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HomeMy WebLinkAboutItem 11 Supplemental Budget Resolution AGENDA ITEM SUMMARY Meeting Date: 2/4/2013 Meeting Type: Regular Meeting Staff Contact/Dept.: Bob Duey/Finance Staff Phone No: 541-726-3740 Estimated Time: 10 Minutes S P R I N G F I E L D C I T Y C O U N C I L Council Goals: Mandate ITEM TITLE: SUPPLEMENTAL BUDGET RESOLUTION ACTION REQUESTED: Adopt/not adopt the following resolutions: A RESOLUTION ADJUSTING RESOURCES AND REQUIREMENTS IN THE FOLLOWING FUNDS: General, Street, Special Revenue, Transient Room Tax, Community Development, Sanitary Sewer Capital, Development Projects, SDC Sanitary Sewer Reimbursement , SDC Sanitary Sewer Improvement, SDC Transportation Reimbursement, SDC Transportation Improvement, Insurance, and Vehicle & Equipment Funds. ISSUE STATEMENT: At various times during the fiscal year the Council is requested to make adjustments to the annual budget to reflect needed changes in planned activities, to recognize new revenues, or to make other required changes. These adjustments to resources and requirements change the current budget and are processed through supplemental budget requests scheduled by the Finance Department on an annual basis. This is the second of three scheduled FY13 supplemental budget requests to come before Council. The supplemental budget being presented includes adjusting resources and requirements in: General, Street, Special Revenue, Transient Room Tax, Community Development, Sanitary Sewer Capital, Development Projects, SDC Sanitary Sewer Reimbursement, SDC Sanitary Sewer Improvement, SDC Transportation Reimbursement, SDC Transportation Improvement, Insurance, and Vehicle & Equipment Funds. The City Council is asked to approve the attached Supplemental Budget Resolution. ATTACHMENTS: Attachment 1. Council Briefing Memorandum Attachment 2. Supplemental Budget Resolution DISCUSSION/ FINANCIAL IMPACT: The overall financial impact of the Supplemental Budget Resolution is to increase Capital Projects ($36,290), increase Equipment Replacement ($222,200), increase Operating Expenditures ($179,101), and increase SDC Refunds ($53,546). These are offset by increasing new revenue ($151,391) and decreasing reserves ($339,746). Attachment 1 Page 1 of 3 M E M O R A N D U M City of Springfield Date: 1/25/2013 To: Gino Grimaldi COUNCIL From: Bob Duey and Paula Davis BRIEFING Subject: SUPPLEMENTAL BUDGET REQUEST MEMORANDUM ISSUE: At various times during the fiscal year the Council is requested to make adjustments to the annual budget to reflect needed changes in planned activities, to recognize new revenues, or to make other required adjustments. These adjustments to resources and requirements change the current budget and are processed through supplemental budget requests scheduled by the Finance Department on an annual basis. This is the second of three scheduled FY13 supplemental budget request to come before Council. The supplemental budget being presented includes adjusting resources and requirements in the General, Street, Special Revenue, Transient Room Tax, Community Development, Sanitary Sewer Capital, Development Projects, SDC Sanitary Sewer Reimbursement , SDC Sanitary Sewer Improvement, SDC Transportation Reimbursement, SDC Transportation Improvement, Insurance, and Vehicle & Equipment Funds. The City Council is asked to approve the attached supplemental Budget Resolution. COUNCIL GOALS/ MANDATE: Financially Responsible and Stable Government Services BACKGROUND: Supplemental budgets may be used to meet unexpected needs or to spend revenues not anticipated at the time the original budget was adopted. In accordance with Oregon budget law, notification of this supplemental budget and hearing is made no later than five calendar days before the public meeting. A public hearing is only required when a supplemental budget request changes total appropriations within a fund by 10% or greater. The requested supplemental budget does not exceed the 10% requirement in any of the funds. The attached information identifies the individual items that are included in the February 04, 2013 Supplemental Budget request. Changes to the budget included in this request fall into three general categories: Re- appropriation or carryovers, reallocation of existing resources, and new appropriation requests. Of these three categories, re-appropriations can be considered “housekeeping” type adjustments, as they are implementing decisions that Council