HomeMy WebLinkAboutD-1 Staff Report - Mid-Year Budget Review FY 2020-21SCHEDULED ITEM
D-1
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
VIA: SERGIO GONZALEZ, CITY MANAGER
FROM: TALIKA M. JOHNSON, DIRECTOR OF ADMINISTRATIVE SERVICES
DATE: MARCH 1, 2021
SUBJECT: FISCAL YEAR 2020-21 GENERAL FUND MID-YEAR BUDGET REVIEW AND
ADJUSTMENTS
BACKGROUND:
This report provides the City Council a Mid-Year budget and financial update for the General Fund
Fiscal Year 2020/21 adopted budget in preparation for the upcoming budget process. The report
also makes recommendations for budget amendments, both to estimated revenues and
expenditures for the current budget year.
RECOMMENDATIONS:
Staff recommends that the City Council take the following actions:
1)Receive, review and file Fiscal Year 2020-21 second quarter budget-to-actual report ending
December 31, 2020; and
2) Adopt Resolution No. 2021-C10 approving the listed proposed budget amendments; and
3) Approve addition of 1.0 full-time budgeted position, Emergency Services Coordinator, in
the Police Department.
ANALYSIS:
The Fiscal Year (FY) 2020/21 budget was adopted on June 15, 2020 with a projected General Fund
budget deficit of $2.1 million. With carry forward projects from the FY 2019/20 budget year and
other adjustments, the projected adjusted budget deficit is $3.7 million. Public safety, general
government, internal support services, community resources, such as youth and senior recreational
APPROVED
CITY COUNCIL
3/1/2021
FY 2020-21 Mid-Year Budget Review
March 1, 2021
Page 2
services and library activities, and parks and facilities maintenance services make up the majority
of the General Fund budget. Fiscal Year 2020/21 projections were conservative mainly due to
uncertainty about how the Coronavirus COVID-19 pandemic would affect the City’s revenues and
services. Whereas many organizations curtailed operations, Azusa, has been successful in safely
maintain services to the Community, was able to transition to virtual programming where needed,
and continue to move forward development projects. Additionally, the pandemic had some
unexpected positive impacts on the City’s revenues mainly in sales taxes. Department expenditures
are pacing with budget, with a few exceptions.
While most of the General Fund revenues (“Revenues”) and expenditures (“Expenditures”) are on
track to achieve its budget, there are some Revenues and Expenditures budgets that will need to
be adjusted. The following net budget adjustments totaling an increase to projected reserves of
$5,942,340 are recommended:
Revenues Expenditures
Department Description Increase/(Decrease)Increase/(Decrease)Justification for Adjustment
Citywide Water Fund Loan (665,446)$ Paid off with POB issuance
Citywide Salary Savings (2,500,000) Savings from vacant positions
Citywide Property Tax 458,895 Strong housing market, transfer of
ownership from higher market prices,
and CPI increase.
Citywide Sales Tax 970,560 Significant increase of online sale
from the County Wide County Pool
distribution.
Citywide Transaction Use Tax 756,275 Significant increase of online sale
from the County Wide County Pool
distribution.
