HomeMy WebLinkAboutItem 17 Supplemental Budget Resolution
AGENDA ITEM SUMMARY
SPRINGFIELD
CITY COUNCIL
Meeting Date:
Meeting Type:
Department:
Staff Contact:
Staff Phone #:
Estimated Time:
March 17, 2008
Regular Meeting
Finance ,~
BobBrew.~
726-3698 .
30 minutes
ITEM TITLE:
I
SUPPLEMENTAL BUDGET RESOLUTION
ACTION REQUESTED: Hold a public hearing and adopt/not adopt the following resolution:
A RESOLUTION ADJUSTING RESOURCES AND REQUIREMENTS IN THE
FOLLOWING FUNDS: GENERAL, SPECIAL REVENUE, TRANSIENT ROOM TAX,
DEVELOPMENT PROJECTS, POLICE BUILDING BOND CAPITAL, REGIONAL
W ASTEW A TER CAPITAL, STREET CAPITAL, BOOTH-KELLY, REGIONAL FIBER
CONSORTIUM, INSURANCE, AND VEHICLE & EQUIPMENT.
ATTACHMENTS:
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 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,
The supplemental budget being presented includes adjusting resources and requirements in
the General Fund, Special Revenue Fund, Transient Room Tax Fund, Development Projects
Fund, Police Building Bond Capital Fund, Regional Wastewater Capital Fund, Street Capital
Fund, Booth-Kelly Fund, Regional Fiber Consortium Fund, Insurance Fund, and Vehicle &
Equipment Fund..
The City Council is asked to approve the attached Supplemental Budget Resolution.
Attachment A. Council Briefing Memorandum
Attachment B. Supplemental Budget Resolution
DISCUSSION/
FINANCIAL IMP ACT:
The overall financial impact of the Supplemental Budget Resolution is to increase total
appropriations by $460,206 and increase total FTE by 1.0.
CITY OF SPRINGFIELD
FINANCE DEPARTMENT
Date:
To:
From:
March 12,2008
Gino Grimaldi, City Manager
Bob Brew, Budget Officer ~
COUNCIL
BRIEFING
MEMORANDUM
Subject:
SUPPLEMENTAL BUDGET REQUEST
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 third of four scheduled FY08 supplemental requests to come before Council. The
supplemental budget being presented includes adjusting resources and requirements in the General Fund,
Special Revenue Fund, Transient Room Tax Fund, Development Projects Fund, Police Building Bond
Capital Projects Fund, Regional Wastewater Capital Fund, Booth-Kelly Fund, Regional Fiber
Consortium Fund, Insurance Fund, and Vehicle & Equipment Fund.
The City Council is asked to approve the attached Supplemental Budget Resolution
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 Tuesday, March 11, The information that follows
identifies the individual items that are included in the March 17,2008 Supplemental Budget request.
Changes to the budget included in this request fall into three categories: Adjustments to beginning cash,
new appropriation requests, and internal transfers between departments or between capital projects.
Adjustments to beginning cash are calculated for each fund. These adjustments reconcile the budgeted
cash balance of each fund to the actual balance. When the actual cash balance of a fund is found to be
greater than the estimate found in the budget, the surplus is usually put into the fund's reserves.
Likewise, when actual cash is less than budgeted, expenses or reserve balances are reduced to "re-
balance" the fund. Normally this type of transaction only occurs during the first Supplemental Budget of
the year and considered merely "housekeeping".
_ Attachment A - Page 1 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 Cocmeil 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.
The budget is adopted with "legal appropriation levels" limited by fund and department; in other words,
staff can move budgetary authority within a single fund and department without Council action, but to
move budgets between funds or between departments requires Council approval. While moving money
between capital projects does not legally require Council approval, the City's past practice has been to
submit significant transactions of this type to Council during the Supplemental Budget process.
Included in this supplemental budget action is a request to increase total City FTE by 1,0. The Public
Works Department has received permission from the City Manager to hire a GIS Technician during the
current fiscal year. This position needs to be filled this year to enable the Department to remain current
on high-priority development and planning projects including, potentially, Glenwood and Marcola
Meadows. No additional funds are sought, as the Department has sufficient savings from vacancies to
cover the costs for the current fiscal year. This position will be in the City Managers' Proposed Budget
to be presented to the Budget Committee in April.
SUPPLEMENT BUDGET REQUESTS
Beginning Cash adjustments total $12,598.
