For City Council Meeting [August 14, 2018]
TO: Honorable Mayor and City Council
APPROVAL: Ahmad R. Ansari, Interim City Administrator
FROM: Robb Steel, Assistant CA/Development Services Director
Title
Request City Council to Conduct a Public Hearing to Approve and Adopt Resolution No. 7375, RHA Resolution No. 006-18, RUA Resolution No.03-18, Resolution No. 7376, Resolution No. 7377, and Resolution No. 7378 to Discuss, Approve and Adopt the Budget Plan for Fiscal Year 2018/2019.
(ACTION)
Body
BACKGROUND:
In accordance with Section 2.04.140 of the Rialto Municipal Code, the City Administrator must present the fiscal budget to the City Council for approval annually. Under the direction of the Interim Finance Director, the Finance Division conducts the analysis and makes the projections required to complete the budget document after receiving input from all of the City departments. The process begins in March and requires the cooperation of staff organization-wide.
The Director and City Administrator have met with the Budget Committee and presented draft budget projections.
ANALYSIS/DISCUSSION:
In accordance with Section 2.04.140 of the Rialto Municipal Code, staff hereby submits the budget plan for the fiscal year 2018-19 for City Council consideration. The budget submitted is a one-year financial plan, for which an appropriation is submitted concurrently with the budget document. The budget presentation consists of eight categories of funds as follows:
• General Fund
• Special Revenue Funds
• Enterprise Funds
• Internal Service Funds
• Rialto Utility Authority
• Rialto Housing Authority
• Capital Projects Funds
• Debt Service Funds
General Fund
This is the general operating fund of the City. All general tax receipts and fee revenue not allocated by law, Council policy, or contractual agreement to other funds, are accounted for in the General Fund. General Fund expenditures include operations traditionally associated with activities that are not required to be accounted for or paid by another fund.
Special Revenue Funds
The City’s various special revenue funds include grant program funds and other funds that by law are required to be segregated.
Enterprise Funds
The City has three Enterprise funds: Cemetery, Community Services, and Utility Services.
Internal Service Funds
The City has six internal service funds. The purpose of internal service funds is to centralize certain services that benefit all functions of the City. The expenditures of the internal service funds are allocated to all of the City’s departments commensurate to the services provided. The five internal service funds are:
• Fleet Maintenance
• Workers’ Compensation
• General Liability
• Information Technology
• Building Maintenance
Rialto Utility Authority
The Rialto Utility Authority (RUA) accounts for Water and Waste Water Services provided by Rialto Water Services.
The Rialto Housing Authority
The Rialto Housing Authority (RHA) assumed the housing functions of the former Redevelopment Agency.
Capital Projects Funds
The Capital Projects Funds exist to enhance transparency by reporting one-time capital expenditures in a separate fund.
Debt Service Funds
The Debt Service Funds account for the accumulation of funds for the payment of principal and interest on financing instruments.
ENVIRONMENTAL IMPACT:
The action is exempt from California Environmental Quality Act (CEQA) pursuant to Section 15378(b) (5) of the CEQA Guidelines because the preparation of a budget plan is a governmental administrative activity that will not result in direct or indirect physical changes in the environment.
GENERAL PLAN CONSISTENCY:
Our City government will lead by example, and will operate in an open, transparent, and responsive manner that meets the needs of the citizens and is a good place to do business.
Goal 3-6: Require that all developed areas within Rialto are adequately served with essential public services and infrastructure. Policy 3-6.1: Coordinate all development proposals with other affected public entities to ensure the provision of adequate public facilities and infrastructure services.
Policy 3-6.1: Coordinate all development proposals with other affected public entities to ensure the provision of adequate public facilities and infrastructure services
Policy 3-6.3: Require an increasing level of public safety infrastructure and service capability tied to population increase and increasing service demand.
Policy 3-6.4: Complete infrastructure master plans for sewer, water, and drainage.
Policy 5-3.7: Add service level capability and infrastructure to meet increasing demand of new develop
LEGAL REVIEW:
The City Attorney has reviewed and approved this staff report
FINANCIAL IMPACT:
Operating Budget Impact
Appropriations for fiscal year 2018-19 for the City, Rialto Utility Authority, and Rialto Housing Authority provide the basis for City operations.
The City’s current general fund reserve policy targets 50% of general fund operational budget be set aside as reserves. Council has the authority to reduce the City’s operational reserve below 50%. This proposed budget includes a reduction to the City’s operational reserve.
Capital Improvement Budget Impact
Appropriations for fiscal year 2018-19 for the City, Rialto Utility Authority, and Rialto Housing Authority provide the basis for the City’s Capital Improvement Plan.
RECOMMENDATION:
Staff recommends that the City Council conduct the public hearing and:
• Adopt Resolutions adopting the Budget Plan for Fiscal Year 2018/2019 for the City of Rialto, Rialto Housing Authority, and Rialto Utility Authority, including the Fully Burdened Hourly Rate Schedule and the Authorized Positions List.
• Adopt Resolution approving the Gann Limit as required by Article XII (B) of the California Constitution.
• Adopt Resolution approving the amendment to the Capital Improvement Plan.