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HomeMy WebLinkAboutItem 09 Supplemental Budget Resolution AGENDA ITEM SUMMARY Meeting Date: 10/21/2013 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: Provide Financially Responsible and Innovative Government Services 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, JAIL OPERATIONS, SPECIAL REVENUE, TRANSIENT ROOM TAX, COMMUNITY DEVELOPMENT, BUILDING CODE, FIRE LOCAL OPTION LEVY, POLICE LOCAL OPTION LEVY, BANCROFT REDEMPTION, BOND SINKING, SANITARY SEWER CAPITAL, REGIONAL WASTEWATER REVENUE BOND CAPITAL PROJECT, DEVELOPMENT ASSESSMENT CAPITAL, DEVELOPMENT PROJECTS, STORM DRAINAGE CAPITAL, POLICE BUILDING BOND CAPITAL PROJECT, REGIONAL WASTEWATER CAPITAL, STREET CAPITAL, STORM DRAINAGE IMPROVEMENT SDC, STORM DRAINAGE REIMBURSEMENT SDC, SANITARY SEWER REIMBURSEMENT SDC, SANITARY SEWER IMPROVEMENT SDC, SDC REGIONAL WASTEWATER REIMBURSEMENT, SDC REGIONAL WASTEWATER IMPROVEMENT, SDC TRANSPORTATION REIMBURSEMENT, SDC TRANSPORTATION IMPROVEMENT, SANITARY SEWER OPERATIONS, REGIONAL WASTEWATER, AMBULANCE, STORM DRAINAGE OPERATIONS, BOOTH-KELLY, REGIONAL FIBER CONSORTIUM, INSURANCE, VEHICLE & EQUIPMENT, AND SDC ADMINISTRATION FUNDS. ISSUE STATEMENT: At various times during the fiscal year the Council is requested to adjustments 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 first of three scheduled FY14 supplemental budget requests to come before Council. The supplemental budget being presented includes adjusting resources and requirements in: General, Street, Jail Operations, Special Revenue, Transient Room Tax, Community Development, Building Code, Fire Local Option Levy, Police Local Option Levy, Bancroft Redemption, Bond Sinking, Sanitary Sewer Capital, Regional Wastewater Revenue Bond Capital Project, Development Assessment Capital, Development Projects, Storm Drainage Capital, Police Building Bond Capital Project, Regional Wastewater Capital, Street Capital, Storm Drainage Improvement SDC, Storm Drainage Reimbursement SDC, Sanitary Sewer Reimbursement SDC, Sanitary Sewer Improvement SDC, SDC Regional Wastewater Reimbursement, SDC Regional Wastewater Improvement, SDC Transportation Reimbursement, SDC Transportation Improvement, Sanitary Sewer Operations, Regional Wastewater, Ambulance, Storm Drainage Operations, Booth-Kelly, Regional Fiber Consortium, Insurance, Vehicle & Equipment, and SDC Administration 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 Operating Expenditures of $613,652, increase in Capital Projects $109,504, change in Reserves $8,473,273 and increase in Un-appropriated Ending Fund Balance $28,012. These are offset by beginning cash adjustments $8,174,713, carry forwards of current grants $764,206, and new revenue $285,522. Attachment 1 Page 1 of 5 M E M O R A N D U M City of Springfield Date: 10/14/2013 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 first of three scheduled FY14 supplemental budget request to come before Council. The supplemental budget being presented includes adjusting resources and requirements in the General, Street, Jail Operations, Special Revenue, Transient Room Tax, Community Development, Building Code, Fire Local Option Levy, Police Local Option Levy, Bancroft Redemption, Bond Sinking, Sanitary Sewer Capital, Regional Wastewater Revenue Bond Capital Project, Development Assessment Capital, Development Projects, Storm Drainage Capital, Police Building Bond Capital Project, Regional Wastewater Capital, Street Capital, Storm Drainage Improvement SDC, Storm Drainage Reimbursement SDC, Sanitary Sewer Reimbursement SDC, Sanitary Sewer Improvement SDC, SDC Regional Wastewater Reimbursement, SDC Regional Wastewater Improvement, SDC Transportation Reimbursement, SDC Transportation Improvement, Sanitary Sewer Operations, Regional Wastewater, Ambulance, Storm Drainage Operations, Booth-Kelly, Regional Fiber Consortium, Insurance, Vehicle & Equipment, and SDC Administration 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; however the City of Springfield practice has been to process all supplemental budget requests through a public hearing for Council approval and adoption. Notification of this public hearing was published in the Register Guard on Friday, October 11th, 2013. The attached information identifies the individual items that are included in the October 21st, 2013 Supplemental Budget request. Changes to the budget included in this request fall into three general categories: reallocation of existing resources, new appropriation requests and erratum from previous supplemental budget resolutions. 