Fund Description Amount
Regional Fiber Reverses beginning cash entry recorded on Supplemental Budget ($12,598)
Consortium # 1. Revenue was incorrectly credited instead of being debited,
Fund
New appropriations of $465,979 are requested to be funded with new revenues, These include:
Fund
General Fund
General Fund
Special
Revenue Fund
Special
Revenue Fund
General Fund
Descri tion Amount
Increases postage fee line item related to required development 6,099
notifications, offset by postage fees already collected this fiscal
ear.
This action recognizes a donation of $2,000 from Jerry's Home 2,000
Improvement for the City's participation in their Fire Safety
Saturday event and allocates the proceeds to Program Expense
within the Fire and Life Safe De artment.
This action recognizes a grant in the amount of $64,91 0 specifically 64,910
to be used for Fire and Life Safety Department Special Teams
equipment and training to respond to structural collapses. There is
no re uired Ci match.
This action recognizes an Assistance to Firefighters grant in the 110,116
amount of $110,116. The funds will be used to purchase thermal
imaging cameras, apparatus bay exhaust ventilation systems and
fire hose nozzles. There is a 20% local match already budgeted by
Fire and Life Safe .
The Springfield Fire and Life Safety Department received payment 5,661
from the State of Oregon for the work City employees did in
su ressin two forest fires, These a ents will be used to a
Attachment A - Page 2 of 5
General Fund
Special
Revenue Fund
General Fund
Special
Revenue Fund
Special
Revenue Fund
Development
Projects Fund
Regional Fiber
Consortium
Fund
back the FLS Department for the vehicle and overtime expenses the
Department incurred while employees worked on these fires.
The Springfield Fire and Life Safety Department received payment
from the State of Oregon for the City's participation in the
TOPOFF4 exercises. (TOP OFF stands for Top Officials and is the
nation's premier terrorism preparedness exercise, involving top
officials at every level of government, as well as representatives
from the international community and private sector.) These
payments from the State of Oregon will be used to pay back the
FLS Department for the vehicle and overtime expenses the
Department incurred while employees participated III these
exercIses.
The Springfield Fire and Life Safety Department received a grant
from the State of Oregon Homeland Security program for work
associated with preparing for the 2008 Olympic Trials, This grant
will be used to pay back the FLS Department for the overtime
expenses the Department incurred while employees participated in
preparation training for the trials,
Increases commission fee paid to collection agencies for collecting
past-due fines and fees from the Municipal Court. The revenue
from these collections is approximately three times the cost and a
$12,000 expense will generate nearly $36,000 in revenue.
Uses current-year revenues and prior-year revenues held in reserve
to purchase a new canine for the Police Department. Some
donations made to the Police Department are specifically
designated by the donors for the K9 Program. This year's
donations are $2,400, The purchase of this dog will also require
the use of $7,600 in donations from prior years which are currently
held in reserve.
Appropriates a $1,500 donation from Walmart to the Police
Department toward the purchase of a radio for use in the vehicle
theft abatement program.
Allocates a portion of an arbitrage refund related to the 1995
General Obligation bond issue to be used toward the purchase of
radios for the Police Department ($46,240). The balance of the
arbitrage refunded money ($71,420) will be placed in reserve for
future proiects.
On November 26, 2007, the Regional Fiber Consortium merged
with the Fiber South Consortium and assumed all their assets and
obligations. Of the $85,000 in resources budgeted to be received,
$5,000 will be placed in reserve and the remaining $80,000 will be
used to fund operations.
5,372
45,661
] 2,000
10,000
],500
] 17,660
85,000
New appropriations of $3,237,770 are requested to be funded with existing reserves.
Fund Description Amount
Transient Room Creates a budget in the Transient Room Tax Fund for the City's $50,000
Tax Fund estimated costs associated with deferred maintenance at the
Springfield Depot. Funding source is the Tourism Promotion
Reserve in the Transient Room Tax Fund.
Insurance Fund City management has chosen a current practice When the City 149,003
negotiates health insurance premiums, the insurance carrier is asked
Attachment A - Page 3 of 5
General Fund
and Transient
Room Tax Fund
General Fund
Vehicle &
Equipment
Fund
General Fund
General Fund
Vehicle &
Equipment
Fund
to establish a minimum premium and a maximum premium, and the
City pays one or the other (or in between) based on actual claims
experience during the year. This current practice limits the City's
exposure for large claim years, but rewards the City for small claim
years. The per-FTE rates paid by City Departments are based on
the maximum premium, but the City actually pays the minimum
premium to the carrier until the end of the calendar year. The
difference is held in the "Min-Max Reserve", At the end of the
year, the City's claims experience is examined and the "true
premium" is calculated. If claims experience is low, the City
retains the money in the "Min-Max Reserve" to reduce the costs of
future premium increases. If claims experience is high, the City has
to pay the premium difference up to the maximum negotiated
premium. This latter case is the current situation.
