HomeMy WebLinkAboutAgenda Packet - February 23, 2015 - CC Special zus4,
NOTICE AND CALL OF A SPECIAL MEETING
OF THE CITY COUNCIL OF THE CITY OF AZUSA
TO THE MEMBERS OF THE CITY COUNCIL OF THE CITY OF AZUSA:
NOTICE IS HEREBY GIVEN that a Special Meeting of the City Council is hereby called to be held
MONDAY, FEBRUARY 23, 2015, immediately following the Regular Utility Board Meeting which begins
at 6:30 p.m. at the Azusa Light and Water Conference Room located at 729 N. Azusa Avenue, Azusa,
California.
Said Special Meeting shall be for discussing, hearing and taking action on the items listed below:
AGENDA
A. PRELIMINARY BUSINESS
• Call to Order
• Roll Call
B. PUBLIC COMMENT—Limited to items listed on this Special Meeting Notice/Agenda.
Each person or representative of a group shall be allowed to speak without interruption for up to five (5)
continuous minutes, subject to compliance with applicable meeting rules, on items listed on this agenda only.
Questions to the speaker or responses to the speaker's questions or comments shall be handled after the speaker
has completed his/her comments.
C. CONSENT CALENDAR
The Consent Calendar adopting the printed recommended actions will be enacted with one vote. If
Councilmembers or Staff wishes to address any item on the Consent Calendar individually, it will be
considered under SPECIAL CALL ITEMS.
02/23/2015 1
1. SCOPE OF SERVICES AND REQUEST FOR PROPOSALS FOR FINANCIAL ADVISOR TO
EVALUATE AND FACILITATE REFUNDING OF: (i) WATER PARITY REVENUE BONDS
SERIES 2006; (ii) ROSEDALE COMMUNITY FACILITIES DISTRICT 2007 SPECIAL TAX
BOND; AND (iii) THE FORMER REDEVELOPMENT AGENCY TAX ALLOCATION BOND
2005 SERIES A.
RECOMMENDED ACTION:
1. Approve request for proposals (RFP) scope of services and authorize staff to issue RFP to solicit
proposals from Financial Advisors to consider options to refund: (i) Water Parity Revenue Bonds
Series 2006; (ii) Rosedale Community Facilities District 2007 Special Tax Bond; and (iii) the former
Redevelopment Agency Tax Allocation Bond 2005 Series A.
2. Authorize staff to solicit proposals, containing scopes of services similar to those approved for most
recent utilities, community facilities district and former redevelopment agency debt refundings, for
other professional services (i.e. bond counsel and/or underwriter) necessary to refund: (i) Water Parity
Revenue Bonds Series 2006; (ii) Rosedale Community Facilities District 2007 Special Tax Bond; and
(iii) the former Redevelopment Agency Tax Allocation Bond 2005 Series A if Financial Advisors'
reports indicate potential Net Present Value Savings of 5% or more.
D. SCHEDULED ITEMS
1. FISCAL YEAR 2014-15 GENERAL FUND MID-YEAR BUDGET REVIEW AND
ADJUSTMENTS.
RECOMMENDED ACTION:
Hear a presentation from staff on an update of the City's mid-year FY 2014-15 General Fund fiscal
condition in preparation for the upcoming budget process; adopt Resolution No. 2015-C10 amending the
General Fund FY 2014-15 operating budget to better reflect its projected fiscal position.
E. ADJOURNMENT
1. Adjourn
In compliance with Government Code Section 54957.5, agenda materials are available for inspection by
members of the public at the following locations: Azusa City Clerk's Office - 213 E. Foothill Boulevard,
Azusa City Library - 729 N. Dalton Avenue, and Azusa Police Department Lobby - 725 N. Alameda,
Azusa, California.
In compliance with the Americans with Disabilities Act, if you need special assistance to participate in a
city meeting,please contact the City Clerk at 626-812-5229. Notification three (3) working days prior to
the meeting when special services are needed will assist staff in assuring that reasonable arrangements
can be made to provide access to the meeting.
02/23/2015 2
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DECLARATION OF POSTING CITY COUNCIL,
SUCCESSOR AGENCY TO THE FORMER REDEVELOPMENT AGENCY,
AND PUBLIC FINANCING AUTHORITY AGENDA
•
I,S V/via, 0,1,,141644_ declare that:
I am an employee of the City of Azusa.
