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Home My WebLink AboutItem 10 Supplemental Budget Resolution AGENDA ITEM SUMMARY Meeting Date: 6/4/2012 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, Transient Room Tax, Police Local Option Levy, Regional Wastewater Revenue Bond Capital Project, Regional Wastewater Capital, SDC Local Storm Improvement, SDC Local Storm Reimbursement, Sanitary Sewer Reimbursement SDC, Sanitary Sewer Improvement SDC, SDC Transportation Reimbursement, SDC Transportation Improvement, Local Wastewater Operations, Regional Wastewater, Storm Drainage Operations, Booth-Kelly, and Insurance. 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 last 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, Transient Room Tax, Police Local Option Levy, Regional Wastewater Revenue Bond Capital Project, Regional Wastewater Capital, SDC Local Storm Improvement, SDC Local Storm Reimbursement, Sanitary Sewer Reimbursement SDC, Sanitary Sewer Improvement SDC, SDC Transportation Reimbursement, SDC Transportation Improvement, Local Wastewater Operations, Regional Wastewater, Storm Drainage Operations, Booth-Kelly, and Insurance 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 to decrease Reserves ($569,444), increase Interfund Transfers ($202,811), increase Debt Service ($640), increase Statutory Payments ($310,000) and increase Operating Expenses ($422,526). These are offset by Grants ($256,700), and new revenue ($109,833) . [Type text] [Type text] [Type text] M E M O R A N D U M City of Springfield Date: 6/4/2012 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 last 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, Transient Room Tax, Police Local Option Levy, Regional Wastewater Revenue Bond Capital Project, Regional Wastewater Capital, SDC Local Storm Improvement, SDC Local Storm Reimbursement, Sanitary Sewer Reimbursement SDC, Sanitary Sewer Improvement SDC, SDC Transportation Reimbursement, SDC Transportation Improvement, Local Wastewater Operations, Regional Wastewater, Storm Drainage Operations, Booth-Kelly, and Insurance. 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, May 25, 2012. The attached information identifies the individual items that are included in the June 4, 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 Attachment A Page 2 of 4 to occur and so the funds are requested to be carried over to the current year’s budget. 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 for previously budgeted projects are requested, totaling $6,160: Special Revenue Fund Request recognizes non-federal housing assistance funds not carried forward in previous supplemental budgets. These funds are dedicated for the state grant down payment assistance program and payment for property inspections services conducted by City housing staff. $ 6,005 Special Revenue Fund Recognized SHPO funds from FY2011 that have not been carried forward in previous supplemental budgets. $ 155 Re-allocations move budgetary authority within funds and departments totaling $615,650: Regional WW Revenue Bond Capital Project and Regional WW Capital Funds Request moves portions of Tertiary project budget to Regional WW Capital fund where SRF funds will cover the expenses. This request is to coordinate the expenses with the amount the City will be receiving for SRF funding. $ 579,174 SDC Local Storm Improvement, SDC Local Storm Reimbursement, Sanitary Sewer Reimb SDC, Sanitary Sewer Improvement SDC, SDC Transportation Reimburseme, and SDC Transportation Improvement Request adjust allocation of SDC Administration charges between SDC funds based on the percentage of FY2011-2012 revenue. This adjustment allows the administration charges to be correctly expensed in each fund. $ 36,476 The Following New appropriations of $20,000 are requested to be funded with a mix of new revenues and existing reserves. Special Revenue Fund Request authorizes a combination of reserves and donations to increase the Library's program expense and capital outlay budget lines for the purchase of books and special youth programs. $ 20,000 Attachment A Page 3 of 4 New appropriation requests totaling $441,011 are requested to be funded with new revenues. Special Revenue Fund Recognizes the HUD/Lane Livability Consortium grant approved by Council on