Citywide Penalties (435,020) Temporary suspension of late fees
for pandemic relief
Citywide One time Government Allocation-Corona
Virus Relief Fund
613,134 State CARES Act funds
Capital & Infrastructure
Replacement
Equipment & Machinery 102,110 Crossing guard was not used for a
good part of the year and dept. was
able to achieve some savings
Public Safety Crossing Guard (110,000) School closures due to pandemic
Public Safety Court Fines (30,000) Court activities impacted for shut
downs during pandemic
Administrative Services Outside Services 25,000 Temporary staffing and office
furniture
Community Resources Rents from Recreation Facility (40,000) Temporary closure during pandemic
Community Resources Recreation class fees (100,000) Temporary suspension during
pandemic
Community Resources Recreation Swimming/Swim class fees (70,000) Temporary suspension during
pandemic
Community Resources Adult Sports Fees (4,000) Temporary suspension during
pandemic
Community Resources Youth Sports Fees (18,000) Temporary suspension during
pandemic
Community Resources Rents from Recreation Facility (10,000) Temporary closure during pandemic
Community Resources Excursion Fees (10,000) Temporary suspension during
pandemic
Community Resources Rent from Woman's Club (14,000) Temporary closure during pandemic
Library Library Fees (9,800) Temporary closure during pandemic
Library Passport Fees (30,000) Slow down of service offered due to
pandemic
Econ & Comm Dev Plan Check 150,000 Received fees for larger development
projects
Econ & Comm Dev Business License Tax 200,000 Anticipated pandemic would impact
revenues more
Econ & Comm Dev Land Excavaction Tax 200,000 Activity trending upwards
Econ & Comm Dev Franchise/Landfill 200,000 Activity trending upwards
Econ & Comm Dev Franchise/Landfill/Expansion 75,000 Activity trending upwards
Econ & Comm Dev Promenade Lease (59,040) Building will not be occupied until
FY 2021/22
Totals 2,794,004$ (3,148,336)$ Net Increase $5,942,340
Table 1: Proposed Mid-Year Budget Adjustments for Fiscal Year 2020/21
FY 2020-21 Mid-Year Budget Review
March 1, 2021
Page 3
Revenue Highlights
Overall, revenues are expected to be higher by a net $2,794,004. Major categories contributing to
the projected adjustments are:
1. Property Taxes - a strong housing market, transfer of ownership from higher market prices,
and CPI increase all contribute to these revenues being higher than expected.
2. Sales and Transaction Use Taxes – online shopping increased significantly throughout the
pandemic resulting in higher revenues from the County’s pool and thus more sales tax and
Measure Z transaction and use tax allocations to the City.
3. Penalties – to provide residents and businesses relief through economic hardships during
the pandemic, many types of late fees and penalties for services were suspended, resulting
in less revenues or the City.
4. One-time Government Allocation – the State received federal funding as part of the
pandemic economic stimulus package and allocated funding to counties and local agencies.
Azusa received $613K.
5. Recreation and Rental Fees – extended health orders prohibited rental of facilities, sports
activities and recreational classes and outings.
6. Economic Development – throughout the pandemic, staff remains engaged with
businesses, providing resources to assist Azusa businesses with staying open and
development projects continue to move forward. Additionally, major organizations, such
as mining and landfill businesses, who have agreements with the City have been able to
maintain production and have in some cases increased production, resulting in increases to
revenues for the City.
Expenditure Highlights
Based on the analysis of mid-year expenditures, Staff proposes a net decrease in General Fund
budgeted expenditures for a total of $3,148,336:
1. Salary and Benefits Savings – there are positions funded by the General Fund that remain
unfilled or have been partially unfilled in the current year resulting in net salary savings.
While recruitment activities has been steady, the pandemic slowed down turnaround for
several positions and required less part-time staffing. Staff has identified approximately
$2.5 million in estimated savings from vacancies for the current year.
2. Water Fund Loan – with issuance of Pension Obligation Bonds in September 2020, the
City was able to cancel the remaining loan obligation between the General Fund and Water
Utility.
In addition to the expenditure adjustments, Staff is requesting approval to add one (1.0) full-time
budgeted position to the Police Department (PD). The City has not had an emergency coordinator
position since elimination of the position in 2009 as a result of the economic downturn. However,
great need exists in the Police Department, with collaboration of all departments to have a
FY 2020-21 Mid-Year Budget Review
March 1, 2021
Page 4
designated staff person to oversee PD’s emergency services, public information services, grant
management, and crime analysis data. PD is proposing to eliminate two (2) part-time positions to
accommodate this position. The estimated ongoing annual costs is $88K. Salary savings this year
will be able to absorb the cost of hiring for this position in the current year, and ongoing costs will
be budgeted accordingly with the budget process. If approved, Staff will have to take the proposed
job specification to the Personnel Board first for approval and then will bring to the City Council
for approval.
Reserve Summary and Fiscal Year 2021/22 Major Budget Considerations
The General Fund Reserve Policy consists of four categories to mitigate risk in high liability
exposure areas: 1) Budget Stabilization and Catastrophic Event (20% of budget or $10.1 million
of the revised budget); 2) Capital and Infrastructure Replacement ($1.5 million); 3) Insurance ($1.5
million); and 4) Retiree Benefits ($2.0 million). City Council authorization is required for use of
these reserves. Recommended mid-year adjustments forecasts an ending available reserve balance
of $22.8 million, $7.7 million above the designated reserves target.