has made in the past. Re-appropriations (or carryovers) represent money that was committed by contract in the previous year, but the contracted work was not completed within the fiscal year. The prior year’s remaining budget amount needs to be appropriated into this year’s budget to allow final payments to be made in the current year. Re-appropriations also include money for capital projects that were planned but not completed in the prior year. The projects are still scheduled to occur and so the funds are requested to be carried over to the current year’s budget. Attachment 1 Page 2 of 3 Reallocations move existing approved budget authority between funds or between departments. These adjustments can include moving money between departments for a capital project or reallocating reserves within the same fund. New appropriation requests include both expenditure items that are funded by new revenue, such as a new grant, and expenditure items that are being requested to be funded out of reserves. Those requests funded from reserves include items implementing Council direction, emerging issues identified by the City Executive Team that need to be resolved immediately, or to meet legal requirements. These requests will not significantly impact reserve balances. SUPPLEMENT BUDGET REQUESTS Re-appropriations for previously budgeted projects are requested, totaling $3,672,312: Insurance Fund As of January 1, the City is self-funding its employee health insurance program. Although mid-budget year the City benefit plan year is the calendar year and budget appropriation changes are necessary to accurately record and track expenses. There is no financial impact on the budget this fiscal year. $ 3,441,812 Sewer Capital Fund Authorizes the re-allocation of $230,000 from Sanitary Sewer Rehab Project Basin 22 to S. 2nd Street Sewer Replacement $ 230,000 General Fund Request would re-appropriate funds received from prior year from Mohawk area businesses to fund the sidewalk banner program $ 500 Re-allocations move budgetary authority within funds and departments totaling $132,046: General Fund Request to appropriate funding from reserves for two separate additional payments for Buckley House Sobering Detox Program not included in the base budget. July – Sept ($11,900) and Oct – April ($16,660). $ 28,500 SDC Sanitary Reimbursement and Improvement Funds,SDC Transportation Reimbursement and Improvement Funds Authorizes the transfer from reserves the resources necessary for refunds to developers for payments received from downtown development that qualified for Council/Urban Renewal Board authorized SDC reduction program. Amounts are Sanitary ($7,255) and Transportation ($22,787). Also appropriates $23,504 for pass-through payment of Local Sanitary Improvement SDC from Peace Health per June 2007 agreement. $ 53,546 Vehicle Equipment and Replacement Fund Request would authorized the Police Department to utilize additional vehicle replacement reserves to properly equip replacement patrol cars already purchased. . $ 50,000 Attachment 1 Page 3 of 3 The Following New appropriations of $36,290 are requested to be funded with a mix of new revenues and existing reserves. Development Projects Fund Request would recognize current revenue received from Developer towards Jasper Trunk Line Sewer Project, authorizes the transfer other previous revenues received toward this project from reserves and appropriates funding towards project costs. $ 36,290 New appropriation requests totaling $150,101 are requested to be funded with new revenues. General Fund and Special Revenue Fund Requests by the City Manager’s Office to recognize revenue received from promoting a Springfield EMS baseball game and the Nick Simmonds Run appropriating these resources to offset the cost. $ 3,920 General Fund Requests made the the City Manager’s Office to recognize the revenue received by outside agencies to help reimburse travel costs and appropriating these resources to offset the cost. $ 607 Street Fund Request would increase funding for traffic signal maintance by recognizing revenue from insurance reimbursement ($3,363) Walmart donation ($5,000) and IP traffic signal contract ($64,490) $ 72,853 Special Revenue Fund Recognizes revenue from two grants to be received by the Police Department –ODOT Speed ($6,400) and ODOT Seat Belt ($7,000). $ 13,400 Community Development Fund Requests corrects accounting errors made in processing Supplemental Budget #1 as part of the consolidation