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HomeMy WebLinkAbout02. Approved Staff Report And ResolutionsAPPROVED SCHEDULED ITEM D-1 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL VIA: SERGIO GONZALEZ, CITY MANAGER FROM: TALIKA M. JOHNSON, DIRECTOR OF FINANCE DATE: JUNE 18, 2018 SUBJECT: ADOPTION OF FISCAL YEAR 2018/19 CITY, UTILITIES, PUBLIC FINANCING AUTHORITY, AND SUCCESSOR AGENCY OPERATING AND CAPITAL IMPROVEMENT PLAN BUDGETS BACKGROUND: The City's annual budget is an important policy document. It serves as an annual financial plan, identifying the spending priorities for the organization. The budget is used to balance available resources with community needs, as determined by the City Council. It also serves as a tool for communicating the City's financial strategies and for ensuring accountability. The City's operating budget is a plan for one specified fiscal year. The fiscal year for this budget begins on July 1, 2018 and ends on June 30, 2019. An overview of the City's Fiscal Year 2018/19 Preliminary Operating Budget and Capital Improvement Budget (CIP) Budget was provided to the City Council at a Budget Study Session on May 29, 2018. This action will approve resolutions adopting the FY 2018/19 budgets for the: City, Utility, Public Financial Authority and Successor Agency of the Former Redevelopment Agency of the City of Azusa. RECOMMENDATION: Staff recommends the City Council take the following actions: 1) Approve Resolution No. 2018-C44, A Resolution of the City Council of the City of Azusa adopting the budget and approving appropriations for the City of Azusa for the fiscal year commencing July 1, 2018 and ending June 30, 2019; 2) Approve Resolution No. 2018-UB-03, A Resolution of the Utility Board of the City of Azusa adopting the budget and approving appropriations for Utilities for the fiscal year commencing July 1, 2018 and ending June 30, 2019; FY 2018-19 Budget Adoption June 18, 2018 Page 2 3) Approve Resolution No. 2018-PI, A Resolution of the Azusa Public Financing Authority of the City of Azusa adopting the budget and approving appropriations for the Authority for the fiscal year commencing July 1, 2018 and ending June 30, 2019; and 4) Approve Resolution No. 2018-R10, A Resolution of the Successor Agency for the Former Redevelopment Agency of the City of Azusa adopting the budget and approving appropriations for the Agency for the fiscal year commencing July 1, 2018 and ending June 30, 2019. ANALYSIS: The City Council held a budget study session on May 30th to review the preliminary operating budget and Capital Improvement Program. At that time, the Finance Director provided an overview of the upcoming year and presented assumptions, charts, and changes from prior years that were included in the preliminary budget. The City Council asked questions and made comments with regard to the proposed operating budget. In addition, City Council was provided an overview of the proposed projects provided for in the City's Capital Improvement Project budget. City Council did not request any changes to the proposed budgets at the budget study session. General Fund Budget Highlights The General Fund is the primary revenue source and operating fund for most of the services provided to the community, such as public safety, economic development, library services, recreation and parks operations. Below are highlights from the Proposed FY 2018/19 General Fund Budget: • Budget is balanced with a projected change in fund balance of $1.9 million and includes: o One-time revenues of $2.9 million o One-time operating expenditures of $37,100 o Operating deficiency of $1.0 million with removal of one-time revenue items • Includes proposed personnel changes of $42,510 • Includes capital outlay and CIP requests of $690,484 • Increased Ca1PERS costs of $673,370 due to re -structuring of funding unfunded liabilities. • Increased Animal Control contract by 58.2% or $96,000 • The uncommitted reserve fund balance is expected to increase to $11.1 million by the end of FY 18/19, inclusive of one-time revenues and expenditures. Revenues and Transfers In Taxes provide approximately 67% of General Fund revenues and consist of four major categories: 1. Property Taxes — makes up 25.1 % of the proposed revenues and is expected to increase by $768K due to moderately higher home values and property sales as a result of housing developments and the low cost of borrowing. 