Table 2: Fiscal Year 2020/21 Budget Forecast and Reserves Analysis
Actions taken by the Council, such as issuing Pension Obligation Bonds to pay-off the City’s
unfunded pension liability, re-negotiating franchise revenue agreements, allowing residents to vote
on additional revenue generating measures, and continuing to run city operations as efficient as
possible, has resulted in the City being in better financial position. Still, throughout the upcoming
year’s budget process, further direction is needed to address the City’s growing $63.8 million other
post-employment benefit (OPEB) liability, new layers of pension debt, aging infrastructure, and
evolving community growth and needs.
Staff has begun the FY 2021/22 budget development process and will return to Council at a special
study session to receive direction and guidance for the budget adoption process and how best to
use undesignated reserves to serve Azusa residents and businesses.
ADOPTED
FY 20-21
REVISED
FY 20-21
Total Revenues 46,652,376 46,634,102
Total Expenses 48,751,588 50,336,837
Operating Surplus or (Deficit)(2,099,212)$ (3,702,735)$
Add: Mid-year revenue adjustment 2,794,004
Add: Mid-year expenditure adjustment 3,148,004
Revised Operating Surplus or (Deficit)(2,099,212)$ 2,239,273$
Beginning Available Reserves Balance 20,554,932 20,554,932
Ending Available Reserves Balance 18,455,720 22,794,205
Reserves Target 14,750,318 15,067,367
Above/(Below) Reserves Target 3,705,402$ 7,726,838$
FY 2020-21 Mid-Year Budget Review
March 1, 2021
Page 5
FISCAL IMPACT:
The recommended FY 2020/21 mid-year actions result in a net fund balance increase of
$5,942,340, including an increase in revenues in the amount of $2,794,004 and a decrease in
expenditures in the amount $3,148,336. Adoption of recommended mid-year adjustments results
in an estimated budget surplus of $2.2 million.
Fiscal Year 2020/21 budget, including recommended mid-year adjustments, is expected to result
in an estimated $22.8 million ending available fund balance, of which $15.1 million are designated
reserves.
Prepared by: Reviewed and Approved:
Talika M. Johnson Sergio Gonzalez
Director of Administrative Services City Manager
Attachments:
1) FY 2020-21 Budget-to-Actual Report for the second quarter ending December 31, 2020
2) Resolution No. 2021-C10, Adopting FY 2020/21 Mid-Year Budget Adjustments
FY 2020/21 Quarterly Financial Report,
2nd Quarter, Ending December 31, 2020
OVERVIEW
This financial report summarizes the City’s General Fund’s position for the 2nd quarter of a Fiscal Year 2020/21 (July
1, 2020 through December 31, 2020). Also, included are the major Special Revenue Funds: Gas Tax and Fire Safety;
the Sewer Fund; and the major Internal Services Funds: Risk Management/Liability and Information Technology.
The purpose of this report is to provide the City Council, City Management, and the Azusa community with an update
on the City’s fiscal status based on the most recent financial information available.
GENERAL FUND SUMMARY
With the 2nd quarter’s revised data, the projection through the end of the fiscal year for total sources (revenues and
transfers-in) are estimated to be $46,634,102, and it is the same as the adopted revenue amount with no significant
changes. Total uses (expenditures and transfers-out) are estimated to be $1,583,828 higher primarily due to budget
carryforward included West Wing Remodel/Furniture, HDL system replacement, purchase of new vehicles, etc.).
