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HomeMy WebLinkAboutItem 13 Supplemental Budget Resolution AGENDAITEMSUMMARY SPRINGFIELD CITY COUNCIL Meeting Date: Meeting Type: Department: , Staff Contact: Staff Phone #: Estimated Time: June 16,2008 Regular Meeting Finance ~ Bob Brew ~ 726-3698 10 minutes ITEM TITLE: SUPPLEMENTAL BUDGET RESOLUTION ACTION REQUESTED: Hold a public hearing and adopt/not adopt the following resolution: A RESOLUTION ADmSTING RESOURCES AND REQUIREMENTS IN THE FOLLOWING FUNDS: GENERAL, STREET, SPECIAL REVENUE, TRANSIENT ROOM TAX, COMMUNITY DEVELOPMENT,BLOCK GRANT, FIRE LOCAL OPTION LEVY, SEWER CAPITAL PROJECTS, DEVELOPMENT PROJECTS, DRAINAGE CAPITAL PROJECTS, SDC TRANSPORTATION REIMBURSEMENT, SEWER OPERATING, DRAINAGE OPERATIONS, BOOTH-KELLY, INSURANCE, VEHICLE & EQUIPMENT. ISSUE STATEMENT: ATTACHMENTS: 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 fourth of four scheduled FY08 supplemental budget requests to come before Council. The supplemental budget being presented includes adjusting resources and requirements in the General Fund, Street Fund, Special Revenue Fund, Transient Room Tax Fund, Community Development Block Grant Fund, Fire Local Option Levy Fund, Sewer Capital Projects Fund, Development Projects Fund, Drainage Capital Projects Fund, SDC Transportation Reimbursement"Fund, Sewer Operating Fund, Drainage Operations Fund, Booth-Kelly 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 IMPACT: The overall financial impact of the Supplemental Budget Resolution is to increase total appropriat,ions by $7,651,940. CITY OF SPRINGFIELD FINANCE DEPARTMENT Date: To: From: June 16, 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 schedu.led by the Finance Department on an annual basis. This is the fourth of four scheduled FY08 supplemental requests to come before Council. The supplemental budget being presented includes adjusting resources and requirements in the General Fund, Street Fund, Special Revenue Fund, Transient Room Tax Fund, Community Development Block Grant Fund, Fire Local Option Levy Fund, Sewer Capital Projects Fund, Development Projects Fund, Drainage Capital Projects Fund, SDC Transportation Reimbursement Fund, Sewer Operating Fund, Drainage Operations Fund, Booth-Kelly Fund, Insurance Fund, ~nd 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 Wednesday, June 11. The information that follows identifies the individual items that are included in the June 16, 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 4 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. 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. SUPPLEMENT BUDGET REQUESTS New appropriations of $163,949 are requested to be funded with new revenues. These include: Fund General, Booth- Kelly, and Development Pro' ects Funds Vehicle & Equipment Fund Transient Room Tax and Booth- Kelly Funds General Fund General Fund Genera] Fund Insurance Fund Descri tion Recognizes revenue from the sale of the Krey property on Main Street and uses it to partially repay an interfund loan from the Booth-Kelly Fund and make payments to a commercial lender for urchase of the Carter Buildin . This action uses Internal Computer Equipment Charges (an internal revenue source), to purchase a new GIS computer server. This action recognizes $3,000 in Transient Room Tax Interest Revenue and applies it to the replacement of the Heating, Ventilating, and Air Conditioning (HV AC). system in the S ringfield De ot. (See additional fund in from Reserves below) This action recognizes a Fire and Life Safety donation from Walmart the amount of$I,OOO. The funds will be used to purchase small Fire and Life Safet e ui ment. The Human Resources Department received $555 from Fire and Life Safety applicants to pay for their required job application testing. This money is requested to offset HR's cost of purchasing and administerin the tests. The Human Resources Department received $735 from Police applicants to pay for their required job application testing. This money is requested. to offset HR's cost of purchasing and administerin the tests. The State of Oregon encourages employers to bring injured employees back to work on modified duty via a program called Emp]oyee-At-Iniury. In thIS program, the State of Oregon (via SAIF) pay"sfor part of the cost of that employee's wages and benefits, but the City is required to use the money for. health or safety-related equipment. In this case, the Police Department was able to bring back a worker on light duty, and they request to use their Em ]0 ee-At-In.ur money to urchase fitness e ui ment. Attachment A - Page 2 of 4 Amount $148,199 5,810 3,000 ($50,000 total) 1,000 555 735 4,650 New appropriations: A net total of $523,051 will be added to reserves. Fund Transient Room Tax and Booth- Kelly Funds Vehicle & Equipment Fund Vehicle & Equipment Fund F ire Local Option Levy Fund Vehicle & Equipment Fund Special Revenue Fund Vehicle & Equipment