2. Sales Taxes — comprise 13.3% of the proposed revenues and is expected to increase moderately by $43K primarily due to higher fuel prices. 3. Utility User Taxes — are 7.5% of proposed revenues and is expected to increase by $394K due to forecasted increase in electric and water consumption as a result of expanded customer base. FY 2018-19 Budget Adoption June 18, 2018 Page 3 4. Other Taxes — makes up 19.7% of proposed revenues and includes sources such as transient occupancy taxes (TOT) and utility and landfill franchise fees. Revenues in this category are expected to decrease by $265K. The decrease is primarily due to removal of a one-time landfill fee settlement of $300K received in the current fiscal year and lower mining activities at an estimated loss of $395K, offset by anticipated increases of $200K for TOT revenues, $95K in cable franchise fees, $75K in hazard waste taxes, and $30K in material recovery facility hosting fees. Other revenue highlights from the proposed FY 18/19 budget include: • Miscellaneous revenues are expected to increase by over $1.7 million due to additional property sales totaling $2.9M over the $I.OM property sale in FY 17/18. • Fines and penalties are expected to increase 10.6% or by $110K due to anticipated revenues from a proposed outsourced parking enforcement program. • Money and property use revenues are expected to increase by 10.6% or $197K for the leasing of the City's water rights which have increased in value. • Cost reimbursements from the Courts are projected to decrease by $149K or 19.6% mainly due to the use of outside agencies to aide in the collection of Community Improvement administrative fines. + Charges for services are expected to increase by 18.1% or $561K due to higher administrative cost allocations to Enterprise Funds as a result of slightly increased costs in the General Fund, the inclusion of some Economic and Community Development costs in the administrative allocation for the business activities the department brings the City's various enterprise operations, and the inclusion of allowable administrative allocations to the City's community facilities districts. As a result of the above, FY 18/19 revenues and transfer in are projected to be higher than the current FY 17/18 revised budget by $3.3 million or 8.0%. For more detail on the sources of General Fund revenues, see Table 1 below. Table 1 — General Fund Revenues FY 2018-19 Budget Adoption June 18, 2018 Page 4 Expenditures and Transfers Out The FY 18/19 General Fund budget includes $42.5 million in recommended expenditures, including Transfers Out and Supplemental Requests. Personnel costs, which include salaries and benefits, represent 59.0% ($25.1 million) of the total expenditures. The remaining budget is comprised of operational costs, which include materials, services and supplies, capital outlays, debt service and transfers to other funds. In keeping with the Council's highest priorities, public safety (e.g., police and fire) represents 56.8% of the General Fund budget. Overall, expenditures are projected to decrease approximately 4.4% or $2.0 million compared to the FY 17/18 revised budget. The decreased budget is mainly attributable to: • 30.2% reduction in Citywide expenses due to a one-time special assessment from the City's former insurance provider, ICRMA, of $1.4M charged to the division in FY 17/18; • Removal of one-time salary