Table 1 shows the adjusted budget figures:
A B C
Adopted
Budget
2020-21
Revised
Budget
2020-21
Variance
(B - A)
Beginning Reserve Balance $ 20.55 $ 20.55 * $ -
Plus Revenues 45.11 45.09 ** (0.02)
Transfers In 1.55 1.55 -
Total 2020-21 Sources 46.65 46.63 (0.02)
Less Expenditures 40.84 42.42 ** 1.58
Transfers Out 7.92 7.92 -
Total FY 2020-21 Uses 48.75 50.34 1.58
Expenses in (excess)/below Exp-FY 2020-21 (2.10) (3.70) (1.60)
Estimated Unassigned Fund balance before reserves 18.46 16.85
Less: Internally Restricted Reserves
Budget Stabilization & Catastrophic Reserve 9.75 10.07 *** 0.32
Capital & Infrastructure Replacement Reserve 1.50 1.50 *** -
Insurance Reserve 1.50 1.50 *** -
Retiree Benefits Reserve 2.00 2.00 *** -
Available Fund Balance $ 3.71 $ 1.78 **** $ (1.92)
*Unaudited
**Financial Data as of 2/9/20 - Q2 FY20-21
****Prior to FY 2020/21 Mid-Year adjustments
***Established Reserves - Per 6-15-20 Council Approval Revised Reserved Policy-Resolution# 2020-
037
Table 1
Budget vs. Estimated Actual
(in millions)
Attachment 1
2020-21 Quarterly Financial Report Attachment 1 2nd Quarter, Ending December 31, 2020
Page 2 of 6
The 2nd quarter’s revenues are pacing lower than the 50% mark due to the economic conditions related to the COVID -19
pandemic. Staff will closely monitor the revenues and expenditures and update Council if there are any material data that
will impact the full year revenue budget.
GENERAL FUND REVENUES
Table 2 shows actual collections for the major revenue sources and the percent collected compared to the adjusted budget.
Table 3 shows that revenues are trending $2.4 Mil higher than the same period last year. This is primarily due the passage
of Measure Z, the transaction use tax, and also stronger than forecasted sales and property taxes. In addition, staff has
streamlined the revenue collection process for property tax and are recognizing the revenues faster than before.
Revenue Collection by Source
As of 12/31/20
Chart 1
Revenues Collected by Source
Quarter Ending: 12/31/19 vs. 12/31/20
2020-21 Actual % of
REVENUE Adjusted Budget YTE 12/31/20 Adj. Budget
Property Tax 11,728,533 2,397,245 20.4%
Sales Tax 8,276,077 3,620,719 43.7%
UUT Tax 3,323,341 1,544,324 46.5%
Other Taxes 9,637,888 3,992,054 41.4%
Charges for Services 4,534,305 1,983,154 43.7%
Cost Reimbursement 2,653,523 1,196,374 45.1%
Fines & Penalties 1,269,500 441,618 34.8%
License & Permits 2,326,900 1,342,813 57.7%
Miscellaneous 202,650 411,638 203.1%
Money & Property Use 2,681,385 1,313,247 49.0%
Total Revenues $46,634,102 $18,243,185 39.1%
Table 2: YTE % of Budget
Actual Actual Increase/
REVENUE YTD 12/31/2019 YTD 12/31/2020 (Decrease)
Property Tax $90,657 $2,397,245 $2,306,588
Sales Tax 1,573,612 3,620,719 2,047,107
Utility User Tax 1,486,840 1,544,324 57,484
Other Taxes 4,187,873 3,992,054 (195,818)
Charges for Services 2,287,958 1,983,154 (304,804)
Cost Reimb.1,185,935 1,196,374 10,439
Fines & Penalties 832,051 441,618 (390,433)
License & Permits 1,499,536 1,342,813 (156,723)
Miscellaneous 875,444 411,638 (463,806)
Money & Property Use 1,839,707 1,313,247 (526,461)
Total Revenues $15,859,612 $18,243,185 $2,383,573
Table 3: Year-to-Year Comparison
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
YTD 12/31/2019
YTD 12/31/2020
2020-21 Quarterly Financial Report Attachment 1 2nd Quarter, Ending December 31, 2020
Page 3 of 6
Property Tax collections are low and it is normal due to the timing of the revenue allocation by the County
of Los Angeles Auditor Controller Tax Division. The main reason for the low rate of collection is due to the
timing of when the revenues are allocated by the Los Angeles County Auditor Controller Tax Division. The
majority of the property tax collections are received in four payments in December, January, April and May of
each calendar year.
