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CC:SA:HA:PA - PUBLIC HEARING: (1) Adoption of a City Council Resolution Approving and Adopting the Annual Appropriations Limit for Fiscal Year (FY) 2022/2023; (2) Adoption of Respective Resolutions Adopting the FY 2022/2023 Budget for the City of Culver City, the Successor Agency to the Culver City Redevelopment Agency, the Culver City Housing Authority, and the Culver City Parking Authority; and (3) Adoption of a Resolution Approving Salary Schedules for Miscellaneous Employees, Police Safety Employees and Fire Safety Employees Effective July 1, 2022.
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Meeting Date: June 27, 2022
Contact Person/Dept: Lisa Soghor/Finance
Phone Number: (310) 253-5865
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Attachments Yes [X] No []
Commission Action Required: Yes [] No [X]
Public Notification: (E-Mail) Meetings and Agendas - City Council (06/22/2022)
Department Approval: Lisa Soghor, Chief Financial Officer (06/20/2022)
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RECOMMENDATION
Staff recommends (1) the City Council adopt a resolution approving and adopting the Annual Appropriations Limit for FY 2022/2023; (2) the City Council and the Boards of the Successor Agency to the Culver City Redevelopment Agency (Successor Agency), Culver City Housing Authority (Housing Authority), and the Culver City Parking Authority (Parking Authority) (collectively, “Boards”) adopt respective resolutions approving the FY 2022/2023 Budgets for the City of Culver City, Successor Agency, Housing Authority, and Parking Authority; and (3) the City Council adopt a resolution approving Salary Schedules for Miscellaneous Employees, Police Safety Employees and Fire Safety Employees effective July 1, 2022
PROCEDURE
1) Mayor/Chair seeks motion to receive and file the Affidavit of Publication;
2) Mayor/Chair seeks a Motion to open the Joint Public Hearing;
3) Mayor/Chair requests a staff report, if desired;
4) Mayor/Chair calls for, and the City Council/Boards receive, public testimony;
5) Mayor/Chair seeks a Motion to close the Joint Public Hearing;
6) City Council adopts resolution approving the Annual Appropriations Limit for FY 2022/2023;
7) City Council and Boards adopt respective resolutions approving the FY 2022/2023 Budgets for the City of Culver City, Successor Agency, Housing Authority, and Parking Authority;
8) City Council adopts a resolution approving salary schedules for Miscellaneous Employees, Police Safety Employees, and Fire Safety Employees effective July 1, 2022.
BACKGROUND/DISCUSSION
Annual Appropriation Limit:
Proposition 4, approved by the voters on November 6, 1979, added Article XIII B to the State Constitution. Article XIII B places an appropriations limit on the State and local governments and requires them to establish their appropriations limit by resolution each year at a regularly scheduled meeting or a noticed special meeting.
As adopted in 1979, Article XIII B provided that FY 1978/1979 would be considered the “base year” used to calculate the appropriations limit. Article XIII B was amended by the voters in 1990 through the approval of Proposition 111, which provided FY 1986/1987 would become the “base year.” Each subsequent year, the total annual appropriations subject to the limit may not exceed the appropriations limit for the prior year adjusted for changes in the cost-of-living and city or county population.
FY 2022/2023 Budget
The City Manager’s/Executive Director’s Proposed Budgets for FY 2022/2023 were presented to the City Council and Boards on Monday, May 9, 2022. Since that time, City Council held Special Meetings on May 16 and 17, 2022, to review the associated budget requests and allow for public input. These meetings were in addition to the opportunities provided to the City’s various Commissions, Committees, and Boards to provide input on the City Manager’s Proposed Budget.
The City Council also called two Special Meetings in March 2022 to review the work plans of each of the City’s Departments and allow for additional public input. As a result of the various meetings, staff has prepared any changes directed by the City Council and incorporated such changes into the budget resolutions presented to the City Council and Boards for approval this evening.
Salary Schedules Effective July 1, 2022
All agencies that are members of CalPERS are required to ensure that pay schedules are publicly adopted and available as prescribed by the California Code of Regulations, Title 2, §570.5 and §571 (b). “Publicly available” is defined as posted at the employer’s office or immediately accessible and available for public review. Placing the adopted pay schedules on the employer’s internet website meets this requirement. The attached resolutions for Miscellaneous and Safety employees reflect all required changes to the salary schedule per the budget being adopted for FY 2022/2023.
FISCAL ANALYSIS
As mentioned, the base year for calculating the appropriations limit is FY 1986/1987. Based on the City Managers/Executive Director’s Proposed Budget for FY 2022/2023, the Finance Department has calculated the City’s FY 2022/2023 Appropriation Limit to be $133,226,228. The City’s FY 2022/2023 appropriations from the proposed budget that are applicable to this limit are $104,135,696, which is $29,090,532 under the appropriations limit.
The proposed budget presented to City Council in May 2022 for appropriations and revenues was $310,020,582 and $279,050,497 respectively. Adjustments to these amounts have been summarized in the tables below by affected Fund. Detail for these adjustments can be found in Attachment 3 of the staff report.
The final Proposed FY 2022/2023 Budget provides $322,222,850 of appropriations authority in all funds (including Internal Service Funds). It anticipates $292,320,768 in revenue, with the balance to be made up from reserves. General Fund operational costs will be covered by operating revenues and the use of reserves. Further information is provided in the City Manager’s/Executive Director’s Budget Message.
ATTACHMENTS
1. Proposed Resolution for Annual Appropriation Limit and related Exhibits and Schedule I
2. City Council Budget Resolution and related Exhibits A - G
3. Successor Agency to the Culver City Redevelopment Agency Budget Resolution
4. Housing Authority Budget Resolution
5. Parking Authority Budget Resolution
6. Adjustments to the City’s Proposed Budget FY 2022/2023
7. Salary Schedule Resolution and related Exhibit A
8. Fiscal Year 2022/2023 Capital Improvement Budget
MOTIONS
That the City Council:
Adopt a resolution approving and adopting the annual Appropriations Limit for FY 2022/2023; and
That the City Council and Boards:
Adopt respective resolutions approving the FY 2022/2023 Budget for the City of Culver City, Successor Agency, Housing Authority, and Parking Authority; and
That the City Council:
Adopt a resolution approving the Salary Schedule for Miscellaneous Employees, Police Safety Employees, and Fire Safety Employees effective July 1, 2022.