HomeMy WebLinkAbout02/14/12 1
“Love is a game that two can play and both win.” - Eva Gabor
AGENDA
HERMOSA BEACH CITY COUNCIL
Tuesday, February 14, 2012 - Council Chambers, City Hall
1315 Valley Drive
6:00 p.m. - CLOSED SESSION: See attached Closed Session Agenda
7:00 p.m. - REGULAR MEETING
MAYOR
Howard Fishman
CITY CLERK
Elaine Doerfling
MAYOR PRO TEM
Jeff Duclos
CITY TREASURER
David Cohn
COUNCIL MEMBERS
Patrick ‘Kit’ Bobko
Michael DiVirgilio
Peter Tucker
CITY MANAGER
Stephen R. Burrell
CITY ATTORNEY
Michael Jenkins
All council meetings are open to the public. PLEASE ATTEND.
The Council receives a packet with detailed information and recommendations on nearly every
agenda item.
City Council agendas and staff reports are available for your review on the City's web site
located at www.hermosabch.org.
Complete agenda packets are also available for public inspection in the Police Department, Fire
Department, Public Library and the Office of the City Clerk.
During the meeting, a packet is also available in the
Council Chambers foyer.
Written materials distributed to the City Council within 72 hours of the City Council meeting
are available for public inspection immediately upon distribution in the City Clerk's office at
1315 Valley Drive, Hermosa Beach, California, during normal business hours.
All written communications from the public included in the agenda will be posted with the
agenda on the City’s website
To comply with the Americans with Disabilities Act of 1990, Assistive Listening Devices (ALD)
will be available for check out at the meeting.
If you require special assistance to participate in this meeting, you must call or submit your
request in writing to the Office of the City Clerk at (310) 318-0203 at least 48 hours prior to the
meeting.
Your participation in this meeting is in the public domain. Meetings are both cablecast
and streamed live over the Internet. Minutes of this meeting will reflect your participation in
this meeting and are posted on the city’s website
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CALL TO ORDER
PLEDGE OF ALLEGIANCE
ROLL CALL
CLOSED SESSION REPORT
ANNOUNCEMENTS
PRESENTATIONS
PUBLIC PARTICIPATION: Although the City Council values your comments, the Brown Act
generally prohibits the Council from taking action on any matter not listed on the posted agenda as a
business item.
1. ORAL AND WRITTEN COMMUNICATIONS
This is the time for members of the public to address the City Council on any items within the Council's
jurisdiction not on this agenda, on items on this agenda as to which public comment will not be taken, or
to request the removal of an item from the consent calendar. Comments on public hearing items are
heard only during the public hearing. Members of the audience may also speak:
1) during discussion of items removed from the Consent Calendar;
2) during Public Hearings; and,
3) during discussion of items appearing under Municipal Matters.
Comments from the public are limited to three minutes per speaker.
The City Council acknowledges receipt of the written communications listed below. No action will be
taken on matters raised in written communications.
The Council may take action to schedule issues raised in oral and written communications for a future
agenda.
Citizens with comments regarding City management or departmental operations are requested to submit
those comments to the City Manager.
NO WRITTEN COMMUNICATIONS
2. CONSENT CALENDAR: The following more routine matters will be acted upon by one vote
to approve with the majority consent of the City Council. There will be no separate discussion of
these items unless a Council member removes an item from the Consent Calendar. Items
removed will be considered under Agenda Item 4, with public comment permitted at that time.
(a) Recommendation to approve the following minutes:
1) Minutes of the Regular meeting held on January 10, 2012 and,
2) Minutes of the Regular meeting held on January 24, 2012.
(b) Recommendation to ratify check register.
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(c) Recommendation to receive and file
1) Tentative Future Agenda Items; and,
2) City Council Directives
(d) Recommendation to receive and file the December 2011 Revenue and expenditure reports.
Memorandum from Finance Director Viki Copeland dated February 6, 2012.
(e) Recommendation to receive and file the action minutes of the Public Works Commission
meeting of January 18, 2012.
(f) Recommendation to deny the following claim and refer it to the City’s Liability Claims
Administrator. Memorandum from City Manager Stephen Burrell dated February 1, 2012.
Claimant: Reiss, Robert
Date of Loss: 09-17-11
Date Filed: 01-30-12
Allegation: Personal injury
(g) Recommendation to receive and file the action minutes of the Emergency Preparedness
Advisory Commission meeting of November 7, 2011.
(h) Recommendation to approve a request from Hermosa Beach Art Walk to allow two mobile
food service trucks at the Art Walk event on June 9 & 10, 2012 from 11:00am to 4:00pm.
Memorandum from City Manager Stephen Burrell dated February 8, 2012.
(i) Recommendation to adopt resolution implementing the City Council meeting procedures
ordinance. Memorandum from City Manager Stephen Burrell dated February 9, 2012.
(j) Recommendation to approve attendance of Mayor Pro Tem Duclos to the Local
Government Commission annual meeting on March 15-18, 2012. Memorandum from City
Manager Stephen Burrell dated February 8, 2012.
3. CONSENT ORDINANCES
NONE
4. ITEMS REMOVED FROM THE CONSENT CALENDAR FOR SEPARATE
DISCUSSION
Public comments on items removed from the Consent Calendar.
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5. PUBLIC HEARINGS - TO COMMENCE AT 7:30 P.M.
a. CONTINUED PUBLIC HEARING TO CONSIDER AMENDMENT TO SOUTH
PARK MASTER PLAN TO ALLOW A SPACE FOR A COMMUNITY GARDEN
LOCATED IN THE NORTHEAST CORNER OF THE PARK. Continued from
meeting of December 13, 2011. Memorandum from City Manager Stephen Burrell dated
February 9, 2012.
RECOMMENDATION: That the City Council conduct a Public Hearing, review
additional information provided that was requested at the 12/13/11 meeting and consider
any input from the public; and, that the City Council consider the recommendations
including the several conditions of the Parks, Recreation and Community Resources
Advisory Commission to approve the amendment allowing construction of a Community
Garden in South Park.
6. MUNICIPAL MATTERS
a. MIDYEAR BUDGET REVIEW 2011-12. Memorandum from Finance Director
Viki Copeland dated January 24, 2012
RECOMMENDATION: Approve the revisions to estimated revenue, appropriations,
budget transfers and fund balances as shown in the Revenue Detail Report and Budget
Summary and approve resolution to “commit” Contingency, Retirement Rate
Stabilization and CDBG Exchange Funds as part of the General Fund Balance and
authorize the Finance Director to determine and use amounts in the “assigned” category.
b. RECOMMENDATION OF THE PARKS, RECREATION AND COMMUNITY
RESOURCES ADVISORY COMMISSION CHANGING THE EXISTING CITY
REGULATIONS TO ALLOW FOOD TRUCKS IN CERTAIN LOCATIONS.
Memorandum from City Manager Stephen Burrell dated February 8, 2012.
RECOMMENDATION: That the City Council receive and discuss the
recommendation of the Parks, Recreation and Community Resources Advisory
Commission suggesting a simple permit process to allow food trucks in certain areas of
the City and direct staff to return with a plan to implement the recommended changes.
c. CONSIDERATION OF PLANNING COMMISSION RECOMMENDATIONS
FOR IMPROVING THE EMPLOYEE PARKING PERMIT PROGRAM, WHICH
GENERALLY APPLIES TO BUSINESSES ON HERMOSA AND PIER
AVENUES, TO BETTER MANAGE THE PERMIT PROCESS AND THE
EFFICIENT USE OF PARKING. Memorandum from Community Development
Director Ken Robertson dated February 7, 2012.
RECOMMENDATION: Consider directing staff to implement the Planning
Commission’s recommendations to revise the employee permit program as follows:
(1) Employee permits should be issued for a period of six months; (2) Only one permit
may be purchased per employee; (3) Employee permits should be distinguishable from
other types of permits; (4) The City should send employee permit renewal notices to
businesses and the business owner must verify the continuing employment of each
employee prior to permit renewal.
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7. MISCELLANEOUS ITEMS AND REPORTS - CITY MANAGER
a. GOALS MEETING – SWITCH TO AN EVENING MEETING. Memorandum from
City Manager Stephen Burrell dated February 8, 2012.
RECOMMENDATION: Select a meeting date and time.
8. MISCELLANEOUS ITEMS AND REPORTS - CITY COUNCIL
a. CALIFORNIA CANCER RESEARCH ACT – JUNE 2012 BALLOT. Memorandum
from City Manager Stephen Burrell dated January 26, 2012.
RECOMMENDATION: That the City Council consider whether or not it wishes to
take a position on the initiative on the June 2012 ballot.
b. APPOINTMENT OF AD HOC CITY COUNCIL COMMITTEE TO REVIEW
THE PROPOSALS AND PROVIDE A RECOMMENDATION ON AN
EXECUTIVE SEARCH FIRM TO ASSIST IN THE RECRUITMENT OF THE
CITY MANAGER POSITION. Memorandum from City Manager Stephen Burrell
dated February 9, 2012.
