PURPOSE:

The purpose of this report is to request approval to carry over continuing appropriations from the 2002-03 fiscal year to the 2003-04 fiscal year budget for the City, Redevelopment Agency, Parking Authority, and Youth Endowment Services (YES) Fund.

BACKGROUND:

At the end of each fiscal year, departments review their budgeted appropriations and submit requests for manual carryovers (unencumbered funds) to Financial Services- Budget in mid-June. In parallel to the manual carryover process, departments also submit requests to the Purchasing Section of Financial Services to keep requested purchase orders (encumbered funds) open with the funds carried forward to the next fiscal year. This report addresses those appropriations which have not been encumbered by the departments for goods or services and are considered necessary.

A summary document was put together based on the Request for Carryover Forms submitted by each department.  Staff compiled a list of requests and began the process of determining funds availability, as well as the legitimacy of the request. A final list was developed, and distributed to the departments for final review and follow-up.  Due to the budgetary problems that the City is projected to be facing for the next five years, it was decided that the Executives would review the final list and make the determination as to what carryover requests would be submitted to the Council/Agency/Authority/YES Fund Board for consideration.   Keeping in mind the budgetary constraints, the Executives are satisfied that the requested carryover dollars are necessary. 

Carryover appropriations are requested on an annual basis by the departments for a variety of reasons, but are most commonly in the following general areas: ongoing capital projects, delayed program implementation, continuing operations, including projects and studies, outstanding invoices, and restricted dollars for a specific purpose. This year, some of the major carryover requests are for ongoing capital projects and include: the Chandler Bikeway Project; Avon Street Connect � Empire Beautification Project; street improvements for Bid Schedules that have been awarded and the work may or may not have yet commenced; building improvements such as the work associated with the Development and Community Services Building; and, park projects such as the South San Fernando Park and Field of Fame at George Izay Park.

Delayed program implementation may relate to deferrals of training, postponement of program implementation, a delay in completing a Request for Proposal (RFP) that necessitates a request for carryover funds, or a delay in purchasing software.

Some department requests focus on Continuing Operations. These type of requests encompass the following items: completing studies or design services; continued projects associated with the Sister City Committee, Tournament of Roses Association, Burbank Athletic Federation, etc; outstanding invoices including buses for the first week of day camp, and pharmaceuticals for weapons of mass destruction; and, projected additional costs for items such as additional maintenance and repair of City owned parking structures.  

Restricted Dollars may refer to appropriations to grant recipients awarded by the City, such as Positive Alternatives for Youth (PAY) grants or YES Fund grants; dollars received by the City such as Public Library Funds, Local Law Enforcement Block Grants and Drug Asset Forfeiture Funds; or, donations appropriated for a specific purpose (animal shelter spaying/neutering or the Fire Safety Trailer are examples).  In terms of City awarded grants, not all grants are paid out within the 2002-03 fiscal year, some programs run on a calendar year basis.

ANALYSIS

A summary carryover list (Exhibit A) designates each General Fund request by department, account number and name, amount requested, and a justification. This is followed by a summary of all other funds with continuing appropriation requests.  This report will highlight some key appropriation requests and summarize amounts requested for the other funds. 

City Attorney

• Purchase of needed law library resource materials.

Burbank Water and Power

• Both the Water and Electric Funds are requesting continuing appropriations for a variety of projects and commodities including the purchase of vehicles, BWP Oracle reimplementation, warehouse and fleet management systems, undergrounding of existing utility lines, and capital projects that have yet to be completed. 

City Clerk

• Municipal elections are held every two years with the budgeted dollars carried over in off-cycle election years.

Community Development

• Payments on an Economic Development Agreement that the City entered into in prior years that are outside the Redevelopment Agency.

• Continued contractual services for planning projects including the General Plan update and overhaul of Chapter 31 of the Burbank Municipal Code.

• Regional Intermodal Transportation Center Facility improvements such as elevator enhancements project that is not yet completed and continued maintenance funded through Proposition A and Proposition C funds.