September 19, 2011, Resolution 11- 28. This request authorizes the use of the grant in 2011- 2012 for the expenditures on grant tasks that are in common with the Sustainable Cities projects. $ 185,000 Police Local Option Levy Increase Police Local Option Levy transfer to Jail Operations to reflect the current year estimated transfer being revised upward to allow all FY12 funds are transferred in current fiscal year. $ 84,478 Transient Room Tax Fund Increase budget for Transient Room Tax transfer to the General Fund to reflect the increase in actual receipts over budget. $ 78,333 Special Revenue Fund Public Works has been awarded a grant to install cablecast equipment in the Library meeting room and the Emergency Operations Room at the Justice Center. This will allow the City to broadcast on PEG channels managed by Metro TV. $ 57,900 Special Revenue Fund The City applied for and received the 2012-2013 State SHPO grant. This request is to recognize the grant funds and authorize their use for program expenses. $ 13,800 SDC Local Storm Drainage Impr and SDC Local Storm Drainage Reimb Funds System Development Credits (SDC) credits can be issued to developers when projects are built to over capacity standards. This adjustments reflects the use of these previously issued credits for the period July 1, 2011 through June 30, 2011. $ 12,500 Special Revenue Fund Request recognized revenue from the 2011-12 OACP Traffic Safety Grant for the seat belt enforcement efforts. $ 5,000 General Fund Revenue received from Meadow Outdoor billboard rental will fund partial sponsorship of Springfield Solstice Dash & Bash, Springfield Summer Fair, Springfield Community Day with the Emeralds and the purchase of American flags for Veterans Day. $ 4,000 New appropriations of $468,806 are requested to be funded with existing reserves. Insurance Fund Increases budget for insurance premiums and workers' comp claims to reflect actual experience. Year to date expenditures are similar to the previous year, however, the original budget was estimated lower. $ 310,000 Street, Sanitary Sewer Operations and Storm Drainage Operations Funds Request identifies an erratum where Internal Facilities Rent was overlooked during the 2011-2012 budget process. $ 115,517 General Fund Authorized funding for the Buckley House Sobering Center which will allow the program to operate through June 30, 2012. $ 22,000 Insurance Fund Request provides funding for purchase of F&LS fitness equipment with EAIP (Employer at Injury Program) reserves. The EAIP program is to improve employees health and injury prevention. $ 15,200 Attachment A Page 4 of 4 Booth-Kelly Fund Request increase personal services to cover building maintence staff time allocated to Booth-Kelly. $ 5,449 Booth-Kelly and Regional Wastewater Fund Authorizes increase in debt service interest payment in both the Booth-Kelly and Regional Wastewater funds. Preliminary debt schedules were used for budgeting which has since been updated. $ 640 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, Transient Room Tax, Police Local Option Levy, Regional Wastewater Revenue Bond Capital Project, Regional Wastewater Capital, SDC Local Storm Improvement, SDC Local Storm Reimbursement, Sanitary Sewer Reimbursement SDC, Sanitary Sewer Improvement SDC, SDC Transportation Reimbursement, SDC Transportation Improvement, Local Wastewater Operations, Regional Wastewater, Storm Drainage Operations, Booth-Kelly, and Insurance. ResourcesRequirements Miscellaneous Receipts4,000$ Operating Expenses: City Manager's Office26,000$ Non‐Departmental Expenses: Reserves(22,000)$ Total Resources Adjustments4,000$ Total Requirements Adjustments4,000$ ResourcesRequirements ‐$ Operating Expenses: Public Works43,978$ Non‐Departmental Expenses: Reserves(43,978)$ Total Resources Adjustments‐$ Total Requirements Adjustments‐$ WHEREAS, this supplemental Budget #3 as amended by Supplemental Budget #1 Resolution #11‐29 and Supplemental Budget #2 Resolution #12‐01, for the 2011‐2012 fiscal year, amends Resolution #11‐21. Section 1. Resolution 11‐21 is hereby adjusted as follows: General ‐ Fund 100 Street ‐ Fund 201 RESOLUTION NO._____________ Comments: Revenue received from Meadow Outdoor billboard rental ($4,000) will be used for special events. Authorizes use of reserves to fund