RECOMMENDATION: That the City Council appoint an ad hoc committee to review
the proposals received and make a recommendation on the selection of an executive
search firm to perform the recruitment for the City Manager position.
9. OTHER MATTERS - CITY COUNCIL
Requests from Council members for possible future agenda items. No discussion or debate of
these requests shall be undertaken; the sole action is whether to schedule the item for
consideration on a future agenda. No public comment will be taken.
a. Request from Mayor Pro Tem Duclos that the City Council consider forming a
Finance Committee composed of two councilmembers and the City Treasurer.
ADJOURNMENT
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AGENDA
CLOSED SESSION MEETING
HERMOSA BEACH CITY COUNCIL
Tuesday, February 14, 2012 - Council Chambers, City Hall
1315 Valley Drive
6:00 p.m.
The City Council finds, based on advice from legal counsel, that discussion in open session will
prejudice the position of the City in existing and anticipated litigation.
CALL TO ORDER
1. PUBLIC COMMENT: This time has been set aside for members of the public to
address the City Council on Closed Session items.
2. MINUTES: Approval of minutes of Closed Session meeting held on January 24, 2012.
3. CONFERENCE WITH LEGAL COUNSEL
The City Council finds, based on advice from legal counsel, that discussion in open session
will prejudice the position of the City in the litigation.
Existing Litigation: Government Code Section 54956.9(a)
Name of Case: Macpherson v. City of Hermosa Beach
Case Number: BC172546
4 PUBLIC EMPLOYEE APPOINTMENT
Government Code Section 54957
Title: Interim City Manager
5 PUBLIC EMPLOYEE APPOINTMENT
Government Code Section 54957
Title: City Manager
ADJOURNMENT
PUBLIC WORKS COMMISSION
MEETING OF WEDNESDAY, JANUARY 18, 2012
CITY HALL, COUNCIL CHAMBERS
1315 VALLEY DRIVE
7:00 P.M.
ACTION MINUTES
1. Call to Order
The meeting was called to order at 7:02 pm.
2. Flag Salute
The flag salute was led by member of the audience.
3. Roll Call
Present: Katz, MacMullan, Brittain, Flaherty, Marinelli
Absent: None.
Also Present: Frank Senteno, Director of Public Works/City Engineer; Ells Freeman, Public Works Superintendent; Liz Zeigler, Administrative Assistant.
4. Approval of Minutes: November 16, 2011
Action: Motion by Marinelli to receive and approve both sets of minutes as written, seconded by Brittain, motion passed 5-0.
5. Public Comment: Anyone wishing to address the Commission on items not on the agenda and pertaining to
Public Works may do so at this time.
None.
6. Correspondence
No items were received for this meeting.
7. Items for Consideration
a. Request for Tree Removal/Streetlight Relocation at 45 16th Street
Mr. Senteno presented staff report and notified Commission that residents were noticed in December, but
that some residents were inadvertently missed and not noticed. However, these residents were noticed on January 18th, 2012. Mr. Senteno recommended proceeding with the decision and noticing residents of the
decision and giving them a timeframe to respond. Chair Marinelli agreed.
Chair Marinelli opened the floor to public comment.
Michael Lee, an architect, representing property owners Ed Kushins and Terry Hamilton, came forward to answer questions. Flaherty asked for the general plan of the landscape work on right of way and private
area. Mr. Lee said the proposal includes installing a wall similar to the wall of the neighbors and putting in planting behind it and adding a fence. Flaherty asked for clarification of the street light move. Mr. Lee
stated the street light would be moved to the southeast corner of the property owner’s usable patio area
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which is actually City property, but the owners have a right to use it. Flaherty stated that removal of tree
involves two utilities that will be damaged and require coordination and negotiation with the City.
Chair Marinelli thanked Mr. Lee for taking time to answer questions.
Chair Marinelli opened the floor to discussion.
Katz agreed with tree removal, but asked whether the owner is willing to pay for the removal of the tree.
Mr. Senteno stated yes. Flaherty stated the removal of the tree is strictly to prevent further damage to property by the tree. Flaherty stated that the electrical work is the responsibility of the City and suggested
that water system be abandoned and meter be removed. Flaherty noted that the removal of the tree and the change in street light position will affect the neighbors. Brittain agrees with the tree removal.
MacMullan asked Mr. Senteno if households not noticed were adjacent to the property in question. Mr. Senteno said yes, but recommended proceeding with a decision and a second notice. Relocation of light
would proceed if residents did not object. Brittain motioned to remove the tree, MacMullan seconded. Brittain amended motion to state that the removal of the tree is at owner’s expense, MacMullan seconded,
motion passed 5-0.
Flaherty motioned that staff negotiate with the property owners regarding the relocation of the street light,
taking into account the response received from the neighbors. Katz seconded and the motion passed 5-0.
8. Presentations
Leadership Hermosa cancelled. Brittain reported as mentor. Brittain stated that Leadership Hermosa is still in research mode.
9. Commissioners’ Reports
PCH/Aviation Committee – MacMullan reported that she attended the meeting on January 5th and that the
PCH/Aviation meeting schedule for 2012 was approved as follows:
March 1st
May 3rd July 5th
Sep 6th Nov 1st
MacMullan stated that the PCH/Aviation committee received a report on proposals received for the
Conceptual Plan for PCH/Aviation Improvement. Proposals range from $65K to $120K. MacMullan asked that Flaherty follow up with the PCH/Aviation subcommittee and he agreed.
Mr. Senteno indicated that interviews are projected to take place in February with a panel comprised of
himself, Ken Robertson, George Barks, Dean Nota. The selection of a contractor is estimated to be completed before the next Public Works meeting.
Katz reported on bicycle corral locations. Katz informed the Commission that Birdie Friedman and George
Brent, residents of Hermosa Beach, have been recruited to be part of the Bike Corral Subcommittee. The subcommittee scouted and photographed locations in the City suitable for bike corrals. Possible locations
include:
Corner of Pier Avenue and Valley Drive, in front of library; Corner of Pier Avenue and Hermosa Avenue, southeast corner;
Corner of Hermosa Avenue, in front of Starbucks
Katz reported that the subcommittee is looking for funding, possibly from the merchants. Brittain asked if bike racks would be on street. Katz stated the racks would be on the street surrounded by planters.
Marinelli and Brittain asked staff if locations at red zones involve restrictions. Mr. Senteno noted some
locations may involve catch basins and that some red zones are marked as such for access and maintenance of catch basin. Mr. Senteno also noted that there may be some U-turn concerns. Flaherty
suggested that the Downtown Parking Structure and the Greenbelt may serve as possible locations for the bike corrals.
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The Commission agreed to have the Bike Corral Subcommittee present a report at the March Public
Works Commission meeting.
10. Monthly Reports
a. Monthly Activity Report – October 2011 and November 2011
b. Project Status Reports – October 2011 and November 2011
c. Verbal Capital Improvement Report by Mr. Senteno
Mr. Senteno reported the following:
Valley School project for pedestrian improvements - The contractor mobilized during the winter break and
completed all the concrete driveway work. Contractor is waiting for receipt of materials in one to two weeks and then will complete work that is expected to last no more than five days.
Beach restrooms - City has been advised by the contractor that completion is estimated for the end of
January. Contractor has repaired and extended one of the storm drain outfalls.
Street and sewer repairs - staff has begun to prepare preliminary list of street repairs and then will begin on sewers.
PCH/Aviation – the City received nine proposals and a committee will conduct interviews next month.
Aviation Feasibility Plan - a consultant has been selected, Nelson/Nygaard from San Francisco, specialized in
pedestrian/bike projects. The first deliverables are required in mid-February and will be submitted to Council at the end of February. A community meeting in early February to get public input is planned.
South Park – The City received a grant from Los Angeles County for the South Park Master Plan for $150,000.
The grant will fund the demolition of the hockey rink and replace it with playground equipment and upgrade other equipment. Brittain asked if grant covers the cost of playground equipment. Mr. Senteno responded in
the affirmative. Flaherty asked about the Community Garden location at South Park. Mr. Senteno said he will research the impact on the garden location.
Community Center/Theater - Brittain asked about the lights and electrical repairs at the Theater in light of the
news that James Blackman is withdrawing from the Theater. Mr. Senteno stated the plan for the Community Center includes electrical improvements combined with the Clark Field upgrade to the announcer’s booth and
installation of electrical vehicle chargers on Pier Avenue.