• Development Impact Fees provide a resource for many ongoing transportation projects throughout the City.  Projects requested for carryover include the Chandler Bikeway, the Five Points bridge widening, the Transportation Element Environmental Impact Report (EIR), and the Media District Intelligent Transportation System.

• The Low and Moderate Housing Fund has several programs for single family home rehabilitation loans or residential rehabilitation loans in process, as well as funding of several projects not yet completed including the Lance site at 700 South San Fernando.

• The Redevelopment Agency is requesting the carryover of HOME Funds for ongoing projects, and funds from the Golden State, City Centre, West Olive and South San Fernando Project Areas to provide funding for projects that are not yet completed including Robert Gross Park, Downtown Tenant Assistance Program, SR-134 Westbound Off-ramp improvements, and the South San Fernando Streetscape project.

Fire

• Outstanding invoices for several purchases in progress including HAZMAT and Urban Search and Rescue training for weapons of mass destruction

• In final stages of selection process for new records management system.

• Grant from Warner Brothers for Burbank Residents Assisting in Community Emergencies (BRACE)/Community Emergency Response Team (CERT) (restricted item).

• Anticipated funds to cover the cost of sales tax for grants that have been awarded to the Department.

Information Technology

• Pursuant to adopted Council policy, the Information Technology Holding account will be replenished to $340,000.

• Network performance monitoring, diagnostic and security software package of productions and the associated costs for the necessary hardware and services.

• The Computer Equipment Replacement Fund (Fund 537) contains funds for the Document Imaging project and the Oracle project as well as the Oracle Holding account ($2.168 million).

Library

• Sister City Committee expenses for visiting students/guests from the City�s sister cities.

• Public Library Funds which will help supplement the library budget, particularly in light of the drastic reduction proposed by the State for 2003-04.

• Supplemental funds to purchase computers for a computer lab as part of the Central Library remodeling project.

Management Services

• As part of budget reduction, the Employee Banquet Awards program will be modified.  However, plans for the 2003-04 awards program were in progress so it was agreed that dollars would be carried over from the year end savings to provide adequate funds for the banquet.

• Ongoing necessary employee training.

• Funds to uninsured judgments budgeted in the General Liability Insurance Fund.

Park Recreation & Community Services

• Urban reforestation funds are restricted and the balance is carried over each year.

• Starlight bowl remaining funds which are accumulated for capital maintenance purposes including the seat renovation. 

• Pursuant to Council direction, funds for Peacebuilders, Teen Street beat, and Teens in Action.

• Grant funding disbursements � The PAY grant awardees have not received their funding.

• Burbank Athletic Federation (BAF) revenues collected from sports leagues remain in this cost center for uses specifically related to BAF program costs and capital.  Each year the balance in the accounts is carried over.

• The Joslyn Foundation provided funds to be used exclusively for future Joslyn Center facility improvements.

• Tournament of Roses Association dollars for the City�s annual contribution to provide funds for float production.

• The YES Fund grant recipients have not received all of their funding.

• The Capital Projects Fund has ongoing projects such as the South San Fernando Park, Field of Fame at George Izay Park, and Joslyn Computer Lab.

• The Municipal Building Replacement Fund has a series of projects underway that were not completed in FY 2002-03 including Mountain View Park, irrigation repairs, and Miller School/Park restrooms.

Police

• Funds from the Inmate Welfare Fund which are restricted for supplies that benefit the inmates.

• Grant award for bulletproof vest purchases.

• Funds to pay for veterinary services such as spay and neutering.

• Donations received for the Animal Shelter that will be used to purchase special supplies.

• Development Impact Fee appropriations to complete the waterproofing for the Police/Fire facility parking structure.

• All balances related to the General City Grant Fund and the Drug Asset Forfeiture Fund.

Public Works

• Requests related to private contractual services previously approved with the Clifford Development PSA, and consultant services to reset survey monument within the City as required by the Business and Professional Code.

• Upgrades for GIS and CAD permit and engineering software and maintenance contract renewals.

• The Capital Projects Fund has several continuing projects including the Magnolia Park Angles Parking project, Seismic Retrofit project, and Johnny Carson Parking Lot project.