of the Public Works and Development Services. $ 59,321 New appropriations of $172,200 are requested to be funded with existing reserves. Special Revenue Fund Request authorizes the transfer of police forfeiture reserves to assist in the funding for the police telephone replacement project. $ 40,000 Vehicle and Equipment Replacement Fund Authorizes the use of vehicle replacement reserves to advance the replacement schedule of traffic motorcycles due to inceased cost of maintenance. Also increases use of equipment replacement reserves to replace mobile data terminals in police cars as part of the entire software package upgrade project. $ 132,200 RECOMMENDED ACTION: Adopt/not adopt the following resolutions: A RESOLUTION ADJUSTING RESOURCES AND REQUIREMENTS IN THE FOLLOWING FUNDS: General, Street, Special Revenue, Transient Room Tax, Community Development, Sanitary Sewer Capital, Development Projects, SDC Sanitary Sewer Reimbursement , SDC Sanitary Sewer Improvement, SDC Transportation Reimbursement, SDC Transportation Improvement, Insurance, and Vehicle & Equipment Funds. Attachment 2Page 1 of 5 ResourcesRequirements Miscellaneous Receipts847$ Operating Expenses: City Manager's Office29,847$ Total Operating Expense29,847$ General Fund cont.Non-Departmental Expenses: Reserves(29,000) Total Non Departmental Expenses(29,000)$ Total Resources Adjustments847$ Total Requirements Adjustments847$ ResourcesRequirements Contractual Revenue69,490$ Operating Expenses: Insurance Reimbursement3,363 Public Works72,853$ Total Resources Adjustments72,853$ Total Requirements Adjustments72,853$ CITY OF SPRINGFIELD FY 2012-2013 SUPPLEMENTAL BUDGET No. 2 A RESOLUTION ADJUSTING RESOURCES AND REQUIREMENTS IN THE FOLLOWING FUNDS: General, Street, Special Revenue, Transient Room Tax, Community Development, Sanitary Sewer Capital, Development Projects, SDC Sanitary Sewer Reimbursement , SDC Sanitary Sewer Improvement, SDC Transportation Reimbursement, SDC Transportation Improvement, Insurance, and Vehicle & Equipment Funds. Section 1. Resolution 12-09 is hereby adjusted as follows: General - Fund 100 Street - Fund 201 RESOLUTION NO._____________ NOW, THEREFORE, BE IT RESOLVED, by the Common Council of the City of Springfield, a Municipal Corporation of the State of Oregon, as follows: WHEREAS, this supplemental Budget #2 as amended by Supplemental Budget #1 Resolution #12-18,for the 2012-2013 fiscal year, amends Resolution #12-09. WHEREAS, the 2012-2013 fiscal year appropriations for the City of Springfield were made by Resolution No. 12- 09 dated June 18, 2012; and, WHEREAS, at various times during the fiscal year the Common Council is requested to make adjustments to the fiscal year budget to reflect needed changes in planned activities, to recognize new revenues, or to make other required adjustments; and, WHEREAS, the Common Council handles such requests for adjustment to the budget through Supplemental Budget Resolutions presented at public hearings at which the public may comment on such requests; and, Comments: Recognizes revenue received from sponsoring a special event and appropriates these funds towards the cost of the event. Recognizes revenue to be received for travel reimbursement and appropriates this revenue towards the travel costs. Authorizes the use of reserves to increase funding towards Buckley House as directed by Council. Attachment 2Page 2 of 5 Comments: Recognizes new revenue received for the following purposes: Insurance claim reimbursement, contribution by local business for traffic signal project and contractual payment received for traffic signal maintenance agreement. Authorized expenditure for traffic signal repair work. Attachment 2Page 3 of 5 ResourcesRequirements Grant Revenue13,400$ Operating Expenses: Police53,400$ Non-Departmental Expenses: Reserves(40,000) Total Non Departmental Expenses(40,000)$ Total Resources Adjustments13,400$ Total Requirements Adjustments13,400$ Requirements Misc Event Revenue3,680$ Operating Expenses: City Manager's Office3,680$ Total Resources Adjustments3,680$ Total Requirements Adjustments3,680$ ResourcesRequirements Grants59,321$ Operating Expenses: Development Services59,321$ Total Resources Adjustments59,321$ Total Requirements Adjustments59,321$ ResourcesRequirements -$ Capital Projects- Total Resources Adjustments-$ Total Requirements Adjustments-$ ResourcesRequirements Developer Contribution1,290$ Non-Departmental Expenses: Reserves(35,000)$ Capital Projects36,290$ Total