expenses totaling $1.0M for retroactive overtime payments made in FY 17/18 as legally required; and • A $500K anticipated reduction in vacation and sick leave cash outs. The projected decrease is offset by increased Ca1PERs costs of $673K and anticipated increases for retiree medical payments of $66K. Six of the City's seven labor contracts are set to expire from June 30, 2018 - December 31, 2018 and are currently under negotiation. Proposed expenditures do not include the impact of the pending contract changes. Table 2 provides further detail on the General Funds proposed expenditures by department. Table 2 - General Fund Expenditures Administration City Council $ 132,310 $ 132,310 $ 143,105 $ 10,795 8.2% 0.3% CSty Clerks 652,841 537,123 666,672 13,831 2.1% 1.60/c City Manager/Nghbrhd Svcs 561,658 680,032 485,125 (76,533) -13.6% 1.1 City Attomey 250,000 277,285 250,000 0.0% 0.6% Treasurer 182,430 182,430 186,470 4,040 2.2% 0.4% Accounting 1,139,842 1,118,816 1,194,821 54,979 4.8% 2.8% Purchasing 242,216 244,761 244,820 2,604 1.1% 0.6% Printing 9,000 8,600 8,600 (400) -4.4% 0.0% Citywide 4,799,216 4,774,704 3,350,057 (1,449,159) -30.2% 7.9% HR Personnel Relations 421,900 408,811 461,290 39,391 9.3% 1.1% Library Services 1,258,556 1,110,851 1,250,245 (8,311) -0.7% 2.9% Safety (excludes Fire Svcs) 19,867,201 21,657,604 19,235,517 (631,684) -3.2% 45.3% Economic Development 2,474,558 2,224,631 2,453,537 (21,021) -0.8% 5.8% Rec & FamServices 3,649,314 3,710,313 3,741,170 91,856 2.5% 8.8% Public Works 788,815 738,440 877,073 88.258 11.2% 2,1% $ 36,429,857 $ 37,806,712 $ 34,548,503 $ (1,881,355) -5.2% 81.3% Subtotal Expenditures Transfers Out (includes Fire Svcs) 5,483,980 5,483,980 7,205,670 1,721,690 31.4% 17.0% Leave Payouts in Emp Benefits 2,000,000 (2,000,000) -100.0% 0.00/0 Capital Outlay 534,740 534,740 452,734 (82,006) -153% 1.0% CIP 237,750 237,750 100.0% 0.6% Personnel Requests 42,510 42,510 100.0% 0.1% Total Expenditures $ 44.448.577 1 $ 43.825 432 $ 42,487.167 1 $ 1,961.4121 4.47 100.0% FY 2018-19 Budget Adoption June 18, 2018 Page 5 Capital Outlays City-wide capital outlay requests for FY 18/19 total $1.1 million, of which $453K is proposed to funded by the General Fund. Major outlays include: • Replacement of aged phone system ($400K) ■ Pool filter replacements ($61 K) ■ L&W vehicle replacements ($132K) • AQMD Hybrid dump truck and transit cargo van ($143K) • Three PD replacement vehicles and retrofits ($138K) A summary of the proposed City-wide Capital Outlay budget for FY 18/19 is attached to this report. Capital Improvement Projects (CIP) For Fiscal Year 18/19, Staff proposes a 5-year CIP Plan totaling $50.5 million City-wide. Of the $50.5 million CIP plan, $47.8 million in projects are expected to be funded by non -general fund sources, $238K by General Fund, and $2.5 million are currently unfunded. The total proposed CIP budget for FY 18/19 is $17.1 million City-wide, of which $2.5 million is currently unfunded, plus estimated carryover projects of $13.2 million. Some of the major funded projects proposed for FY 18/19 include: • Citywide traffic management system improvements ($534K) • Advanced meter infrastructure implementation ($6.3M) • Water transmission lining Cypress ($1.5M) • Azusa Substation Facility improvements ($1.0M) • Foothill Blvd. pavement rehab ($790K) • Foothill Blvd. storm drain improvements ($275K) • Citywide sidewalk improvements ($105K) • Gladstone St. street pavement rehab ($830K) • Bus stop improvements ($20K) • Reservoir rehabs ($200K) A summary of the proposed City-wide CIP budget for FY 18/19 is attached to this report. Proposed Personnel Changes Total proposed personnel changes for FY 18/19 are $183,420 with no additions to total City-wide FTEs. The changes include a $42,510 increase in General Fund expenditures and the remaining $140,910 will be funded by special revenue sources. A summary of the changes are listed in