In celebration of the club's 102nd birthday, members of Camp Fire USA offer a cake to the City at the Council Chambers on March 6, 2012. From left: Kai Yashida, Chelsea Talavera, Sophia Perry, Rhiannon Lang and Abbi Brown.
CJ Dablo
Staff Writer
Signal Hill’s budget is, so far, on the right path for Fiscal Year 2011, according to the City’s finance director during the mid-year budget review at last Tuesday’s Council meeting. In addition, more money will be transferred to the City’s Economic Uncertainties Reserve Fund.
“Overall, we are on track with our revenues and expenditures as of Dec. 31, 2011, with 50 percent of the fiscal year completed,” said Maida Alcantara, who is the administrative services officer and finance director for Signal Hill.
On Tuesday, the City Council approved several staff-recommended adjustments to its current fiscal year budget. The numbers available from the finance department show some positive signs. According to a staff report from Alcantara’s office, the General Fund’s balance (after the approved program adjustments) is now projected to be $4,790, 942. That total is over $1.029 million more than what was originally projected for the adopted budget for the 2011-2012 fiscal year.
Now that more than half of the fiscal year is completed, the City Council also approved a major adjustment to an account associated with the now dissolved Redevelopment Agency (RDA). The Council unanimously approved the transfer of more than $1.29 million from the AB1x 27 Reserve Fund, which will be divided between the Capital Improvement Fund and the Economic Uncertainties Fund. The Capital Improvement Fund will receive $500,000, and the Economic Uncertainties Fund will receive the remaining $792,625.
The AB1x 27 Fund was set up in anticipation of a payment that the City would have been required to make to the State of California under the terms of a new law called AB 1x 27, according to Alcantara in an interview Wednesday morning. Alcantara said that, with the dissolution of the RDA, the reserve fund is no longer needed.
At Tuesday’s City Council meeting, Alcantara explained how the AB1x 27 Reserve Fund had originally carried a balance of $1.29 million. The General Fund advances money for capital projects, and then charges the correct sources that fund these capital projects at the end of the fiscal year, Alcantara said Tuesday night, adding that the General Fund has several reserve accounts and that this specific reserve fund had been called AB1x 27. The capital project in question is the construction of the new police station on Walnut Avenue, Alcantara confirmed in a Wednesday interview.
City Manager Ken Farfsing explained that the Economic Uncertainties Reserve Fund had been a chief concern for the City.
“As Council’s aware, we’ve had to draw down on the Economic Uncertainties Reserve Fund during the recession,” Farfsing said Tuesday. “So it’s been a priority of the Council [and] also [at] staff level to be careful with our budget and also continue to rebuild back the Economic [Uncertainties] Reserve because we just don’t know exactly what’s ahead of us in the future.”
After adjustments are made, the Economic Uncertainties Fund is now projected to total more than $4.07 million after the year end, according to Alcantara’s report.
Councilmember Noll compared the Economic Uncertainties Reserve Fund to a savings account as he explained why that reserve account is important. He described the City’s overall finances in a positive light.
“At least we’re going in the right direction,” Noll said, as he praised Alcantara and the staff for their work.
The Council also approved several recommended adjustments to the revenue and expenditures as detailed in Alcantara’s finance report. Most notably on the expenditures side, the Finance Department requested an adjustment of $90,000 to cover increases in medical benefits for retirees. The Community Development Department requested an additional $100,000 to pay for plan check services and contract services. The adjustment for expenditures total $194,000.
On the revenue side, a total increase of $132,592 will be adjusted for the following revenue accounts: sales tax in lieu, plan check fees and building permits.
Councilmember Ed Wilson acknowledged that the requested General Fund adjustments involved an expenditure amount that is more than the adjusted revenue amount, but he also praised Alcantara and the staff for their work.
“I’m actually excited to see that we’re pretty much on track, and our budgeting processes has worked a little well this year,” Wilson said.
Other City Council Highlights
Camp Fire USA The club celebrated its 102nd birthday. Mayor Forester presented a proclamation to members of the Waku Koda chapter of the club Tuesday night. The club also presented a cake to the City.
Signal Hill Officer of the Year Award Det. Nick Davenport was presented with the Officer of the Year Award.
Red Cross Awareness Month Mayor Larry Forester presented a proclamation to Lisa Marie Harris of the American Red Cross in honor of Red Cross Awareness Month.
Annual review for institutional and conditional-use permits The Council heard annual reports that reviewed institutional permits for Courtyard Care Center and the Las Brisas Child Care Center. In addition, the Council received and filed annual reports for 44 properties that have conditional use permits.
Affordable housing In a second-reading vote, the Council passed an ordinance to amend a zoning ordinance that changed both development standards and density requirements for an affordable housing site. The site is located at 1500 E. Hill St.
City Council-paid appointments The city manager reported on the new protocol and regulations for the appointment of councilmembers to be representatives to governmental agency boards which provide any kind of stipend or monetary remuneration. The Council specifically discussed their participation in the Southern California Association of Governments (SCAG) and the Gateway Cities Council of Governments (COG).
Water Replenishment District (WRD) City Manager Ken Farfsing and City Attorney David Aleshire explained the status of the City’s lawsuit that challenged the WRD’s rate assessment process. The WRD has appealed the California Supreme Court’s ruling that favored the City.
The next Signal Hill City Council meeting will take place on March 20 in the City Council Chambers.
