 100% of the program costs. Electric Utility: Work for Others is reimbursed by developers; maintenance projects to come from fund balance. Asset Seizure Funds: No impact. Use of the funds were previously authorized. FUNDING AVAILABLE: Fund balance is available to cover the above budgetary adjustments. Adjustments are as follows: Fleet: 65055000.72551 $ 115,341.25 65055000.72533 $ 71,750.23 65055000.72355 $ 3,726.91 Stocker Grant: 20673400.72388 $ 1,097.16 Electric Utility: 50199000.77020 $ 641,461.00 Asset Seizure: 21099000.76220 $ 347,440.00 TOTAL: $1,180,816.55 Q X,p Andrew Keys Deputy City Manager/Internal Services Director Capital Improvement Program - Maintenance FY 2021-2022 Maintenance Project Title: 12 kV Overhead Maintenance I Munis Project Code: EUCP-21002 #43 Section I:Description District Nos: Citywide Project Length Ongoing Priority High Maintenance and improvements associated with the 12 kV overhead distribution system. Justification/factor driving project These ongoing efforts include replacement of annealed copper conductors with aluminum conductor steel reinforced (ACSR). Whereas copper is notoriously brittle and prone to breakage with age, ACSR offers optimal strength for ovehead line design. Additional activities include replacement of poles, transformers and/or switches as needed as well as inspection of overhead infrastrucutre, and pole test, treat and stubbing efforts. Additional Information Section II Estimated Project Costs Expenditure Internal Staff Miscellaneous Prior Years FY 20121 Estimate $ - $ 360,000 $ - $ 241,000 FY 21122 Budget $ 1,343,000 $ 1,129,376 FY 22123 FY 23124 FY 24125 $ 1,343,000 $ 846,200 $ 846,200 $ 1,017,000 $ 685,800 $ 685,800 $ $ FY 25126 846,200 685,800 Future Yrs N/A N/A $ $ Total 5,584,600 4,444,776 Contracts $ - $ 424,579 $ 50,000 $ 50,000 $ 50,000 $ 35,000 $ 35,000 N/A $ 644,579 Total Capital Costs $ - $ 1,025,579 $ 2,522,376 $ 2,410,000 $ 1,582,000 $ 1,567,000 $ 1,567,000 NIA $ 10,673,955 Section III Funding Sources/Methods of Financing Funding Source(s) 501 - EU Outlay Capital Reserve Fund Total Project Financing Prior Years FY 20121 Estimate $ - $ 1,351,000 $ - $ 1,351,000 FY 21122 Budget $ 2,410,000 $ 2,522,376 FY 22123 FY 23124 FY 24125 $ 2,410,000 $ 1,582,000 $ 1,567,000 $ 2,410,000 $ 1,582,000 $ 1,567,000 $ FY 25126 1,567,000 Future Yrs N/A $ Total 10,887,000 $ 1,567,000 NIA $ 10,887,000 Section IV Operating Budget Impact Operating Cost or (savings) Personnel Other Operating Costs Total Operating Impact Prior Years FY 20121 Estimate $ - $ - $ - $ - FY 21122 Budget FY 22123 FY 23124 FY 24125 $ - $ FY 25126 - Future Yrs $ - $ $ $ Total - - - $ - $ - $ - Capital Improvement Program - Maintenance FY 2021-2022 Maintenance Project Title: 12 W Underground Maintenance I Munis Project Code: EUCP-21006 #44 Section (:Description District Nos: Citywide Project Length Ongoing Priority High Inspection and replacement of 12 kV underground infrastructure and other underground electric infrastructure maintenance as needed. Justification/factor driving project These ongoing maintenance efforts include, but are not limited to, replacement of failed/end-of-life cable; replacement of cable due to engineering study of predictive failure; installation/replacement of subsurface equipment with pad -mounted equipment to increase operability and reliability and other underground electric infrastructure maintenance as needed. Additional Information Section II Estimated Project Costs Expenditure Internal Staff Miscellaneous Contracts Total Capital Costs Prior Years FY 20121 Estimate $ - $ 115,000 $ - $ 185,000 $ - $ 750,000 $ j $ 1,050,000 FY 21122 Budget $ 115,000 $ 447,927 $ 500,000 $ 1,062,927 FY 22123 FY 23124 FY 24125 $ 25,000 $ 25,000 $ 25,000 $ 40,000 $ 40,000 $ 40,000 $ 100,000 $ 100,000 $ 100,000 $ 165,000 $ 165,000 $ 165,000 FY 25126 Future