Trash enclosures – The City eliminated the trash enclosure at the Lot B and consolidated into Lot A. Consolidated steam cleans the enclosure and it is an improvement. Consolidated has been asked to prepare a
report on the pilot porter program. Staff is preparing an RFP for the design of a trash enclosure and an RFP for a new trash hauler service. The language from the trash hauler RFP along with the information obtained
from the pilot porter service program will be incorporated in the trash enclosure RFP. Mr. Senteno reported that Council is also considering using the site of the Lot B enclosure for restrooms.
City Yard - City Yard project is not on schedule and staff changes are expected that will be reflected in the
next report.
11. Commissioners’ Announcements
Brittain announced: Kawanis Club is holding a Toy Drive, March 3rd, March 17th – Saint Patrick’s Day Parade,
January 28th - Hazardous Waste Roundup
MacMullan and Katz - no announcements
Marinelli announced the next Public Works Commission meeting will be on March 21st, 2012.
12. Adjournment at 8:20 pm.
Page 1 of 3
MINUTES
HERMOSA BEACH EMERGENCY PREPAREDNESS ADVISORY COMMISSION
MONDAY, NOVEMBER 7, 2011 – 7:00 P.M.
COUNCIL CHAMBERS, CITY HALL
1315 VALLEY DRIVE
CALL TO ORDER
7:00 p.m. (no audio)
PLEDGE OF ALLEGIANCE
(no audio)
ROLL CALL
George Schmeltzer, William Hallett, Carol Russell, Tracy Hopkins, Ken Hartley, Alan Benson,
Gila Katz
STAFF: Greg Savelli, Police Chief; David Lantzer, Fire Chief
ANNOUNCEMENTS
Commissioner Hopkins: A National Emergency Alert System will be activated on all radio
and TV stations November 9, 2011 at 11:00 a.m. PST.
Commissioner Katz: Suggested everyone check batteries in smoke detectors and all other
detectors to make sure they are working properly.
PUBLIC PARTICIPATION
None
1. APPROVAL OF MINUTES FROM THE MEETING OF SEPTEMBER 19, 2011.
Motion to approve the minutes from September 19, 2011 EPAC meeting: Commissioner
Schmeltzer, seconded by Commissioner Hartley
Vote: 7-0
2. MONTHLY E-NEWSLETTER ARTICLE - TIP OF THE MONTH.
The following e-Newsletters will be posted on the City’s website:
a. CLEAN YOUR RAIN GUTTERS - COMMISSIONER HALLETT
Page 2 of 3
b. PREPARE FOR YOUR PETS TOO - COMMISSIONER KATZ
3. BUSINESS EMERGENCY PREPAREDNESS PROGRAM UPDATE. Report from
subcommittee of Commissioners Russell, Hartley and Benson.
Commissioner Russell provided a multi-page draft of the beginning plan for the Business
Continuity and Disaster Preparedness Program. The goal is to have a set of documents and a
plan for local businesses, provided in hardcopy and electronically, as well posted on the website.
4. REPORT ON THE GREAT CALIFORNIA SHAKE OUT HELD ON OCTOBER
20, 2011.
Commissioner Hopkins stated there were more than 8.6 million participants involved in this
year’s Great California Shakeout drill, and approximately 900,000 participated in additional
shakeout drills. The 2012 Great California Shakeout will be held October 18, 2012 at 10:18 a.m.
5. REPORT ON THE DISASTER SERVICE WORKER VOLUNTEER PROGRAM
(DSWVP) RECRUITMENT HELD ON OCTOBER 15, 2011. Oral report from Fire
Chief David Lantzer.
Chief Lantzer advised that the Hermosa Beach CERT conducted a registration drive on October
15, 2011 from 9:00 a.m.-12:00 p.m. The objective of this exercise was to get CERT members
used to handling disaster service worker registration forms and to begin building a database of
Hermosa Beach residents having skills that would be helpful in a disaster situation.
Approximately 30 individuals were registered. There are currently 15-20 people who are
registered Disaster Service Workers with the City of Hermosa Beach. Another recruitment
exercise is being planned at a date to be determined.
6. REPORT AND DISCUSSION ON THE AUTOMATIC EXTERNAL
DEFIBRILLATOR (AED) PROGRAM. Oral report from Fire Chief David Lantzer.
Chief Lantzer stated Commissioner Hartley has done a lot of work in getting the AED’s
purchased. The AED program will be managed by Torrance Memorial. An Agreement between
the City and Torrance Memorial is being reviewed with a few potential adjustments to the
requirements. A total of 10 AED’s will be purchased and installed in various places in Hermosa
Beach.
7. HERMOSA BEACH AMATEUR RADIO ASSOCIATION (HBARA) REPORT
AND EMERGENCY OPERATIONS CENTER (EOC) UPDATE. - Oral report from
Commissioner Hartley, Founder HBARA.
Commissioner Hartley advised the HAM club will be replacing an antenna that’s not functioning
properly. A meeting will be taking place with Chief Lantzer and Lt. Thompson to go over
progress made so far at the EOC and what remains to be completed. Some work needs to be done
with the electrical panel. Both Hermosa schools have HAM radios, two teachers are now
licensed and there is one handheld radio at each school. A number of drills will be taking place
to get the teachers comfortable using the radios.
Page 3 of 3
8. a. POLICE CHIEF REPORT
Chief Savelli provided suggestions for preparing for colder weather and the importance of
checking on the elderly and shut-ins, as well as how to properly deal with the homeless; such as
providing them with coats and shoes, rather than giving them cash. He advised clothing and
monetary donations can also be made to local churches and the Salvation Army, which would
benefit the homeless as well.
b. FIRE CHIEF REPORT
Chief Lantzer reminded everyone to change the batteries in their smoke detectors and
check fire extinguishers. He also discussed safety issues relating to the holidays which
included safety tips for holiday cooking.
1) CODE RED UPDATE
Code Red—the current total phone numbers in the database decreased by
approximately 600 due to the recent clean up of numbers out-of-service. There are
currently 67 business numbers registered and a total of 13,685 phone numbers.
9. COMMISSION MEMBER REQUESTS FOR FUTURE AGENDA ITEMS.
Commissioner Hartley: Emergency routes, Emergency preparedness kit campaign with local
grocery stores
Commissioner Katz: Core skills refresher for EPAC members
Commissioner Russell: Review of website content, recurring preparedness program
Commissioner Hopkins: Preparations for the next disaster preparedness Survey
10. ADJOURNMENT TO MEETING OF JANUARY 23, 2012.
Motion to adjourn to the meeting of January 23, 2012: Commissioner Schmeltzer, seconded by
Commissioner Hallett
Vote: 7-0
January 24, 2012
Honorable Mayor and Members of City Council Meeting of The Hermosa Beach City Council February 14, 2012
MIDYEAR BUDGET REVIEW 2011-12
RECOMMENDATION:
It is recommended that the City Council:
1. Approve the revisions to estimated revenue, appropriations, budget transfers and fund
balances as shown below and in the attached Revenue Detail Report and Budget Summary.
2. Approve the attached resolution to “commit” Contingency, Retirement Rate Stabilization
and CDBG Exchange Funds as part of the General Fund Balance and authorize the
Finance Director to determine and use amounts in the “assigned” category.
BACKGROUND:
The City has conducted a Midyear Budget Review annually since fiscal year 1981-82. The review is a good tool to ensure that assumptions and estimates originally used to prepare the budget ten
months earlier remain realistic.
ANALYSIS:
OVERVIEW
As reported in January with the Comprehensive Annual Financial Report (CAFR) for 2010-11, the
revenue picture at the end of the year was slightly improved with revenue up 1% overall. Now we are able to report an increase in revenue estimates of 4%, which suggests the trend may be sustainable. As a result of all midyear changes, we will be able to transfer $722,073 to the
Insurance Fund to provide funds for legal costs. With the $750,000 already budgeted, this will
bring the total to $1.4 million for the trial. We are also in the midst of offering a second round of two year retirement incentives. Staff will be reporting back after the window period closes on
3/31/12 with the number of employees who took advantage of the offer. No estimate is factored
into the budget at this point.
GASB 54 The CAFR also outlined a change in the financial statements due to Governmental Accounting Standards Board (GASB) Statement 54, Fund Balance Reporting and Governmental
Type Definitions, which also affects how we present the budget.
The primary impact of this statement is that the Contingency Fund, Retirement Stabilization Fund and Compensated Absences Fund will now be transferred to the General Fund and shown in the
fund balance section under the “assigned” category. This new presentation may be seen on the
first page of the Budget Summary, at the bottom. (page 12).
The definitions for classifications of fund balance we are using are as follows:
Restricted fund balances are the portion of fund balance that have externally enforceable limitations on their usage through legislation or limitations imposed by creditors, grantors, laws and regulations of other governments or enabling legislation.
Committed fund balances are self-imposed limitations by the highest level of decision-making authority, namely the City Council, prior to the end of the reporting period. City Council approval is
required to commit resources or to rescind the commitment.