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. Attachment 1 Page 2 of 5 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 Beginning Cash adjustments total $11,627,786. Usually Beginning Cash adjustments occur because prior year expenses were not as great as predicted, resulting in more money being available in the new year. When Beginning Cash is greater than expected, the balance is normally placed in Reserves. The largest Beginning Cash adjustments usually occur in the 18 capital project funds. In February or March, the budget preparers attempt to estimate the status of their capital projects as of the end of the fiscal year (June 30), but a variety of factors can result in projects being ahead or behind schedule. For this supplemental budget, the Capital Project fund adjustments total $4,991,135. These amounts will most likely be re-appropriated to the respective capital project to complete the construction in progress. The General Fund contributed an increase of $124,233 to Beginning Cash while the remaining funds had adjustments totaling $6,512,412. Re-allocations move budgetary authority within funds and departments totaling ($1,159,604): Sanitary Sewer Capital, Storm Drainage Capital, Street Capital Fund and Storm Drainage Improvement SDC Request reallocates funds from projects planned for payment in FY14 however FY13 expenditures were more than estimated. Reallocation moves budget from Capital Projects to Reserves for: 10th & N Street ($350,000), 58th Street Flow Control Facility ($97,770), Island Park ($11,880), Lower Mill Race ($4,669), and Mill Race Stormwater Facility. (541,321) SDC Administration Reallocation for FY14 Adopted budget erratum for the SDC Transportation Methodology. The methodology will analyze the recommended projects in the updated and revised Transportation System Plan to determine the SDC cost basis for growth during the 20-year planning horizon. 15,000 General, Street, Jail Operations, Special Revenue, Transient Room Tax, Community Development, Building Code, Fire Levy, Police Levy, Bancroft, Development Assessment Capital, Sanitary Sewer Ops, Regional WW, Ambulance, Booth-Kelly, Insurance, Vehicle & Equipment and SDC Administration After the adoption of FY14 Budget PERS/OPSRP cost where determined to be lower than expected, request lowers expenditures and places savings into reserves. (1,174,604) Attachment 1 Page 3 of 5 Re-appropriations for previously budgeted projects are requested, totaling $2,397,910: Special Revenue Requests carries forward revenue and expenditures for the remaining Grant Funds that were not fully expensed in FY13: SHOP Grant, 2010 Local JAG Grant, 2011 JAG Grant, OACP Traffic Safety Grant, OACP Seat Belt Grant, 2013 JAG Grant, K9 Donations, and Comcast Grant. 71,542 Community Development Carries forward HOME and CDBG program income from FY13. For FY14, we anticipate receiving $383,654 in new CDBG revenue, $237,924 in new HOME revenue, and $102,617 in HOME program income. 994,888 Sanitary Sewer Capital Request re-appropriates capital projects funds not used in FY13 into current year for Franklin Blvd Sewer Extensions ($21,389). 21,389 Development Projects DPW Operations Division is requesting a carryover from FY13 to FY14 to complete projects originally scheduled last year: City Hall entry stair upgrades, Elevator upgrade at City Hall, Depot re-roof, and Fire Station upgrades. 194,689 Storm Drainage Capital Request re-appropriates funds for the capital projects not used in FY13 into current year: Channel 6 ($21,014), Mill Race FIRM update, Channel 6 FIRM Update, and 42nd Street Dike Study, and Firing Range Decommissioning ($22,584). 46,598 Street Capital Request re-appropriates funds for the capital projects not used in FY13 into current year: Gateway Street Overlay ($175,000), Glenwood Bridge Repair and Glenwood Riverfront Path NEPA ($30,000). 206,000 Storm Drainage Improvement SDC Request re-appropriates funds for the capital projects not used in FY13 into current year: S 59th & Aster St Drainage ($17,516), Channel 6 ($1,430) and Island Park ($12,359). 31,305 SDC Transportation Improvement Request re-appropriates funds for the capital projects not used in FY13 into current year: Transportation System Plan. 35,000 Regional Wastewater Requested carryover is to fund consulting fees for MWMC-Galardi contract approved by the Commission on September 13th. Consulting services is to support intended improvements to the regional rate model related to long-term forecasting of sewer billing units. 