HomeMy WebLinkAboutItem 06 Supplemental Budget Resolution. AGENDA ITEM SUMMARY Meeting Date: 2/16/2015
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, SPECIAL REVENUE, BUILDING CODE, REGIONAL WASTEWATER REVENUE BOND CAPITAL PROJECT, STORM
DRAINAGE CAPITAL, REGIONAL WASTEWATER CAPITAL, STREET
CAPITAL, REGIONAL WASTEWATER, STORM DRAINAGE OPERATIONS, REGIONAL FIBER CONSORTIUM, 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 FY15 supplemental budget requests to come
before Council. The supplemental budget being presented includes adjusting resources and requirements in: General, Special Revenue, Building Code, Regional
Wastewater Revenue Bond Capital Project, Storm Drainage Capital, Regional Wastewater Capital, Street Capital, Regional Wastewater, Storm Drainage Operations, Regional Fiber Consortium, 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 Operating Expenditures of $484,011, Capital Projects $172,786, and Interfund
Transfers $200,000. These are offset by decrease Reserves ($550,136), and new revenue $306,661.
M E M O R A N D U M City of Springfield
Date: 10/20/2014
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 FY15 supplemental budget request to come before Council.
The supplemental budget being presented includes adjusting resources and requirements in the General, Special Revenue, Building Code, Regional Wastewater Revenue Bond Capital Project, Storm Drainage Capital, Regional Wastewater Capital, Street Capital, Regional Wastewater,
Storm Drainage Operations, Regional Fiber Consortium, 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 meeting 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 proceeding supplemental budget requests do not meet that threshold and therefore may be adopted in a regular session. Notification of this meeting was
published in the Springfield Times on Thursday, January 29th, 2015. The attached information identifies the individual items that are included in the February 17th, 2015 Supplemental Budget
request.
Changes to the budget included in this request fall into three general categories: reallocation of
existing resources, re-appropriations or carryovers, and new appropriation requests. Reallocations
move existing approved budget authority between funds or between departments. These adjustments can include reallocating reserves within the fund and beginning cash adjustments.
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 into the
current year. Re-appropriations also may 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.
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
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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 BY FUNDS In the proceeding Fund tables request will be reflected in two separate columns one for adjustments
& carryovers and a second for new request. The intent of this new format is to show items that are strictly housekeeping efforts separately from request for program changes.
General Fund – The proceeding table shows the impact of all General Fund requests on the FY15
Amended budget. The numbers at the right of the table correspond to the description of the request that are below the table.
FY15 Amended
Budget New Request Amended Budget
Resources
FY15 Amended Resources 43,072,258$ 43,072,258$
Beginning Cash -
State Conflagration Funds 11,892 11,892 (1)
Total General Fund 43,072,258$ 43,084,150$
Requirements
FY15 Amended Operating Budget 33,612,952$ 33,612,952$
Fire & Life Safety 21,084 21,084 (1,2)
Total Operating Budget 33,634,036$
Non-Departmental Expenses:
Transfers 845,821$ 845,821$
Debt Service 226,896 226,896
Contingency 600,000 600,000
Reserves 7,786,589 (9,192) 7,777,397 (2)
Total Non-Departmental 9,459,306$ 9,450,114$
Total General Fund 43,072,258$ 43,084,150$
General F100
1. The Fire Suppression Operation program may be expanded during a fiscal year at the request of the State to provide personnel and equipment to fight wildfires. This request is to recognize
revenue and expense for the Beaver Complex Fire in August of 2014.
2. The Fire Suppression program may be expanded during the fiscal year to provide specialized equipment to fight major structure fires. This request is for the use of General Fund reserves
for helicopter costs associated with the Swanson Mill Fire.
Special Revenue Fund – The proceeding table shows the impact of all Special Revenue Fund requests on the FY15 Amended budget. The numbers at the right of the table correspond to the description of the request that are below the table.
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FY15 Amended
Budget
Adjustment &
Carryovers New Request Amended Budget
Resources
FY15 Amended Resources 1,587,195$ 1,587,195$
OCF Gray Hoffman Grant 1,750 1,750 (1)
LAC Year of Stories 1,500 1,500 (1)
Ready to Read 7,608 7,608 (1)
Seat Belt Overtime Grant 5,000 5,000 (3)
DUII Overtime Enforcement Grant 3,600 3,600 (2)
Total Special Revenue Fund 1,587,195$ 1,606,653$
Requirements
FY15 Amended Operating Budget 829,191$ 829,191$
Library 2,630 10,858 13,488 (1)
Police 48,600 48,600 (2-3)
Total Operating Budget 891,279$
Non-Departmental Expenses:
Transfers -$
Reserves 758,004 (2,630) (40,000) 715,374 (1, 4)
Total Non-Departmental 758,004$ 715,374$
Total Special Revenue Fund 1,587,195$ 1,606,653$
Special Revenue F204
1. Request reallocates Heritage Outreach $1200 and Arts Commission $1430 funds which will be used to support Library programs. Request also recognizes new grants from OCF Gray
Hoffman, LAC Year of Stories and Ready to Read.
