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Resolution Number 24-06-18-021 RESOLUTION NO. 24-06-18-02 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA ADOPTING THE FISCAL YEAR 2024-25 OPERATING AND CAPITAL IMPROVEMENT BUDGET AND AUTHORIZING EXPENDITURES AND APPROPRIATIONS RELATED THERETO WHEREAS, at its regular meeting on May 21, 2024, the City Council of the City of San Juan Capistrano held a Budget Workshop to review recommendations for the Proposed Fiscal Year 2024-25 Operating Budget and the Proposed Seven-Year Capital Improvement Program for Fiscal Years 2024-25 through 2030-31; and, WHEREAS, the Proposed Fiscal Year 2024-25 Operating and Capital Budget are the basis for the financial and economic implementation of the City’s General Plan; and, WHEREAS, the Proposed Fiscal Year 2024-25 Operating and Capital Budget provide for service levels necessary to respond to the needs of the community and which are deemed appropriate by the City Council, and concurrently provides a work force to fill these service needs; and, WHEREAS, the City Council recognizes that the Proposed Fiscal Year 2024- 25 Operating and Capital Budget will require adjustments from time to time, and accordingly, the City Manager is authorized to execute necessary transfers to carry out the scope of services as approved. NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of San Juan Capistrano does hereby determine as follows: 1. That the Proposed Fiscal Year 2024-25 Operating and Capital Budget as presented at the budget workshop held on May 21, 2024 (Exhibit A) and as detailed in the proposed budget document presented at the budget workshop, after giving effect to the budget changes enumerated in Exhibit B attached hereto to be made to the same after adoption of this resolution and after giving effect for any further budget changes authorized by City Council in the regular City Council meeting held on June 18, 2024, is hereby adopted. 2. That total appropriations for each fund may only be increased or decreased by the City Council by amending the budget, except as provided herein. 3. That the legal level of budgetary control is at the fund level. Budgets may not legally be exceeded at the fund level without appropriate authorization by the City Council. Budgeted amounts for individual classifications within a fund may be exceeded as long as the total annual budget for that fund is not exceeded. 2 4. That the following controls are hereby placed on the transfers of budgeted funds: a. The City Manager may authorize transfers of funds from account to account within any operating department. b. The City Manager may authorize transfers of funds from department to department within any fund up to $50,000. c. The City Manager may delegate the authority to make budget transfers and adjustments up to $10,000. d. The City Manager may authorize budget adjustments involving offsetting revenues and expenditures; the City Manager may authorize increases in an appropriation for a specific purpose where the appropriation is offset by unbudgeted revenues, which are designated for said specific purpose; the City Manager may authorize year end budget adjustments as may be needed to reflect final allocations of internal service fund expenditures to the various departments. 