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Home My WebLink AboutItem 05 Supplemental Budget Resolution AGENDA ITEM SUMMARY Meeting Date: 2/6/2012 Meeting Type:Regular Meeting Staff Contact/Dept.: Bob Duey/Finance Staff Phone No: 541-726-3740 Estimated Time: 10 Minutes S P R I N G F I E L D C I T Y C O U N C I L Council Goals: Mandate ITEM TITLE: SUPPLEMENTAL BUDGET RESOLUTION ACTION REQUESTED: Hold a public hearing and adopt/not adopt the following resolutions: A RESOLUTION ADJUSTING RESOURCES AND REQUIREMENTS IN THE FOLLOWING FUNDS: General, Street, Special Revenue, Building Code, Sanitary Sewer Capital, Development Projects, Storm Drainage Capital, Street Capital, Local WW Operations, Storm Drainage Operations, Booth-Kelly, and Vehicle & Equipment Funds. ISSUE STATEMENT: At various times during the fiscal year the Council is requested to make adjustments to the annual budget to reflect needed changes in planned activities, to recognize new revenues, or to make other required adjustments. These adjustments to resources and requirements change the current budget and are processed through supplemental budget requests scheduled by the Finance Department on an annual basis. This is the second of three scheduled FY12 supplemental budget requests to come before Council. The supplemental budget being presented includes adjusting resources and requirements in the General, Street, Special Revenue, Building Code, Sanitary Sewer Capital, Development Projects, Storm Drainage Capital, Street Capital, Local WW Operations, Storm Drainage Operations, Booth-Kelly, and Vehicle & Equipment Funds. The City Council is asked to approve the attached Supplemental Budget Resolution. ATTACHMENTS: Attachment A. Council Briefing Memorandum Attachment B. Supplemental Budget Resolution DISCUSSION/ FINANCIAL IMPACT: The overall financial impact of the Supplemental Budget Resolution is increasing Capital Projects ($34,500), decreasing Reserves ($73,562), increasing Interfund Transfers ($388,055) and increasing Operating ($131,594). These are offset by Grants ($75,000), new revenue ($17,532) and other Fund transfers ($388,055). M E M O R A N D U M City of Springfield Date: 10/17/2011 To: Gino Grimaldi COUNCIL From: Bob Duey and Paula Davis BRIEFING Subject: SUPPLEMENTAL BUDGET REQUEST MEMORANDUM ISSUE: At various times during the fiscal year the Council is requested to make adjustments to the annual budget to reflect needed changes in planned activities, to recognize new revenues, or to make other required adjustments. These adjustments to resources and requirements change the current budget and are processed through supplemental budget requests scheduled by the Finance Department on an annual basis. This is the second of three scheduled FY12 supplemental budget request to come before Council. The supplemental budget being presented includes adjusting resources and requirements in the General, Street, Special Revenue, Building Code, Sanitary Sewer Capital, Development Projects, Storm Drainage Capital, Street Capital, Local WW Operations, Storm Drainage Operations, Booth-Kelly, and Vehicle & Equipment Funds. The City Council is asked to approve the attached supplemental Budget Resolution. COUNCIL GOALS/ MANDATE: Financially Responsible and Stable Government Services BACKGROUND: Supplemental budgets may be used to meet unexpected needs or to spend revenues not anticipated at the time the original budget was adopted. In accordance with Oregon budget law, notification of this supplemental budget and 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 Springfield Times on Friday, January 27, 2012. The attached information identifies the individual items that are included in the February 6, 2012 Supplemental Budget request. Changes to the budget included in this request fall into three general categories: Re- appropriation or carryovers, reallocation of existing resources, and new appropriation requests. Of these three categories, re-appropriations can be considered “housekeeping” type adjustments, as they are implementing decisions that Council has made in the past. 