Sales Tax collections are at 43.7% of the adjusted budget. The main reason for the low rate of collections is
due to the timing of when the revenues are available. The November and December 2020 sales tax will not be
distributed by the California Department of Tax and Fee Administration until January and February of 2021.
The sale tax compared to the same period last fiscal year is higher primarily due to the passage of Measure Z, the
transaction use tax, and better than expected sales tax revenues.
Utility User’s Tax collections are at 46.5% of the adjusted budget. This percentage is reflective of the
consumption of utility services such as gas, electric and water.
Other Taxes collections are at 41.4% of the adjusted budget. Other taxes are comprised mainly of transient
occupancy tax (TOT), franchise, land excavation, material recovery facility, and hazardous waste fees. Other
taxes are lower due to the impact of the COVID-19 pandemic resulting in lower tax such an anticipated reduction
of 25% to our TOT. Some revenues are calculated and collect after the quarter has end.
Charges for Services collections are at 43.7% of the adjusted budget. Revenues are collected as services
are rendered. This revenue source was impacted due to slower economic activities resulting from the Covid-
19 pandemic. For example, the City did not receive any revenues from recreation fees including sports,
recreation, swimming, etc. during the pandemic shutdown.
Cost reimbursement collections are at 45.1% of the adjusted budget. Revenues are collected based on
various reimbursement agreements.
Fines and Penalties collections are at 34.8% of the adjusted budget. The 2nd quarter revenues are pacing
lower and were anticipated. Court Fees and penalties are pacing very slow in Q1 and Q2 both due to the
COVID-19 pandemic. There was also a government mandate not to charge penalties or close any accounts for
utility customers for a period.
License and Permits collections are at 57.7% of the adjusted budget. This is mainly due to the timing of
development activities and when the licenses and permit fees are issued.
Miscellaneous collections are at 203.1% of the adjusted budget. The revenues are pacing high primarily due
to a one time Corona Virus Relief Stimulus payment.
Money and Property Use collections are at 49.0% of the adjusted budget. The 2nd quarter revenues are
pacing on fairly close to target and as expected.
2020-21 Quarterly Financial Report Attachment 1 2nd Quarter, Ending December 31, 2020
Page 4 of 6
GENERAL FUND EXPENDITURES
General Fund expenditures are tracking at 46.6% of the second quarter’s budget.
Expenditures by Category
As of 12/31/20
The expenditures outlined in Table 4 are pacing in line with the 2nd quarter budget. The personnel budget pacing
is slightly over at 51.1%, and it is primarily due to increased CalPERS costs. The operation budget is lower due
to the timing of when the services and materials are procured. The 2nd quarter expenditures on table 5 compared
to the same period last year was lower due to cost efficiency efforts such as the consolidate of the Human
Resource unit into Administrative Services. Overall, the General Fund expenditures are at 46.6% or $23.4 Mil
of the adjusted budget of $50.3 Mil. When comparing the Q2 FY 20/21 expenditures with the same period last
year, it is slight higher due to one-time projects and purchases such as the phone system upgrade, the west wing
remodel and furniture, and purchase of vehicles.
DEPARTMENT EXPENDITURES
At the end of the 2nd quarter, most departments are tracking close to the 50% 2nd quarter mark of the adjusted
budget. The Community Resource Department is pacing low due to the pandemic shut down and halted the
recreation activities. Human Resources was pacing low due to position vacancies.
