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RESOLUTION(ID# 1904) DOC ID: 1904 CITY OF SAN BERNARDINO—REQUEST FOR COUNCIL ACTION Budget From: Andrea Travis-Miller M/CC Meeting Date: 06/18/2012 Prepared by: Heidi Aten, (909) 384-5122 Dept: City Manager Ward(s): All Subject: Resolution of the Mayor and Common Council of the City of San Bernardino Authorizing the City to Establish 2012-13 Expenditures for the Month of July 2012 Only at One-Twelfth of the Expenditure Levels Contained in the City's FY 2011-12 Adopted Budget, or as Needed to Pay the Authorized Costs Incurred for the Month of July 2012 Only Pending Final Approval of the 2012-13 Budget. Financial Impact: This Resolution authorizes continuing expenditures for the month of July 2012. Please note this balance does not indicate available funding. It does not include non-encumbered reoccurring expenses or expenses incurred,but not yet processed. (~ Motion: Adopt Resolution. Synopsis of Previous Council Action: None. Background: On January 18, 2012, and April 3, 2012, the Mayor and Common Council reviewed the City's financial position and discussed the projected FY 2011-12 deficit, budget balancing strategies, and revenue enhancement measures. The structural issues which have resulted in deficit spending have implications for the upcoming budget and a long-term strategy to address the ongoing structural deficit is required. This situation is further complicated by the expiration of labor agreements that provide for 10 percent concessions as well as the financial and organizational impact of the State's dissolution of the City's Economic Development Agency (EDA). At the time of this writing, the City, as the Successor Agency to the EDA, is still in the process of dissolving the EDA as required by the State law. Additional time is needed to properly analyze the various issues and prepare recommendations for Council consideration. PacketPg. 979 Updated:6/14/2012 by Linda Sutherland Page I 1904 The proposed Resolution will authorize expenditures for the month of July 2012 at one-twelfth of the expenditure levels contained in the City's FY 2011-12 Adopted Budget, or as needed to pay the authorized costs incurred for the month of July 2012 only pending final approval of the 2012-13 Budget. In the interim, City staff is preparing a comprehensive financial analysis, which will be presented to the Mayor and Common Council, and finalizing a proposed FY 2012- 13 Budget that includes policy recommendations and budget balancing measures for Council consideration in late-June and early-July 2012. If a balanced budget is not adapted in July 2012, staff will present a continuing resolution similar to this action for the month of August 2012. City Attorney Review: Supporting Documents: reso 1904 (PDF) Updated:6/14/2012 by Linda Sutherland Pxoe 2 IMP RESOLUTION NO. O.. 1 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF S 2 BERNARDINO, CALIFORNIA, AUTHORIZING THE CITY OF SAN BERNARDIN 3 TO ESTABLISH 2012-2013 EXPENDITURES FOR THE MONTH OF JULY, 201 ONLY, AT ONE-TWELFTH THE ACTUAL LEVELS CONTAINED IN THE ADOPTE 4 BUDGET FOR 2011-2012 FISCAL YEAR, OR AS NEEDED TO PAY T AUTHORIZED COSTS INCURRED FOR THE MONTH OF JULY 2012 ONLY 5 PENDING FINAL APPROVAL OF THE 2012-2013 BUDGET. 6 WHEREAS,the Mayor and Common Council will be holding budget hearings after Jun c 0 7 30, 2012, and desire to continue 2011-2012 fiscal year expenditures for the City of S 0 8 Bernardino for the month of July, 2012 only, at one-twelfth the budgeted level for the 2011-201 w a c 9 fiscal year,pending final approval of the 2012-2013 budget; la NOW THEREFORE BE IT RESOLVED BY THE MAYOR AND COMMO o 0 11 a COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: V 12 m SECTION 1. The Mayor and Common Council hereby authorize the City of Sat O 13 Bernardino to establish the 2012-2013 expenditures for the month of July, 2012, only, at one 14 C 0 twelfth the actual levels contained in the Adopted Budget for the 2011-2012 fiscal year, or a 'S2 15 j d needed to pay the authorized costs incurred for the month of Jut 2012, only, g 16 Y, y, pendin fm o 17 approval of the 2012-2013 budget. c m m 18 SECTION 2. This Resolution shall take effect upon the date of its adoption. d 19 /// E u m 20 21 22 /!! 23 24 25 1 Packet Pg. 981 ' 7JA. (' 1 RESOLUTION NO. 2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SA 3 BERNARDINO, CALIFORNIA, AUTHORIZING THE CITY OF SAN BERNARDIN TO ESTABLISH 2012-2013 EXPENDITURES FOR THE MONTH OF JULY, 201 q ONLY,AT ONE-TWELFTH THE ACTUAL LEVELS CONTAINED IN THE ADOPTE BUDGET FOR 2011-2012 FISCAL YEAR, OR AS NEEDED TO PAY TH s AUTHORIZED COSTS INCURRED FOR THE MONTH OF JULY 2012 ONLY PENDING FINAL APPROVAL OF THE 2012-2013 BUDGET. 6 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor an `o 7 Common Council of the City of San Bernardino at a meeting thereof, held on the day o 2012,by the following vote,to wit: rn 9 3 COUNCIL MEMBERS: AYES NAYS ABSTAIN ABSENT `- 10 0 MARQUEZ 11 rn JENKINS 12 m VALDIVIA 0 13 SHORETT 14 c KELLEY ° .N 15 > JOHNSON 16 0 MCCAMMACK m 17 0 v 18 Georgeann Hanna,City Clerk E 19 The foregoing resolution is hereby approved this day of , 2012. a 20 21 22 Patrick J. Morris,Mayor City of San Bernardino 23 APPROVED AS TO FORM: 24 / © 25 B /. PEN�MAN,City�Attorn ey 2 Packet Pg.982