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HomeMy WebLinkAboutItem 27 Supplemental Budget Resolution AGENDA ITEM SUMMARY Meeting Date: 6/25/2018 Meeting Type: Regular Meeting Staff Contact/Dept.: Bob Duey/Finance Staff Phone No: 541.726.3698 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: Conduct a public hearing and adopt/not adopt the following resolutions: A RESOLUTION ADJUSTING RESOURCES AND REQUIREMENTS IN THE FOLLOWING FUNDS: GENERAL, SPECIAL REVENUE, TRANSIENT ROOM TAX, POLICE LOCAL OPTION LEVY, DEVELOPMENT PROJECTS, REGIONAL WASTEWATER CAPITAL, STREET CAPITAL, AMBULANCE, STORM DRAINAGE OPERATIONS, BOOTH-KELLY, INSURANCE, AND VEHICLE & EQUIPMENT FUNDS. ISSUE STATEMENT: At various times during the fiscal year, the Council is requested to adjust 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 third of three scheduled FY18 supplemental budget requests to come before Council. The supplemental budget being presented includes adjusting resources and requirements in General, Special Revenue, Transient Room Tax, Police Local Option Levy, Development Projects, Regional Wastewater Capital, Street Capital, Ambulance, Storm Drainage Operations, Booth-Kelly, Insurance, and 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 $935,726, inter-fund loans $650,100 and Capital Projects $4,538,250. These are offset by new revenue $441,138 and the use of reserves ($1,940,688). Includes an erratum from supplemental budget #1 where Street Capital reserves and capital projects were transposed. FY18 Supplemental Budget Request 3 Page 1 of 6 M E M O R A N D U M City of Springfield Date: 6/12/2018 To: Gino Grimaldi COUNCIL From: Bob Duey 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 third of three scheduled FY18 supplemental budget request to come before Council. The supplemental budget being presented includes adjusting resources and requirements in the : General, Special Revenue, Transient Room Tax, Police Local Option Levy, Development Projects, Regional Wastewater Capital, Street Capital, Ambulance, Storm Drainage Operations, Booth-Kelly, Insurance, and Vehicle & Equipment Funds. The City Council is asked conduct a public hearing and 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 a 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. Notification of this public hearing was published in the Register Guard on Thursday, June 7, 2018. The attached information identifies the individual items that are included in the June 25, 2018 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 a 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 in 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 and funds are being carried forward 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 Attachment 1, Page 1 of 6 FY18 Supplemental Budget Request 1 Page 2 of 10 identified by the City Executive Team that need to be resolved immediately or to meet legal requirements. SUPPLEMENTAL BUDGET REQUESTS BY FUNDS General Fund 100 – The proceeding table shows the impact of all General Fund requests on the FY18 amended budget. Resources Requirements FY18 Amended Budget 45,470,803$ FY18 Amended Budget 45,470,803$ State Conflagration Funds 275,838$ Operating Expenses: City Manager's Office 35,000$ Fire & Life Safety 275,838 Police 50,000 Total Operating Expense 360,838$ Non-Departmental Expenses: Reserves (85,000)$ Total Amended 45,746,641$ Total Amended 45,746,641$ 1. Request appropriates funds for retirement payouts in the City Manager’s Office; $35,000 from reserves. 2. Request appropriates funds for retirement payouts for two long-time employees retiring as of June 1, 2018 in the Police department; $50,000 from reserves. The department has actively utilized vacancy management to offset the cost of these retirement payouts which total $160,000. 3. Fire operations are sometimes requested by the State to expend personnel and equipment resources to assist in fighting wildfires. This request is for acceptance and spending of the State conflagration funds for the California EMAC response in October and December of 2017; $275,838. Special Revenue Fund 204 – The proceeding table shows the impact of all requests on the FY18 amended budget. Resources Requirements FY18 Amended Budget 960,152$ FY18 Amended Budget 960,152$ Grants 154,622$ Operating Expenses: Miscellaneous Receipts 5,431 City Manager's Office 140,000$ Library 37,097 Police 5,431 Total Operating Expense 182,528$ Non-Departmental Expenses: Reserves (22,475)$ Total Amended 1,120,205$ Total Amended 1,120,205$ 1. Request recognizes grant funds from US Ignite for the City of Springfield to perform the services outlined in the contract with Technology Association of Oregon (TAO); $90,000. The agreed upon work with TAO will serve as a catalyst for the creation and support of technology sector through retention, expansion and growth with existing and prospective industry. 