Buckley House Sobering Center ($22,000). Comments: Erratum for Internal Facilities Rent ($43,978) which was overlooked during the 2011‐2012 budget process. NOW, THEREFORE, BE IT RESOLVED, by the Common Council of the City of Springfield, a Municipal Corporation of the State of Oregon, as follows: WHEREAS, notice of a public hearing, including information regarding such revenues and expenditures was published in a newspaper of general circulation not less than 5 days prior to the public meeting; and, CITY OF SPRINGFIELD FY 2011‐2012 SUPPLEMENTAL BUDGET No. 3 A RESOLUTION ADJUSTING RESOURCES AND REQUIREMENTS IN THE FOLLOWING FUNDS: General, Street, Special Revenue, Transient Room Tax, Police Local Option Levy, Regional WW Revenue Bond Capital Project, Regional WW Capital, SDC Local Storm Improvement, SDC Local Storm Reimbursement, Sanitary Sewer Reimbursement SDC, Sanitary Sewer Improvement SDC, SDC Transportation Reimbursement, SDC Transportation Improvement, Local WW Operations, Regional WW, Storm Drainage Operations, Booth‐ Kelly, and Insurance funds. WHEREAS, the 2011‐2012 fiscal year appropriations for the City of Springfield were made by Resolution No. 11‐ 21 dated June 20, 2011; and, WHEREAS, at various times during the fiscal year the Common Council is requested to make adjustments to the fiscal year budget to reflect needed changes in planned activities, to recognize new revenues, or to make other required adjustments; and, WHEREAS, the Common Council handles such requests for adjustment to the budget through Supplemental Budget Resolutions presented at public hearings at which the public may comment on such requests; and, Attachment BPage 1 of 5 ResourcesRequirements HUD Lane Livability Grant185,000$ Operating Expenses: PEG/LCOG Grant57,900 City Manager's Office145,000$ SHPO Grant 2011‐201213,800 Development Services19,960$ Library Gift Funds10,000 Library20,000$ OACP Traffic Safety 20115,000 Police5,000$ Public Works57,900 Total Operating Expense247,860$ Non‐Departmental Expenses: Interfund Transfer40,000$ Reserves(16,160) Total Non Departmental Expenses23,840$ Total Resources Adjustments271,700$ Total Requirements Adjustments271,700$ ResourcesRequirements Transient Room Tax78,333$ Non‐Departmental Expenses: Interfund Transfer78,333$ Total Resources Adjustments78,333$ Total Requirements Adjustments78,333$ ResourcesRequirements ‐$ Non‐Departmental Expenses: Interfund Transfer84,478$ Reserves(84,478) Total Non Departmental Expenses‐$ Total Resources Adjustments‐$ Total Requirements Adjustments‐$ ResourcesRequirements ‐$ Capital Projects(289,587)$ Non‐Departmental Expenses: Reserves289,587$ Total Resources Adjustments‐$ Total Requirements Adjustments‐$ Regional Wastewater Revenue Bond Capital Project ‐ Fund 412 Comments: Adjust budget for Fund 208 transfer to the General Fund 100 ($78,333) to reflect the increase in actual receipts. Police Local Option Levy ‐ Fund 236 Comments: Adjusts Fund 236 transfer to Jail Operations Fund 202 ($84,478) to reflect the current year estimated actual. Comments: Moves portions of Tertiary project budget originally in Fund 412 to Regional Wastewater Capital fund 433 ($289,587) where SRF funds will cover the expenses. Special Revenue ‐ Fund 204 Comments: Authorizes expenditure in fund for: OACP Traffic Safety Grant for officer overtime ($5000), MPC grant for cablecast equipment ($57,900), SHPO grant for program expense ($13,800) and HUD/Lane Livability Consortium grant for program expense ($185,000). Increases Library's budget for program expense ($10,000) and capital outlay ($10,000) through donations and use of reserves. Re‐appropriates SHOP and housing assistance funds not used in 2010‐2011 into current year ($6,160). Transient Room Tax ‐ Fund 208 Attachment BPage 2 of 5 ResourcesRequirements ‐$ Capital Projects289,587$ Non‐Departmental Expenses: Reserves(289,587)$ Total Resources Adjustments‐$ Total Requirements Adjustments‐$ ResourcesRequirements SDC Storm Fee7,500$ Operating Expenses: Public Works(1,201)$ Non‐Departmental Expenses: Reserves8,701$ Total Resources Adjustments7,500$ Total Requirements Adjustments7,500$ ResourcesRequirements SDC Storm Reimbursement Fee5,000$ Operating Expenses: Public Works4,347$ Non‐Departmental Expenses: Reserves653$ Total Resources Adjustments5,000$ Total Requirements