5. That all appropriations for outstanding encumbrances and projects currently underway and remaining unexpended at June 30, 2024, as approved by the City Manager or his designee, are hereby appropriated to the Fiscal Year 2024-25 Operating Budget. PASSED, APPROVED, AND ADOPTED this 18th day of June 2024. __________________________________ SERGIO FARIAS, MAYOR ATTEST: ___________________________________ CHRISTY JAKL, CITY CLERK 3 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss. CITY OF SAN JUAN CAPISTRANO ) I, Christy Jakl, appointed City Clerk of the City of San Juan Capistrano, do hereby certify that the foregoing Resolution No. 24-06-18-02 was duly adopted by the City Council of the City of San Juan Capistrano at a Regular meeting thereof, held the 18th day of June 2024, by the following vote: AYES: COUNCIL MEMBERS: Hart, Taylor, Campbell and Mayor Farias NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: Mayor Pro Tem Bourne ____________________________ CHRISTY JAKL, CITY CLERK ProjectedProjectedBeginning Operating CIP Transfers Transfers Proposed EndingBalance Revenues Expenditures Expenditures In Out Reserve Balance7/1/2024 (1)FY 2025 FY 2025 FY 2025 FY 2025 FY 2025 Adjustments 6/30/2025GENERAL FUNDSGeneral FundUnassigned 3,318,115$ 41,391,000$ (36,188,131)$ (1,628,140) 773,000$ -$ -$ 7,665,844$ Reserve - Tuition Reimbursement Program 35,000 - - - - - - 35,000 Reserve - Cash Flow5,000,000 - - - - - - 5,000,000 Reserve - Economic Uncertainty10,000,000 - - - - - - 10,000,000 Reserve - Contingency5,000,000 - - - - - - 5,000,000 Reserve - Capital Outlay/City Hall2,500,000 - - - - - - 2,500,000 Total General Fund25,853,115 41,391,000 (36,188,131) (1,628,140) 773,000 - - 30,200,844 Parking Maintenance FundAssigned-Parking Maintenance126,337 1,418,500 (1,474,612) - - - - 70,225 Successor Agency to the CRA/Housing Authority Administration Fund Unassigned903 210,000 (208,715) - - - - 2,188 Farm Operations FundAssigned-Farm Operations339,869 222,000 (88,750) - - - - 473,119 Eastern Open Space FundAssigned-Eastern Open Space Operations(1,278,113) 400,000 (228,600) - - - - (1,106,713) GENERAL FUNDS - TOTAL25,042,111$ 43,641,500$ (38,188,808)$ (1,628,140)$ 773,000$ -$ -$ 29,639,663$ Special Revenue FundsC&D Forfeited Bonds FundRestricted-Recycling Programs1,151,633$ 25,000$ (259,590)$ -$ -$ -$ -$ 917,043$ Road Maintenance and Rehabilitation Account (RMRA)Restricted-Streets and Roads Capital Projects205,554 898,000 - (891,000) - - - 212,554 Certified Access Specialist Program (C.A.S.P.)Restricted-CASP Program22,507 1,000 (11,650) - - - - 11,857 Permanent Local Housing (PLH)Restricted-Permanent Local Housing (PLH) program300 359,700 (359,700) - - - - 300 Systems Development/Ord. 211 FundRestricted-Streets and Roads Capital Projects88,712 274,000 - (126,000) - - - 236,712 Park and Recreation FundRestricted-Parks and Recreation Capital Projects(301,898) 282,000 - (180,000) - - - (199,898) CITY OF SAN JUAN CAPISTRANOFISCAL YEAR 2024/25BUDGET SUMMARYEXHIBIT A - Page 1 of 4 ProjectedProjectedBeginning Operating CIP Transfers Transfers Proposed EndingBalance Revenues Expenditures Expenditures In Out Reserve Balance7/1/2024 (1)FY 2025 FY 2025 FY 2025 FY 2025 FY 2025 Adjustments 6/30/2025CITY OF SAN JUAN CAPISTRANOFISCAL YEAR 2024/25BUDGET SUMMARYDrainage FundRestricted-Storm Drain Capital Projects(80,077) 35,000 - - - - - (45,077) Agricultural Preservation FundRestricted-Agricultural Preservation Projects(180,855) 65,000 - - - - - (115,855) Landscape Maintenance FundRestricted-Landscape Maintenance199,860 140,000 (148,460) - - - - 191,400 CDBG/HOME FundRestricted-Housing Rehabilitation for Low and 451,534 127,000 (210,275) - - - - 368,259 Moderate Income Housing PersonsGas Tax FundRestricted-Street