Yrs Total $ 25,000 N/A $ 330,000 $ 40,000 N/A N/A $ $ $ 792,927 1,650,000 2,772,927 $ 100,000 $ 165,000 jNIA Section III Funding Sources/Methods of Financing Funding Source(s) 501 - EU Outlay Capital Reserve Fund Total Project Financing Prior Years FY 20121 Estimate $ - $ 1,050,000 $ - $ 1,050,000 FY 21122 Budget $ 1,062,927 $ 1,062,927 FY 22123 FY 23124 FY 24125 $ 165,000 $ 165,000 $ 165,000 $ 165,000 $ 165,000 $ 165,000 $ $ FY 25126 165,000N/A 165,000 Future Yrs NIA $ $ Total 2,772,927 2,772,927 Section IV Operating Budget Impact Operating Cost or (savings) Personnel Other Operating Costs Total Operating Impact Prior Years $ - $ - $ - FY 20121 Estimate $ - FY 21122 Budget $ - FY 22123 FY 23124 FY 24125 $ - $ - $ - $ FY 25126 - Future Yrs $ - $ $ $ Total - - - Capital Improvement Program - Maintenance FY 2021-2022 Maintenance Project Title: Work for Others - Reimbursed I Munis Project Code: EUCP-15004 #46 Section LDescription District Nos: Citywide Project Length Ongoing Priority Normal Installation and/or expansion of electrical service infrastructure for new development and/or existing customers. Justification/factor driving project This work is invoiced and paid for by the requesting party with revenues returned to the Electric Utility operating fund. Additional Information Section II Estimated Project Costs Expenditure Prior Years Internal Staff $ - FY 20/21 Estimate FY 21/22 Budget FY 22123 FY 23124 FY 24/25 FY 25/26 $ 275,000 $ 275,000 $ 275,000 $ 275,000 Future Yrs Total $ 500,000 $ 275,000 N/A $ 1,875,000 Miscellaneous $ - $ 500,000 $ 541,158 $ 275,000 $ 275,000 $ 275,000 $ 275,000 N/A $ 2,141,158 Total Capital Costs $ - $ 1,000,000 $ 816,158 $ 550,000 1 $ 550,000 $ 550,000 $ 550,000 N/A 1 $ 4,016,158 Section III Funding Sources/Methods of Financing Funding Source(s) Prior Years FY 20121 FY 21122 FY 22123 FY 23124 FY 24125 FY 25/26 Future Yrs Total Estimate Budget 501 - EU Outlay Capital Reserve Fund $ - $ 1,000,000 $ 816,158 $ 550,000 $ 550,000 $ 550,000 $ 550,000 N/A $ 4,016,158 Total Project Financing $ - $ 1,000,000 $ 816,158 $ 550,000 $ 550,000 $ 550,000 $ 550,000 N/A $ 4,016,158 Section IV MOperating Budget Impact Operating Cost or (savings) Prior Years Personnel $ - Other Operating Costs $ - Total Operating Impact $ - FY 20121 Estimate FY 21122 Budget FY 22/23 FY 23124 FY 24/25 FY 25/26 Future Yrs Total $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - RESOLUTION NO. 2022-270 A RESOLUTION OF THE LODI CITY COUNCIL APPROVING FINAL BUDGET ADJUSTMENTS FOR FISCAL YEAR 2022; AND FURTHER APPROPRIATING FUNDS WHEREAS, the Lodi City Council adopted the Fiscal Year 2021/22 Financial Plan and Budget on June 2, 2021; and WHEREAS, the year-end reporting period for Fiscal Year 2C21/22 has been completed; and WHEREAS, additional budgets for Fleet Services, PRCS Grants, Electric Utility and Asset Seizure funds are necessary to address unbudgeted expenditure needs for Fiscal Year 2021/22; and follows: WHEREAS, staff recommends the additional Fiscal Year 2021/22 appropriations as Fleet: 65055000.72551 $115,341.25 65055000.72533 $ 71,750.23 65055000.72355 $ 3,726.91 Stocker Grant: 20673400.72388 $ 1,097.16 Electric Utility: 50199000.77020 $641,461.00 Asset Seizure: 21099000.76220 $347,440.00 NOW, THEREFORE BE IT RESOLVED that the Lodi City Ccuncil does hereby authorize the additional Fiscal Year 2021/22 appropriations and adjustments totaling $1,180,816.55, as set forth above. Dated: November 2, 2022 I hereby certify that Resolution No. 2022-270 was passed and adopted by the City Council of the City of Lodi in a regular meeting held November 2, 2022, by tl-e following vote: AYES: COUNCIL MEMBERS — Hothi, Khan, Kuehne, Nakanishi, and Mayor Chandler NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS — None ABSTAIN: COUNCIL MEMBERS — None gkzv�_&a" OLIVIA NASHED City Clerk 2022-270