On , I i SI 16- -. I posted copies of the Agenda, as stated above for
the meeting of &/ f l 1S , in the City Clerk's Office, 213 E. Foothill Blvd.;
the lobby of the Police Department, 725 N. Alameda Ave.; the Civic Auditorium, 213 E. Foothill
Blvd.; the City Library, 729 N. Dalton Ave.; and the and the City's Web Page
www.ci.azusa.ca.us. A true, correct and complete copy of the agenda which I posted is attached
hereto.
I completed posting of the agendas as described in Paragraph two, at :6D on
the date of posting.
Access to the agenda posted in the lobby of the Police Department and the Azusa City Library
reference desk is available to members of the public during their normal business hours.
The foregoing is within my personal knowledge and if called as a witness in a court of law, I
could testify competently thereto.
I declare under penalty of perjury that the forgoing is true and correct.
EXECUTED ca) 1411S- , at Azusa, California.
STAFF EMBER
CITY CLERK'S OFFICE
CITY OF AZUSA
2JtIi5
I HEREBY CERTIFY that I received a copy of the attached "NOTICE OF A SPECIAL
MEETING" of the Azusa City Council to be held on MONDAY, FEBRUARY 23, 2015,
following the Utility Board Meeting which begins at 6:30 P.M. in the Azusa Light and Water
Conference Room located at 729 North Azusa Avenue, Azusa, California.
NAME DATE & TIME DELIVERED BY
J SE H R. ROCHA, MAYOR
ROBE T G ZAIS, MAYOR PRO-TEM
Ctf
ANGEL CARRILLO, COUNCIL MEMBER
� --z-"
URIEL MA IAS, COUNCILMEMBER
EDWARD J. ALV Z, COUNCIL ), MBER
/s/JUANA HERNANDEZ
ASSISTANT/DEPUTY CLERK
APPROVED
COUNCIL MEETING
Date. 7, 1,,),9111;)- o .. .
t,
CA t\\ \AVM _It . .
SCHEDULED ITEM
D-1
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: SUSAN PARAGAS, DIRECTOR OF FINANCE
VIA: TROY L. BUTZLAFF, ICMA-CM, CITY MANAGER
DATE: FEBRUARY 23, 2015
SUBJECT: FISCAL YEAR 2014-15 GENERAL FUND MID-YEAR BUDGET REVIEW
AND ADJUSTMENTS
SUMMARY
A mid-year review of the City's operating budget provides a mechanism for measuring the City's
financial performance and allows the City Council to determine if adjustments to revenue
projections need to be completed, and planned expenditures should be modified to maintain
structural balance. This action reviews FY 2014-15 mid-year revenues and expenditures and
adopts a resolution making specific adjustments to the current year budget.
RECOMMENDATION
It is recommended that Council take the following action:
1) Approve the attached resolution amending the FY 2014-15 operating budget to better
reflect its projected fiscal position.
BACKGROUND
The presentation of the mid-year review is to identify and explain the City's current financial
position and to seek Council direction with respect to both the remainder of the current fiscal
year and the preparation of the budget for the upcoming year.
DISCUSSION
At the mid-point of the fiscal year, staff conducts a detailed analysis to determine if the original
budget is still viable, or if adjustments will be necessary. As of December 31, 2014, most of the
Honorable Mayor and Members of the Council
Mid-Year Review and Adjustments
Page 2
General Fund revenues ("Revenues") and expenditures ("Expenditures") are on track to achieve
its budget. However, there are some Revenues and Expenditures budgets that will need to be
adjusted.
The City General Fund ended FY 2013-14 with a $3.1 million surplus. The FY 2014-15 General
Fund Budget was adopted on June 16, 2014 with an operating surplus of $129,210. Over the
course of the fiscal year, a number of changes have occurred affecting the City's overall financial
position. Specifically, a budget amendment in the amount of $700,000 was processed as a
transfer to the Risk Management/Liability Fund. This transfer is covered by the borrowed funds
of$4 million from the Water Fund that was approved by Council on November 24, 2014.
