Loading...
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 v';'f:'Jji:ti,iU\ g $,,1.]i:'lll:nmqr:n Eu...;-~~:i_'1'~~~.'t.J t.t H[ rrnUltL.i1J P~~:M~ Ll"-A\~ ,~~_. i-::: J -=.r-l \ Lt:>, t U I . I '-: ~--L.:-- ;J~F:GE OF CITY ATTORNEY Attachment B - Page 4 of 4