Resources Adjustments1,290$ Total Requirements Adjustments1,290$ Development Projects - Fund 420 Transient Room Tax- Fund 208 Community Development - Fund 210 Comments: Corrects accounting errors made in processing Supplemental Budget #1 as part of the consolidation of the Public Works and Development Services Departments. Sanitary Sewer Capital - Fund 409 Comments: Authorizes the re-allocation of $230,000 from Sanitary Sewer Rehab Project Basin 22 to S. 2nd Street Sewer Replacement Comments: Recognizes revenue received from sponsoring a special event and authorized appropriating these funds towards the cost of the event. Special Revenue - Fund 204 Comments: Recognizes the Police Departments receipt of 2 grant to help pay for officer's time and authorized the use of police forfeiture reserves to assist in the funding to replace the Police telephone system. Attachment 2Page 4 of 5 ResourcesRequirements -$ Operating Expenses: Public Works4,875$ Total Operating Expense4,875$ Non-Departmental Expenses: Reserves(4,875) Total Non Departmental Expenses(4,875)$ Total Resources Adjustments-$ Total Requirements Adjustments-$ ResourcesRequirements -$ Operating Expenses: Public Works25,884$ Total Operating Expense25,884$ Non-Departmental Expenses: Reserves(25,884) Total Non Departmental Expenses(25,884)$ Total Resources Adjustments-$ Total Requirements Adjustments-$ ResourcesRequirements -$ Operating Expenses: Public Works4,906$ Total Operating Expense4,906$ Non-Departmental Expenses: Reserves(4,906) Total Non Departmental Expenses(4,906)$ Total Resources Adjustments-$ Total Requirements Adjustments-$ ResourcesRequirements -$ Operating Expenses: Comments: 22,787 Comments: Recognizes current revenue received from Developer towards Jasper Trunk Line Sewer Project, authorizes the transfer other previous revenues received toward this project from reserves and appropriates funding towards project costs. SDC Transportation Reimbursement - Fund 446 Comments: Authorizes the transfer from reserves the resources necessary for refunds to developers for payments received from downtown development that qualified for Council/Urban Renewal Board authorized SDC reduction program. SDC Transportation Improvement - Fund 447 Comments: Authorizes the transfer from reserves the resources necessary for refunds to developers for payments received from downtown development that qualified for Council/Urban Renewal Board authorized SDC reduction program. Sanitary Sewer Reimbursement SDC - Fund 442 Sanitary Sewer Improvement SDC - Fund 443 Attachment 2Page 5 of 5 Public Works17,881$ Total Operating Expense17,881$ Non-Departmental Expenses: Reserves(17,881) Total Non Departmental Expenses(17,881)$ Total Resources Adjustments-$ Total Requirements Adjustments-$ ResourcesRequirements Operating Expenses: Human Resources-$ Total Operating Expense-$ Non-Departmental Expenses: -$ Reserves- Total Non Departmental Expenses-$ Total Resources Adjustments-$ Total Requirements Adjustments-$ ResourcesRequirements Beginning Cash Balance-$ Operating Expenses: Police182,200$ Total Operating Expense182,200$ Vehicle & Equipment Fund cont.Non-Departmental Expenses: Reserves(182,200)$ Total Resources Adjustments-$ Total Requirements Adjustments-$ Total Resources Adjustments151,391$ Total Requirements Adjustments151,391$ Attest: Comments: Authorizes the Police Department to replace motorcycles from vehicle replacement reserves earlier than scheduled due to high maintain ace costs. Authorized the Police Department to utilize additional vehicle replacement reserves to properly equipment replacement patrol cars already purchased. Comments: As of January 1, the City is self-funding its employee health insurance program. Although mid-budget year the City benefit plan year is the calendar year and budget appropriation changes are necessary to accurately record and track expenses. There is no financial impact on the budget this fiscal year. Vehicle & Equipment - Fund 713 Comment: Authorizes the transfer from reserves the resources necessary for refunds to developers for payments received from downtown development that qualified for Council/Urban Renewal Board authorized SDC reduction program. Mayor Christine L Lundberg City Recorder Amy Sowa Section 2. This resolution shall take effect upon adoption by the Council and approval by the Mayor. Adopted by the Common Council of the City of Springfield this 4th day of February, 201 3 by a vote of ______for and ______against. Insurance - Fund 707