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Assigned fund balances are limitations imposed by management based on the intended use of the
funds. Modifications or rescissions of the constraints can be removed by the same type of action that limited the use of the funds.
Resolution The attached resolution is necessary to “commit” Contingency, Retirement Rate
Stabilization and CDBG Exchange Funds to that category of fund balance in the General Fund.
Funds may only be removed by the City Council, (as is the case currently). The resolution also designates the Finance Director as the authorized party to determine amounts and use funds in the “assigned” category. An example of an “assigned” amount would be calculation of the amount
for the portion of the sales tax which is not received until seven months after fiscal year end due to
state actions. This is not a change to the current practice.
DEC Fund In the original budget, we mentioned that we would be combining the DEC Fund with the General Fund since a separate fund is not required and the funds are not restricted. Because
of the number of transactions in this fund, we will be closing the fund at year end and transferring
the balance (estimated to be $536,652 at this time) to the General Fund. Since funds were available in the DEC Fund, an extra payment ($189,619) on the loan relating to the storage lot property was made to complete the payback to the Contingency Fund before it was moved to the
General Fund with the remainder used to pay down the Insurance Fund and Equipment
Replacement Fund balances.
REVENUE
(Note: Refer to the more detailed Revenue Detail Report behind the agenda item for individual revenue
accounts.)
The overall change in the General Fund revenue estimate is an increase of $990,132 or approximately 4%. This is a positive indication that our local economy is indeed recovering, albeit
slowly. The following charts show the trends for the largest tax revenue sources.
2011-12 Midyear Revenue by Category
2011-12 2011-12 Increase %
General Fund Revised Budget Midyear Revision (Decrease)Change
Property Taxes 11,506,175 11,715,322 209,147 1.82%
Sales Taxes 2,256,800 2,361,293 104,493 4.63%
Utility User's Tax 2,564,399 2,494,019 (70,380) -2.74%
Transient Occupancy Tax 1,659,802 1,765,457 105,655 6.37%
Other Taxes 1,813,320 1,821,280 7,960 0.44%
Licenses and Permits 642,005 672,157 30,152 4.70%
Fines & Forfeitures 2,112,044 2,377,220 265,176 12.56%
Use of Money & Property 318,391 457,966 139,575 43.84%
Intergovernmental/State 194,073 126,839 (67,234) -34.64%
Current Service Charges 3,844,651 4,044,934 200,283 5.21%
Other Revenue 63,529 128,834 65,305 102.80%
Total 26,975,189 27,965,321 990,132 3.67%
TAXES
Property Tax
The estimate for secured property tax revenue is adjusted up by 2%. Our estimate was +1%
over 2010-11; receipts for 2010-11 came in 1% higher than projected. Growth for the prior five
2
years was 2%, 4%, 7%, 12% and 16%, respectively. Hermosa Beach has been fortunate to
have positive growth throughout the recession, whereas many cities had serious declines.
Secured Property Tax
2000 - 2012
0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
1999-002000-012001-022002-03 2003-04 2004-05 2005-062006-07 2007-082008-092009-102010-11 2011-12 Est
Sales Tax
Sales tax revenue is up 11% for the first half, which is very good news. The new estimate is conservatively 7% over 2010-11. As reported in the CAFR, sales tax for 2010-11 grew by 5%.
As shown in the graph below, the 2011-12 estimate is consistent with sales tax received in
2008-09. The two highest categories, Eating/Drinking Places and Other Retail increased by
approximately 4% and 20%, respectively, for the first half. The Other Retail increase is related
to the addition of a surf shop and an annual payment by a new computer product design business. Service Stations show a remarkable but not surprising increase of 70%. Auto
Dealers and Supplies is now #6 with the loss of the BMW pre-owned dealer.
As in the original budget, sales tax is split into two accounts now, 3108 Sales Tax and 3104 In
Lieu Sales Tax. The In Lieu amount is the State’s “Triple Flip” 25% reduction of local
government sales tax, which will be repaid in January and May with property tax funds. These
accounts are shown in the Midyear Revenue Review Report.
Sales Tax
2000 - 2012
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
1999-002000-012001-022002-03 2003-04 2004-05 2005-062006-07 2007-082008-092009-102010-11 2011-12 Est
$2,390,658
2008-09
$2,361,293
11-12 Est
3
The following charts compare sales tax on major accounts for the first half of this year to the
first half of last year by the top ten categories to show what the trends are by category and
geographic area.
SALES TAX
Comparison of First Half of 2010-11 to 2011-12
Top Ten Categories
RANK/BUSINESS CLASS* Sales Tax
2011-12
Inc./
(Dec.)
% of
Change
Prev. Yr.
Percent
of Total
1. EATING/DRINKING PLACES 462,225 $18,974 4.28% 42.99%
2. OTHER RETAIL STORES 186,127 $30,822 19.85% 17.31%
3. FOOD STORES 93,935 $6,695 7.67% 8.74%
4. SERVICE STATIONS * * 69.30% *
5. BUILDING MATERIALS 58,252 $5,603 10.64% 5.42%
6. AUTO DEALERS AND SUPPLIES 49,166 ($35,936) -42.23% 4.57%
7. APPAREL STORES 34,987 $16,334 87.57% 3.25%
8. DRUG STORES * * 9.83% *
9. FURNITURE / APPLIANCE 33,257 $2,463 8.00% 3.09%
10. BUSINESS, SERVICE, REPAIR 32,025 ($5,976) -15.73% 2.98%
*Drug store and service station amounts are not listed because there are too few in the category.
Sales Tax Comparison by Geographic Area
Revenue % OF Revenue % OF
LOCATION 2010-11 Total % Chg 2011-12 Total
PCH 381,322 43%-1% 379,268 42%
Downtown 349,499 41% 13%393,288 42%
Pier/Valley/Monterey 108,829 12% 5%114,165 12%
Aviation 38,660 4% 2%39,371 4%
PCH
42%
Downtown
42%
Pier/Valley/
Monterey
12%
Aviation
4%
2011-12 MIDYEAR SALES TAX BY GEOGRAPHIC AREA
4
Transient Occupancy Tax
Transient Occupancy Tax (TOT) is almost 10% up compared to the first half of last year (July-November receipts). As reported in the CAFR, receipts for last year were up 8%. Overall
occupancy for the first half is 80% compared to 73% for the first half of last year. Occupancy for
Los Angeles County and the South Bay is 78% and 77%, respectively. Receipts are consistent with the 2006-07 fiscal year.
Transient Occupancy Tax
2000 - 2012
0
500,000
1,000,000
1,500,000
2,000,000
1999-002000-012001-022002-03 2003-04 2004-05 2005-062006-07 2007-082008-092009-102010-11 2011-12 Est
Utility User Tax Utility User Tax (UUT) revenue is being revised down 3% from the original budget. Receipts for the first half are down 1%. The new estimate is 1% less than 2010-11 receipts. As reported in
the CAFR, receipts for last year were down 2%. Receipts from cellular services are down 7%
due to the change by AT&T in taxation of their “bundled services”.
Utility User Tax
2000 - 2012
0500,0001,000,0001,500,0002,000,0002,500,0003,000,000
1999-002000-012001-022002-03 2003-042004-05 2005-062006-07 2007-082008-092009-102010-11 2011-12 Est
The most significant changes within each revenue category are discussed below.
Licenses and Permits
The estimate for Licenses and Permits is up approximately 5% due to fee increases enacted in September. Fee increases that were more than 50% are phased over a two year period with
$1,769,016
06-07
$1,765,457
11-12 Est
$2,494,019
11-12 Est
5
half occurring in 2011-12 and half next fiscal year 2012-13. Actual receipts for electric permits
appear higher but due to a misunderstanding of the calculations of new fee amounts, refunds
will be generated that will reduce the revenue.
Fines and Forfeitures Estimated Fines and Forfeitures are up due to a 14% increase in revenue from parking fines. Two officers were added and enforcement was extended to 12:00 midnight, in addition to
beginning enforcement in Lot A and the parking structure, which previously had attended
parking.
Use of Money and Property
This category is up due to added events and programs at the Community Center and because
the renovations to the Community Center facilities are now complete. Almost $40,000 in
interest was added due to the move of Contingency, Retirement Stabilization and Compensated Absences Funds to the General Fund. This is not an overall increase; just the interest moving
between funds for the first half.
Intergovernmental/State
As part of the State’s budget balancing in June, the Legislature shifted the vehicle license fee allocation that went to cities to fund law enforcement grants. This loss amounts to approximately $57,000.
Current Service Charges
The estimate for service charges is up approximately 5% due to fee increases enacted in
September. Fee increases that were more than 50% are phased over a two year period with half occurring in 2011-12 and half next fiscal year 2012-13.