Table 3. FY 2018-19 Budget Adoption June 18, 2018 Page 6 Table 3 — Personnel Request Summary Deparlimpt Division Request/Proposal Current Classification FTE Total Cost Fund Administration City Clerk Increase Salary. Chief Deputy City Adjust in accordance with market comparison $ 7,700 General Fund Clerk (allocable) City Clerk Freeze Full-time Position: Deputy (1.00) (78,480) General Fund City Clerk II (allocable) City Clerk Total Estimated Impact: (1.00) $ (70,780) Econ 8 Com Dev Community Reclassify Full -Time Position: Delete: Community Improvement Inspector $ 9,075 General Fund Improvement Senior Community improvement Inspector Planning RaClassfly Frill-Tfma P"finrt; Delete: Associate Planner 10,115 General Fund Senior Planner Planning/ New Full -Time Position: Economic New 1.00 124,350 General Fund Economic 8 Community Development Manager Development Building Increase Salary. Building Inspector II 5 % increase to address compaction - 7,350 General Fund CommunityFreeze Full-time Position: Revenue (1,00) (94,965) General Fund Improvement Supervisor Economic and Community Development Total Estimated Impact: - $ 68.925 Library General/Children Increase Salary., Librarian Address salary compaction issue for 2 Librarians $ 12,280 General Fund Library Total Estimated Impact: - $ 12,280 Light and Water Customer Care Reclassify Full -Time Position: Delete: Customer Sertice Representative III $ (16,900) 60% Water, 40% Senior Administrative Technician Electric Light and Water Total Estimated Impact: - $ (16,900) Public Works Sewer, Measure N w.ItrtR•72mo Aashd11: New 1.00 $ 79,085 30% Sewer, 20% M, Prop A, Prop Administrative Technician Measure M, 25% C Prop A, 25% Prop C Engineering Reclassify Full -Time Position: Delete: Engineering Assistant II - 8,175 Sewer Engineering Associale Engineering Reclassify Full -Time Position: Delete: Public Works Inspector 4,730 50% Measure M, Senior Public Works Inspector 50% Measure R Prop A. Prop C Reclassify 2 Part-time Positions to New (0,20) 65.820 75% Prop A. 25% Full -Time Position: Transportation Prop C Dispatcher Public Works Total Estimated Impact: 0.80 $ 157,810 ft"A Wnt twos Recreation New Full -Time Position: Recreation Delete: PT Recreation Coordinator 0,79 $ 59,970 General Fund Coordinator (Sports Pmgmms) Senior Programs New Full -Time Position: Senior Delete: Recreation SupeMsor General Fund Services Manager Recreation Delete Part -Time Position: 853 hours (0.41) (11,580) General Fund Recreation Leader Recreation Delete Part -Time Position: Senior 785 hours (0 19) (4,990) General Fund Recrealion Leader Recreation - Reclassify Part -Time Position: Delete: Pool Manager to address compaction - 1,685 General Fund Aqualics Program Recreation Coordinator (Pool Manager) Recreation and Family Services Total Estimated Impact: 0.19 $ 45,085 GRAND TOTAL ESTIMATED IMPACT: (0.01) $183,420 General Fund Reserves One of the benchmarks used to assess the General Fund's progress toward financial sustainability is the General Fund Reserve Policy. The City's 15% reserve target for FY 18/19 is approximately $6.4 million based on the proposed $42.5 million budget. The proposed budget is expected to provide for an uncommitted fund balance of $11.1 million by the end of FY 18/19 or a 26.1 % reserve level. This level of reserves is largely due to significant one-time revenues generated by property sales in fiscal years 16/17, 17/18 and proposed in 18/19. While the City's current reserve levels are healthy and above the 15% target, additional reserves need to be restricted to address some of the City's long-term financial liabilities and potential areas of financial exposure, such as claims expenses, aged infrastructure, and rising retiree benefits. Therefore, in conjunction with the budget adoption process, Staff has prepared a revised General Fund Reserve Policy FY 2018-19 Budget Adoption June 18, 2018 Page 7 to include the reserve categories