FY 2014-15 Revenues
Building and Planning Fees
Due to continued growth related to construction in the City such as new housing, building and
home improvements, it is requested that the total revenue budget for the following line items be
increased:
Fees-Precise Plans $ 15,000
Fees-Tentative Maps $ 15,000
Permits-Building $ 63,000
Permits-Electric $ 20,000
Permits-Plumbing $ 20,000
Permits-Public Works (Engineering) $ 60,000
Total Proposed Revenue Budget Increase-
Building and Planning Fees $193,000
Other Taxes
Increased change in ownership of real properties in the City has resulted in increased transfer
taxes. Utility user taxes have also risen due to a growth in revenues by the various utility
services.
Transfer Tax $ 30,000
Utility User Tax $100,000
Total Proposed Revenue Budget Increase-
Other Taxes $130,000
Various Revenues
Based on the analysis of mid-year revenues collected, lower court fees and host fees are
anticipated to be received in FY 2014-15 than budgeted. A budget for Animal Licenses needs to
be setup to reflect the revenues appropriately. Currently, the license revenues are offset in the
expenditure line item.
Fines-Court ($ 30,000)
Host Fees (MRF) ($ 90,000)
Animal Licenses $ 40,000
Honorable Mayor and Members of the Council
Mid-Year Review and Adjustments
Page 3
Total Proposed Revenue Budget Reduction -
Various Revenues ($ 80,000)
One-Time Revenues
The General Fund received one-time reimbursements from the State regarding state-mandated
processes and from the Los Angeles County Regional Park and Open Space District
Maintenance and Servicing programs related to the San Gabriel River & Mountains Education
Center, and Interpretive Center and the San Gabriel Bike Path Extension/Parking Lot.
SB90 Reimbursements $ 38,000
Maint. Reimb.-Recreation & Family Services $148,300
Total Proposed Revenue Budget Increase-
One-Time Reimbursements $186,300
The total requested amendment to the Revenues is an increase of$429,300.
FY 2014-15 Expenditures
Salaries and Benefits
There are several positions funded by the General Fund that resulted in a net salary savings. The
following positions produced salary savings due to months of being vacant, but, only two of the
three positions are to be filled. However, when an employee leaves the City, they are entitled to
a payout of their accrued vacation hours. So, a request to increase the total budget for vacation
payouts is requested. The total vacation payout budget increase includes additional positions not
listed.
Salary Savings-Asst. Comm. & Dev. Dir. ($146,000)
Salary Savings-City Manager ($ 46,500)
Salary Savings-IT Analyst ($ 43,600)
Vacation Payouts $ 61,150
Total Proposed Exp Budget Decrease -
Salaries and Benefits ($174,950)
Various Expenditures
Utility costs have increased and could be in relation to the increase in utility user tax revenues.
Thus, additional budgets are needed to better reflect the costs at several divisions. The Humane
Services budget is being adjusted to reflect the separation of the revenues as an offset to the
actual cost of the services. The animal license revenues are also being increased so that the net
effect is zero.
Utility Costs $ 70,000
Humane Services $ 40,000
Total Proposed Exp Budget Increase -
Various Expenditures $110,000
Honorable Mayor and Members of the Council
Mid-Year Review and Adjustments
Page 4
The total requested amendment to the Expenditures is a decrease of$64,950.
Based upon the direction received from Council at the review, staff will prepare necessary
actions to implement any changes.
FISCAL IMPACT
The recommended FY 2014-15 mid-year actions result in an estimated increase of $494,250 to
the General Fund's current surplus projection of $129,210 and are summarized by a revenue
budget increase of $429,300 and a decrease in appropriations/expenditures of $64,950.
Therefore, the requested mid-year budget adjustments will result in a projected surplus of
$624,510 to the FY 2014-15 General Fund budget as of June 30, 2015.
Attachment:
Resolution No. 2015-C10 Approve and Adopt FY 2014-15 Mid-Year General Fund
Budget Adjustments
•
RESOLUTION NO. 2015-C10
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA
APPROVING AND ADOPTING THE CITY OF AZUSA MID-YEAR,
GENERAL FUND BUDGET ADJUSTMENTS FOR THE 2014-15 FISCAL
YEAR
WHEREAS, on June 16, 2014, City Council of the City of Azusa adopted the General
Fund FY 2014-15 Operating and Capital Budget; and
WHEREAS, on February 23, 2015, City Council met and reviewed the mid-year
financial status of the General Fund and considered staff's recommendation on the budget
amendments.
