Resolution 2014-20RESOLUTION NO. 2014-20
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF GILROY AMENDING THE BUDGET FOR THE CITY
OF GILROY FOR FISCAL YEAR 2014 -2015 AND
APPROPRIATING PROPOSED EXPENDITURE
AMENDMENTS
WHEREAS, the City Administrator prepared and submitted to the City Council a budget
for the City of Gilroy for Fiscal Years 2013 -2014 and 2014 -2015, and the City Council carefully
examined, considered and adopted the same on May 20, 2013; and
WHEREAS, City Staff has prepared and submitted to the City Council proposed
amendments to said budget for the City of Gilroy in the staff report attached hereto as Exhibit
"A" and incorporated herein by this reference, and the City Council has carefully examined and
considered the same and is satisfied with said budget amendments.
NOW, THEREFORE, BE IT RESOLVED THAT it is hereby ordered that said proposed
budget amendments for Fiscal Year 2014 -2015 are approved.
PASSED AND ADOPTED this 19th day of May, 2014 by the following roll call vote:
AYES: COUNCILMEMBERS: ARELLANO, AULMAN, BRACCO,
LEROE- MUNOZ, TUCKER, WOODWARD and GAGE
NOES: COUNCILMEMBERS: NONE
ABSENT: COUNCILMEMBERS: NONE
ATTEST:
Sbaivna Freels,
APPROVED:
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Donald Gage, Mayo
RESOLUTION NO. 2014-20
General Fund (Fund 100)
The summary below shows the FY 15 General Fund budget adjusted for the proposed changes.
Revenue Expenditures Surplus /(Deficit)
2014 -2015 Budget $43,046,323 $43,121,643 $ (75,320)
Proposed Changes 1,120,871 1,005,739 115,132
Adjusted $44,167,194 $44,127,382 $39,812
Revenues have not been modified for the anticipated increases in tax and development revenue
discussed below. Expenditures reflect budget amendments made after budget adoption.
General Fund Revenues
The following discussion of the City's General Fund Revenue is generally based on amounts
recorded through April 2014. Staff has reviewed the budgeted FY 15 tax revenue compared to
the actual receipts in FY 14, as well as information regarding anticipated revenue in FY 15.
Based on its review, overall projected tax revenue is anticipated to be slightly higher than FY 15
budgeted tax revenue. Property tax and transient occupancy tax are projected to be more than
budgeted in FY 15, while sales tax is projected to be less than budgeted. However, the City
anticipates an increase in sales tax between FY 14 and FY 15.
The City continues to work closely with the development community in validating its revenue
projections. Receipt of development revenue has indicated developer readiness to invest in the
housing and commercial sector as a preparedness factor in anticipation of a broader economic
recovery. General fund revenues attributable to this development activity (planning service
charges) typically precede actual construction and are related to advance planning processes, the
first step of the entitlement process. This revenue has exceeded budget in FY 14. Development
project timing does not always cleanly align to the City's defined fiscal year. Some of the
development revenue projected to be received in FY 14 (engineering and building plan check
fees, building permits and engineering inspection fees) will be received in FY 15, leading to
more development revenue than budgeted. This revenue is received as developments move
through the entitlement process and construction commences.
General Fund Expenditures
Public Works and Community Development Staffing - $18,200 (development impact and
enterprise funds — remaining $54,500)
Due to the increase in development activity, Staff requests a budget amendment to cover the cost
of hiring a full -time permanent Office Assistant to support the increased activities and provide
adequate coverage in the Public Works and Community Development departments.
Security Patrol at Parks - $60, 000
There has been an increase in copper theft at local parks and additional overnight security is
proposed to address this problem. Security coverage would be provided nightly throughout the
year.
Domestic Violence Detective Funding- $18, 000
The Morgan Hill Police Department (MHPD) and the Gilroy Police Department are partners in a
domestic violence grant which provides for a full -time detective to investigate and assist in the
prosecution of domestic violence offenders. This detective currently follows up and contacts all
victims of domestic violence within the City of Gilroy. If any follow -up is needed the MHPD
Domestic Violence Detective handles it, thus allowing our detective unit to focus more attention
on other crimes. The City of Morgan Hill has requested that the City of Gilroy contribute
$18,000 towards the cost of this full -time detective. This request is due to the change of the grant
conditions which require Morgan Hill to annually pay $130K (increased from current amount of
$57K).
TeenForce — $7,500
The TeenForce program promotes youth employment by creating new jobs in communities and
intends to expand their services to South Santa Clara County, including the cities of Gilroy and
Morgan Hill. This program's proposed funding includes financial assistance from Foundations,
Santa Clara County and the cities of Morgan Hill and Gilroy. TeenForce requests a total of
$13,125 from Gilroy that will be paid over three years.
AB 109 Funding - $90, 000
Consistent with Council's direction to review the AB 109 impacts (prisoner early release) and
establish policy for staffing and response to this population, Staff recommends the addition of a
full -time police officer that would be dedicated to the Santa Clara County AB 109 Task Force.
Gilroy has arrested a significant number of early releasees as a result of AB 109. Agencies who
assign a full time officer to the County's task force will receive approximately $70,000 in
reimbursement for an officer's salary. The task force has been successful in targeting, tracking
and arresting the highest risk offenders.
Personnel Expenditures - $294, 000
Staff estimates that this amount will be sufficient to complete the updates to the memorandums
of understanding for the Gilroy Firefighters Local 2805 and Gilroy Police Officers Association.
Code Enforcement Officers — $35,502
At the City Council meeting on March 17, 2014, City Council approved funding for two part-
time code enforcement officers for a six month period. This provides for a more aggressive
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implementation of the City's code enforcement program for compliance with its sign ordinance.