This transaction budgets insurance "Min-Max Premium Reserves"
to settle the premium shortfall with the City's health insurer for
g;reater-than-expected claims in Calendar Year 2007.
A Fiscal Year 2007 transfer to the General fund was not made in
2007 because doing so would cause a budgetary legal level
violation. This transaction funds that prior-year transfer. Funding
source is the Tourism Promotion Reserve in the Transient Room
Tax Fund.
Increases the Library's contribution to the computer sinking fund
on behalf of their partner library agencies to replace the shared
SIRSI computer server. The funding source is the General Fund
reserve because the donation from the partner agencies was made in
the prior fiscal vear.
Appropriates fund sufficient to purchase an ambulance one year
ahead of schedule to take advantage of volume pricing (City is
purchasing two ambulances at the same time). The funding source
IS the Fire and Life Safety Vehicle Replacement Reserve,
established for this purpose.
Increases the operating. budget for the Fire and Life Safety
Department in recognition of the operating costs the Department
has incurred to date associated with the temporary facilities at Fire
Station #16. These expenses include meals, housing rental, tent
rental for apparatus storage, and propane to heat the tent. An
additional Supplemental Budget Request will put forward in June,
when the full-year expenses are known, The funding source is the
General Fund Reserve.
As part of the City's contractual agreement with PeaceHealth, the
City will be providing emergency equipment to be staged at various
locations in the new hospital, and PeaceHealth will provide secure
storage areas for that equipment. This purchase was originally
planned for Fiscal Year 2009, but the temporary occupancy date of
the hospital has been moved up to the current fiscal year and this
equipment is a critical component of the Conditions of Approval.
The funding source is the General Fund Reserve.
Appropriates funds to replace several pIeces of computer
equipment that have reached the end of their useful lives; these
failures were unanticipated. The funding source is the Fire and
Life Safety Computer Replacement Reserve, established for this
Attachment A - Page 4 of 5
28,142
2,344
450,000
95,948
137,540
4,350
purpose.
General Fund Increases the operating budget for Legal & Judicial Services to 15,000
fund indigent represen41tion costs that are projected to be higher
than expected. Funding source is the General Fund Reserve.
General Fund Increases the operating budget for Legal & Judicial Services to 19,000
fund prisoner medical expenses that are projected to be higher than
expected. Funding source is the General Fund Reserve.
Vehicle & Reverses a transaction that was accidentally recorded incorrectly on 35,798
Equipment the first Supplemental Budget Resolution of Fiscal Year 2008. The
Fund reserves impacted are the Library and Info!ffiation Technology
Computer Replacement Reserves. This action decreases reserves in
the Vehicle & Equipment Fund, as was originally intended.
Regional Appropriates $2,154,000 from the Major Capital Outlay reserve to 2,154,000
Wastewater fund replacement of equipment at the regional Water Pollution
Capital Fund Control Facility. The reserve was established to address this type
of situation. (See Exhibit 1 for more explanation on this item)
Development Allocates a portion of the "Old SDC" reserve toward the 60,000
Projects Fund remodeling of the Fire Station #3.
Police Building Reverses a transaction that was accidentally recorded incorrectly on 22,308
Bond Capital the first Supplemental Budget Resolution of Fiscal Year 2008. The
Project Fund reserve impacted is the Police Building Bond Capital Project Fund
Reserve. This action decreases reserves in the Police Building
Bond Capital Project Fund, as was originally intended.
General Fund In Fiscal Year 2007 and 2006, the General Fund collected internal 14,337
charges from the Police Building Capital Project Fund. To retain
the maximum amount possible for construction of the Police
Building, this transaction repays that fund from General Fund
Reserves.
Transfers of$140,912 are requested with no overall change to budgeted appropriations.
Fund
Booth-Kelly
Fund
Descri tion
Uses Contractual Services budget authority in the Development
Services Department to pay the Public Works Department for
maintenance work erformed at the Booth-Kell Center.
Reverses a transaction from Supplemental Budget # 1 that moved
budgetary authority from the Millrace StudylDesign project to the
Sho Vehicle Wash Rack ro'ect. Neither ro.ect is in this fund.
Moves budgetary authority from the Pioneer Parkway Overlay
ro'ect to the Justice Center Illumination ro'ect.