• Ongoing street improvement projects such as the Mariposa Street Improvement project, Traffic and Pedestrian Signal Upgrade and Bridge Barrier Replacement Rail project which are funded through Gas Tax dollars.

• The Vehicle Replacement Fund has requested funds for approved 2002-03 vehicle purchases that have yet to be completed, fleet management software and the shop modification project.

• The Water Reclamation and Sewer Fund payments for Hyperion operations are on hold pending Los Angeles� approval of the contract, the design of a new flow meter for more accuracy, Phase B of the Biological Nutrient Removal, and additional repairs required on the sanitary sewer system are among the items requested for continuing appropriations.

• The Parking Authority has requested funds for a downtown parking study to be used for the development of the Downtown Parking Management Committee�s parking management plan and for additional maintenance and repair at City owned parking facilities.

• The Municipal Building Replacement Fund has a series of projects underway that were not completed in FY 2002-03 including the Central Library interior lighting and carpet projects, replacement of wood poles at Starlight Bowl, and Police/Fire Headquarters exterior painting project.

Non-Departmental

• There are a number of non-departmental funds that need to be carried over for future expenses including Airport related matters, Post Retirement Medical expenses, Military Leave pool, Youth Programs and a minor land acquisition from the Santa Monica Mountains Conservancy.

Summary of All Funds Requested for Carryover

The following is a summary of all funds that are being requested to be carried over to FY 2003-04:

SUMMARY OF FUND REQUESTS

FISCAL YEAR 2002-03 CARRYOVER

General Fund (Fund 001)                                                                             $             6,243,977

Proposition A (Fund 104)                                                                                              205,919

Proposition C (Fund 105)                                                                                                81,080

General City Grant Fund (Fund 121)                                                                         1,283,965

Drug Asset Forfeiture Fund (Fund 124)                                                                       766,586

Gas Tax Fund (Fund 125)                                                                                           2,411,997

Disaster Relief Fund (Fund 126)                                                                                    11,426

Development Impact Fees (Fund 127)                                                                   11,450,120

HOME Funds (Fund 128)                                                                                               906,707

Golden State Capital Projects (Fund 301)                                                                   742,711

City Centre Capital Projects (Fund 302)                                                                   2,298,293

West Olive Capital Projects (Fund 303)                                                                       624,069

South San Fernando Capital Projects (Fund 304)                                                      113,385

Low/Moderate Housing Fund (Fund 305)                                                                 3,129,114

Parking Authority (Fund 310)                                                                                          76,400

Capital Projects (Fund 370)                                                                                    15,561,322

Youth Endowment Services (YES) (Fund 130)                                                            792,809

Water Reclamation and Sewer (Fund 494)                                                             8,410,194

Golf (Fund 495)                                                                                                            2,382,351

Burbank Water and Power � Electric (Fund 496)                                                    2,858,518

Burbank Water and Power � Water (Fund 497)                                                          145,499

Refuse Collection & Disposal (Fund 498)                                                                1,740,101

General Liability Insurance (Fund 530)                                                                           99,353

Vehicle Replacement (Fund 532)                                                                              3,176,767

Office Equipment Replacement/Rental (Fund 533)                                                      34,760

Municipal Building Replacement (Fund 534)                                                               736,408

Computer Equipment Replacement (Fund 537)                                                      2,398,690

            TOTAL                                                                                               $          68,682,521

FISCAL IMPACT:

At year-end all unencumbered appropriations revert to available fund balance and can be used for other purposes.  As the Council is aware through the FY 2003-04 budget adoption process, staff continues to be mindful of Burbank�s budget problems as well as the budget crisis at the State level.  While the completion of the continuing appropriations process means that dollars are reverting to fund balance, due to accrual of outstanding invoices, the available fund balance figure can only be considered an estimate.  Staff will be presenting the first quarter financial report in November which will include a summary of Fiscal Year 2002-03.

RECOMMENDATION:

Staff recommends that the City Council, the Redevelopment Agency, Parking Authority, and the Youth Endowment Services Fund Board adopt the proposed resolutions for continuing appropriations.

Attachments:

Exhibit A � Carryover List Detail

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