Table 6 Chart 2
Expenditures by Department % of Budget by Department
As of 12/31/20 as of 12/31/20
FY 20-21 Actual % of
EXPENDITURE Working Budget YTD 12/31/20 Adopted
Personnel 28,197,251 14,402,457 51.1%
Operating 22,139,586 9,038,490 40.8%
Total Expenditures $50,336,837 $23,440,947 46.6%
Table 4: YTE % of Budget
Actual Actual Increase/
EXPENDITURE YTD 12/31/19 YTD 12/31/20 (Decrease)
Personnel 15,181,058 14,402,457 ($778,601)
Operating 8,087,368 9,038,490 951,123
Total Expenditures $23,268,426 $23,440,947 $172,521
Table 5: Year-to-Year Comparison
2020/21 Actual
EXPENDITURE Adj. Budget YTD 12/31/20 % of Budget
Council $154,881 $60,143 38.8%
City Clerk 620,697 328,334 52.9%
City Attorney 275,000 66,910 24.3%
City Treasurer 173,105 57,940 33.5%
Administration 554,565 271,466 49.0%
Finance 1,529,312 739,057 48.3%
Economic & Comm. Dev.3,900,221 1,569,775 40.2%
Human Resources 540,772 171,382 31.7%
Library 1,415,843 603,300 42.6%
Public Safety 22,284,232 11,205,593 50.3%
Public Works 3,590,863 1,723,233 48.0%
Community Resources 1,901,584 640,650 33.7%
City-Wide 13,395,762 6,003,166 44.8%
Total Expenditure $50,336,837 $23,440,947 46.6%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
2020-21 Quarterly Financial Report Attachment 1 2nd Quarter, Ending December 31, 2020
Page 5 of 6
MAJOR SPECIAL REVENUE, SEWER AND INTERNAL SERVICES FUNDS
SUMMARY
The major Special Revenue funds including the Gas Tax, Fire Safety fund, Sewer Fund, and the major Internal
Services funds such as Risk Management/Liability and Information Technology funds are reflected below.
Table 7: Major Special Revenue and Internal
Services Fund Revenues
Table 8: Major Special and Internal
Service Fund Expenditures
Chart 3
Major Special Revenue & Internal Services Funds
Revenues by Funds
Ending 12/31/20
Chart 4
Major Special Revenue & Internal Services Funds
Expenditures by Funds
Ending 12/31/20
2020-21 Actual % of
REVENUE Adjusted Budget YTD 12/31/20 Adj. Budget
Gas Tax Fund $1,279,753 $601,373 47.0%
Fire Safety 5,974,032 3,572,533 59.8%
Sewer Fund 3,248,928 1,575,731 48.5%
Risk Mgmt/Liab Fund 3,275,919 1,907,317 58.2%
IT Fund 2,029,376 836,854 41.2%
Total Revenues $15,808,008 $8,493,806 53.7%
Table 7: YTD % of Budget
2020-21 Actual % of
EXPENDITURE Adjusted Budget YTD 12/31/20 Adj. Budget
Gas Tax Fund $1,656,568 $691,407 41.7%
Fire Safety 5,874,032 3,798,001 64.7%
Sewer Fund 3,473,681 1,487,652 42.8%
Risk Mgmt/Liab Fund 4,366,112 2,445,465 56.0%
IT Fund 2,099,619 893,847 42.6%
Total Expenditures $17,470,012 $9,316,373 53.3%
Table 8: YTD % of Budget
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
Gas Tax Fund Fire Safety Sewer Fund Risk Mgmt/Liab
Fund
IT Fund
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
Gas Tax Fund Fire Safety Sewer Fund Risk Mgmt/Liab
Fund
IT Fund
2020-21 Quarterly Financial Report Attachment 1 2nd Quarter, Ending December 31, 2020
Page 6 of 6
Gas Tax Fund
Gas Tax revenues are pacing at 47.0% of the 2nd quarter FY 20/21 adjusted budget, and the expenditures are tracking
at 41.7%.
Fire Safety Fund
Fire Safety Fund’s operating revenues are pacing at 59.8% of revenues. The expenditures are pacing at 64.7% for the
2nd quarter. The second quarter’s payments were higher, but as the year progresses, the full year costs will smooth
out. The full year costs are anticipated to be consistent with the FY 20/21 budget.
Sewer Fund
Sewer year-to-date operating revenues are 48.5% of estimated budget. Expenditures are lower than the 2nd quarter
end mark at 42.8% due to the timing of the various projects.
Risk Management Fund
The revenues for the Risk Management Fund are at 58.2% due to the timing of its allocations. The expenditures are at
56.0% of the adjusted budget due to the timing of when claims are paid out.
Information Technology Fund
The Information Technology Fund revenues for the 2nd quarter are pacing at 41.2%. Its allocations are recorded twice
a year, in December and June. The expenditures are pacing at 42.6% and consistent with the timing of the various IT
projects.