Rehabilitation and Maintenance(93,012) 976,000 - (684,000) - (350,000) - (151,012) CCFP FundDeveloper Contributions for Specific Projects404,571 - - - - - - 404,571 Restricted-Streets and Roads Capital Projects11,247,454 1,183,000 - (2,000,000) - - - 10,430,454 Total CCFP Fund11,652,025 1,183,000 - (2,000,000) - - - 10,835,025 S.O.N.G.S. FundRestricted-Emergency Preparedness(6,138) 147,138 (147,138) - - - - (6,138) AQMD FundRestricted-Mobile Source Emissions Reduction Programs267,951 46,000 (5,000) - - (51,000) - 257,951 Measure M FundRestricted-Streets and Roads Capital Projects158,838 981,000 - (913,000) - - - 226,838 Housing In-Lieu Fee FundRestricted-Affordable Housing6,544,916 - - - - - - 6,544,916 Non-spendable Noncurrent Receivables6,113,349 - - - - - - 6,113,349 Total Housing In-Lieu Fund12,658,265 - - - - - - 12,658,265 Local Law Enforcement Grants FundRestricted-Law Enforcement- 161,000 - - - (161,000) - - Park and Open Space Grant FundRestricted-Capital Projects- - - - - - - - Street and Highways Grant FundRestricted-Capital Projects138,773 207,000 - - - (207,000) - 138,773 Other Grants FundRestricted-Grants75,143 - - - - - - 75,143 Historic Depiction FundRestricted - Historic Depiction12,470 - - - - - - 12,470 EXHIBIT A - Page 2 of 4 ProjectedProjectedBeginning Operating CIP Transfers Transfers Proposed EndingBalance Revenues Expenditures Expenditures In Out Reserve Balance7/1/2024 (1)FY 2025 FY 2025 FY 2025 FY 2025 FY 2025 Adjustments 6/30/2025CITY OF SAN JUAN CAPISTRANOFISCAL YEAR 2024/25BUDGET SUMMARYDeveloper Deposits FundDeveloper Contributions for Specific Projects- 267,270 (267,270) - - - - - SPECIAL REVENUE FUNDS - TOTAL26,421,585$ 6,175,108$ (1,409,083)$ (4,794,000)$ -$ (769,000)$ -$ 25,624,610$ Debt Service FundDebt Service FundRestricted-Debt Service4,280,041$ 1,958,000$ (1,837,420)$ -$ -$ -$ -$ 4,400,621$ Capital Improvement FundsCommunity Facilities District Bonds FundRestricted - Community Facilities Projects34 - - - - - - 34 Public Benefit Contributions FundAssigned - Capital Projects297,293 - - - - - - 297,293 Total Public Benefit Contributions Fund297,293 - - - - - - 297,293 CAPITAL PROJECTS FUNDS - TOTAL297,327$ -$ -$ -$ -$ -$ -$ 297,327$ GENERAL GOVERNMENTAL FUNDS - TOTAL56,041,064$ 51,774,608$ (41,435,311)$ (6,422,140)$ 773,000$ (769,000)$ -$ 59,962,221$ ENTERPRISE FUNDSSJC HOUSING AUTHORITYHousing Authority Administration FundUnrestricted Net Position-Available1,455,887$ 175,000$ (78,000)$ -$ -$ -$ -$ 1,552,887 Non-Spendable - Noncurrent Receivables & Prepaids5,297,813 - - - - - - 5,297,813 Investment in Capital Assets4,018,813 - - - - - - 4,018,813 Total Housing Authority Administration Fund10,772,513 175,000 (78,000) - - - - 10,869,513 Little Hollywood Rental Housing FundUnrestricted Net Position-Available640,578 400,000 (294,700) - - - - 745,878 Successor Agency Housing Bonds FundRestricted Net Assets-Affordable Housing Projects6,127,268 30,000 - - - - - 6,157,268 Non-Spendable - Noncurrent Receivables1,111,945 30,000 - - - - - 1,141,945 7,239,213 60,000 - - - - - 7,299,213 SJC HOUSING AUTHORITY - TOTAL18,652,304$ 605,000$ (372,700)$ -$ -$ -$ -$ 18,914,604$ ENTERPRISE FUNDS - TOTAL18,652,304$ 605,000$ (372,700)$ -$ -$ -$ -$ 18,914,604$ EXHIBIT A - Page 3 of 4 ProjectedProjectedBeginning Operating CIP Transfers Transfers Proposed EndingBalance Revenues Expenditures Expenditures In Out Reserve Balance7/1/2024 (1)FY 2025 FY 2025 FY 2025 FY 2025 FY 2025 Adjustments 6/30/2025CITY OF SAN JUAN CAPISTRANOFISCAL YEAR 2024/25BUDGET SUMMARYINTERNAL