shown in Table 4 below and is presenting to the City Council as a separate Staff Report for action. Table 4 — Proposed General Fund Internally Restricted Reserves FY 18/19 Beginning Balance: $ 6,373,075 $ 1,500,000 $ 1,000,000 $ 1,500,000 $ 10,373,075 Less: FY 18/19 Uses (690.484y 690,484 FY 18/19 Fnding Balance: $ 6,373,075 $ 809,516 $ 1,000,000 $ 1,500,000 $ 9,682,591 FISCAL IMPACT: The preliminary draft operating budget for FY 18/19 reflects the ongoing efforts of Staff to maintain service levels while achieving long-term fiscal stability. For many programs, comparisons between the proposed and prior -year budgets show decreases due to continued materials, services and supplies cost reduction efforts in addition to exploring alternative funding sources in order to keep the General Fund solvent. Staff continues to explore various methods for providing services in the most cost-effective way possible, as well as examine different opportunities to address the City's unfunded liabilities such as retiree medical, leave bank accruals and retirement costs that continue to be major impediments to achieving fiscal sustainability. One of the guiding principles to the City's budgeting policy is "Do not use `one-time money' for ongoing operations". Current reserve levels provides opportunity to better strategically address some of the aforementioned unfunded liabilities or internally restrict reserves to fund future costs such as necessary facility/infrastructure improvements or general liability and worker's compensation administration. Staff will continue to monitor the City's budget to ensure on -going operational costs are able to be sustained with on -going revenues as well as exploring and recommending avenues to expand the General Fund's revenue base. The fiscal impact of the Combined Operating and Capital Improvement Budget is $160,950,255 (including Internal Services) with Transfers of $9,572,670 and comprising of the following: By Agency City $ 62,634,241 $ 8,453,798 $ 3,642,253 $ 74,730,292 Utilities (L&W) 66,288,435 1,118,872 12,252,552 79,659,859 APFA 361,962 - - 361,962 Successor Agency 6.198.142 - - 6,198.142 Total Budget $ 135,482,780 $ 9,572,670 $ 15,894,805 $ 160,950,255 FY 2018-19 Budget Adoption June 18, 2018 Page 8 By Fund Type Operating Trans fe rs Supplementals 'Total Budget General $ 34,548,503 $ 7,205,670 $ 732,994 $ 42,487,167 Internal Services 12,994,339 530,160 - 13,524,500 Special Revenue 13,789,639 331,685 3,122,532 17,243,856 Debt Service 3,611,811 - - 3,611,811 Enterprise 63,761,658 1,505,155 11,914,279 77,181,092 Capital Projects Fund 578,688 - 125,000 703,688 Successor Agency 6,11)8,142 - - 6,198,142 Total Budget S 135,482,780 $ 9,572,670 $ 15.894,805 ti 1W1150.256 A summary of the proposed City-wide budget for FY 2018/19 is attached to this report. The full budget documents are available for review at the City Clerk's Office, the Library or on the Finance page of the City's website. Prepared by: Reviewed and Approved: Talika M. Johnson Sergio Gonzalez Director of Finance City Manager Attachments: 1) Approve Resolution No. 2018-C44, A Resolution of the City Council of the City of Azusa adopting the budget and approving appropriations for the City of Azusa for the fiscal year commencing July 1, 2018 and ending June 30, 2019; 2) Approve Resolution No. 2018-UB-03, A Resolution of the Utility Board of the City of Azusa adopting the budget and approving appropriations for Utilities for the fiscal year commencing July 1, 2018 and ending June 30, 2019; 3) Approve Resolution No. 2018-P1, A Resolution of the Azusa Public Financing Authority of the City of Azusa adopting the budget and approving appropriations for the Authority for the fiscal year commencing July 1, 2018 and ending June 30, 2019; and 4) Approve Resolution No. 2018-R10, A Resolution of the Successor Agency for the Former Redevelopment Agency of the City of Azusa adopting the budget and approving appropriations for the Agency for the fiscal year commencing July 1, 2018 and ending June 30, 2019. 