Amount
$8,600
Sewer Capital
Project Fund
32,312
Street Capital
Fund
100,000
Attachment A - Page 5 of 5
Metropolitan Wastewater Management Commission
c
~4iiI
partners in wastewater management
MEMORANDUM
DATE:
January 29,2008
TO:
Metropolitan Wastewater Management Commission
FROM:
Dave Breitenstein, Plant Manager
SUBJECT:
Request for Supplemental Budget FY07-08
Issue: Staff is requesting additional spending authority in the amount of $2,154,000 to
replace two floating sludge holding tank (SHT) gasholder covers. Both covers are '
severely corroded and only one cover remains in service. Approval of this request will
enable staff to initiate a contract for cover replacement of both SHTs during the
upcoming dry weather season and mitigate the ongoing risk of losing the last cover in
service.
Background and Discussion: The WPCF has two 700,000-gallon digested SHTs
which were originally constructed in 1953 and subsequently modified around 1979; The
tanks have floating covers constructed of % -inch steel that provide up to 26,000 cubic
feet of digester gas storage per tank. The gas storage provides a fuel supply for
consistent cogeneration. Digested sludge is stored in the holding tanks from where it is
pumped daily to the Biosolids Management Facility.
The Commission was informed of the discovery of SHT cover corrosion problems in
September 2007. Plant staff found a digester gas leak under the roof of the SHT cover.
Entry into the confined space of the cover revealed signs of severe corrosion at various
locations. West Yost and Associates (WYA) assisted staff with an evaluation of the
covers to determinethe extent of corrosion and make recommendations for repair or
replacement.
West Yost and Associates has completed their evaluation. The results of sandblasting,
measurement, and final inspection resulted in WY A's recommendation to replace the
covers.
Given the evidence observed the uncontrolled release of gasses, breeched
areas of steel under abrasive blasting, extensive pitting and loss of material
thickness and overall poor condition of the steel structure all result in the
general recommendation to replace the existing cover with a new system. We
feel that, while it is possible to fully analyze and upgrade the structure to
verify/maintain structural stability, patching suspect or breeched areas of the
steel plates would result in only temporary or partial gas tight integrity. It is also
quite likely that effective rehabilitation costs would exceed the CO$ts of an in-
kind replacement cover. (Erik Peterson, P.E.)
Exhibit 1 P~ge 1
The types of risks associated with further delay or extending the schedule for
replacement include financial, safety, and environmental risks. The most significant risk
associated with delayed replacement is the financial risk associated with higher
electrical utility expenses. However safety and environmental risks are real and also
des~rve consideration.
In the event of any failure causing the loss of service of the remaining SHT cover there
would be no digester gas storage available to operate the cogeneration system, All
digester gas would have to be flared at the waste gas burner, Cogeneration offsets the
plant power costs by approximately $19,000 per month or $230,000 per year (more
than 50% of plant power cost).
Digester gas can be highly explosive. Any source of gas leakage represents a hazard
to life safety. Procedural controls are in effect to minimize and control the hazard
exposure to personnel but these controls are less reliable than the engineered control
of cover replacement.
Digester gas is a greenhouse gas being approximately 70% methane and 30% carbon
dioxide. Gas leakage and potential loss of up to 26,000 cubic feet of digester gas in the
event of catastrophic failure of the remaining cover poses an ongoing environmental
risk.
Budget Approval Process: The nature of the intergovernmental agreement for
regional wastewater services requires multiple agenCies to approve this request. The
schedule for presentation and actions for approval:
February 28, 2008 Metropolitan Wastewater Management Commission.
March 10,2008 City of Eugene
March 17, 2008 City of Springfield
Recommendation/Requested Action:
Staff recommends the approval of this supplemental budget request in the amount of
$2,154,000 for replacement of the Eugene/Springfield Water Pollution Control Facility's
SHT gasholder covers.
Exhibit 1 Page 2
CITY OF SPRINGFIELD
RESOLUTION NO,
A RESOLUTION ADJUSTING RESOURCES AND REQUIREMENTS IN THE FOLLOWING FUNDS:
General, Special Revenue, Transient Room Tax, Development Projects, Police Building Bond Capital, Regional
Wastewater Capital, Booth-Kelly, Regional Fiber Consortium, Insurance, and Vehicle & Equipment.