2. Recognizes funds received for the Oregon BEST award and expenditures for the mass timber Attachment 1, Page 2 of 6 FY18 Supplemental Budget Request 1 Page 3 of 10 parking structure testing; $50,000. 3. Approval of this request will allow for tracking and use of non-City funding to support the purchase of Narcan kits to enhance opioid exposure safety and training costs for a sergeant to attend CIT Crisis Intervention Team International Conference training; $5,431. 4. Authorizes spending of grant funds received in FY17 and held in reserves for youth services programs in the Library from the Voyagers grant; $3,900. 5. Appropriate funds for Library collection, Library2Go and digital books with the use of gift and memorial collection reserves; $18,575. 6. Recognizes the grant received from the State Library for the City to provide library cards to families in Springfield School District; $14,622. Transient Room Tax Fund 208 – The proceeding table shows the impact of all requests on the FY18 amended budget. Resources Requirements FY18 Amended Budget 2,311,961$ FY18 Amended Budget 2,311,961$ Operating Expenses: City Manager's Office 169,500$ Non-Departmental Expenses: Reserves (169,500)$ Total Amended 2,311,961$ Total Amended 2,311,961$ 1. Request is to provide the funds necessary to support the initial evaluation and conceptual design of an indoor track facility in Springfield; $154,500 from reserves. 2. In preparation for future Gateway development, redevelopment and urban growth boundary expanse, Council leadership has directed staff to support investment in traffic studies and improvements to support future needs of the hospitality and commercial industries. Request appropriates funds for consulting services to support current and long-range development opportunities; $15,000 from reserves. Police Local Option Levy Fund 236 – The proceeding table shows the impact of all requests on the FY18 amended budget. Resources Requirements FY18 Amended Budget 7,417,210$ FY18 Amended Budget 7,417,210$ Operating Expenses: Police 39,713$ Non-Departmental Expenses: Reserves (39,713)$ Total Amended 7,417,210$ Total Amended 7,417,210$ 1. The Department requests authorization to use of reserves to fund the costs associated with the levy renewal effort, which were not anticipated within the proposed FY18 budge; $39,713. The requested funding will cover the cost of the print and shipping costs associated to the levy renewal informative mailers, as well as the Lane County special election fees... Development Projects Fund 420 – The proceeding table shows the impact of all requests on the FY18 amended budget. Attachment 1, Page 3 of 6 FY18 Supplemental Budget Request 1 Page 4 of 10 Resources Requirements FY18 Amended Budget 4,430,904$ FY18 Amended Budget 4,430,904$ Non-Departmental Expenses: Transfers 650,000$ Reserves (650,000) Total Non-Dept. Expense -$ Total Amended 4,430,904$ Total Amended 4,430,904$ 1. Request re-allocates loan appropriations for SEDA Downtown and creates an interfund loan to SEDA Glenwood for land acquisitions; total in fund loan is $950,000 with $650,000 from reserves. Regional Wastewater Capital Fund 433 – The proceeding table shows the impact of all requests on the FY18 amended budget. Resources Requirements FY18 Amended Budget 84,017,548$ FY18 Amended Budget 84,017,548$ Non-Departmental Expenses: Reserves (750,000)$ Capital Projects 750,000$ Total Amended 84,017,548$ Total Amended 84,017,548$ 1. Request new capital project funds for the Resiliency Planning as discussed at the March 9, 2018 commission meeting. Appropriates funds for consultant technical services to perform needed infrastructure and interdependency assessments; $750,000 from reserves. Street Capital Fund 434 – The proceeding table shows the impact of all requests on the FY18 amended budget. Resources Requirements FY18 Amended Budget 3,500,354$ FY18 Amended Budget 3,500,354$ Non-Departmental Expenses: Reserves (726,793)$ Capital Projects 726,793$ Total Amended 3,500,354$ Total Amended 3,500,354$ 1. Request appropriates funds for Virginia Daisy Tree Removal project; $26,000 from reserves. Several trees along the corridor have caused the sidewalk and curb and gutter to heave. These trees needed to be removed in preparation for the Virgina/Daisy Bikeway project and before migratory bird nesting season started. 2. This supplemental budget requests previously allocated FY 18 funds be reallocated within the Franklin Boulevard Reconstruction Project. In addition this supplemental budget requests additional funding to cover the final right of way acquisition costs; $20,000 from reserves. 