2. Allocation of a new Drunk Driving Enforcement Grant. The City has been awarded $3,600 in grant funding to be used in focused enforcement of drunken driving laws. Approval of this
request will allocate the grant funds to the Traffic Team's overtime budget and provide funding for an additional 72 hours of DUII enforcement. The Department will use this grant to increase the number of DUII arrests by focusing overtime patrols during events and times when drunk
driving is likely to occur. Traffic safety and enforcement is a quartile 1 program, and DUII enforcement is a significant tool in keeping roads safe. 3. Allocation of new Safety Belt Overtime Enforcement Award. The City has been awarded
$5,000 to be used in funding overtime specifically focused on enforcing seat belt laws. Approval of this request will allocate the awarded grant funds to the Traffic Team's overtime budget and provide funding for an additional 100 hours of Seat Belt enforcement. The
Department will use this grant to increase compliance with seat belt laws by specifically focusing enforcement on seat belt violations during grant funded patrol shifts. Traffic
enforcement is a quartile 1 program, and enforcement of seat belt laws is a significant tool in
reducing injuries on the road. 4. A project to replace the Police Telephone Switch has been underway for the past two fiscal
years and will be completed early in calendar 2015. This telephone switch supports normal and
emergency operations of the Police Dispatch and Call taking centers, and provides continuity of service during power outages that can affect City Hall. Approval of this request will move
funds from Federal Forfeiture Reserves into an operating budget to pay for any costs associated
with the Police Telephone Switch replacement project which cannot be covered by the Fund 428 Police Building Capital Bond Project. Federal Forfeiture funds will be used only after
available Building Bond funds are expended. The Department intends to utilize remaining funds from the construction bond to complete this project, but in the case that there are not
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sufficient funds available there, the Department has federal forfeiture funds that are also
available and appropriate for this project. This funding plan has been developed as part of the
long range financial resource management program in an effort to balance needs with available and appropriate resources.
Street Capital Fund – The proceeding table shows the impact of all Street Capital Fund requests on
the FY15 Amended budget. The numbers at the right of the table correspond to the description of the request that are below the table.
FY15 Amended
Budget New Request Amended Budget
Resources
FY15 Amended Resources 1,157,382$ 1,157,382$
ROW Acquisition Reimbursement 30,811 30,811 (1)
Developer Contributions 30,000 30,000 (2)
Total Street Funds 1,157,382$ 1,218,193$
Requirements
FY15 Amended Operating Budget 832,221$ 832,221$
Development & Public Works -
Total Operating Budget 832,221$
Non-Departmental Expenses:
Transfers -$ -$
Reserves 325,161 (55,000) 270,161 (3)
Total Non-Departmental 325,161$ 270,161$
Total Capital Projects 650,322$ 115,811 115,811$ (1-3)
Total Street Funds 1,157,382$ 1,218,193$
Street Capital F434
1. The Capital Projects-Streets program implements the City's Street and Transportation Capital
Improvement Program, and makes recommendations for street preservation based on outputs from the City's asset management system. Capital Projects-Streets funds were deposited with
the Oregon Department of Transportation (ODOT) in FY14 to purchase easements to facilitate
the construction of a path between the terminus of the South Bank Viaduct and Franklin Boulevard known at the South Bank Path Extension. Easements for the project cost less than
estimated, and the City received a reimbursement from ODOT in FY15 which was deposited
into Fund 434. This supplemental budget action recognizes the refund of the unspent portion of the City deposit as revenue, as well as an increase in the path expenditures for FY15. ODOT
currently has the Path Extension Project advertised for bids. The Engineer's estimate is higher
than originally thought when the project was planned several years ago, so it is necessary to increase the project's budget to meet the City's obligated construction deposit later in FY15.
2. The Street Lighting program is responsible for design and implementation of the City's street
lighting system. As part of the development and construction of the Candlewood Suites, DHRU, LLC paid the City $30,000 as a fee in lieu of constructing lighting along their frontage.