Fund General Fund General Fund General Fund Street, Sewer and Drainage Funds Development Projects Fund Development Projects Fund Description This action uses $47,000 in Transient Room Tax Reserves to replace the HV AC system in the Springfield Depot. (See additional $3,000 in new funding from Reserves above) The Finance Department requests to use a portion of their dedicated reserve to purchase computer equipment for increased productivity. The reserve was established for this purpose. The Legal and Judicial Services division requests to use a portion of their dedicated reserve to purchase replacements for computer equipment that has failed prematurely. The reserve was established for this purpose. The operating expenses associated with the temporary housing at Fire Station #16 have been charged to Fire and Life Safety's General Fund budget, putting them very near their maximum expenditure level. The Department requests to increase their budget in the Local Option Levy Fund to take on a larger share of some other legitimate expenses and relieve pressure on the General Fund. The Library Department requests to use a portion of their dedicated reserve to purchase replacements for computer equipment that has failed prematurely. The reserve was established for this purpose. The Library Department requests that a portion of the Gifts and Memorial Reserve be appropriated to cover costs associated with the Library's 100th Birthday Celebration. The Library Department requests to use a portion of their dedicated reserve to purchase replacements for a photocopier that has failed . prematurely. The reserve was established for this purpose. Appropriates State Drug Forfeiture reserves into the General Fund to reimburse the fund for expenses allowable under State Forfeiture rules. The General Fund dollars freed up by the transaction will the support the Justice Center project. Increases the operating budget for the Police Department to fund personnel expenses that are projected to be higher than expected. Appropriates State Drug Forfeiture reserves into the General Fund to purchase a GPS tracking device for use in undercover drug investigations. Re-appropriates budgetary authority for the acquisition of equipment that was authorized but never purchased in FY07. With the end of FY07, the money set aside for this survey equipment was returned to reserves. This action re-funds this purchase. Reduces Franklin Blvd Planning project by $21,744 and. increases State Transportation Planning revenue by $78,256. Places the total balance into reserves. Reduces Beltline Gateway Intersection project by $1,709,199, increases the MLK Parkway project budget by $889,717, and recognizes $1,500,000 in PeaceHealth contributions to the Beltline Gateway Intersection project. Places the total balance into reserves. Attachment A - Page 3 of 4 Amount $47,000 .($50,000 total) 6,200 1,842 150,000 1,950 20,000 . 11,186 10,800 155,000 15,000 36,000 (100,000) ( increases reserves) (2,319,482) (increases reserves) Development Moves budgetary authority from the Game Farm Road Sewer Trunk (139,681 ) Projects and Line in the Development Projects Fund to the Drainage Reserve in (increases Drainage the Drainage Capital Projects Fund. reserves) Capital Projects Funds Development This action uses $1,581,134 in dedicated reserves toward the $1,581,134 Projects and construction of the Bureau of Land Management (BLM) Facility ($5,571,855 Booth-Kelly project. (See additional $3,990,721 in transfer funding below) total) Funds Transfers of $4,677,693 are requested with no overall change to budgeted appropriations. Fund Description Amount Community Re-allocates contingency money from operations to the Aster $99,000 Development Apartments project. Block Grant Fund ~ General Fund Reduces a transfer budgeted by Finance and uses the savings to pay 40,250 for programming time associated with the move to bi-weekly payroll and costs associated with furnishing the City's computer training room. Sewer Capital Moves budgetary authority from the Harlow Road Pump Station 210,000 Projects Fund project to the Vera Drive/19th Street Sewer project. Development Moves budgetary authority from Building Maintenance in the Fire 287,722 Projects Fund and Life Safety Department to the Public Works Department for use in the Fire Station #3 remodel. SDC Moves budgetary authority from the generic City Participation in 50,000 Transportation Private Projects to the more specific International Way Paving. Reimbursement Fund Development This action combined with the reserve action above, transfers $3,990,721 Projects and budgeted project money and some reserves to the BLM Facility ($5,571,855 Booth-Kelly project in the Booth-Kelly fund. (See additional $1,581, i 34 in total) Funds reserves funding above) Attachment A - Page 4 of 4 CITY OF SPRINGFIELD RESOLUTION NO. A RESOLUTION ADJUSTING RESOURCES AND REQUIREMENTS IN THE FOLLOWING FUNDS: General, Street, Special Revenue, Transient Room Tax, Community Development Block Grant, Fire Local Option Levy, Sewer Capital Projects, Development Projects, Drainage Capital Projects, SDC Transportation Reimbursement, Sewer Operating, Drainage Operations, Booth-Kelly, 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 lessthan 5 days prior to the public meeting; and, WHEREAS, this supplemental Budget #4 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: Estimated Revenues Krey Property Sale Testing Fees 'Walmart Donation $ 148,199 1,290 1,000 GENERAL ~ FUND 100 Avvropriations Departmental Operating: Finance Fire and Life Safety Human Resources Police Total Departmental Operating 40,250 1,000 -. 