3. Includes an erratum from supplemental budget #1 where Street Capital reserves and capital projects were transposed. Attachment 1, Page 4 of 6 FY18 Supplemental Budget Request 1 Page 5 of 10 Ambulance Fund 615 – The proceeding table shows the impact of all requests on the FY18 amended budget. Resources Requirements FY18 Amended Budget 8,626,998$ FY18 Amended Budget 8,626,998$ Operating Expenses: Fire & Life Safety 140,000$ Non-Departmental Expenses: Reserves (140,000)$ Total Amended 8,626,998$ Total Amended 8,626,998$ 1. Request appropriates funds to cover higher than anticipated overtime costs in the Fire & Life Safety department; $140,000 from reserves. Booth-Kelly Fund 618 – The proceeding table shows the impact of all requests on the FY18 amended budget. Resources Requirements FY18 Amended Budget 2,575,827$ FY18 Amended Budget 2,575,827$ BLM Lease 100$ Non-Departmental Expenses: Debt Services 100$ Total Amended 2,575,927$ Total Amended 2,575,927$ 1. Request recognizes increased revenue received from BLM for debt services payments on the National Guard facility; $100. Insurance Fund 707 – The proceeding table shows the impact of all requests on the FY18 amended budget. Resources Requirements FY18 Amended Budget 29,703,891$ FY18 Amended Budget 29,703,891$ EAIP Worksite Modification 5,147$ Operating Expenses: Human Resources 5,147 Total Amended 29,709,038$ Total Amended 29,709,038$ 1. Request recognizes revenue and expenditures for the EAIP worksite modification in the worker’s compensation program; $5,147. Vehicle & Equipment Fund 713 – The proceeding table shows the impact of all requests on the FY18 amended budget. Attachment 1, Page 5 of 6 FY18 Supplemental Budget Request 1 Page 6 of 10 Resources Requirements FY18 Amended Budget 10,154,344$ FY18 Amended Budget 10,154,344$ Operating Expenses: Police 38,000$ Non-Departmental Expenses: Reserves (38,000)$ Total Amended 10,154,344$ Total Amended 10,154,344$ 1. Approval of this request will allow for the purchase of one patrol vehicle from vehicle reserve fund. The vehicle was damaged in a vehicle accident in January 2018 and subsequently determined to be totaled by the insurance company. The City will be at least partially reimbursed for the vehicle by third party insurance companies; however the total amount of compensation has yet to be identified. Funds received from third party insurance companies will be deposited back to the department's vehicle reserve account, upon receipt. The new vehicle costs total $33,000 for vehicle and approximately $5,000 for upfit and graphics costs. RECOMMENDED ACTION: Hold a public hearing and adopt/not adopt the following resolutions: A RESOLUTION ADJUSTING RESOURCES AND REQUIREMENTS IN THE FOLLOWING FUNDS: General, Special Revenue, Transient Room Tax, Police Local Option Levy, Development Projects, Regional Wastewater Capital, Street Capital, Ambulance, Storm Drainage Operations, Booth- Kelly, Insurance, and Vehicle & Equipment Funds. Attachment 1, Page 6 of 6 Attachment 2 Page 1 of 4 Resources Requirements FY18 Amended Budget 45,470,803$ FY18 Amended Budget 45,470,803$ State Conflagration Funds 275,838$ Operating Expenses: City Manager's Office 35,000$ Fire & Life Safety 275,838 Police 50,000 Total Operating Expense 360,838$ Non-Departmental Expenses: Reserves (85,000)$ Total Amended 45,746,641$ Total Amended 45,746,641$ Resources Requirements FY18 Amended Budget 960,152$ FY18 Amended Budget 960,152$ Grants 154,622$ Operating Expenses: Miscellaneous Receipts 5,431 City Manager's Office 140,000$ Library 37,097 Police 5,431 Total Operating Expense 182,528$ Non-Departmental Expenses: NOW, THEREFORE, BE IT RESOLVED, by the Common Council of the City of Springfield, a Municipal Corporation of the State of Oregon, as follows: Section 1. Resolution 2018-07 is hereby adjusted as follows: General - Fund 100 Comments: Request appropriates funds for retirement payouts in the City Manager's Office and Police department. Recognize revenue received from the State Conflagration funds for the California EMAC response in Oct. and Dec. 2017 and Fire & Life Safety personnel and equipment expenditures. Special Revenue - Fund 204 CITY OF SPRINGFIELD FY 2017-2018 SUPPLEMENTAL BUDGET No. 3 RESOLUTION NO. xxx A RESOLUTION ADJUSTING RESOURCES AND REQUIREMENTS IN THE FOLLOWING FUNDS: General, Special Revenue, Transient Room Tax, Police Local Option Levy, Development Projects, Regional Wastewater Capital, Street Capital, Ambulance, Storm Drainage Operations, Booth-Kelly, Insurance, and Vehicle & Equipment Funds WHEREAS, the 2017-2018 fiscal year appropriations for the City of Springfield were made by Resolution No. 2017-22 dated June 19, 2017 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 as amended by