5) Fiscal Year 2018/19 Budget Summaries RESOLUTION NO. 2018-C44 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA ADOPTING THE BUDGET AND APPROVING APPROPRIATIONS FOR THE CITY OF AZUSA FOR THE FISCAL YEAR COMMENCING JULY 1, 2018 AND ENDING JUNE 30, 2019. THE CITY COUNCIL OF THE CITY OF AZUSA DOES RESOLVE AS FOLLOWS: SECTION I. The preliminary budget for the City of Azusa for the fiscal year commencing July 1, 2018 and ending ,tune 30, 2019, presented and reviewed at a public workshop held May 29, 2018, is hereby approved and adopted as the budget of the City of Azusa for said fiscal year. SECTION 2. From the effective date of said budget, the several amounts stated herein as proposed expenditures shall be and become appropriated to the several departments, offices and agencies of the City for the respective objects and purposes therein set forth, subject to expenditure pursuant to the provisions of all applicable ordinances of the City and statutes of the State. Further, it is established that said departments, offices, and agencies of the City shall not exceed their respective budgets. SECTION 3. All appropriations in the 2017-2018 budget of the City not expended or encumbered hereby expire and terminate, except for those appropriations expressly continued and carried forward into the budget for 2018-2019. Appropriations for Capital Improvement Projects and Capital Outlay are hereby carried forward until project completion or equipment acquisition. SECTION 4. Pursuant to Government Code 37208, warrants drawn in payment of demands certified or approved by the City Clerk as conforming to a budget approved by ordinance or resolution of the City Council need not be audited by the City Council prior to payment. Budgeted demands paid by warrant prior to audit by the City Council shall be presented to the City Council for ratification and approval at the first meeting; after delivery of the warrants. SECTION 5. The City Clerk shall certify as to the adoption of this resolution. PASSED, APPROVED and ADOPTED this 18`h day of June, 2018. 1 seph Romero Rocha Mayor ATTEST: i Je .a ce Cornejo Jr. City Clerk STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF AZUSA ) I HEREBY CERTIFY that the foregoing Resolution No. 2018-C44 was duly adopted by the City Council of the City of Azusa at a regular meeting held on the 18`h day of June 2018, by the following vote of the Council: AYES: COUNCILMEMBERS: GONZALES, CARRILLO, MACIAS, ALVAREZ, ROCHA NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE J cc Comejo, , . City Cler APPROVED AS TO FORM: 4 A Best Best & Kri er, LLP City Attorney RESOLUTION NO. 2018-UB-03 A RESOLUTION OF THE UTILITY BOARD OF THE AZUSA LIGHT AND WATER ADOPTING THE OPERATING BUDGET AND APPROVING APPROPRIATIONS FOR AZUSA LIGHT AND WATER FOR THE FISCAL YEAR COMMENCING JULY 1, 2018 AND ENDING JUNE 30, 2019 THE UTILITY BOARD OF AZUSA LIGHT AND WATER DOES RESOLVE AS FOLLOWS: SECTION 1. The preliminary budget for Azusa Light and Water ("Utility") for the fiscal year commencing July I, 2018 and ending June 30, 2019, presented and reviewed at a public workshop held May 29, 2018, is hereby approved and adopted as the Utility budget for said fiscal year. A copy of said budget is hereby ordered to be filed in the office of the Secretary and shall be certified by the Secretary as having been adopted by this resolution. SECTION 2. From the effective date of said budget, the several amounts stated therein as proposed expenditures shall be and become appropriated to the respective objects and purposes therein set forth for Utility subject to expenditure pursuant to the provisions of all applicable ordinances of Utility and statutes of the State. Further, it is established that Utility will not exceed its budget. SECTION 3. All appropriations