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HomeMy WebLinkAboutAttachment reso mid-yr budget (10)Page 7 Staff Report —Fiscal Year 2012-13 Mid -Year Budget Review February 19, 2013 • The agreement between the City and the San Diego Unified Port District related to the Port's payment to the City for Fire and Police service on Port lands in National City has yet to be finalized. As such, the final impact on the General Fund is yet to be determined. • The County of San Diego is embarking on a project to upgrade the regional communication system network. The cost of the upgrade will be shared by the user agencies. The estimated cost to the City of National City is $2 million. A project time line as yet to be determined. • The Proposition D, District Sales Tax is set to expire in 2016. As demonstrated by the revenue figures contained in this report, the District Sales Tax continues to be vital in meeting the City's expenditures. Consistent with previous years, absent the District Sales Tax, the City would not have met its obligations in FY 2011-12 and would not do so in FY 2012-13. That trend is expected to continue. As such, it is imperative to reserve any surplus in preparation for 2016. • The City must prepare for costs associated with National Pollutant Discharge Elimination System ("NPDES") permit program compliance. While there is no anticipated FY 2012- 13 impact, the City will need to appropriate funds beginning in FY 2013-14 for costs associated with updating its stormwater programs. Expenses associated with updating the City's Jurisdictional Urban Runoff Management Plan ("JURMP"), Standard Urban Stormwater Mitigation Plan ("SUSMP"), Best Management Practices (BMPs) manual, and relevant ordinances currently are estimated to be $33,000 for the upcoming fiscal year. The City is also likely to incur increased costs for monitoring and for Watershed Plan Development, preliminary estimated to total $9,000 for FY 2013-14. Other new or increased expenses are anticipated in relation to standard program costs (e.g., residential area inspection program implementation, education and enforcement of the stricter standards, etc.) but should be offset — at least in the initial years of the program — due to decreased costs resulting from performing fewer industrial, commercial, and municipal inspections and less detailed annual reporting requirements. RECOMMENDATIONS Accept this staff report. Approve designation of $9,085,066 of unassigned fund balance (total unassigned fund balance, less $911,581 held pending litigation outcome and $712,337 for encumbrances) as the City's Contingency Reserve. Adopt the above -referenced expenditure adjustments, amending the Fire Department budget to increase its Contract Services appropriation $79,423 from $319,095 to $398,518 to facilitate the transition from Heartland Communications Facility Authority to San Diego Fire Department for dispatch services and establishing a $19,999 appropriation in the Underground Tank Monitoring account of the Engineering Division for environmental compliance expenses.