Supplemental Budget #2 #2018-07, Supplemental Budget #1 Resolution #2017-26, for the 2017-2018 fiscal year, amends Resolution #2017-22; and Attachment 2 Page 2 of 4 Reserves (22,475)$ Total Amended 1,120,205$ Total Amended 1,120,205$ Resources Requirements FY18 Amended Budget 2,311,961$ FY18 Amended Budget 2,311,961$ Operating Expenses: City Manager's Office 169,500$ Non-Departmental Expenses: Reserves (169,500)$ Total Amended 2,311,961$ Total Amended 2,311,961$ Resources Requirements FY18 Amended Budget 7,417,210$ FY18 Amended Budget 7,417,210$ Operating Expenses: Police 39,713$ Non-Departmental Expenses: Reserves (39,713)$ Total Amended 7,417,210$ Total Amended 7,417,210$ Resources Requirements FY18 Amended Budget 4,430,904$ FY18 Amended Budget 4,430,904$ Non-Departmental Expenses: Transfers 650,000$ Reserves (650,000) Total Non-Departmental Expense -$ Total Amended 4,430,904$ Total Amended 4,430,904$ Resources Requirements FY18 Amended Budget 84,017,548$ FY18 Amended Budget 84,017,548$ Non-Departmental Expenses: Reserves (750,000)$ Capital Projects 750,000$ Total Amended 84,017,548$ Total Amended 84,017,548$ Resources Requirements Police Local Option Levy - Fund 236 Comments: Request appropriates funds for the costs associated with the levy renewal efforts and special election fees. Development Projects - Fund 420 Comments: Adjust interfund loans to SEDA Downtown and SEDA Glenwood to create appropriation for land acquisition. Comments: Request new capital projects funds for the Resiliency Planning as discussed at the March 9, 2018 Commission meeting. Street Capital - Fund 434 Regional Wastewater Capital - Fund 433 Transient Room Tax - Fund 208 Comments: Request appropriates funds for the initial evaluation and conceptual design of an indoor track facility. Investments in a traffic studies and improvements to support future needs of the hospitality and commercial industries in the Gateway area. Comments: Request recognizes grants for the Library, Police Department and City Manager's Office to be expended for Library collections, safety equipment, narcan kits, training, technology sector retention and growth projects and parking structure testing. Attachment 2 Page 3 of 4 FY18 Amended Budget 3,500,354$ FY18 Amended Budget 3,500,354$ Non-Departmental Expenses: Reserves (726,793)$ Capital Projects 726,793$ Total Amended 3,500,354$ Total Amended 3,500,354$ Resources Requirements FY18 Amended Budget 8,626,998$ FY18 Amended Budget 8,626,998$ Operating Expenses: Fire & Life Safety 140,000$ Non-Departmental Expenses: Reserves (140,000)$ Total Amended 8,626,998$ Total Amended 8,626,998$ Resources Requirements FY18 Amended Budget 24,271,292$ FY18 Amended Budget 24,271,292$ Capital Projects -$ Total Amended 24,271,292$ Total Amended 24,271,292$ Resources Requirements FY18 Amended Budget 2,575,827$ FY18 Amended Budget 2,575,827$ BLM Lease 100$ Non-Departmental Expenses: Debt Services 100$ Total Amended 2,575,927$ Total Amended 2,575,927$ Resources Requirements FY18 Amended Budget 29,703,891$ FY18 Amended Budget 29,703,891$ EAIP Worksite Modification 5,147$ Operating Expenses: Human Resources 5,147 Total Amended 29,709,038$ Total Amended 29,709,038$ Resources Requirements FY18 Amended Budget 10,154,344$ FY18 Amended Budget 10,154,344$ Operating Expenses: Police 38,000$ Non-Departmental Expenses: Reserves (38,000)$ Total Amended 10,154,344$ Total Amended 10,154,344$ Comments: Request recognizes increased revenue received from BLM for debt services payments on the National Guard facility. Insurance - Fund 707 Comments: Request recognizes revenue and expenditure for an EAIP worksite modification. Ambulance - Fund 615 Comments: Request increases personnel service appropriations in Fire & Life Safety to cover higher than anticipated overtime costs. Booth-Kelly - Fund 618 Comments: Request appropriates funds for Virginia Daisy tree removal project and reallocates funds for the Franklin Boulevard Reconstruction project. Includes an erratum from supplemental budget #1 where Street Capital reserves and capital projects were transposed. Comments: Request reallocates cost within the Franklin Boulevard Reconstruction Project; no impact to the fund. Storm Drainage Operations - Fund 617 Vehicle & Equipment - Fund 713 Attachment 2 Page 4 of 4 Total Resources Adjustments 441,138$ Total Requirements Adjustments 441,138$ Attest: 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 18 day of June, 2018, by a vote of ______for and ______against. Mayor Christine L LundbergCity Recorder AJ Ripka Comments: Request appropriates funds for the purchase of a patrol vehicle damaged in an accident in Jan. 2018. Partial reimbursement is expected by a third party insurance company which will be received back into reserves.