Budget adjustments are presented to the City Council periodically for review. These adjustments represent the appropriation of items previously approved by the City Council during the fiscal year, or staff recommended adjustments for City Council consideration as well as requested adjustments to revenue estimates. The recommended adjustments to the City Operating Budget are listed in City - Exhibit A. These adjustments are separated by funding source and the accounts are identified as either revenue or expenditure accounts.
Property tax revenues have remained steady and continued to increase due to new building construction and property turnover. For Fiscal year 2020-21, secured property tax revenue received exceeded estimates by $331,613 and is sufficient to cover those additional appropriations previously approved by the City Council during the fourth quarter and other staff recommended adjustments as outlined below.
The Public Works Department is requesting $76,500 to cover salaries and benefits for staff costs that were initially thought to be reimbursed by Capital Improvement and Development related Projects. Much of the Engineering staff time was not eligible to be charged to specific projects rather related more to general engineering.
On April 6, 2021, the City Council approved a Community Risk Assessment/Standards of Cover Study for the Brea Fire Department. The study will help to ensure that the Fire Department is providing the most effective service to the community. At that time, the City Council authorized an additional appropriation of $72,661 to cover the cost of the study.
Also included in these adjustments is a revision to the annual General Fund Transfer to the Paramedic Fund (174) and the Sanitation and Street Sweeping Fund (440). The General Fund supplements the Paramedic Fund for costs that exceed the Paramedic Tax Revenues. Overall expenditures were higher than budgeted due primarily to salary, benefits, and overtime cost incurred due to a disability claim as well as shift coverage for paid time off for personnel. The proposed adjustment for this transfer is $126,979. For the Sanitation and Street Sweeping Fund (440), an annual transfer is made from the General Fund (110) in lieu of franchise fees collected on trash collection. This amount varies from year-to-year and is used to balance revenue collected that is less than expenditures incurred. For FY 2020-21, disposal and processing costs based on tonnage were higher than originally projected. The additional cost was mostly offset by increased recycling revenues and residential service fees collected. Staff is proposing an increase in the transfer from the General Fund (110) to the Sanitation and Street Sweeping Fund (440) of $40,688 to fund those costs not covered by increased revenues. Refuse franchise revenues are sufficient to cover this proposed increase.
In the Risk Management Fund (470), budget adjustments are needed for large unanticipated general liability claims. For FY 2020-21, there was a significant Public Safety Claim as well as an overall increase in claims being filed and settled resulting in a budget adjustment of $485,875. Also, related to these claims is the need for additional legal services of $69,800. These expenditures are somewhat offset by unanticipated insurance refunds of $83,600 and the remainder is sufficiently covered by the City's general liability reserves as anticipated.
For Capital Improvement Projects, $7,437 in funding from the Gas Tax Fund (220) is being requested for Illuminated Street Name Signs (#7212) for an unexpected Caltrans permit. In addition, $36,055 is being requested from the Golf Course Fund (465) to cover the installation of the cart path at the Birch Hills Golf Course (#7958) as well additional scope required by the County of Orange. There are sufficient revenues over expenditures in both of these funds to cover these increased one-time costs. The Capital Improvement Program Budget adjustments in CIP - Exhibit A consists of an increase in expenditures of $43,492 and corresponding adjustments to revenues and transfers-in as follows:
| Gas Tax Fund (220) |
$ 7,437 |
| Golf Course Fund (465) |
36,055 |
| TOTAL |
$ 43,492 |
|