in the 2017-2018 budget of Utility not expended or encumbered hereby expire and terminate, except for those appropriations expressly continued and carried forward ("rebudl eted") into the budget for 2018-2019. Appropriations for Capital Projects and Capital Outlay are hereby carried forward until project completion or equipment acquisition. SECTION 4. Pursuant to Government Code 37208, warrants drawn in payment certified or approved by the Secretary as conforming to a budget approved by ordinance or resolution of Utility Board need not be audited by Utility Board prior to payment. Budgeted demands paid by warrant prior to audit by Utility Board shall be presented to the Utility Board for ratification and approval at the first meeting after delivery of the warrants. SECTION 5. The Secretary shall certify to the adoption of this resolution. PASSED, APPROVED and ADOPTED this 181h day of June, 2018. scph Romero Rocha Boardmember/Mayor ATTEST: 2 J e K-cae , Jr._ ecretary/City Clerk STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss CITY OF AZUSA ) I HEREBY CERTIFY that the foregoing Resolution No. 2018-UB-03 was duly adopted by the Utility Board/City Council of the City of Azusa at a special meeting of the Azusa Light & Water Utility Board on the 18th day of June, 2018. AYES: BOARD/COUNCILMEMBERS: GONZALES, CARRILLO, MACIAS, ALVAREZ, ROCHA NOES: BOARD/COUNCILMEMBERS: NONE ABSENT: BOARD/COUNCILMEMBERS: NONE € rence Come' , Jr. SecretarylCity Clerk APPROVED AS TO FORM: w City At rneY Best Best & Krieger RESOLUTION NO. 2018-P1 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE AZUSA PUBLIC FINANCING AUTHORITY ADOPTING THE BUDGET AND APPROVING APPROPRIATIONS FOR THE AUTHORITY FOR THE FISCAL YEAR COMMENCING JULY 1, 2018 AND ENDING JUNE 30, 2019 THE BOARD OF DIRECTORS OF THE AZUSA PUBLIC FINANCING AUTHORITY DOES RESOLVE AS FOLLOWS: SECTION 1. The preliminary budget for the Azusa Public Financing Authority for the fiscal year commencing July 1, 2018 and ending June 30, 2019, presented and reviewed at a public workshop held May 29, 2018, is hereby approved and adopted as the budget of the Azusa Public Financing Authority for said fiscal year. A copy of said budget is hereby ordered to be filed in the office of the Secretary and shall be certified by the Secretary as having been adopted by this resolution. SECTION 2. From the effective date of said budget, the several amounts stated therein as proposed expenditures shall be and become appropriated to the respective objects and purposes therein set forth for the Authority subject to expenditure pursuant to the provisions of all applicable ordinances of the Authority and statutes of the State. Further, it is established that the Authority will not exceed its budget. SECTION 3. Pursuant to Government Code 37208, warrants drawn in payment certified or approved by the Secretary as conforming to a budget approved by ordinance or resolution of the Authority Board need not be audited by the Authority Board prior to payment. Budgeted demands paid by warrant prior to audit by the Authority Board shall be presented to the Authority Board for ratification and approval at the first meeting after delivery of the warrants. SECTION 4. The Secretary shall certify to the adoption of this resolution. PASSED, APPROVED and ADOPTED this 181h day of June, 2018. oseph Romero Rocha Chairperson ATT T: Je r a cc Cornejo J . Secretary STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF AZUSA ) I HEREBY CERTIFY that the foregoing Resolution No. 2018-P1 was duly adopted by the Board of Directors of the Azusa Public Financing Authority at a regular meeting thereof, held on the 18`h day of June, 2018, by the following vote of Board: AYES: BOARDMEMBERS: GONZALES, CARRILLO, MACIAS, ALVAREZ, ROCHA NOES: BOARDMEMBERS: NONE ABSENT: BOARDMEMBERS: NONE Jed e ►VV a0Mejo, Secretary APPROVED AS TO FORM: Best Best & rieger, LLP City Atto n DocuSign