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 include money for capital projects that were planned but not completed in the prior year. The projects are still scheduled to occur and so the funds are requested to be carried over to the current year’s budget. MEMORANDUM 2/2/2012 Page 2 Reallocations move existing approved budget authority between funds or between departments. These adjustments can include moving money between departments for a capital project or reallocating reserves within the same fund. 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. SUPPLEMENT BUDGET REQUESTS Re-appropriations none are requested for this supplemental budget. Re-allocations move budgetary authority within funds and departments totaling $1,138,048: Storm Drainage Capital Request uses $25,000 from the Lower Mill Race Project to allow staff from the Environmental Services Division to conduct testing on the former Police outdoor firing range. This testing is required to define the extent of the clean-up needed for this site, which has become a priority for the Mill Race Rehabilitation. $ 25,000 Sanitary Sewer Capital Due to the proximity of project P21037, 10th and N Street Sewer Upgrade, and project P21056, Sanitary Basin 22 Rehabilitation, the work has been combined into one project. This will result in a better coordinated project to facilitate street repairs and minimize the duration of impacts to the neighborhood. The estimated cost of the Basin 22 work being combined with the P21037project is $1,050,000, so the supplemental budget requests moving this amount funding into the P21037 account. $1,050,000 Building Code and Booth Kelly This erratum is to correct an incorrectly budgeted amount in the FY12 adopted budget. It reallocates facility rent to the appropriate fund. $ 63,048 The following New appropriation requests totaling $91,019 are requested to be funded with new revenues. Special Revenue Request recognizes the grant from Comcast which is to be used on enhancing public meetings in the EOC, Library Meeting room and Wildish Theater. The facilities will be updated to provide meeting distribution over the Public Educational and Government Channels (PEG). $ 75,000 General Fund Request recognizes revenue from State Conflagration funds for Fire & Life Safety personal and vehicle expenses during the High Cascades Complex fire. $ 8,548 General Fund Request recognizes revenue form the City of Eugene, Public Works department for the use of the Springfield Fire & Life Safety boat and crew to perform water testing on the McKenzie River. $ 4,140 General Fund Reimbursement from the City of Eugene's Fire and EMS department for the printing expense of mapbooks. $ 979 General Fund Reimbursement from Intel for overtime related to a Urban Search and Rescue (USAR) drill in Beaverton. $ 2,352 MEMORANDUM 2/2/2012 Page 3 New appropriations of $390,575 are requested to be funded with existing reserves. Vehicle & Equipment Replacement Request provides funding from reserves to purchase Police vehicles previously approved by Council on Jan 17th, 2012. $ 35,500 Vehicle & Equipment Replacement Request addresses the need to replace two plotters which have outlived their useful life cycle and replacement schedules. $ 5,075 Street and Street Capital Request transfers funds from the Street reserves to the Street Capital Fund for the first time in four years. It will allow for the funding of the City's matching funds of $30,000 for the design of the Glenwood Connector Path Extension. The federal STP-U funds have been obligated and the preliminary engineering phase has been kicked-off. This project is identified as a high priority in the FY12-16 Capital Improvement Program. The remainder of the funds $320,000 will be placed in Street Capital reserves. $ 350,000 New appropriations of $642,495 are requested to be funded with a mix of new revenues and existing reserves. Special Revenue and Development Projects Request recognizes the SUB rebate that was received from the Depot relighting project. This rebate plus the Energy Efficiency and Conservation Block Grant (EECBG) rebate in FY11 from the City Hall lighting project will be used in building preservation projects for FY12. $ 7,487 Street, Sanitary Sewer Capital, Storm Drainage Capital, Local Wastewater Operations and Storm Drainage Operations Request provides funding for the Asset Management System Replacement Plan that was presented to Council on 11/28/2011. The current asset management system is over ten years old and is now obsolete. Vendors no longer support critical system components