Other Revenue
The increase in Other Revenue is primarily due to reimbursements for DUI task forces and
funds received from our health insurance carrier through their program to limit their income to 2% of revenue collected. We received a credit of almost $44,000.
ADDITIONAL APPROPRIATIONS
The following additional appropriations are requested:
GENERAL FUND (001)
City Attorney
Contract Services/Private $150,000 Additional cost for litigation.
Fire Department
Contract Services/Private $4,378 Repairs and service required
for vehicle exhaust system
were not budgeted.
Police
Travel Expense, POST $10,000 POST reimbursable mandated
training due to anticipated retirements and job
reassignments (offset by
revenue increase).
6
GENERAL FUND (001) continued
Police
Travel Expense, STC $1,448 STC reimbursable approved
core training (offset by revenue increase).
Conference/Training $5,000 Additional funds required to cover Non-POST reimbursable
portion of training required for
CPR recertification for all uniformed personnel,
emergency vehicle training for
all officers, tuition unknown for
the original budget and training required due to job
reassignments resulting from
anticipated retirements.
Community Services Division
Contract Services/Private $1,365 Revise estimate for credit card
processing for Pay-By-Space meters based on activity which
is higher than anticipated.
TOTAL GENERAL FUND $172,191
DOWNTOWN ENHANCEMENT FUND (109)
Public Works
North Pier Parking Structure Division
Contract Services/Private $7,594 Emergency repair of parking structure elevator door was not
budgeted.
$18,070 Revise estimate for credit card processing for Pay-By-Space
meters based on activity which
is higher than anticipated. Lot A
Contract Services/Private $8,493 Revise estimate for credit card
processing for Pay-By-Space
meters based on activity which is higher than anticipated.
County Share of Parking Structure Revenue Contract Services/Government $14,043 Adjust County share of Parking Structure revenue to reflect
Midyear changes.
7
TOTAL DOWNTOWN ENHANCEMENT
FUND $48,200
PROP A OPEN SPACE FUND (121)
Public Works
CIP 537
South Park Phase I Improvements
Contract Services/Private $150,000 New grant from Los Angeles
County Regional Park and
Open Space District for South Park Phase I Improvements
was received after budget was
approved.
CIP 652
Pier Structural Repairs FY 12
Contract Services/Private ($7,600) Adjust appropriation to correct amount from the maintenance allocation for Pier Structural
Repairs.
TOTAL PROP A OPEN SPACE FUND $142,400
PROPOSITION A FUND (145)
Police
Taxi Voucher Program
Contract Services/Private $16,000 Higher usage of program.
TOTAL PROPOSITION A FUND $16,000
PROPOSITION C FUND (146)
Public Works
CIP 116 Pier Avenue/Hermosa Avenue to Pacific Coast
Highway
Contract Services/Private $60,617 Funds remaining at year end
required to complete construction on the Pier Avenue
project were not reappropriated.
TOTAL PROPOSITION C FUND $60,617
GRANTS FUND (150)
Fire Department
Fireman’s Fund Emergency Preparedness Program Grant
Contract Services/Private $10,000 Grant approval for current fiscal year was received after budget approval. Software will be
purchased to upgrade the
existing Records Management System as required by the County.
8
TOTAL GRANTS FUND $10,000
SUPPLEMENTAL LAW ENFORCEMENT SERVICES
(SLESF) FUND – COPS (153)
Police C.O.P.S. Program
Auto Maintenance $3,108 Funding for the replacement of
halogen lights with LED lights in patrol cars was not reappropriated.
TOTAL SUPPLEMENTAL LAW
ENFORCEMENT SERVICES (SLESF) FUND $3,108
ASSET SEIZURE/FORFEITURE FUND (170)
Police
Police K-9 Program
Contract Services/Private $500 Emergency veterinary services
were not anticipated.
TOTAL ASSET SEIZURE/FORFEITURE
FUND
$500
INSURANCE FUND (705)
Human Resources
Liability Insurance
Contract Services/Private $722,073 Additional costs for MacPherson Oil trial.
TOTAL INSURANCE FUND $722,073
FINANCIAL POLICIES
The City Council’s adopted policies are:
General Fund – Any funds remaining unspent at year-end in the General Fund
transfer equally to the Contingency Balance, Insurance Fund, Equipment Replacement Fund and the Capital Improvement Fund. The City Council may change these transfers from time to time as necessary. For 2010-11, all funds were
transferred to the Insurance Fund.
Compensated Absences Balance – Goal of fund balance equal to 25% funding for accrued liabilities for employee vacation, sick and compensatory time.
Contingency Balance – Goal of fund balance equal to 15% of the General Fund
appropriations for economic uncertainties, unforeseen emergencies.
Insurance Fund – Goal of $3,000,000 in retained earnings for claims reserves and catastrophic losses.
9
Equipment Replacement Fund – Goal of retained earnings equal to the
accumulated amount calculated for all equipment, based on replacement cost and
useful life of equipment.
Retirement Rate Stabilization Balance – Created with the 2004-05 Budget for use during times of rising retirement costs, which recently have resulted primarily from
reduced investment earnings.
Note: As mentioned, the Compensated Absences Fund and Contingency Fund have been changed to Compensated Absences Balance and Contingency Balance and are now part of the General Fund as required by GASB 54.
Progress on Funding Goals
Fund Name Goal
Estimated Fund Balance
6/30/12 Over/(Under) Goal Amount
Compensated Absences Balance $250,611 $297,262 $46,651
25.00% 29.65% Contingency
Balance $3,915,122 $3,967,339* $52,217
15.00% 15.33%
Insurance Fund $3,000,000 $2,851,131* ($148,869)
Equipment Replacement Fund* $3,207,819 $2,416,177 ($791,642)
Balances shown do not include funds to be received over time from the payback of loans made to purchase the storage property adjacent to City Hall.
As is shown in the Over/(Under) Goal Amount column, the Compensated Absences Balance and Contingency Balance are slightly overfunded. We recommend these be left at
the current amount and we will review them with the compilation of the new budget. With
potential retirements pending that were not known for the original budget, it may be that additional funds are needed.
The Contingency Fund, Insurance Fund, and Equipment Replacement Fund (ERF) are the
funds that made the loan to the Downtown Enhancement Fund (DEC) to purchase the property adjacent to City Hall, with amounts being paid back over time from lease
proceeds. When the DEC Fund closes at year end, the loan payable will be recorded in
the General Fund, with future payments from the lease proceeds paid back to the Insurance Fund and Equipment Replacement Fund since, as mentioned previously, the
loan payable to the Contingency Fund was paid back prior to moving it to the General
Fund.
THE CHALLENGE FOR NEXT YEAR
With approval of the Midyear changes by the City Council, staff will move forward with
preparation of the 2012-13 Budget.
All labor contracts expired 6/30/10; we have signed status quo agreements with some
groups for 2011-12 and negotiations are underway for agreements beginning in 2012. There have been no salary increases since July 2008.
Retirement rates will be addressed at the meeting mentioned above.
10
11
CITY OF HERMOSA BEACH BUDGET SUMMARY
2011-12 MIDYEAR REVIEW
LIGHTING DOWNTOWN
GENERAL LANDSCAPING ENHANCEMENT
FUND FUND FUND
001 105 109
ESTIMATED REVENUE
Taxes $20,157,371 $457,104 $0
Licenses/Permits $672,157 $0 $0
Fines/Forfeitures $2,377,220 $0 $0
Use of Money/Property $457,966 $480 $262,464
Intergovernmental/State $126,839 $0 $0
Intergovernmental/County $0 $0 $0
Intergovernmental/Federal $0 $0 $0
Current Service Charges $4,044,934 $0 $1,294,599
Other Revenue $128,834 $0 $4,604
TOTAL ESTIMATED REVENUE $27,965,321 $457,584 $1,561,667
INTERFUND TRANSFERS IN $5,377,030 $89,270 $0
ESTIMATED FUNDS AVAILABLE $33,342,351 $546,854 $1,561,667
ACTUAL FUND BALANCE
7/1/11 $828,374 $74,842 $9,159,917
TOTAL FUNDS AVAILABLE $34,170,725 $621,696 $10,721,584
APPROPRIATIONS
Operating Budget $26,084,297 $579,982 $779,645
Capital Outlay $30,382 $0 $0
Capital Improvements $496,426 $0 $177,335
TOTAL APPROPRIATIONS $26,611,105 $579,982 $956,980
INTERFUND TRANSFERS OUT $2,043,402 $10,796 $4,169
TOTAL APPROPRIATIONS/TRANSFERS OUT $28,654,507 $590,778 $961,149
ADJUST FUND BALANCE FOR
FIXED ASSET ADDITIONS 1
ESTIMATED FUND BALANCE 6/30/12 $5,516,218 (a)$30,918 $9,760,435 (b)
(a) CLASSIFICATIONS OF FUND BALANCE:(b) Investment In
Restricted Fixed Assets
Affordable Housing $41,831 $9,868,307
General Plan Maintenance Fees $89,463
Verizon PEG Grant $38,452
Greenwald Theatre Improvement Donation $45,000
Committed
Clark Building Future Renovations $1,000
Reserve for Capital Outlay $9,592
Beach/Plaza Promotions $36,466
Contingencies $3,967,339
Retirement Rate Stabilization $760,482
CDBG Fund Exchange (Use Undetermined)$63,000
Assigned
Compensated Absences $297,262
Sales Tax Receivable - Due 01/13 $166,331
$5,516,218
Storage Lot Loan (reduced by lease revenue)$644,524
Available Fund Balance 6/30/12 $0 $30,918 $536,652
1 Reflects increase to fund balance for fixed asset purchases
in Enterprise/Internal Service Funds.
12
CITY OF HERMOSA BEACH BUDGET SUMMARY
2011-12 MIDYEAR REVIEW
COMPENSATED PROP A STATE GAS AB 939 ABSENCES OPEN SPACE TYCO
TAX FUND FUND FUND FUND FUND
115 117 119 121 122
ESTIMATED REVENUE
Taxes $0 $0 $0 $0 $0
Licenses/Permits $0 $0 $0 $0 $0
Fines/Forfeitures $0 $0 $0 $0 $0
Use of Money/Property $3,720 $2,024 $0 $0 $318,506
Intergovernmental/State $527,576 $0 $0 $0 $0
Intergovernmental/County $0 $0 $0 $583,957 $0
Intergovernmental/Federal $0 $0 $0 $0 $0
Current Service Charges $0 $58,260 $0 $0 $0
Other Revenue $0 $0 $0 $0 $0
TOTAL ESTIMATED REVENUE $531,296 $60,284 $0 $583,957 $318,506
INTERFUND TRANSFERS IN $0 $0 $0 $0 $0
ESTIMATED FUNDS AVAILABLE $531,296 $60,284 $0 $583,957 $318,506
ACTUAL FUND BALANCE
7/1/11 $668,904 $233,058 $297,262 $0 $798,825
TOTAL FUNDS AVAILABLE $1,200,200 $293,342 $297,262 $583,957 $1,117,331
APPROPRIATIONS
Operating Budget $0 $248,280 $0 $0 $0
Capital Outlay $0 $0 $0 $0 $0
Capital Improvements $416,296 $0 $0 $563,400 $794,446
TOTAL APPROPRIATIONS $416,296 $248,280 $0 $563,400 $794,446
INTERFUND TRANSFERS OUT $304,317 $0 $297,262 $20,557 $175,000
TOTAL APPROPRIATIONS/TRANSFERS OUT $720,613 $248,280 $297,262 $583,957 $969,446
ADJUST FUND BALANCE FOR
FIXED ASSET ADDITIONS 1
ESTIMATED FUND BALANCE 6/30/12 $479,587 (c)$45,062 $0 $0 $147,885
(c) CLASSIFICATIONS OF FUND BALANCE:
Restricted
TDA Article 3 -$0
Section 2103 - Higher Motor Vehicle
Excise Tax (HUTA)$412,522
Available Fund Balance 6/30/12 $67,065 $45,062 $0 $0 $147,885
1 Reflects increase to fund balance for fixed asset purchases
in Enterprise/Internal Service Funds.
13
CITY OF HERMOSA BEACH BUDGET SUMMARY
2011-12 MIDYEAR REVIEW
PARK/BAYVIEW DRIVE
TYCO RECREATION DISTRICT ADMIN
TIDELANDS FACILITY TAX EXPENSE
FUND FUND FUND
123 125 135
ESTIMATED REVENUE
Taxes $0 $20,439 $0
Licenses/Permits $0 $0 $0
Fines/Forfeitures $0 $0 $0
Use of Money/Property $696 $579 $34
Intergovernmental/State $0 $0 $0
Intergovernmental/County $0 $0 $0
Intergovernmental/Federal $0 $0 $0
Current Service Charges $0 $0 $0
Other Revenue $0 $14,566 $4,330
TOTAL ESTIMATED REVENUE $696 $35,584 $4,364
INTERFUND TRANSFERS IN $0 $0 $0
ESTIMATED FUNDS AVAILABLE $696 $35,584 $4,364
ACTUAL FUND BALANCE
7/1/11 $46,070 $132,506 $1,457
TOTAL FUNDS AVAILABLE $46,766 $168,090 $5,821
APPROPRIATIONS
Operating Budget $0 $0 $1,700
Capital Outlay $0 $0 $0
Capital Improvements $43,246 $20,000 $0
TOTAL APPROPRIATIONS $43,246 $20,000 $1,700
INTERFUND TRANSFERS OUT $0 $0 $2,718
TOTAL APPROPRIATIONS/TRANSFERS OUT $43,246 $20,000 $4,418
ADJUST FUND BALANCE FOR
FIXED ASSET ADDITIONS 1
ESTIMATED FUND BALANCE 6/30/12 $3,520 $148,090 $1,403
Available Fund Balance 6/30/12 $3,520 $148,090 $1,403
1 Reflects increase to fund balance for fixed asset purchases
in Enterprise/Internal Service Funds.
14
CITY OF HERMOSA BEACH BUDGET SUMMARY
2011-12 MIDYEAR REVIEW
LOWER PIER MYRTLE DISTRICT LOMA DISTRICT BEACH DRIVE DISTRICT ADMINISTRATIVE ADMINISTRATIVE ADMINISTRATIVE ADMINISTRATIVE EXPENSE EXPENSE EXPENSE EXPENSE
FUND FUND FUND FUND
136 137 138 139
ESTIMATED REVENUE
Taxes $0 $0 $0 $0
Licenses/Permits $0 $0 $0 $0
Fines/Forfeitures $0 $0 $0 $0
Use of Money/Property $0 $123 $163 $17
Intergovernmental/State $0 $0 $0 $0
Intergovernmental/County $0 $0 $0 $0
Intergovernmental/Federal $0 $0 $0 $0
Current Service Charges $0 $0 $0 $0
Other Revenue $2,600 $9,000 $10,000 $3,000
TOTAL ESTIMATED REVENUE $2,600 $9,123 $10,163 $3,017
INTERFUND TRANSFERS IN $0 $0 $0 $0
ESTIMATED FUNDS AVAILABLE $2,600 $9,123 $10,163 $3,017
ACTUAL FUND BALANCE
7/1/11 $4,457 $12,683 $17,008 $1,382
TOTAL FUNDS AVAILABLE $7,057 $21,806 $27,171 $4,399
APPROPRIATIONS
Operating Budget $1,500 $6,000 $6,200 $1,650
Capital Outlay $0 $0 $0 $0
Capital Improvements $0 $0 $0 $0
TOTAL APPROPRIATIONS $1,500 $6,000 $6,200 $1,650
INTERFUND TRANSFERS OUT $1,142 $3,310 $3,783 $1,155
TOTAL APPROPRIATIONS/TRANSFERS OUT $2,642 $9,310 $9,983 $2,805
ADJUST FUND BALANCE FOR
FIXED ASSET ADDITIONS 1
ESTIMATED FUND BALANCE 6/30/12 $4,415 $12,496 $17,188 $1,594
Available Fund Balance 6/30/12 $4,415 $12,496 $17,188 $1,594
1 Reflects increase to fund balance for fixed asset purchases
in Enterprise/Internal Service Funds.
15
CITY OF HERMOSA BEACH BUDGET SUMMARY
2011-12 MIDYEAR REVIEW
COMMUNITY
DEVELOPMENT PROPOSITION PROPOSITION
BLOCK GRANT A C MEASURE R
FUND FUND FUND FUND
140 145 146 147
ESTIMATED REVENUE
Taxes $0 $269,761 $223,760 $167,821
Licenses/Permits $0 $0 $0 $0
Fines/Forfeitures $0 $0 $0 $0
Use of Money/Property $0 $819 $2,116 $1,888
Intergovernmental/State $0 $0 $0 $0
Intergovernmental/County $0 $0 $0 $0
Intergovernmental/Federal $0 $0 $0 $0
Current Service Charges $0 $6,900 $0 $0
Other Revenue $0 $0 $0 $0
TOTAL ESTIMATED REVENUE $0 $277,480 $225,876 $169,709
INTERFUND TRANSFERS IN $0 $0 $0 $0
ESTIMATED FUNDS AVAILABLE $0 $277,480 $225,876 $169,709
ACTUAL FUND BALANCE
7/1/11 $0 $47,166 $190,775 $250,400
TOTAL FUNDS AVAILABLE $0 $324,646 $416,651 $420,109
APPROPRIATIONS
Operating Budget $0 $172,317 $0 $0
Capital Outlay $0 $0 $0 $0
Capital Improvements $0 $2,650 $165,617 $295,934
TOTAL APPROPRIATIONS $0 $174,967 $165,617 $295,934
INTERFUND TRANSFERS OUT $0 $0 $0 $0
TOTAL APPROPRIATIONS/TRANSFERS OUT $0 $174,967 $165,617 $295,934
ADJUST FUND BALANCE FOR
FIXED ASSET ADDITIONS 1
ESTIMATED FUND BALANCE 6/30/12 $0 $149,679 $251,034 $124,175
Available Fund Balance 6/30/12 $0 $149,679 $251,034 $124,175
1 Reflects increase to fund balance for fixed asset purchases
in Enterprise/Internal Service Funds.
16
CITY OF HERMOSA BEACH BUDGET SUMMARY
2011-12 MIDYEAR REVIEW
SUPPLEMENTAL
AIR QUALITY LAW ENFORCEMENT
GRANTS IMPROVEMENT SERVICES SEWER
FUND FUND FUND FUND
150 152 153 160
ESTIMATED REVENUE
Taxes $0 $0 $100,000 $0
Licenses/Permits $0 $0 $0 $0
Fines/Forfeitures $0 $0 $0 $0
Use of Money/Property $0 $736 $2,054 $6,147
Intergovernmental/State $23,541 $22,000 $0 $5,729
Intergovernmental/County $0 $0 $0 $25,000
Intergovernmental/Federal $899,154 $0 $0 $0
Current Service Charges $0 $0 $0 $31,434
Other Revenue $10,000 $0 $0 $0
TOTAL ESTIMATED REVENUE $932,695 $22,736 $102,054 $68,310
INTERFUND TRANSFERS IN $0 $0 $0 $700,000
ESTIMATED FUNDS AVAILABLE $932,695 $22,736 $102,054 $768,310
ACTUAL FUND BALANCE
7/1/11 $15,589 $85,648 $264,492 $631,904
TOTAL FUNDS AVAILABLE $948,284 $108,384 $366,546 $1,400,214
APPROPRIATIONS
Operating Budget $40,432 $3,600 $69,931 $610,866
Capital Outlay $0 $0 $0 $0
Capital Improvements $892,169 $102,531 $37,283 $653,776
TOTAL APPROPRIATIONS $932,601 $106,131 $107,214 $1,264,642
INTERFUND TRANSFERS OUT $0 $0 $0 $0
TOTAL APPROPRIATIONS/TRANSFERS OUT $932,601 $106,131 $107,214 $1,264,642
ADJUST FUND BALANCE FOR
FIXED ASSET ADDITIONS 1
ESTIMATED FUND BALANCE 6/30/12 $15,683 $2,253 $259,332 $135,572
Available Fund Balance 6/30/12 $15,683 $2,253 $259,332 $135,572
1 Reflects increase to fund balance for fixed asset purchases
in Enterprise/Internal Service Funds.
17
CITY OF HERMOSA BEACH BUDGET SUMMARY
2011-12 MIDYEAR REVIEW
ASSET SEIZURE/FIRE RETIREMENT CAPITAL
FORFEITURE PROTECTION STABILIZATION CONTINGENCY IMPROVEMENT
FUND FUND FUND FUND FUND
170 180 198 199 301
ESTIMATED REVENUE
Taxes $0 $0 $0 $0 $0
Licenses/Permits $0 $0 $0 $0 $0
Fines/Forfeitures $38,000 $0 $0 $0 $0
Use of Money/Property $2,078 $165 $0 $0 $5,236
Intergovernmental/State $0 $0 $0 $0 $0
Intergovernmental/County $0 $0 $0 $0 $0
Intergovernmental/Federal $0 $0 $0 $0 $0
Current Service Charges $0 $0 $0 $0 $0
Other Revenue $1,000 $13,000 $0 $0 $386
TOTAL ESTIMATED REVENUE $41,078 $13,165 $0 $0 $5,622
INTERFUND TRANSFERS IN $0 $0 $0 $0 $707,059
ESTIMATED FUNDS AVAILABLE $41,078 $13,165 $0 $0 $712,681
ACTUAL FUND BALANCE
7/1/11 $250,696 $36,709 $760,482 $3,967,339 $442,628
TOTAL FUNDS AVAILABLE $291,774 $49,874 $760,482 $3,967,339 $1,155,309
APPROPRIATIONS
Operating Budget $11,685 $0 $0 $0 $151,400
Capital Outlay $25,000 $0 $0 $0 $0
Capital Improvements $0 $0 $0 $0 $869,193
TOTAL APPROPRIATIONS $36,685 $0 $0 $0 $1,020,593
INTERFUND TRANSFERS OUT $0 $0 $760,482 $3,967,339 $0
TOTAL APPROPRIATIONS/TRANSFERS OUT $36,685 $0 $760,482 $3,967,339 $1,020,593
ADJUST FUND BALANCE FOR
FIXED ASSET ADDITIONS 1
ESTIMATED FUND BALANCE 6/30/12 $255,089 (c)$49,874 $0 $0 $134,716
(c) CLASSIFICATION OF FUND BALANCE
Restricted
Designated Dept of Justice Funds
$100,897
Designated Dept of Treasury Funds
$8,765
Available Fund Balance 6/30/12 $145,427 $49,874 $0 $0 $134,716
Reflects increase to fund balance for fixed asset purchases
in Enterprise/Internal Service Funds.
18
CITY OF HERMOSA BEACH BUDGET SUMMARY
2011-12 MIDYEAR REVIEW
BAYVIEW DRIVE LOWER PIER
ARTESIA BLVD DISTRICT DISTRICT
RELINQUISHMENT REDEMPTION REDEMPTION
FUND FUND FUND
302 609 610
ESTIMATED REVENUE
Taxes $0 $0 $0
Licenses/Permits $0 $0 $0
Fines/Forfeitures $0 $0 $0
Use of Money/Property $125 $942 $223
Intergovernmental/State $0 $0 $0
Intergovernmental/County $0 $0 $0
Intergovernmental/Federal $0 $0 $0
Current Service Charges $0 $0 $0
Other Revenue $0 $0 $0
TOTAL ESTIMATED REVENUE $125 $942 $223
INTERFUND TRANSFERS IN $0 $0 $0
ESTIMATED FUNDS AVAILABLE $125 $942 $223
ACTUAL FUND BALANCE
7/1/11 $9,302 $154,393 $10,866
TOTAL FUNDS AVAILABLE $9,427 $155,335 $11,089
APPROPRIATIONS
Operating Budget $4,000 $0 $0
Capital Outlay $0 $0 $0
Capital Improvements $0 $0 $0
TOTAL APPROPRIATIONS $4,000 $0 $0
INTERFUND TRANSFERS OUT $0 $0 $0
TOTAL APPROPRIATIONS/TRANSFERS OUT $4,000 $0 $0
ADJUST FUND BALANCE FOR
FIXED ASSET ADDITIONS 1
ESTIMATED FUND BALANCE 6/30/12 $5,427 $155,335 $11,089
Storage Lot Loan (reduced by lease revenue)
Available Fund Balance 6/30/12 $5,427 $155,335 $11,089
1 Reflects increase to fund balance for fixed asset purchases
in Enterprise/Internal Service Funds.
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CITY OF HERMOSA BEACH BUDGET SUMMARY
2011-12 MIDYEAR REVIEW
BEACH DRIVE BEACH DRIVE MYRTLE LOMA
DISTRICT DISTRICT AVENUE DRIVE
REDEMPTION RESERVE ASSESSMENT ASSESSMENT
FUND FUND FUND FUND
611 612 617 618
ESTIMATED REVENUE
Taxes $0 $0 $0 $0
Licenses/Permits $0 $0 $0 $0
Fines/Forfeitures $0 $0 $0 $0
Use of Money/Property $466 $36 $524 $669
Intergovernmental/State $0 $0 $0 $0
Intergovernmental/County $0 $0 $0 $0
Intergovernmental/Federal $0 $0 $0 $0
Current Service Charges $0 $0 $0 $0
Other Revenue $0 $0 $0 $0
TOTAL ESTIMATED REVENUE $466 $36 $524 $669
INTERFUND TRANSFERS IN $0 $0 $0 $0
ESTIMATED FUNDS AVAILABLE $466 $36 $524 $669
ACTUAL FUND BALANCE
7/1/11 $74,578 $978 $37,350 $102,576
TOTAL FUNDS AVAILABLE $75,044 $1,014 $37,874 $103,245
APPROPRIATIONS
Operating Budget $0 $0 $0 $0
Capital Outlay $0 $0 $0 $0
Capital Improvements $0 $0 $0 $0
TOTAL APPROPRIATIONS $0 $0 $0 $0
INTERFUND TRANSFERS OUT $0 $0 $0 $0
TOTAL APPROPRIATIONS/TRANSFERS OUT $0 $0 $0 $0
ADJUST FUND BALANCE FOR
FIXED ASSET ADDITIONS 1
ESTIMATED FUND BALANCE 6/30/12 $75,044 $1,014 $37,874 $103,245
Available Fund Balance 6/30/12 $75,044 $1,014 $37,874 $103,245
1 Reflects increase to fund balance for fixed asset purchases
in Enterprise/Internal Service Funds.
