HomeMy WebLinkAbout06-17-2014 PH2 Padilla (2),q31 Council Memorandum
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Date: June 17, 2014
TO:
FROM:
VIA:
SUBJECT:
City Council
Wayne Padilla, Finance & I.T. Director
Joe Lamers, Budget Manager
JUN 17 2014
Katie Lichtig, City Manager
Revision to Resolution Approving a Change to the Financial Management Manual
Staff is recommending a change to the resolution for tonight's meeting that was prepared
to approve the change in the Financial Management Manual allowing the creation of a
new budget policy related to the reallocation of development fees.
The change to the resolution provides that in addition to the proposed change in the
Financial Management Manual, the budget and fiscal policies that are contained in the
2013 -15 Financial Plan will also be amended to incorporate the new policy for the
reallocation of development fees.
A copy of the revised resolution is attached with changes shown. During tonight's
presentation, we will refer to the revised resolution when listing the recommendations
related to the Supplemental Budget Adoption agenda item.
KI
AGENDA
CORRESPONDENCE
Dais A I I Item#
TACouociI Agenda ltepnrtsl2Gr_!' 2{ii,1_116- 17\Adrption of Sup temental Budget (Padil!W1 nuncil N eiRoranduna - Revised resoluoc}r,..!«4
ATTACHMENT 2
RESOLUTION NO. (2014 Series)
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO
APPROVING THE AMENDMENT OF THE FINANCIAL MANAGEMENT MANUAL
AND THE BUDGET AND FISCAL POLICIES SECTION OF THE 2013 -15 FINANCIAL
PLAN TO REFLECT A POLICY CONCERNING THE REALLOCATION OF
DEVELOPMENT FEES
WHEREAS, the City Council adopted the 2013 -15 Financial Plan on June 17, 2013,
which established comprehensive financial and policy guidelines for fiscal years 2013 -14 and
2014 -15; and
WHEREAS, the 2013 -15 Financial Plan included appropriations and forecast revenues
for both years of the 2 year plan; and
WHEREAS, the City provides development services to the community to ensure that
future development is designed in accordance with the City's zoning and planning guidelines;
and
WHEREAS, the City has experienced substantial growth in the number of development
applications that have been submitted for processing and the fees paid with these applications
represent a prepayment for review, planning and inspection services that must be provided in
accordance with statutory guidelines and time limits; and
WHEREAS, development activity is inherently unpredictable and there are times when
development review activity peaks and the City determines that it is necessary to augment the
existing staff resources that are available to provide these services in order to ensure that they are
accomplished within the timeframes set in state law; and
WHEREAS, the Community Development Director recommends a policy that will allow
for the timely identification and quantification of the additional costs associated with meeting the
demand for development review services, while matching costs of necessary services with
available revenues and has proposed a policy that will allow for this to occur, as set forth in
Exhibit A to this resolution, which is incorporated by reference herein.
NOW, THEREFORE, BE IT RESOLVED that the Council of the City of San Luis
Obispo hereby finds and directs:
1. That the above recitals are true and correct.
2. That the proposed policy shown in Exhibit A is hereby adopted and made a part of the
City of San Luis Obispo's Financial Management Manual, at Section 550 A.
2.:�. That the Budget and Fiscal Policies Section of' the 2013 -15 Financial Plan is
hereby amended to incorporate . the___proposed.___polic ......_sh.own in Exhibit
A.
34. That the Director of Finance shall take all necessary steps to implement these
actions as soon as practical.
Resolution No. (2014 Series)
Page 2
Upon motion of seconded by and on the
following roll call vote:
AYES:
NOES:
ABSENT:
the foregoing resolution was adopted on June 17th , 2014.
Mayor Jan Howell Marx
ATTEST:
Anthony Mejia, City Clerk
APPROVED AS TO FORM:
Christine Dietrick
Christine Dietrick, City Attorney
Resolution No. (2014 Series)
EXHIBIT A
Page 3
The City Manager may reallocate Development Services revenues for Development
Services expenses that are projected to exceed the current revenue budget estimate to
acquire temporary resources for the purpose of accomplishing the timely processing of
development permit applications and perform other related permit processing activities
while maintaining a balanced budget. In no case, shall the reallocation of revenues
exceed 75% of the projected revenue that is estimated to exceed the current development
fee revenue budget forecast. Any and all reallocated revenues shall be reported to the
City Council on a semi - annual basis, as part of the Mid -Year and annual budget adoption
presentations. The Finance Department shall review the justifications for the reallocations
of these revenues and shall confirm the balance remaining in the Development Services
Account.
An account shall be established in the General Fund to solely account for the balance of
development services fees received that may be reallocated for the purpose described
above.