NOW, THEREFORE, BE IT RESOLVED, THE CITY COUNCIL OF THE CITY
OF AZUSA DOES APPROVE AND ADOPT THE FOLLOWING FY 2014-15 GENERAL
FUND BUDGET ADJUSTMENTS:
SECTION 1.
Revenues
Fees-Precise Plans $ 15,000
Fees-Tentative Maps $ 15,000
Permits-Building $ 63,000
Permits-Electric $ 20,000
Permits-Plumbing $ 20,000
Permits-Public Works (Eng.) $ 60,000
Transfer Tax $ 30,000
Utility User Tax $100,000
Licenses-Animal $ 40,000
Fines-Court ($ 30,000)
Host Fees (MRF) ($ 90,000)
Cost Reimbursements $186,300
Total Revenue Adjustments $429,300
Appropriation/Expenditures
Salary Savings-Asst. Comm. & Dev. Dir. ($146,000)
Salary Savings-City Manager ($ 46,500)
Salary Savings-IT Analyst ($ 43,600)
Vacation Payouts $ 61,150
Utilities-Other $ 70,000
Humane Services $ 40,000
Total Expenditure Adjustments ($ 64,950)
SECTION 2. The City Clerk shall certify as to the adoption of this resolution.
PASSED, APPROVED and ADOPTED this 23`d day of February, 2015.
41'%-efri 7264^4'1 4/4
oseph Romero Rocha
Mayor
ATTEST:
_ dir
, _ —
J- re 'a, e Cornejo, J . /
City Clerk
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF AZUSA )
I HEREBY CERTIFY that the foregoing Resolution No. 2015-C10 was duly adopted
by the City Council of the City of Azusa at a special meeting thereof, held on the 23rd day of
January, 2015, by the following vote of Council:
AYES: COUNCILMEMBERS: GONZALES, CARRILLO, MACIAS, ALVAREZ
NOES: COUNCILMEMBERS: NONE
ABSENT: COUNCILMEMBERS: ROCHA
-
f - L nce Corn o, Jr
City Clerk
M/411.6
uF .a
AZUSA
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: SUSAN PARAGAS, DIRECTOR OF FINANCE
VIA: TROY L. BUTZLAFF, ICMA-CM, CITY MANAGER
DATE: FEBRUARY 24, 2015
SUBJECT: FY 2013-2014 AUDIT TRANSMITTAL — COMPREHENSIVE ANNUAL
FINANCIAL REPORT AND GENERAL FUND AUDIT INFORMATION
The City of Azusa's FY 2013-2014 Comprehensive Annual Financial Report (CAFR) is
enclosed. Included are the Internal Control and Audit reports by the City's auditors, Lance Sol,
and Lunghard, LLP (LSL).
As a brief summary, through the direction from Council and the efforts of the departments, the
General Fund (GF) realized a $3.1 million surplus in revenues over expenditures of which $1.1
million are attributable to one-time revenues. The City experienced increases in revenues such
as permits for building,plumbing and electric due to increased development activities. Franchise
fees and utility user tax also increased and is tied to the growth in revenue generated by entities
that remit these fees to the City. In addition to increased revenues, departmental expenditures
were under budget. A couple of the major factors in the lower expenditures were results of
savings from Police Department contracts for jailers and humane/animal services as well as
lower IT allocation costs.
As it was reported during the FY 2014-15 mid-year presentation, the City experienced a surplus
in the past two fiscal years of 2012-13 and 2013-14 after producing deficits for the two previous
years, 2010-11 and 2011-12. It is projected that the City will continue to have surpluses in this
current fiscal year and the following three fiscal years. However, issues remain that could
hamper our progress such as the effects of the RDA dissolution, pension reform and minimum
wage mandates. Additionally, cash reserve balances need to be funded to address economic
uncertainties.
Therefore, it is important that the City continue to be prudent in its budget practices to achieve
true fiscal stability. A Fund Balance Reserve Policy will be brought before you for approval to
ensure that funds are reserved so that the City can continue to deliver essential services in times
of economic challenges.
Should you have any questions relating to the materials enclosed, please feel free to contact
me.
cc:Troy Butzlaff