8,080 Attachment 1 Page 4 of 5 Re-appropriations continued: Storm Drainage Operations Fund Re-appropriation required for purchase agreement with Measurement Specialties. To fund the purchase of flow measurement devices/probes originally contracted in FY13 and anticipated for delivery in FY14. 6,822 Vehicle & Equipment Re-appropriates funding to replace mobile data terminals hardware in patrol vehicles in preparation for implementation of the new public safety software system. These funds were originally budgeted in FY13, but the decision was made to delay purchase of the mobile data terminals until closer to 'go-live' on the new system, which is planned for November of 2013. 132,750 Vehicle & Equipment Allocates funding to complete purchase and replacements of Police Patrol and ISB Vehicles. These funds were originally budgeted in FY13; issues with the vendor have delayed the arrival of acceptable vehicles. Request re-appropriates remaining funds from the FY13 order to complete last year's approved vehicle purchases in early FY14. 174,761 Vehicle & Equipment Carry forward is being requested for the purchase of two new ambulances that were not delivered in FY13. Project was fully funded but delays in production precluded delivery before year end. Delivery is expected in November of 2013, for fiscal year 2013/2014. 390,000 General, Street, Sanitary Sewer Operations, Request re-appropriates FY13 Asset Management budget to FY14 to fund Oracle Licensing and Autodesk & Infor contracts started in prior year but not completed 77,000 General and Special Revenues Requests carry forward revenue and expenditures for the remaining Arts Commission Grant and re-appropriates Library's book budget that was not fully expensed in FY13. 7,086 The Following New appropriations of $156,409 are requested to be funded with a mix of new revenues and existing reserves. Special Revenue Allocated new grant funding from the state ($108,409), along with forfeiture reserves for the required match funding, to implement an electronic citation software module as part of the new suite of public safety products. This will allow Police Officers to submit traffic citations electronically and eliminates the need for redundant data enter by police records and municipal court staff. 156,409 Attachment 1 Page 5 of 5 New appropriation requests totaling $143,000 are requested to be funded with new revenues. Special Revenue Allocates new grant funds from state award to enforce DUII laws with an emphasis on large community events such as football games. Grant funds will pay overtime costs for officers assigned to DUII patrols. 3,000 Street Capital Recognizes new revenue in FY14 from ODOT IGA for the Main Street Pedestrian Crossing. 120,000 Street Capital (General transfer?) Recognizes revenue from Lane Transit District for City staff time being reimbursed on the Main-McVay Transit Feasibility Study. 20,000 New appropriations of $21,500 are requested to be funded with existing reserves. General Development Review staffing need has increased due to increase in application activity starting this summer. Three developments are expected in Glenwood. Request is to temporarily increase staffing to accommodate activity. 16,000 Vehicle & Equipment Request approves funds for Municipal Court's scanner that is on schedule for replacement. 5,500 RECOMMENDED ACTION: Hold a public hearing and adopt/not adopt the following resolutions: A RESOLUTION ADJUSTING RESOURCES AND REQUIREMENTS IN THE FOLLOWING FUNDS: General, Street, Jail Operations, Special Revenue, Transient Room Tax, Community Development, Building Code, Fire Local Option Levy, Police Local Option Levy, Bancroft Redemption, Bond Sinking, Sanitary Sewer Capital, Regional Wastewater Revenue Bond Capital Project, Development Assessment Capital, Development Projects, Storm Drainage Capital, Police Building Bond Capital Project, Regional Wastewater Capital, Street Capital, Storm Drainage Improvement SDC, Storm Drainage Reimbursement SDC, Sanitary Sewer Reimbursement SDC, Sanitary Sewer Improvement SDC, SDC Regional Wastewater Reimbursement, SDC Regional Wastewater Improvement, SDC Transportation Reimbursement, SDC Transportation Improvement, Sanitary Sewer Operations, Regional Wastewater, Ambulance, Storm Drainage Operations, Booth-Kelly, Regional Fiber Consortium, Insurance, Vehicle & Equipment, and SDC Administration Funds.