To: Honorable Mayor and Members of City Council
From: Elizabeth Cabell, Interim Finance Director
Prepared By: Jessie Gooch, Budget Officer
TITLE:
Title
Budget Adjustments for Labor Agreements
LABEL
RECOMMENDED ACTION:Recommendation
Approve budget changes to City funds due to updated labor agreements, as documented in Budget Adjustment Form BE2209504.
Body
DISCUSSION:
The adopted FY 2021/22 budget did not include any estimated increases for bargaining groups without memoranda of understanding (“MOU’s”) in place for the fiscal year. With Council’s approval of the tentative agreement for the Napa City Employees Association (NCEA TA) on July 20, 2021, as well as the City's agreement to pay out the calendar year 2021 Juneteenth holiday to public safety groups, there is the need to increase City budgets. Additionally, these increases to salaries and wages budgets also necessitated the reallocation of the City’s unfunded accrued liability payment for the California Public Employees’ Retirement System (CalPERS UAL). The attached Budget Adjustment Form includes all needed adjustments to bring City budgets in line with the labor agreements.
The adjustments will increase the General Fund expenditure budget by $691,890, thereby reducing the current year (FY22) budgeted surplus from $1,524,400 to $832,510. Special Revenue fund budgets will increase by a total of $13,370, the Capital Improvement Fund budget will increase by $80,000, and Internal Service fund budgets will increase by $14,400. In Utilities, the Solid Waste & Recycling fund budget will increase by $11,640, and the Water fund by $125,300. Housing Authority funds will increase by $13,420, and a separate item will be brought to the Housing Authority at their October 5, 2021 meeting for review and approval.
FINANCIAL IMPACTS:
In the General Fund, the labor agreement changes result in an increase of $562,500 to the expenditure budget. Another $129,390 increase is then required for the additional transfers to reserves due to the operating budget increase. The transfers from the General Fund to the CIP Reserve are shown as the revenue increase in fund 301 in the table below. After reviewing the calculations, the Housing Division asked to include an additional adjustment reducing their CDBG Admin Supplies budget to offset the increase in payroll costs. In total, these adjustments result in the following budget changes to City funds:
|
Fund |
Fund Name |
Revenue Budget Adjustment |
Expenditure Budget Adjustment |
Additional Budget for Reserves |
|
100 |
General Fund |
|
562,500 |
129,390 |
|
101 |
Non-Recurring General Fund |
|
1,990 |
|
|
216 |
Tourism Improvement District Fund |
|
(100) |
|
|
222 |
Housing Impact Fee |
|
310 |
|
|
225 |
Measure F Fund |
|
(100) |
|
|
231 |
CDBG Program |
|
1,130 |
|
|
233 |
HOME Program |
|
640 |
|
|
236 |
CalHome Program |
|
430 |
|
|
291 |
Parking Security |
|
11,060 |
|
|
301 |
Capital Projects |
16,880 |
80,000 |
|
|
510 |
Solid Waste & Recycling |
|
11,640 |
|
|
530 |
Water |
|
125,300 |
|
|
610 |
Fleet Management |
|
14,700 |
|
|
640 |
Risk Management |
|
(300) |
|
|
841 |
Laurel Manor |
|
(100) |
|
|
842 |
Seminary Street |
|
310 |
|
|
843 |
Section 8 |
|
11,040 |
|
|
844 |
20% Low/Mod Income |
|
100 |
|
|
846 |
Local Housing Fund |
|
2,010 |
|
|
849 |
Continuum of Care Program |
|
60 |
|
|
Total |
|
16,880 |
822,620 |
129,390 |
CEQA:
The City Manager has determined that the Recommended Action described in this Agenda Report is not subject to CEQA, pursuant to CEQA Guidelines Section 15060(c).
DOCUMENTS ATTACHED:
ATCH 1 - Budget Adjustment BE2209504
NOTIFICATION:
None.