This program will construct the street lighting in this fiscal year and needs to add the budget for the project. 3. As part of Supplemental Budget #1 the Council approved funding in support the Street Capital
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Projects program. This funding was dedicated to crack sealing and slurry sealing local streets
(Capital Project P21108). Due street condition, additional crack sealing was necessary, and the
City Council approved funding for the additional expense with approval of change order #1 on 12/1/2014. This supplemental budget request provides funding for the Council approved
change order as well as staff time that was required to execute and facilitate the contract.
Regional Wastewater Funds – The proceeding table shows the impact of all Regional Wastewater Funds requests on the FY15 Amended. The numbers at the right of the table correspond to the description of the request that are below the table.
FY15 Amended
Budget
Adjustment &
Carryovers New Request Amended Budget
Resources
FY15 Amended Resources 139,480,806$ 139,480,806$
Internal Fund Transfer 200,000 200,000 (1)
Internal Engineering Fees -
Total Regional Funds 139,480,806$ 139,680,806$
Requirements
FY15 Amended Operating Budget 18,903,913$ 18,903,913$
Development & Public Works (200,000) (200,000) (1)
Total Operating Budget 18,703,913$
Non-Departmental Expenses:
Transfers 13,806,701$ 200,000 14,006,701$ (1)
Debt Service 1,457,281 1,457,281
Unappropriated Ending Balance - -
Reserves 90,446,741 - (117,328) 90,329,413 (2-4)
Total Non-Departmental 105,710,723$ 105,793,395$
Total Capital Projects 14,866,170$ 200,000 117,328 15,183,498$ (1-3)
Total Regional Funds 139,480,806$ 139,680,806$
Operations F612, Revenue Bond Capital Projects F412, and Capital F433
1. The PBB Regional Capital Projects Development and Delivery program provides capital project planning, design; bid process and contract award; Capital budget development, user
rates and models; Capital project development, construction, inspections and construction
management, capital project acceptance and recordkeeping for the Regional Wastewater system. This supplemental budget will increase the Major Capital budget by decreasing
material and services operating budget. This is to fund preliminary design and engineering
work to begin now to replace the cogeneration engine and control system at the WPCF. The remaining project cost of $2.7 million will be requested in the FY2015-16 budget.
2. This supplemental budget will increase funding to the Influent Pumping & Headwork
Expansion project $107,748 from reserves in order to cover additional job order contract costs expected since initial budget planning. The necessary changes to the project have been
discussed in detail with the MWMC Commission at the December, 2014 Commission meeting. 3. Request will increase funding to the Mixing Zone Study $9,580 project that was completed, but one invoice was outstanding due to the way it was submitted. We let the remaining dollars roll
back into reserves before we discovered this last invoice. 4. The PBB Program Regional Wastewater Administration provides for budget development, rate
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setting, financial planning and management of the Regional Wastewater system. It also
coordinates intergovernmental activities and Commission support. The program manages
several State Revolving Fund Loans. This supplemental budget will increase the loan reserve amounts required by the State of Oregon. As the loans and amortization schedules become
final, the reserve requirements are adjusted. This request reallocates $28,042 from Operating
Reserves to the SRF Loan Reserves. Storm Drainage Funds – The proceeding table shows the impact of all Storm Drainage Funds requests on the FY15 Amended budget. The numbers at the right of the table correspond to the
description of the request that are below the table.
FY15 Amended
Budget New Request Amended Budget
Resources
FY15 Amended Resources 25,797,671$ 25,797,671$
Total Storm Funds 25,797,671$ 25,797,671$
Requirements
FY15 Amended Operating Budget 4,922,916$ 4,922,916$
Development & Public Works (60,353) (60,353) (1)
Total Operating Budget 4,862,563$
Non-Departmental Expenses:
Transfers 1,000,000$ 1,000,000$
Debt Service 703,675 703,675
Reserves 12,768,464 120,706 12,889,170 (1)
Total Non-Departmental 14,472,139$ 14,592,845$
Total Capital Projects 6,402,616$ (60,353) 6,342,263$ (1)
Total Storm Funds 25,797,671$ 25,797,671$
Operations F617 and Capital F425
1. In 2014, after the rehabilitation of the Springfield Mill Race was completed, the U.S. Army Corps of Engineers published the Mill Race Operations and Maintenance Manual. The manual
stipulates annual requirements for the Mill Race which requires funding be budgeted into the Surface Drainage Maintenance program operations and maintenance budget. This supplemental budget request reduces funding in the Capital Program-Stormwater for Mill Race Study and
Design project and increases funding operations for the required funding of the Springfield Mill Race. This request will remove the recurring annual funding in the capital fund that has typically been used for operations and maintenance activities during construction. The FY16 budget will
show the new annual budget for the Springfield Mill Race operations and maintenance as an operating expenditure occurring in the program.