WHEREAS, the 2007-2008 fiscal year appropriations for the City of Springfield were made by Resolution No, 07-28 dated
June 18, 2007; 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,
WHEREAS, notice of a public hearing, including information regarding such revenues and expenditures was published in a
newspaper of general circulation not less than 5 days prior to the public meeting; and,
WHEREAS, this supplemental Budget #3 for the 2007-2008 fiscal year amends Resolution #07-28,
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SPRINGFIELD, A
Municipal Corporation of the State of Oregon, as follows:
Section 1. Resolution 07-28 is hereby adjusted as follows:
GENERAL - FUND 100
Estimated Revenues Appropriations
Municipal Court Revenues $ 12,000 Departmental Operating:
Postage Fees 6,099 Development Services
State Conflagration Funds 1l,033 Fire and Life Safety
Miscellaneous Revenues 2,000 Legal and Judicial Services
Library
Total Departmental Operating
Non Departmental
Reserves
Transfers
Total Non-Departmental
Total General Fund $ 31.132 Total General Fund
$ 6,099
246,521
46,000
2,344
$ 300,964
$ (284,169)
14,337
$ (269,832)
$ 31.132
Attachment B - Page 1 of 4
SPECIAL REVENUE - FUND 204
Estimated Revenues Appropriations
Assistance to Firefighters Grant $ 110,116 Departmental Operating:
Canine Donations 2,400 Fire and Life Safety $ 220,687
SHSP Special Teams Grant 64,910 Police 11 ,500
Walmart Donation 1,500 $ 232,187
2008 Olympic Trials 45,661
Non Departmental
Reserves $ (7,600)
Total Special Revenue Fund $ 224,587 Total Special Revenue Fund $ 224,587
TRANSIENT ROOM TAX - FUND ,208
Appropriations
$ Departmental Operating:
Public Works
$
50,000
Estimated Revenues
Non Departmental
Reserves
Transfers
Total Non-Departmental
$
(78,142)
28,1 42
(50,000)
$
Total Transient Room Tax Fund $
Total Transient Room Tax Fund $
DEVELOPMENT PROJECTS - FUND 420
Estimated Revenues Appropriations
Walmart Donation $ 117,660 Departmental Operating:
Public Works $ 46,240
Capital Projects $ 60,000
Non Departmental
Reserves $ 11,420
Total Development Projects Fund $ ,117,660 Total Development Projects Fund $ 117,660
Attachment B - Page 2 of 4
Estimated Revenues
Transfer
POLICE BUILDING BOND CAPITAL PROJECT - FUND 428
Appropriations
Capital Projects
$
14,337
Non Departmental
Reserves
14,337
Total Police Building Bond Capital Project Fund $
Total Police Building Bond Capital Project Fund $
Estimated Revenues
REGIONAL WASTEWATER CAPITAL - FUND 433
Appropriations
Capital Projects
Non Departmental
Reserves
Total Regional Wastewater Capital Fund $
Estimated Revenues
Beginning Cash
Total Booth-Kelly Fund
Estimated Revenues
Beginning Cash
Fiber South Contributions
Lease Income
Total Regional Wastewater Capital Fund $
$
BOOTH - KEL~ Y - FUND 618
Appropriations
Departmental Operating:
Development Services
Public Works
Total Departmental Operating
$
Total Booth-Kelly Fund
REGIONAL FillER CONSORTIUM - FUND 629
Appropriations
Non Departmental
Debt Activities
Reserves
$
(12,510)
42,000
43,000
Total Non Departmental
Total Regional Fiber Consortium Fund $
72,490
Total Regional Fiber Consortium Fund $
Attachment B - Page 3 of 4
$
22,308
$
(7,971)
14,337
$ 2,154,000
$ (2,154,000)
$
(8,600)
8,600
$
$
$
80,000
(7,510)
72,490
$
72,490
INSURANCE FUND - FUND 707
Estimated Revenues Aoorooriations
Beginning Cash $ Non Departmental
Reserves $ (149,003)
Statutory Payments 149,003
Total Non Departmental $
Total Insurance Fund $ Total Insurance Fund $
Estimated Revenues
Beginning Cash
VEIDCLE AND EQUIPMENT - FUND 713
Aoorooriations
$ Departmental Operating:
Fire and Life Safety
Information Technology
Library
Total Departmental Operating
$
454,350
19,798
16,000
490,148
$
Non Departmental
Reserves
$ (490,148)
Total Vehicle and Equipment Fund $
Total Vehicle and Equipment Fund $
Estimated Revenues
Total Supplemental Budget $
460,206
Aoorooriations
Total Supplemental Budget
$
460,206
Section 2. This resolution shall take effect upon adoption by the Council and approval by the Mayor.
Adopted by the Common Council ofthe City of Springfield this 17th day of March, 2008, by a vote of
against.
for and
Mayor - Sidney W. Leiken
ATTEST:
City Recorder - Amy Sowa
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Attachment B - Page 4 of 4