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Resolution adopting the City of South San Francisco Operating Budget for Fiscal Year 2023-24 and approving the Gann Appropriations Limit. (Karen Chang, Director of Finance)
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WHEREAS, the City of South San Francisco’s Fiscal Year (FY) 2023-24 Proposed Operating Budget reflected in the staff report and corresponding attachments is incorporated herein; and
WHEREAS, the City of South San Francisco (“City”) Operating Budget shall hereafter be referred to collectively as the “Operating Budget” for purposes of adopting this Resolution; and
WHEREAS, on May 31, 2023, the proposed FY 2023-24 Operating Budget was presented by staff to the Budget Standing Committee of the City Council; and
WHEREAS, on June 16, 2023, the proposed FY 2023-24 Operating Budget was presented by staff to the City Council at a Special Council Meeting; and
WHEREAS, the members of the City Council reviewed and discussed the financial budgets at the two public meetings above and specific changes were developed as a result; and
WHEREAS, pursuant to Article XIIIB of the California Constitution and Section 7900 et seq. of the California Government Code, the City of South San Francisco is responsible for determination of the Appropriations limit (also known as the Gann limit) for FY 2023-24; and
WHEREAS, the City is required to elect the population and price adjustment factors used to calculate the Appropriations limit at a regularly scheduled Council meeting.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of South San Francisco that the FY 2023-24 Operating Budget is hereby approved, and hereby appropriates the funds as set forth in the staff report and attachments herein for FY 2023-24.
BE IT FURTHER RESOLVED that consistent with the limitations set forth herein and the City’s Municipal Code, any and all expenditures for agreements in an amount not to exceed one hundred fifty thousand dollars ($150,000) relating to either the programs or materials contained in the FY 2023-24 Operating Budget or the Capital Budget for construction projects may be expended or entered into under authority of or by the City Manager and the payments therefore may be made by the Director of Finance.
BE IT FURTHER RESOLVED that monies received during FY 2023-24 and included herein as a consequence of a grant award approved by the City Council are hereby appropriated for the purposes for which the grant has been approved. Such appropriation includes authorization for the City Manager to expend such monies and for the Director of Finance to make payments therefore in accordance with the terms and conditions and for the purpose of the grant.
BE IT FURTHER RESOLVED that the Director of Finance is hereby granted the authority to increase budgeted revenues and budgeted expenses in departments specifically for development related expenses such as expedited plan checks, legal reviews, traffic studies, environmental review, geotechnical studies, etc., where the developers pay in advance for expenses that the City contracts out for. In those cases, the Director of Finance, upon receiving those deposits or payments, will increase the budget for revenues and expenses in the appropriate departments where those expenses will take place by a corresponding amount. Said transactions will have no net impact on Reserves, as revenue will offset expenses and any agreements for development related transactions may be expended or entered into under authority of or by the City Manager and the payments therefore may be made by the Director of Finance.
BE IT FURTHER RESOLVED that the Director of Finance is hereby authorized to increase budgeted revenues and expenses in departments for transaction that have a net zero impact such as donations and pass-through transactions. Said transactions will have no net impact on Reserves, as revenue will offset expenses.
BE IT FURTHER RESOLVED that the Operating Budget is hereby officially adopted:
• By department by fund for General Fund operating budget appropriations; and
• By fund for other operating budget appropriations.
BE IT FURTHER RESOLVED that, for the Appropriations limit for FY 2023-24, the City Council elects the following annual adjustment factors: (1) the percentage change in the California per capita income; and (2) the population adjustment factor for the City’s population growth.
BE IT FURTHER RESOLVED that it is hereby determined that the Appropriations limit for FY 2023-24 for the City of South San Francisco is $176,128,671. Appropriations subject to the limit total $114,872,716, or 65.2% of the Appropriations limit. Therefore, the City is substantially below the maximum allowable Appropriations limit and in compliance with the law.
BE IT FURTHER RESOLVED that the City Manager may authorize the Director of Finance to transfer budgets during the year in accordance with generally accepted accounting principles between the following budget categories provided the overall appropriation by funding source is not increased without City Council approval:
• Departments within the same fund; and
• Capital projects with the same funding source or type; and
• Operating and capital budgets for the same department if funded by the same funding source or type.
BE IT FURTHER RESOLVED that fund balance and reserve categories in this document are designed for decision-making and informational purposes only for the City Council, and are not intended to replace the reserve classifications supplied by the Governmental Accounting Standards Board (GASB) Statement 54 for governmental funds.
BE IT FURTHER RESOLVED that the Director of Finance is hereby authorized to use professional judgment to make corrections to the adopted budget schedules if any related numbers represented on one budget schedule herein do not match the corresponding number as represented in another budget schedule herein.
BE IT FURTHER RESOLVED that the Director of Finance is hereby authorized and directed to rollover any outstanding encumbrances from Fiscal Year 2022-23 into Fiscal Year 2023-24 where sufficient budget savings otherwise allow the rollover.
BE IT FURTHER RESOLVED that the Director of Finance is hereby authorized and directed to rollover unencumbered appropriations from grants received in Fiscal Year 2022-23 or prior years if so allowed under the terms of the grant.
BE IT FURTHER RESOLVED that the staffing levels for each department, as detailed in the staff report and accompanying attachments herein are hereby approved.
BE IT FURTHER RESOLVED that the Director of Finance is hereby authorized and directed to carry forward unspent Fiscal Year 2022-23 unencumbered non-recurring project budgets in the Operating Budget, such as litigation projects.
BE IT FURTHER RESOLVED that the City Council appropriates all FY 2023-24 Measure W revenues and remaining cash balance to support the Council approved Measure W Projects such as the Civic Campus Project, Streets Programs and Orange Memorial Park projects and authorizes the Director of Finance to budget expenditures as necessary for the FY 2023-24 debt service related to the City’s Lease Revenue Bonds (Series 2020A, Series 2021A and Series 2022A).
BE IT FURTHER RESOLVED that the City Council authorizes the Director of Finance to take all appropriate actions to recognize the proceeds and use professional judgement to budget its expenditure for the American Rescue Plan Act of 2021 (ARP) that follows the programmatic intent of the City Council and the guidelines set forth by the federal government related to its allowable use.
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