SERVICE FUNDSInsurance and Benefits FundUnrestricted Net Assets-Available2,899,719$ 5,257,000$ (5,257,000)$ -$ -$ -$ -$ 2,899,719$ Total Insurance and Benefits Fund2,899,719 5,257,000 (5,257,000) - - - - 2,899,719 Facilities Operations FundUnrestricted Net Position-Available (3)4,383,274 2,562,125 (3,233,195) (100,000) - - - 3,612,204 Unrestricted Net Position - Pension & OPEB Liabilities (2)(474,497) - - - - - - (474,497) Restricted - New City Hall/Permanent Local Housing5,945,834 - - - - - - 5,945,834 Investment in Capital Assets1,740,308 - - - - - - 1,740,308 Total Facilities Operations Fund11,594,919 2,562,125 (3,233,195) (100,000) - - - 10,823,849 INTERNAL SERVICE FUNDS - TOTAL14,494,638$ 7,819,125$ (8,490,195)$ (100,000)$ -$ -$ -$ 13,723,568$ ALL FUNDS - TOTAL89,188,006$ 60,198,733$ (50,298,206)$ (6,522,140)$ 773,000$ (769,000)$ -$ 92,600,393$ Less:San Juan Capistrano Housing Authority 372,700 Total Appropriations Approved by City Council (49,925,506)$ (6,522,140)$ (769,000)$ Notes:(3) The City is required by the Governmental Accounting Standards Board (GASB) to report the unfunded actuarial liability (UAAL) for its pension plans (GASB Statement No. 68) and other-post employment benefits (GASB Statement No. 75). The City's General Fund (and other governmental funds) do not reflect such an amount in this schedule because this accounting and reporting standard is only applicable to the City's Enterprise and Internal Service Funds. The City's governmental funds' (i.e. General Fund, Capital Projects Funds, and Special Revenue Funds) portion of the City's total UAAL as of December 31, 2022 (date of actuarial valuation) was approximately $18.2 million for the City's pension plans and was approximately $3.2 million for the other post employment benefit plan as of July 1, 2022 (date of the actuarial valuation).(3) Available reserves for capital replacement.(1) Beginning fund balance is based on projected balances as of June 30, 2024. EXHIBIT A - Page 4 of 4 a. Results of recently negotiated employee compensation package b. Position changes presented at budget workshop c.Add one part-time (18 hours a week) Outreach Officer (PLHA Fund - $46,000) d.Upgrade one Code Enforcement Officer to Senior Code Enforcement Officer (General Fund - $9,000) e. Add one patrol deputy (General Fund - $332,009 - Offset by PLHA grant and eliminated CPS position) f. Add one patrol vehicle (General Fund - $120,450) g. Less savings of eliminated Crime Prevention Specialist (CPS) position (General Fund - reduction of $123,212) h. Contracted code enforcement services (General Fund - add $100,000 to existing budget) i. Study expansion of downtown decorative street lighting (General Fund - $50,000) j. Increase budget for new permitting software (Facilities Operations Fund - $115,000) k. City Hall Campus Improvements Project (General Fund - $1,238,500) l. Serra Park Amenities Improvement Project (General Fund - $100,000; SDGE Grant - $100,000) m. Acu Park Improvements Project (General Fund - $200,000) n. La Novia East Improvements Project (Agricultural Preservation Fund - $500,000) o. TJ Meadows Improvement Project (General Fund - $50,000) p. La Sala Building Lobby Improvements Project (General Fund - $50,000) q. Enhanced Christmas Decorations (General Fund - $200,000) r. La Novia Bridge Preliminary Design (CCFP Fund/Federal Grant - $100,000 in 24/25; $100,000 in 25/26) s. Updated traffic control plan for Swallow's Day Parade (General Fund - $26,000) EXHIBIT B Changes to be Reflected in Final Budget