Envelope ID: 32EE79F7-B5BF-4ABF-BD40-FBEB01D252DD RESOLUTION NO. 2018-R10 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SUCCESSOR AGENCY FOR THE FORMER REDEVELOPMENT AGENCY OF THE CITY OF AZUSA ADOPTING THE OPERATING BUDGET AND APPROVING APPROPRIATIONS FOR THE SUCCESSOR AGENCY OF THE FORMER REDEVELOPMENT AGENCY OF THE CITY OF AZUSA FOR THE FISCAL YEAR COMMENCING JULY 1, 2018 AND ENDING JUNE 30, 2019 THE BOARD OF DIRECTORS OF THE SUCCESSOR AGENCY OF THE FORMER REDEVELOPMENT AGENCY OF THE CITY OF AZUSA DOES RESOLVE AS FOLLOWS: SECTION 1. The operating budget for the Successor Agency of the former Redevelopment Agency of the City of Azusa ("Agency") for the fiscal year commencing July 1, 2018 and ending June 30, 2019, presented and reviewed at a public workshop held May 29, 2018, is hereby approved and adopted as the budget of the Agency for said fiscal year. A copy of said budget is hereby ordered to be filed in the office of the Secretary and shall be certified by the Secretary as having been adopted by this resolution. SECTION 2. From the effective date of said budget, the several amounts stated therein as proposed expenditures shall be and become appropriated to the respective objects and purposes therein set forth for the Agency subject to expenditure pursuant to the provisions of all applicable ordinances of the Agency and statutes of the State. Further, it is established that the Agency will not exceed its budget. SECTION 3. All appropriations in the 2017-2018 budget of the Agency not expended or encumbered hereby expire and terminate, except for those appropriations expressly continued and carried forward ("rebudgeted") into the budget for 2018-2019. Appropriations for Capital Projects and Capital Equipment are hereby carried forward until project completion or equipment acquisition. SECTION 4. Pursuant to Government Code 37208, warrants drawn in payment certified or approved by the Secretary as conforming to a budget approved by ordinance or resolution of the Agency Board need not be audited by the Agency Board prior to payment. Budgeted demands paid by warrant prior to audit by the Agency Board shall be presented to the Agency Board for ratification and approval at the first meeting after delivery of the warrants. SECTION 5. The Secretary shall certify to the adoption of this resolution. PASSED, APPROVED and ADOPTED this 18th day of June, 2018. oseph Romero Rocha Chairman DocuSign Envelope ID: 32EE79F7-B5BF-4ABF-BD40-F8EB01D252DD ATTEST: of ence Co Jo, Secretary CERTIFICATION I, Jeffrey Lawrence Cornejo Jr., City Clerk of the City of Azusa, do hereby certify that Resolution No. 2018-R10 was duly adopted by the City Council of the City of Azusa, serving as the Successor Agency to the Former Redevelopment Agency, at a regular meeting held on the 181h day of June 2018, by the following vote of the Agency: AYES: AGENCY MEMBERS: GONZALES, CARRILLO, MACIAS, ALVAREZ, ROCHA NOES: AGENCY MEMBERS: NONE ABSENT: AGENCY MEMBERS: NONE f r y rence Co jo, 4Secret, ry APPROVED AS TO FORM: C�arco u$Ipfrad by: Martinez �es•s�nnunre� _ Best Best & Krieger, LLP City Attorney L!i i•� L.j C� D y V N N r N M m N ON n N m V T 00I F• RI N N IpC IL q G M O M O n m Omi OI n y �y •D n m N d Vl M M N 10 CJ ppm OI N Ems O vmNmn m 0 m a NN m W m� M Nm0 M O •f m N i!1 G M N W N Y o .» m o m rn M K LL N p p y 9 d 01 N O O O Lr O O O r O O t0➢ tOp N O O y� O d yIWII V� n O O O N m O O m O O N N m O O d O Q 1 L' N �3 MO Yf w w p M Of .Z m 2 O V M W N N ? m M a M �i 3 'a �q O M N m m OOoI O h o O O pO � O ryO Nm� � N Of d f� N O Of OI N OI Q Nd N 40 t0 Cml N O � m IA m � .O m C a N w w�� ^ o o vmi �mvmi up1ivvm a mo M w c� M m M m a W r m cv � ul m m � QO V OI F m n n M Ill aL R M nNnm A M O mTrMO nmN O nN M N M 1+ d W M n M 0 m n m a (� M VI Opt ry n Ol m m O d N n d I!1 Ol m m W M �O O) CI {O n M N pyp M N M Ill O M O ypj aMD d t? 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