Adjustments5,000$ ResourcesRequirements ‐$ Operating Expenses: Public Works(592)$ Non‐Departmental Expenses: Reserves592$ Total Resources Adjustments‐$ Total Requirements Adjustments‐$ ResourcesRequirements ‐$ Operating Expenses: Public Works(8,292)$ Non‐Departmental Expenses: Reserves8,292$ Total Resources Adjustments‐$ Total Requirements Adjustments‐$ Comments: Authorizes expenditure of SDC credits received in 2011‐2012 ($5,000). Adjust allocation of SDC Administration charges to appropriate funds based on percentage of 2011‐2012 revenue ($‐653). Sanitary Sewer Reimbursement SDC ‐ Fund 442 Comments: Adjust allocation of SDC Administration charges to appropriate funds based on percentage of 2011‐ 2012 revenue ($‐592). Sanitary Sewer Improvement SDC ‐ Fund 443 Comments: Adjust allocation of SDC Administration charges to appropriate funds based on percentage of 2011‐ 2012 revenue ($‐8,292). Comments: Moves portions of Tertiary project budget originally in Regional Wastewater Revenue Bond Capital Project Fund 412 to Fund 433 ($289,587) where SRF funds will cover the expenses. Comments: Authorizes expenditure of SDC credits received in 2011‐2012 ($7,500). Adjust allocation of SDC Administration charges to appropriate funds based on percentage of 2011‐2012 revenue ($‐8,701). SDC Local Storm Reimbursement ‐ Fund 441 SDC Local Storm Improvement ‐ Fund 440 Regional Wastewater Capital ‐ Fund 433 Attachment BPage 3 of 5 ResourcesRequirements SDC Storm Reimbursement Fee‐$ Operating Expenses: Public Works4,440$ Non‐Departmental Expenses: Reserves(4,440)$ Total Resources Adjustments‐$ Total Requirements Adjustments‐$ ResourcesRequirements ‐$ Operating Expenses: Public Works13,798$ Non‐Departmental Expenses: Reserves(13,798)$ Total Resources Adjustments‐$ Total Requirements Adjustments‐$ ResourcesRequirements ‐$ Operating Expenses: Public Works26,566$ Non‐Departmental Expenses: Reserves(26,566)$ Total Resources Adjustments‐$ Total Requirements Adjustments‐$ ResourcesRequirements ‐$ Non‐Departmental Expenses: Debt Service590$ Reserves(590) Total Non Departmental Expenses‐$ Total Resources Adjustments‐$ Total Requirements Adjustments‐$ ResourcesRequirements ‐$ Operating Expenses: Public Works44,973$ Non‐Departmental Expenses: Reserves(44,973)$ Total Resources Adjustments‐$ Total Requirements Adjustments‐$ Comments: Authorized increase in debt service interest payment for updated debt schedule ($590). Comments: Erratum for Internal Facilities Rent ($44,973) which was overlooked during the 2011‐2012 budget process. Regional Wastewater ‐ Fund 612 SDC Transportation Reimbursement ‐ Fund 446 Comments: Adjust allocation of SDC Administration charges to appropriate funds based on percentage of 2011‐ 2012 revenue ($4,440). SDC Transportation Improvement ‐ Fund 447 Comments: Adjust allocation of SDC Administration charges to appropriate funds based on percentage of 2011‐ 2012 revenue ($13,798). Comments: Erratum for Internal Facilities Rent ($26,566) which was overlooked during the 2011‐2012 budget process. Local Wastewater Operations ‐ Fund 611 Storm Drainage Operations ‐ Fund 617 Attachment BPage 4 of 5 ResourcesRequirements ‐$ Operating Expenses: Public Works5,449$ Non‐Departmental Expenses: Debt Service50$ Reserves(5,499) Total Non Departmental Expenses(5,449)$ Total Resources Adjustments‐$ Total Requirements Adjustments‐$ ResourcesRequirements Beginning Cash‐$ Operating Expenses: Human Resource15,200$ Non‐Departmental Expenses: Reserves(325,200)$ Statutory Payments310,000 Total Non Departmental Expenses(15,200)$ Total Resources Adjustments‐$ Total Requirements Adjustments‐$ Total Resources Adjustments366,533$ Total Requirements Adjustments366,533$ Attest: Comments: Authorized increase in debt service interest payment for updated debt schedule ($50). Increase Public Works Operations budget to cover building maintenance staff time allocated to Booth‐Kelly ($5,449). Comments: Authorizes funding for purchase of fitness equipment with EAIP reserves ($15,200). Increase budget for insurance premiums and worker's comp claims to reflect actual experience ($310,000). Mayor Christine L Lundberg 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 4th day of June, 2012, by a vote of ______for and ______against. Insurance ‐ Fund 707 Booth‐Kelly ‐ Fund 618 Attachment BPage 5 of 5