All Other Funds – The proceeding table shows all other funds with supplemental budget requests. The numbers at the right of the table correspond to the description of the request that are below the
table.
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FY15 Amended
Budget
Adjustment &
Carryovers New Request Amended Budget
Resources
FY15 Amended Resources 11,833,620$ 11,833,620$
Lease Income 8,500 8,500 (1)
Continuing Education Fee 6,000 6,000 (2)
Total All Other Funds 11,833,620$ 11,848,120$
Requirements
FY15 Amended Operating Budget 3,979,770$ 3,979,770$
Development & Public Works 30,000 52,272 82,272 (1-2, 5-6)
Information Technology 50,000 50,000 (4)
Police 328,920 328,920 (3)
Total Operating Budget 4,440,962$
Non-Departmental Expenses:
Transfers -$
Debt Service 604,217 604,217
Unappropriated Ending Balance -
Reserves 7,249,633 (30,000) (416,692) 6,802,941 (1,3-6)
Total Non-Departmental 7,853,850$ 7,407,158$
Total All Other Funds 11,833,620$ 11,848,120$
Building Code F224, Regional Fiber Consortium F629 and Vehicle & Equipment F713
1. The Regional Fiber Consortium is financially managed by the City of Springfield and is part of
the Licensing and Fees program. As of the Spring 2014 consortium meeting the board
approved, and subsequently the MPC approved on July 3, the addition of an annual grant expenditure of $40,000 and the LCOG facilitator's expenses for Telecommunication
organizations; NATOA, OATOA, membership and conference attendance. These expenditures will be annual. The Consortium also approved the additional fiber use contract for Douglas FastNet and a new fiber contract for CASCO.
2. Building Permit Inspection programs are responsible for the inspections of all building permits; electrical, structural, plumbing, and mechanical. In FY14 the programs added a continuing
education fee to help facilitate the educational needs of the inspectors. This fee revenue and
expenditures need to be recognized in FY15's budget in order to provide for the educational training funding. This training will allow the inspectors to maintain their licensing and remain current on building inspection codes.
3. This moves funds from Police Vehicle Reserves into the operating budget to pay for replacement of patrol vehicles which have been ordered and are expected to arrive this fiscal
year. Request also includes funds to replace a patrol vehicle which was totaled and funds the
replacement of the Animal Control Van which is beyond its useful life. The Vehicle Reserves fund remains healthy and has sufficient reserves to fund these replacements.
4. The Network Administration program maintains core network infrastructure including local
and wide area networks and city-wide wireless access. The program is in need of a city-wide audit of the network infrastructure to help identify safety issues within the system. This
supplemental budget request will fund the audit and will be the first step in the redesign and rebuild of the Network Administration program to support rapidly growing needs. 5. A mid-year addition of the CECOP postion requires that another computer be ordered and a
traffic operations staff laptop was scheduled to be replaced in FY14 but was missed during the
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ordering process. This supplemental budget request will allow for the purchase of both with
the use of the departments computer reserves which remain suffiencint to fund these.
6. The programs that encompass the infrastructure systems rely on certain equipment to perform maintenance and preservation of the systems. The F.I.R.S.T. truck serves all of Operations'
infrastructure programs. This truck was totaled when a tree fell on it during the February 2014
Snow and Ice Storm. This vehicle also serves as our Emergency Response Team (ERT) vehicle responding to after hour emergencies, hazardous incidents and serves as our daily incident
response vehicle serving the Community in all of Operations' programs. The truck was covered
under insurance and coverage for the accident was paid to the City's insurance fund. In May 2014 a Supplemental Budget was prepared for the F.I.R.S.T truck replacement but due to
procurement and shipping delays the vehicle did not arrive until just recently, causing the insurance funds to drop into F713 reserves. This supplemental budget will enable the transfer of these reserves and allow for the payment of the truck to occur in FY15.
RECOMMENDED ACTION:
Hold a regular session and adopt/not adopt the following resolutions:
A RESOLUTION ADJUSTING RESOURCES AND REQUIREMENTS IN THE FOLLOWING FUNDS: General, Special Revenue, Building Code, Regional Wastewater Revenue Bond Capital
Project, Storm Drainage Capital, Regional Wastewater Capital, Street Capital, Regional
Wastewater, Storm Drainage Operations, Regional Fiber Consortium, Vehicle & Equipment Funds.
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