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CC Resolution 2022-025 Budget & Appropriations FY 2022-23RESOLUTION NO. 2022 - 025 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, ESTABLISHING THE CITY’S APPROPRIATION LIMIT FOR FISCAL YEAR 2022/23 AND APPROVING A BUDGET FOR FISCAL YEAR 2022/23 WHEREAS, each year the La Quinta City Council adopts a budget for Revenues and Expenditures for the upcoming Fiscal Year; and WHEREAS, the City Council desires to make provisions for a level of services commensurate with the needs of the City; and WHEREAS, the City Council has reviewed said budget and capital improvement program and has had several public meetings to receive public input; and WHEREAS, the City Council has, after due deliberation and consideration, made such amendments in the proposed budget and capital improvement program as it considers desirable; and WHEREAS, Section 7910 of the Government Code of the State of California provides that each year the governing body of each local jurisdiction shall, by resolution, establish its appropriations limit for the following fiscal year; and WHEREAS, Section 7902(b) of the Government Code sets forth the method for determining the said appropriations limit, to be based upon the limit applicable for the prior fiscal year and adjusted for changes in the cost- of-living and in City population. NOW, THEREFORE, BE IT RESOLVED by the City of La Quinta to adopt, as follows: SECTION 1. The appropriations limit for the City of La Quinta established in accordance with Section 7902(b) of the California Government Code, for Fiscal Year 2022/23 is $161,412,270. SECTION 2. It is hereby found and determined that in compliance with Government Code Section 7910, the documentation used in the determination of said appropriations limit for Fiscal Year 2022/23 was Resolution No. 2022 – 025 Budget Approval FY 2022/23 Adopted: June 21, 2022 Page 2 of 3 available to the public in the Finance Department of the City and in the Office of the City Clerk at least fifteen days prior to this date. SECTION 3. The Fiscal Year 2022/23 budget and capital improvement program which is on file with the City Clerk is hereby approved. SECTION 4. Continuing Appropriations which remain unspent and were authorized by Council in Fiscal Year 2021/22 are approved in the Fiscal Year 2022/23 budget in an amount not to exceed $2,253,100 (Exhibit A). SECTION 5. Budget adjustment procedures are approved as follows: A. Additional appropriations and the transfer of cash or unappropriated fund balance from one fund to another shall be made only upon City Council approval. B. Transfers of budgeted appropriations between funds or capital projects shall be made only upon City Council approval. C. Transfers of budgeted appropriations between accounts within a department or capital project may be made with the approval of the City Manager or his designee. D. Prior year budget continuing Appropriations and Encumbrances for unexpended capital project and grant appropriations remaining from uncompleted prior year capital projects and grant programs shall be made with City Manager approval. These carry-over appropriations are for prior year Council approved capital projects and shall not exceed the approved project budget. SECTION 6. The City Council, recognizing the need for maintaining Fund Balance reserves has established a Reserve Policy. These funds cannot be appropriated without the explicit approval of the City Council. Exhibit B General Fund Reserves Overview shows estimated amounts, final amounts will be published in the Fiscal Year 2021/22 Annual Comprehensive Financial Report “ACFR.” SECTION 7. The City Manager shall render a monthly report to the City Council on the status of City operations as it relates to the approved budget and any amendments thereto. Description/Program Account Number Account Name Estimated Class and Compensation study 101-6004-60103 Professional Services 60,000$ Marketing efforts to attract group business to hotels 101-1007-60536 TOT Resort Rebate Program 200,000$ Vehicle purchase/improvements 101-2001-71031 Vehicles 40,000$ Vehicle purchase/improvements 101-2002-71031 Vehicles 40,000$ Emergency Operations Center equipment 101-2002-80101 Machinery & Equipment 400,000$ Postponement of citywide events 101-3003-60149 Community Experiences 150,000$ X-Park programming 101-3003-60190 X-Park Programming 90,000$ Park Landscape Improvements & tree removal 101-3005-60691 Maintenance/Services 100,000$ La Quinta's share of the CVAG Art & Music Line 101-7006-60480 Contributions to Other Agencies 324,100$ $ 1,404,100 Park lighting upgrades 215-7004-60431 Materials & Supplies $ 300,000 Gold Star Family Monument 270-0000-74800 Art Purchases $ 24,000 Vehicle purchase/improvements 501-0000-71031 Vehicles, Purchased $ 135,000 Heavy machinery/equipment purchase 501-0000-80100 Machinery & Equipment $ 200,000 Council Chambers A/V equipment 502-0000-80100 Machinery & Equipment $ 100,000 Playground replacement 503-0000-71060 Parks $ 90,000 $ 849,000 $ 2,253,100 Continuing Appropriations/Carryovers from 2021/22 to 2022/23 GENERAL FUND CARRYOVERS SPECIAL FUNDS CARRYOVERS TOTAL CARRYOVERS FOR ALL FUNDS NOTE: In June 2022 when the budget is adopted, all carryovers are estimates based on projected invoices to end fiscal year 2021/22. Upon completion of the final audit (approx. October 2022), Finance verifies account balances and makes additional carryover recommendations based on current budgetary needs. CITY OF LA QUINTA RESOLUTION NO. 2022-025 EXHIBIT A ADOPTED: JUNE 21, 2022 ESTIMATED COMMITTED FUND BALANCE ESTIMATED AT 6-30-2022 LOAN PAYMENT TO GENERAL FUND FROM SUCCESSOR AGENCY OPERATING SURPLUS /(SHORTFALL) ESTIMATED AT 6-30-2023 NATURAL DISASTER 10,000,000$ 10,000,000$ ECONOMIC DISASTER 11,000,000$ 11,000,000$ CASH FLOW 5,000,000$ 5,000,000$ CAPITAL REPLACEMENT 10,000,000$ 10,000,000$ UNAPPROPRIATED 27,170,000$ 2,695,746$ $ 316,826 30,182,572$ TOTAL COMMITTED RESERVES 63,170,000$ 2,695,746$ $ 316,826 66,182,572$ SUMMARY RESERVES 6/30/22 63,170,000$ NET CHANGE 3,012,572$ RESERVES 6/30/23 66,182,572$ CALCULATION FOR FORMER REDEVELOPMENT AGENCY LOAN REPAYMENT FY 2022/23 Approved Repayment Fund Total Repayment Distribution % Distribution $ General Fund 3,369,682$ x 80% =2,695,746 Housing Fund 3,369,682$ x 20% = 673,936 3,369,682$ ESTIMATED ASSIGNED FUND BALANCE ESTIMATED AT 6-30-2022 ADDITIONS DELETIONS ESTIMATED AT 6-30-2023 SALES TAX (MEASURE G)13,239,241$ 3,353,000$ -$ 16,592,241$ PUBLIC SAFETY FIRE SERVICE TRUST 12,800,000$ -$ -$ 12,800,000$ CARRYOVERS AND CAPITAL PROJECTS (GENERAL FUND ONLY)17,404,100$ -$ -$ 17,404,100$ PENSION TRUST FUND 10,419,000$ 100,000$ -$ 10,519,000$ OTHER POST EMPLOYMENT BENEFITS TRUST FUND 2,025,000$ 10,000$ -$ 2,035,000$ TOTAL ASSIGNED RESERVES 55,887,341$ 3,463,000$ -$ 59,350,341$ CITY OF LA QUINTA GENERAL FUND RESERVES OVERVIEW Based on Proposed Budget for 2022/23 ESTIMATED FOR 6-30-2023 Net change, $3,012,572 CITY OF LA QUINTA RESOLUTION NO. 2022-025 EXHIBIT B ADOPTED: JUNE 21, 2022