and system failures have increased to a point that staff feels that an immediate migration to an updated system is required to prevent a catastrophic system failure. $ 635,008 RECOMMENDED ACTION: Hold a public hearing and adopt/not adopt the following resolutions: A RESOLUTION ADJUSTING RESOURCES AND REQUIREMENTS IN THE FOLLOWING FUNDS: General, Street, Special Revenue, Building Code, Sanitary Sewer Capital, Development Projects, Storm Drainage Capital, Street Capital, Local WW Operations, Storm Drainage Operations, Booth-Kelly, and Vehicle & Equipment Funds. WHEREAS, this supplemental Budget #2 as amended by Supplemental Budget #1 Resolution #11‐29,for the 2011‐2012 fiscal year, amends Resolution #11‐21. RESOLUTION NO._____________ 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 11‐21 is hereby adjusted as follows: General‐Fund100 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, CITY OF SPRINGFIELD FY 2011‐2012 SUPPLEMENTAL BUDGET No. 1 A RESOLUTION ADJUSTING RESOURCES AND REQUIREMENTS IN THE FOLLOWING FUNDS: General, Street, Special Revenue, Building Code, Sanitary Sewer Capital, Development Projects, Storm Drainage Capital, Street Capital, Local WW Operations, Storm Drainage Operations, Booth‐Kelly, and Vehicle & Equipment Funds. WHEREAS, the 2011‐2012 fiscal year appropriations for the City of Springfield were made by Resolution No. 11‐ 21 dated June 20, 2011; 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, ResourcesRequirements Miscellaneous Receipts7,471$ Operating Expenses: State Conflagration Funds8,548 Fire & Life Safety16,019$ Total Resources Adjustments16,019$ Total Requirements Adjustments16,019$ ResourcesRequirements Transfer From Fund 61120,771$ Operating Expenses: Transfer From Fund 61714,297 Public Works35,068$ Non‐Departmental Expenses: Interfund Transfer350,000$ Reserves(350,000) Total Non Departmental Expenses‐$ Total Resources Adjustments35,068$ Total Requirements Adjustments35,068$ General ‐ Fund 100 Street ‐ Fund 201 ResourcesRequirements Comcast Grant75,000$ Operating Expenses: Library5,000$ Public Works70,000 Total Operating Expense75,000$ Non‐Departmental Expenses: Interfund Transfer2,987$ Reserves(2,987) Total Non Departmental Expenses‐$ Total Resources Adjustments75,000$ Total Requirements Adjustments75,000$ ResourcesRequirements ‐$ Operating Expenses: Development Services31,524$ Non‐Departmental Expenses: Reserves(31,524)$ Total Resources Adjustments‐$ Total Requirements Adjustments‐$ ResourcesRequirements ‐$ Capital Projects‐$ Total Resources Adjustments‐$ Total Requirements Adjustments‐$ ResourcesRequirements Miscellaneous Receipts1,513$ Capital Projects4,500$ Development Projects ‐ Fund 420 Building Code ‐ Fund 224 Sanitary Sewer Capital ‐ Fund 409 Special Revenue ‐ Fund 204 Transfer from Fund 2042,987 Total Resources Adjustments4,500$ Total Requirements Adjustments4,500$ ResourcesRequirements ‐$ Capital Projects‐$ Total Resources Adjustments‐$ Total Requirements Adjustments‐$ ResourcesRequirements Transfer from Fund 201350,000$ Non‐Departmental Expenses: Reserves320,000$ Capital Projects30,000$ Total Resources Adjustments350,000$ Total Requirements Adjustments350,000$ ResourcesRequirements ‐$ Operating Expenses: Public Works(20,771)$ Non‐Departmental Expenses: Interfund Transfers20,771$ Total Resources Adjustments‐$ Total Requirements Adjustments‐$ Local Wastewater Operations ‐ Fund 611 Street Capital ‐ Fund 434 Storm Drainage Capital ‐ Fund 425 ResourcesRequirements ‐$ Operating Expenses: Public Works(14,297)$ Non‐Departmental Expenses: Interfund Transfers14,297$ Total Resources Adjustments‐$ Total Requirements Adjustments‐$ ResourcesRequirements ‐$ Operating Expenses: Development Services(31,524)$ Non‐Departmental Expenses: Reserves31,524 Total Resources Adjustments‐$ Total Requirements Adjustments‐$ ResourcesRequirements Beginning Cash‐$ Operating Expenses: Police35,500$ Public Works5,075 Total Operating Expense40,575$ Non‐Departmental Expenses: Reserves(40,575)$ Total Resources Adjustments‐$ Total Requirements Adjustments‐$ Si2ThilihllkffdibhCildlbhM Storm Drainage Operations ‐ Fund 617 Vehicle & Equipent ‐ Fund 713 Booth‐Kelly ‐ Fund 618 Attest: Mayor Christine L Lunberg City Recorder Amy Sowa 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 17th day of October, 2011, by a vote of ______for and ______against.