RESOLUTION NO. 2021-C10
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA APPROVING AND ADOPTING THE MID-YEAR BUDGET AMENDMENTS FOR THE CITY OF AZUSA
WHEREAS, on June 15, 2020, City Council of the City of Azusa adopted the City-wide Fiscal Year
2020-21 Operating and Capital Budgets; and
WHEREAS, on March 1, 2021, the City Council of the City of Azusa met and reviewed the mid-year
financial status of the General Fund, Gas Tax Fund, Fire Safety Special Revenue Fund, Sewer Enterprise
Fund, Risk Management/Liability and Information Technology Internal Services Funds, and considered
Staff’s recommendations on the budget amendments.
NOW, THEREFORE, BE IT RESOLVED, THE CITY COUNCIL OF THE CITY OF AZUSA DOES APPROVE AND ADOPT THE FOLLOWING FY 2020-21 GENERAL FUND BUDGET AMENDMENTS:
SECTION 1.
Attachment 2
SECTION 2. The City Clerk shall certify as to the adoption of this resolution.
Revenues Expenditures
Department Description Increase/(Decrease)Increase/(Decrease)Justification for Adjustment
Citywide Water Fund Loan (665,446)$ Paid off with POB issuance
Citywide Salary Savings (2,500,000) Savings from vacant positions
Citywide Property Tax 458,895 Strong housing market, transfer of
ownership from higher market prices,
and CPI increase.
Citywide Sales Tax 970,560 Significant increase of online sale
from the County Wide County Pool
distribution.
Citywide Transaction Use Tax 756,275 Significant increase of online sale
from the County Wide County Pool
distribution.
Citywide Penalties (435,020) Temporary suspension of late fees
for pandemic relief
Citywide One time Government Allocation-Corona
Virus Relief Fund
613,134 State CARES Act funds
Capital & Infrastructure
Replacement
Equipment & Machinery 102,110 Crossing guard was not used for a
good part of the year and dept. was
able to achieve some savings
Public Safety Crossing Guard (110,000) School closures due to pandemic
Public Safety Court Fines (30,000) Court activities impacted for shut
downs during pandemic
Administrative Services Outside Services 25,000 Temporary staffing and office
furniture
Community Resources Rents from Recreation Facility (40,000) Temporary closure during pandemic
Community Resources Recreation class fees (100,000) Temporary suspension during
pandemic
Community Resources Recreation Swimming/Swim class fees (70,000) Temporary suspension during
pandemic
Community Resources Adult Sports Fees (4,000) Temporary suspension during
pandemic
Community Resources Youth Sports Fees (18,000) Temporary suspension during
pandemic
Community Resources Rents from Recreation Facility (10,000) Temporary closure during pandemic
Community Resources Excursion Fees (10,000) Temporary suspension during
pandemic
Community Resources Rent from Woman's Club (14,000) Temporary closure during pandemic
Library Library Fees (9,800) Temporary closure during pandemic
Library Passport Fees (30,000) Slow down of service offered due to
pandemic
Econ & Comm Dev Plan Check 150,000 Received fees for larger development
projects
Econ & Comm Dev Business License Tax 200,000 Anticipated pandemic would impact
revenues more
Econ & Comm Dev Land Excavaction Tax 200,000 Activity trending upwards
Econ & Comm Dev Franchise/Landfill 200,000 Activity trending upwards
Econ & Comm Dev Franchise/Landfill/Expansion 75,000 Activity trending upwards
Econ & Comm Dev Promenade Lease (59,040) Building will not be occupied until
FY 2021/22
Totals 2,794,004$ (3,148,336)$ Net Increase $5,942,340
Proposed Mid-Year Budget Adjustments for Fiscal Year 2020/21
PASSED, APPROVED AND ADOPTED this 1st day of March 2021.
Robert Gonzales Mayor
ATTEST:
Jeffrey Lawrence Cornejo, Jr. City Clerk
STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF AZUSA )
I HEREBY CERTIFY that the foregoing Resolution No. 2021-C10 was duly adopted by the City Council of the City of Azusa at a meeting thereof, held on the 1st day of March 2021, by the following vote of the Council: