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2014-01 RESOLUTION NO. 2014-01 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, AMENDING RESOLUTION NO. 2013-26 AND DEFERRING EXPENDITURE REDUCTIONS SCHEDULED TO TAKE EFFECT ON OR AFTER DECEMBER 1, 2013 WHEREAS, on June 25, 2013, the City Council approved the Annual Budget for the City of Grand Terrace for Fiscal Year (FY) 2013-14 by adopting Resolution No. 2013-26; and WHEREAS, the Adopted FY 2013-14 Budget included a series of expenditure reductions (shown below) to be implemented on or after December 1, 2013, if the utility users' tax measure (Measure C) was not approved by the voters on November 5, 2013; and Budgetary Category/ Effective FY 2013-14 Fund Action Item Date Budgetary Balance Impact Beginning Fund Balance 7/1/13 $300,152 Projected Budgetary Deficit 7/1/13 ($674713) (374561) Approved Expenditure Increases 7/1/13 (85,800) (460,361) Reduce law enforcement contract by one (1) deputy 7/1/13 257,500 (202,861) Additional overtime required due to above staffing reduction 7/1/13 (10,000) (212,861) Additional Budgetary Reductions Should Tax Measure Not Pass: Reduce law enforcement contract by one additional deputy 12/1/13 150,200 (62,661) Eliminate Senior Center funding 1/1/14 13500 (49,161) Reduce EOC/CERT Committee funding by 50% 1/1/14 2,850 (46,311) Close Rollins and Pico Parks 1/1/14 60,000 13,689 Required weed abatement on closed parks ($13,000 annually) 1/1/14 (6,500) 7,189 Reduce contract services for City Attorney and Finance 1/1/14 26,000 33,189 Reduce City Administration personnel-related expense through some combination of outsourcing, wage/benefit reductions,work 111/14 266,000 299,189 schedule reductions,and/or workforce reductions (lay-offs), subject to the meet-and-confer process. Reduce Cultural&Historical Committee funding by 50% 1/i/14 300 299,489 Reduce City Council and Oversight Board meetings to monthly 1/1/14 250 299,739 Eliminate Planning Commission City Council to assume duties 1/1/14 11100 300,839 WHEREAS, Measure C was not approved by the voters on November 5, 2013; and WHEREAS, subsequent to the November 5, 2013 special election, the City Council received information that the City of Grand Terrace will be receiving unexpected property tax revenues related to the City's residual distribution from the Redevelopment Property Tax Trust Fund (RPTTF); and WHEREAS, such unexpected revenues are sufficient to offset the expenditure reductions scheduled to take effect on or after December 1, 2013, so that the General Fund budget will remain in balance and General Fund reserves will not be depleted. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS: 1. That Resolution No. 2013-26 is hereby amended such that the expenditure reductions scheduled to take effect on or after December 1, 2013 will be deferred through the end of the current fiscal year (June 30, 2014). 2. That all other provisions of Resolution No. 2013-26 will remain in effect. 3. That a Mid-Year Budget Review will be held on February 25, 2014, to review financial projections for the balance of the fiscal year, evaluate the City's overall fiscal condition, and consider any budget adjustments or budget-related actions that are appropriate. 4. That the deferred expenditure reductions will be further evaluated in conjunction with budget deliberations for the FY 2014-15 Annual Budget. BE IT FURTHER RESOLVED that this Resolution shall take effect immediately upon the date of its adoption. PASSED, APPROVED AND ADOPTED by the City Council of Grand Terrace at a 4 regular meeting held on the 141^ day of January, 2014 by the following vote: r IvA ayor of the City-of Grand Terrace and the City Council thereof ATTEST: City Clerk of the City of Grand Terrace I Charlene L. Sherwood, INTERIM CITY CLERK of the City of Grand Terrace, California, do hereby certify that the foregoing Resolution was adopted at a regular meeting of the City Council of the City of Grand Terrace held on the 14t" day of January, 2014, by the following vote: AYES: Councilmembers McNaboe and Robles; Mayor Pro Tern Sandoval and Mayor Stanckiewitz NOES: ABSENT: ABSTAIN: l C A� �(•t(n,r..r� City Clerk APPROVED 0 TO FORM: City Attorney