For City Council Meeting [July 28, 2020]
TO: Honorable City Council
APPROVAL: Rod Foster, City Manager
FROM: Stephen Erlandson, Deputy City Manager
Title
Request City Council to Set a Public Hearing for August 11, 2020 to Approve and Adopt the Budget Plan for Fiscal Year 2020-21.
Body
BACKGROUND
In accordance with Section 2.04.140 of the Rialto Municipal Code, the City Manager must present the fiscal budget to the City Council for approval annually. Under the direction of the 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.
ANALYSIS/DISCUSSION
In accordance with Section 2.04.140 of the Rialto Municipal Code, staff will submit the budget plan for fiscal year 2020-21 for City Council consideration on August 11, 2020. The budget 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 accounted for separately from general revenues.
Enterprise Funds
The City has four Enterprise funds: Airport Operations, Cemetery, Cemetery Endowment, 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 Wastewater 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 development.
LEGAL REVIEW
The City Attorney has reviewed and supports this staff report.
FINANCIAL IMPACT
Operating Budget Impact
Appropriations for fiscal year 2020-21 for the City, Rialto Utility Authority, and Rialto Housing Authority provide the basis for City operations.
Capital Improvement Budget Impact
Appropriations for fiscal year 2020-21 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 Set a Public Hearing for August 11, 2020 to approve and adopt the Budget Plan for Fiscal Year 2020-21.