PURPOSE:

The purpose of this report is to request approval to carry over continuing appropriations from the 2003-04 fiscal year to the 2004-05 fiscal year budget for the City, Redevelopment Agency, 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.  The Executives then reviewed the final list and determined what carryover requests would be submitted to the Council/Agency/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, and restricted dollars for a specific purpose.  Some of the major carryover requests are for ongoing capital projects and include:  the Avon Street Connector � 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 (DCSB) Building; and, park projects such as the Robert R. Ovrom Park.

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

Some departments have submitted requests that focus on Continuing Operations.  These types 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; and, projected additional costs for items such as additional maintenance and repair of City owned buildings.

Restricted Dollars may refer to appropriations to grant recipients awarded by the City, such as middle school 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.  In terms of City awarded grants, not all grants are paid out within the 2003-04 fiscal year, as 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

• Ongoing litigation expense due to the state �triple flip� legislation.

Burbank Water and Power

• Both the Water and Electric Funds are requesting continuing appropriations for a variety of projects including Supervisory Control and Data Acquisition (SCADA) enhancements, automatic generation control, control area formation, and installation of a reclaimed water main, among other projects that are still in progress.

City Clerk

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

City Council

• For continuation of the Domestic Violence Task force.

City Manager

• Available funds from the cable franchise negotiations to cover continued negotiations by the City Attorney�s office.

• To cover the cost of publishing one edition of the City newsletter Burbank Today (published three times per year) and completion of the City map.

• Capital equipment purchase related to cable broadcast activities from the operating equipment budget through the Charter Communications agreement.

Community Development

• Economic Development Agreement funds will be carried over and transferred to a more appropriate account for funding proposed improvements for Magnolia Park.  The proposed Magnolia Park Citizens Advisory Committee (CAC) district plan is scheduled for Council consideration in September 2004 and will include activities such as the creation of a shared parking facility and costs associated with the possible formation of a business improvement district.

• Major capital projects to be carried over include the Chandler Bikeway and the Avon Street connector.

• Planning will bring �Permits Plus� online this year to optimize counter operations.

• Transportation funds for bus stop repairs, new benches, and completion of the Chandler accessway.

• All Community Development Block Grants (CDBG) funds are carried over since they are tied to federal funding.

• Development Impact Fees provide a resource for many ongoing transportation projects throughout the City.  Highlighted projects requested for carryover include the Burbank Bridge Widening project, Transportation Element Environmental Impact Report (EIR), Alameda/Olive left turn lanes, SR 134 offramp improvements, Buena Vista/San Fernando project, RITC landscaping, and the Central Library Children�s area improvements.  These fees are also contributing funds to the Robert R. Ovrom Park construction.

• The Low and Moderate Income 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 Focus neighborhood program and the Peyton-Grismer project.

• 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 the Golden State reclaimed water line expansion, the Burbank Civic Plaza/Burbank Village Walk and the Peyton-Grismer Activity Center.

Fire

• Miscellaneous items include requests for training, books and periodicals, rescue supplies, brush clearance contract(s), protective clothing, Emergency Medical System (EMS) supplies, and consultant funds for the Disaster Mitigation Plan (DMA) 2000 plan.

• Participation in the Interagency Communications Interoperability System (ICIS) JPA (shared with Police).

• Grants from State Farm and Warner Brothers for disaster preparedness and grant funds for operating equipment.

Information Technology

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

• New IBM equipment for Phase 1 for pending projects.

• The Computer Equipment Replacement Fund (Fund 537) contains funds for the document imaging project, replacement account for non-capitalized assets, the ERP Financial System upgrade, and training for the upgrade.

Library

• Public Library Funds, which supplement the library budget (this item has been reduced by the State for both FY 2003-04 and FY 2004-05).

• Funds to cover computer/technology needs.

Management Services

• It was agreed in FY 2003-04 that the Employee Banquet Awards program funding would be carried over annually for a modified recognition program.

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 seat renovation.

• Pursuant to Council direction, funds for Peacebuilders.

• Grant funding disbursements � some PAY grant awardees and middle school 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 for float production.

• It should be noted that the background checks account will be carried over from a Park, Recreation and Community Services account to the Management Services department, which is now administering this program.

• The Youth Endowment Services (YES) Fund grant recipients have not received all of their funding.

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

• The Municipal Building Replacement Fund has a number of projects underway that were not completed in FY 2003-04 including the Joslyn putting green, irrigation repairs, and Miller School/Park and Stough Park restrooms.

• Requested Golf Fund carryovers include irrigation automation, the Par 3 improvement project, and the DeBell Clubhouse, including deck and plumbing improvements.

Police

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

• Grant awards for bulletproof vest purchases and for Homeland security.

• Participation in the ICIS JPA (shared with Fire).

• General equipment maintenance monies.

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

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

Public Works

• Monument study survey which is being done through private contractual services.

• The Capital Projects Fund has several continuing projects including the Magnolia Park Angled Parking project, sidewalk repair, alley reconstruction, Mariposa to California and Rose/California street improvements, and the seismic retrofit project.  In addition, the project contingency holding account is requested for carry over.

• Ongoing street improvement projects such as the bridge barrier rail replacement program, alley reconstruction, and �Safe Routes to School� grant, all funded through Gas Tax dollars.

• The Vehicle Replacement Fund has requested funds for approved FY 2003-04 vehicle purchases that have yet to be completed, equipment shop modification, underground tanks retrofit, and fleet management software/hardware.

• The Water Reclamation and Sewer Fund payments for Hyperion operations are needed in case rates change unexpectantly, the North Outfall Sewer connection, the design of a new flow meter for more accuracy, Phase B of the Biological Nutrient Removal, and groundwater nutrient study, along with other projects are requested.

• The Municipal Building Replacement Fund has a series of projects underway that were not completed in FY 2003-04 including the Animal Shelter Kennel/Traffic project, Police/Fire Department building exterior painting, and the Citywide termite inspection/mitigation project.

• The Refuse Collection and Disposal fund has requested carryovers related to solid waste disposal site fees, geotechnical consulting and lab work, stormwater/litter controls, and a few grants.

Non-Departmental

• There are a number of non-departmental funds that need to be carried over for future expenses including Airport related matters, Military Leave pool, Supplemental Employee Retirement Program (SERP), BCEA training, Youth Programs and a minor land acquisition from Los Angeles County (formerly from 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 2004-05:

SUMMARY OF FUND REQUESTS

FISCAL YEAR 2003-04 CARRYOVER

FISCAL IMPACT:

At year-end, all unencumbered appropriations revert to available fund balance and can be appropriated for other purposes.  As the Council is aware through the FY 2004-05 budget adoption process, staff continues to be mindful of Burbank�s budget problems as well as the budget crisis at the State level.  As of the writing of this report, the carryover amount is only estimate as the balances may change as financial activities in the accounts continue until the fiscal year is officially closed.  Staff will be presenting the first quarter financial report in November which will include a summary of Fiscal Year 2003-04.

RECOMMENDATION:

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

Attachments:

Exhibit A � Carryover List Detail

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