This represents the FY 15 cost for these two positions.
Transfer to Liability Fund — $25, 000
This amount represents a transfer of funds to the liability internal service fund for the payment of
anticipated claims. The City reserves for these incurred but not resolved claims in the internal
service fund, necessitating the transfer. This proposed amendment will provide funding related to
the general fund for these claims. The transfer amount will be based upon the receipt of budgeted
FY 15 revenues and expenditures not exceeding budget.
Transfer to Workers Compensation Fund — $175, 000
This amount represents a transfer of funds to the workers compensation internal service fund for
the payment of anticipated claims. The City reserves for these incurred but not resolved claims
in the internal service fund, necessitating the transfer. This proposed amendment will provide
funding related to the general fund for these claims. The transfer amount will be based upon the
receipt of budgeted FY 15 revenues and expenditures not exceeding budget.
Special Revenue Funds
Eigleberry Street Resurfacing Project - $292,920
This includes the receipt and expenditure of $92,920 in federal grant funding, as well as the
City's $200,000 contribution from fuel tax funds for this project. Other funds have previously
been appropriated into the FY 15 budget.
Senior Center Sidewalk - $25, 000
The Senior Center sidewalk needs to be repaired to maintain a safe environment for our
community. Funding would be allocated through gas taxes.
Capital Funds
Contractual Staffing for Engineering- $100, 000
Staff requests additional contractual staffing to assist with the increased activity in the
Engineering division and help transition the new Senior Development Engineer.
Recycled Water / Sewer Trunk Main / Storm Drain Project- $4,513, 000
These projects are included in the general plan and are recommended for appropriation into the
FY 15 capital budget. SCVWD would reimburse the City for approximately $1,500,000 of the
recycled water project costs (or 100% of actual project costs) and the City's portion for the sewer
trunk main project would be $1,645,000. The project will increase the capacity of a city sewer
trunk main servicing Eagle Ridge, Uvas Park, Third Street and surrounding areas. In addition,
the City will complete a section of the 90 inch storm drain to Uvas Creek as shown in the
updated Storm Master Plan for $1,368,000.
Internal Service Funds
Christopher High School Aquatics Center Plaster Work - $58, 000
Additional funding is required for plaster repair work for the activity pool at Christopher High
School. Such capital maintenance work should generally be completed every three to five years.
This proposed amendment has a general fund impact of approximately $39K.
SunGard ePermitting Application - $32,285
To increase efficiency and provide better customer service, Staff recommends the deployment of
an ePermitting application, which would allow citizens to complete permit applications online
and streamline the City review and approval process. This proposed amendment has a general
fund impact of approximately $26K. Annual maintenance beginning the second year is
estimated to be approximately $4,410.
Liability and Property Insurance - $239, 000
Staff estimates that the City's liability and property insurance will increase by approximately
$239K for FY 15. The general fund portion of this amount is approximately $134K. The
remainder portion will be spread amongst the various operating funds.
Workers Comp - $12,800
Staff estimates that the City's workers comp insurance and admin fees will increase by
approximately $13K for FY 15. The general fund portion of this amount is approximately $ l OK.
The remainder portion will be spread amongst the various operating funds.
iNET Fiber Usage- $92,500
Starting January 1, 2015, Charter Communications will begin to charge the City for use of its
fiber network that provides interconnectivity between City facilities. The City is evaluating
options to minimize ongoing operating costs, including analyzing the costs and benefits of
designing and constructing its own fiber optic network. This budget amendment is a cost
estimate for the continued use of Charter's infrastructure and has a general fund impact of
approximately $73K.
Water Enterprise Fund
First Street Water and Storm Drain Project - $1,559,935 (and $100, 000 in Vehicle Registration
Special Revenue Fund)
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Staff recommends that the water enterprise and Vehicle Registration Fee funding that is currently
appropriated into FY 16 through FY 18 budgets be appropriated into the FY 15 budget to achieve
economies of scale with the FY 15 CalTrans overlay project for First Street. This includes the
removal and replacement of a water pipe that is over 100 years old.
Eigleberry Street Water Service Replacement Project - $720, 000
Staff recommends that the City complete the waterlines, mains and other water replacements on
Eigleberry Street at the same time the grant- funded project will be completed.
Contractual Support for Stormwater Pollution Prevention Compliance- $23, 000 (and $23, 000
for Sewer Enterprise Fund)
The City requests that funding be allocated for contractual services for the stormwater pollution
prevention compliance program. The State has significantly increased the complexity and level
of compliance via its adoption of a new "general permit" impacting all mid -sized companies.
The funding would be provided to the City of Morgan Hill, as the two cities propose sharing the
cost of the employee. The Management Analyst would be responsible for implementing the
program in both cities. Duties would include public education, tracking down sources of elicit
discharge, ensuring city operations are in line with State requirements and overseeing contract
water quality monitoring.
Sewer Enterprise Fund
Additional security for SCR WA - $70,854
This represents the City's share of $124,305 in additional overnight security for the wastewater
treatment facility contracted to OMI. Staff will recommend this additional SCRWA expenditure
at the SCRWA Board meeting on June 4, 2014.
Fiscal Impact
Staff requests that Council adopt the above budget amendments and proposed changes for FY 15
and then appropriate the funds via adoption of a resolution.
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I, SHAWNA FREELS, City Clerk of the City of Gilroy, do hereby certify that the
attached Resolution No. 2014 -20 is an original resolution, or true and correct copy of a city
resolution, duly adopted by the Council of the City of Gilroy at a regular meeting of said Council
held on the 19th day of May, 2014, at which meeting a quorum was present.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of
the City o�Gilroy this 2r day of May, 2014.
Sh'awna Freels, MW
City Clerk of the City of Gilroy
(Seal)