1,290 180.800 223,340 $ N on Departmental Reserves Transfers Total Non-Departmental $ (180,800) 107.949 $ (72,851 ) $ 150.489 Total General Fund $ 150.489 Total General Fund Attachment B - Page 1 of 5 SPECIAL REVENUE - FUND 204 Estimated Revenues Aoorooriations Assistance to Firefighters Grant $ Departmental Operating: Public Works $ 12,000 $ 12,000 N on Departmental Reserves $ (12,000) Total Special Revenue Fund $ Total Special Revenue Fund $ SPECIAL REVENUE - FUND 204 Estimated Revenues Appropriations $ Departmental Operating: Library . $' 20,000 Non Departmental Reserves $ (20,000) Total Special Revenue Fund $ Total Special Revenue Fund $ Estimated Revenues Interest Revenue TRANSIENT ROOM TAX - FUND 208 Appropriations $ 3,000 Non Departmental Reserves Transfers Total Non-Departmental. $ (47,000) 50.000 3,000 $ Total Transient Room Tax Fund $ 3,000 Total Transient Room Tax Fund $ 3,000 Estimated Revenues COMMUNITY DEVELOPMENT - FUND 210 Aoorooriations Departmental Operating: Development Services. $ (99,000) Capital Projects $ 99,000 Total Community Development Fund $ Total Comm unity Development Fund. $ Attachment B - PaQe 2 of 5 Estimated Revenues FIRE LOCAL OPTION LEVY - FUND 235 Appropriations Departmental Operating: Fire and Life Safety $ $ 150,000 Non Departm~ntal Reserves $ (150,000) Total Fire Local Option LevY,Fund $ Total Fire Local Option Levy Fund $ Estimated Revenues Beginn ing Cash SEWER CAPITAL PROJECTS':" FUND 409 Appropriations Capital Projects $ $ Non Departmental Reserves $ Total Sewer Capital Projects Fund $ Total Sewer Capital Projects Fund $ DEVELOPMENT PROJECTS - FUND 420 Estimated Revenues Appropriations d Beltline/Gateway - Pt?aceHealth $ 1,500,000 Capital Projects $ (1,105,907) STP-U Franklin Planning . 78,256 Transfer from Fund 100 . 23,199 Non Departmental Debt Service $ 148,199 Reserves 2,419,482 Transfers 139,681 Total Non Departmental $ 2,707,362 Total Development Projects Fund $ 1,601,455 Total Development Projects Fund $ 1,601,455 Estimated Revenues Transfer from Fund 420 DRAINAGE CAPITAL PROJECTS - FUND 425 Appropriations Non Departmental Reserves $ 139,681 $ 139,681 Total Drainage Capital Projects Fund $ 139,681 Total Drainage Capital Projects Fund $ 139,681 Attachment B - PaQe 3 of 5 Estimated Revenues SDC TRANSPORTATION REIMBURSEMENT - FUND 446 Appropriations Capital Projects $ $ Total SDC Transportation Reimbursement Fund $ Total SDC Transportation Reimbursement Fund $ Estimated Reven ues Beginning Cash LOCAL WASTEWATER OPERATIONS - FUND 611 Appropriations Departmental Operating: Public Works $ $ 12,000 Non Departmental Reserves $ (12,000) Total Local Wastewater Operations Fund $ Total Local Wastewater Operations Fund $ Estimated Revenues DRAINAGE OPERATING - FUND 617 Appropriations Departmental Operating: Public Works $ $ 12,000 Non Departmental Reserves $ (12,000) Total Drainage Operating Fund $ Total Drainage Operating Fund $ Estimated Revenues Transfer from Fund 100 Transfer from Fund 208 Transfer from Fund 420 BOOTH - KELLY - FUND 618 Appropriations Capital Projects $ 125,000 50,000 5,571,855 $ 5,621,855 Non Departmental Debt Activities $ 125,000 Total Booth-Kelly Fund $ 5,746,855 Total Booth-Kelly Fund $ 5,746,855 Attachment B - Page 4 of 5 INSURANCE FUND - FUND 707 Estimated Revenues Appropriations Employees-At-Injury Pmnt $ 4,650 Departmental Operating: Human Resources $ 4,650 Total Insurance Fund $ 4,650 Total Insurance Fund $ 4,650 Estimated Revenues Internal Computer Equiipment Cont. $ VEHICLE AND EQUIPMENT - FUND 713 Appropriations 'Departmental Operating: City Managers' Office Development Services Finance . 5,810 $ 1,842 1,612 6,200 13,136 4,198 26,988 Library Public Works Total Departmental Operating $ N on Departmental Reserves $ (21,178) Total Vehicle 'and Equipment Fund $ 5,810 Total Ve.hicle and Equipment Fund $ 5,810 Estimated Revenues Total Supplemental Budget $ 7,651,940 Appropriations Total Supplemental Budget $ 7 ,651,940 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 16th day of June, 2008, by a vote of against. for and Mayor- Sidney W. Leiken A TrEST: City Recorder - Amy Sowa i' ~ ( !;- '.' " ~.., r"~. ~ o,~,-", J l \~\.......... ,.,..<_.."....~~~...~r-;-i?..ro.~~:~-_. Attachment B - PaQe 5 of 5 i '.J '._ {; j ,'r ,._,~. ;" ,.