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CITY OF HERMOSA BEACH BUDGET SUMMARY
2011-12 MIDYEAR REVIEW
BAYVIEW
DRIVE EQUIPMENT
RESERVE INSURANCE REPLACEMENT TOTAL
FUND FUND FUND (MEMORANDUM
619 705 715 ONLY)
ESTIMATED REVENUE
Taxes $0 $0 $0 $21,396,256
Licenses/Permits $0 $0 $0 $672,157
Fines/Forfeitures $0 $0 $0 $2,415,220
Use of Money/Property $117 $544,000 $0 $1,615,113
Intergovernmental/State $0 $0 $0 $705,685
Intergovernmental/County $0 $0 $0 $608,957
Intergovernmental/Federal $0 $0 $0 $899,154
Current Service Charges $0 $2,295,005 $1,648,180 $9,379,312
Other Revenue $0 $70,046 $8,005 $279,371
TOTAL ESTIMATED REVENUE $117 $2,909,051 $1,656,185 $37,971,225
INTERFUND TRANSFERS IN $0 $722,073 $0 $7,595,432
ESTIMATED FUNDS AVAILABLE $117 $3,631,124 $1,656,185 $45,566,657
ACTUAL FUND BALANCE
7/1/11 $3,064 $3,334,762 $5,718,040 $28,666,482
TOTAL FUNDS AVAILABLE $3,181 $6,965,886 $7,374,225 $74,233,139
APPROPRIATIONS
Operating Budget $0 $3,792,494 $1,653,094 $34,219,073
Capital Outlay $0 $0 $429,318 $484,700
Capital Improvements $0 $0 $320,772 $5,851,074
TOTAL APPROPRIATIONS $0 $3,792,494 $2,403,184 $40,554,847
INTERFUND TRANSFERS OUT $0 $0 $0 $7,595,432
TOTAL APPROPRIATIONS/TRANSFERS OUT $0 $3,792,494 $2,403,184 $48,150,279
ADJUST FUND BALANCE FOR
FIXED ASSET ADDITIONS 1 $294,584 $294,584
ESTIMATED FUND BALANCE 6/30/12 $3,181 $3,173,392 $5,265,625 (d)$26,377,444
(d) Investment In
Fixed Assets
$2,324,075
(d) Designate Building Charges
$203,110
Storage Lot Loan (reduced by lease revenue)($322,261)($322,263)
Available Fund Balance 6/30/12 $3,181 $2,851,131 $2,416,177 $7,943,550
1Reflects increase to fund balance for fixed asset purchases
in Enterprise/Internal Service Funds.
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INTERFUND TRANSFERS 2011-12 Budget
TRANSFERS IN TRANSFERS OUTGENERAL FUND
From Lighting/Landscaping Fund, Administration $10,796From Downtown Enhancement Fund, Administration $4,169
From State Gas Tax Fund, Street Maintenance, Traffic Safety Operations $304,317From Prop A Open Space Fund, Parks Maintenance Allocation $20,557From Lower Pier Admin Exp Fund, Agency Administration $1,142
From Myrtle Dist Admin Exp Fund, Agency Administration $3,310From Loma Dist Admin Exp Fund, Agency Administration $3,783From Beach Drive Assessment Dist Admin Exp Fund, Agency Administration $1,155
From Bayview Drive Admin Exp Fund, Agency Administration $2,718
From Compensated Absences Fund, Closeout per GASB 54 $297,262From Retirement Stabilization Fund, Closeout per GASB 54 $760,482
From Contingency Fund, Closeout per GASB 54 $3,967,339
To Lighting/Landscaping Fund, Cure Deficit $89,270To Sewer Fund, Improvements $700,000
To Capital Improvement Fund, Street and Sewer Improvements $532,059
To Insurance Fund, Unexpended Balance Transfer $722,073FUND TOTALS $5,377,030 $2,043,402
LIGHTING/LANDSCAPING FUND
From General Fund, to cover deficit $89,270To General Fund, Administration $10,796
FUND TOTALS $89,270 $10,796
DOWNTOWN ENHANCEMENT FUND
To General Fund, Administration $4,169
FUND TOTALS $0 $4,169
STATE GAS TAX FUND
To General Fund, Street Maintenance, Traffic Safety Operations $304,317
FUND TOTALS $0 $304,317
COMPENSATED ABSENCES FUND
To General Fund, Closeout per GASB 54 $297,262
FUND TOTALS $0 $297,262
PROP A OPEN SPACE FUND
To General Fund, Parks Maintenance Allocation $20,557
FUND TOTALS $0 $20,557
TYCO FUND
To Capital Improvement Fund, Street Improvements $175,000
$0 $175,000
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INTERFUND TRANSFERS 2011-12 Budget
TRANSFERS IN TRANSFERS OUTBAYVIEW DRIVE DISTRICT ADMIN EXPENSE FUND
To General Fund, Agency Administration $2,718
FUND TOTALS $0 $2,718
LOWER PIER ADMIN EXPENSE FUND
To General Fund, Agency Administration $1,142
FUND TOTALS $0 $1,142
MYRTLE DISTRICT ADMIN EXPENSE FUND
To General Fund, Agency Administration $3,310
FUND TOTALS $0 $3,310
LOMA DISTRICT ADMIN EXPENSE FUND
To General Fund, Agency Administration $3,783
FUND TOTALS $0 $3,783
BEACH DRIVE ASSESSMENT DISTRICT ADMINISTRATIVE EXPENSE FUND
To General Fund, Agency Administration $1,155
FUND TOTALS $0 $1,155
SEWER FUND
From General Fund, Improvements $700,000 $0
FUND TOTALS $700,000 $0
RETIREMENT STABILIZATION FUND
To General Fund, Close out per GASB 54 $760,482
FUND TOTALS $0 $760,482
CONTINGENCY FUND
To General Fund, Close out per GASB 54 $3,967,339
$0 $3,967,339
CAPITAL IMPROVEMENT FUNDFrom Tyco Fund, Street Improvements $175,000From General Fund, Street Improvements $532,059
FUND TOTALS $707,059 $0
INSURANCE FUND
From General Fund, Unexpended Balance Transfer $722,073
$722,073 $0
GRAND TOTALS $7,595,432 $7,595,432
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RESOLUTION NO. 12-XXXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH, CALIFORNIA, APPROVING GENERAL FUND COMMITMENT OF FUND BALANCE FOR CONTINGENCY,
RETIREMENT RATE STABILIZATION AND CDBG EXCHANGE
FUNDS AND DESIGNATING THE FINANCE DIRECTOR AS THE
AUTHORIZED PARTY FOR THE ASSIGNMENT OF FUND BALANCE
THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH, CALIFORNIA,
DOES HEREBY RESOLVE AS FOLLOWS:
WHEREAS, the Governmental Accounting Standards Board (GASB) has issued its
Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions with the
intent of improving financial reporting by providing fund balance categories that will be more
easily understood; and
WHEREAS, the City Council may adopt a resolution to commit General Fund balance for
specific purposes by taking formal action and these committed amounts cannot be used for any
other purpose unless the City Council removes or changes the specific use through the same
formal action taken to establish the commitment; and
WHEREAS, the City Council may designate management to assign fund balances based
on the intended use of the funds; and
WHEREAS, the Finance Director has recommended to the City Council that the General
Fund Contingency Commitment of General Fund balance should be established and approved at
$3,967,339, the Retirement Rate Stabilization Commitment of the General Fund balance should be
$760,482 and the CDBG Exchange Funds Commitment of the General Fund balance should be
$63,000 for fiscal year 2011-12.
BE IT FURTHER RESOLVED, that the Finance Director shall be designated the
authorized party for the assignment of fund balance, and that the City Council of the City of
Hermosa Beach hereby authorizes and approves the General Fund Contingency Commitment of
General Fund balance of $3,967,339, the Retirement Rate Stabilization Commitment of the
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General Fund balance of $760,482 and the CDBG Exchange Funds Commitment of the General
Fund balance of $63,000 for the fiscal year 2011-12.
PASSED, APPROVED AND ADOPTED this 14th day of February 2012.
________________________________________________________________________
PRESIDENT of the City Council and MAYOR of the City of Hermosa Beach, California
ATTEST: APPROVED AS TO FORM:
________________________________ _______________________________
City Clerk City Attorney
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