Ordinance 2022-09, if approved, will amend the current FY 2021-2022 Appropriations (Budget) Ordinance to formally authorize recommended adjustments to expenditures and operating transfers for the General Fund, Post-Employment Benefits Fund, Debt Service Fund, Equipment Replacement Fund, Capital Projects Fund, Facilities Maintenance Fund, Insurance Fund, Water and Sewer Fund, and Emergency Communications District Fund.
A budget amendment is legally required when the total actual expenditures for a fund are expected to exceed the original total appropriation for the fund. The reasons for these amendments are typically identified by staff during the fiscal year and then the amendments are formally considered by the City Commission at the end of the fiscal year to ensure legal compliance. Often these amendments are needed to provide current year funding for capital projects and equipment that will be initiated or purchased in the new fiscal year beginning July 1. The amendment process requires staff to identify and certify that additional revenue sources in the current fiscal year are available to fund the new expenditures.
The recommended amendments are summarized below:
General Fund (110)
Additional revenues of $11,403,015 reflect positive revenue collections in the current year over original budgeted estimates.This includes additional revenue appropriations of:
- Real and Personal Property Taxes - $100,000
- Local Sales Tax - $10,000,000
- Wholesale Liquor Tax - $500,000
- State Shared Sales Tax - $600,000
- Transfers from Post Employment Benefits Fund - $203,015
Proposed expenditure amendments are as follows:
- A special FY 2022 year-end appropriation transfer of $9,100,000 from the General Fund to the Capital Projects Fund to pay for certain proposed FY 2023 and beyond capital projects and equipment. (See attachment A for projects list.)
- A special FY 2022 year-end transfer of $785,000 from the General Fund to the Equipment Replacement Fund for the FY 2023 purchases of equipment. (See attachment A for equipment list.)
- A special FY 2022 year-end transfer of $195,000 from the General Fund to the Facilities Maintenance Fund for FY 2023 repairs to the Service Center Fuel Tanks and Ravenswood Mansion non-event repairs.
- Appropriation increases for all General Fund budget activities that include personnel for mid-year salary increases and one-time lump sum payments as approved by the City Commission via Resolution 2022-36 on March 28, 2022.
- Appropriation increases to various General Fund budget activities for specific cost overruns as follows:
- An appropriation increase in the City Recorder activity of $9,500 for unanticipated cost for MuniCode updates.
- An appropriation increase in the Information and Technology activity of $43,260 for one-time unbudgeted cost for consultant assistance with the hiring of Technology Director.
- An appropriation increase in the Information and Technology activity of $69,215 for accrued terminal leave payment for FY 2022 retirement of one 30+ year employee.
- An appropriation increase in the Planning activity of $46,400 for contractual services for flood ordinance review.
- An appropriation increase in the Planning activity of $64,185 for accrued terminal leave payment for FY 2022 for the retirement of one 28 year employee.
- An appropriation increase in the Police Headquarter activity of $50,000 for higher than anticipated utility and grounds maintenance costs.
- An appropriation increase in the Fire and Rescue activity of $42,365 for accrued terminal leave payment in FY 2022 for the retirement of one 30+ year employee.
- An appropriation increase in the Fire and Rescue activity of $98,000 to cover motor vehicle repairs and maintenance.
- An appropriation increase in the Public Works activity of $75,000 for additional unanticipated landfill fees.
- An appropriation increase in the Public Library Activity of $27,250 for accrued terminal leave payment for FY 2022 for the retirement of one 30+ year employee.
- An appropriation increase in the Public Library Activity of $17,400 for the replacement of inside and outside cameras.
The proposed total General Fund appropriation increase of $11,403,015 from current year revenues and fund balance will leave a minimum projected General Fund unassigned fund balance as of June 30, 2022 of approximately $46.1 million. The fund balance will exceed the stated budget policy objective of maintaining a minimum of 40% in reserves for future needs and emergencies.
Public Works Project Fund
Increasing the appropriation for this fund for a FY 2022 year-end transfer to the Capital Projects Fund for $350,000 to cover a portion of the engineering cost for Split Log Road Phase III preliminary engineering.
Post-Employment Benefits Fund (127)
Increasing the appropriation for this fund by $203,015 for the transfer to the General Fund for reimbursement of accrued terminal leave payments for the Technology ($69,215), Planning ($64,185), Fire and Rescue ($42,365) and Library ($27,250) activities in FY 2022 as referenced above. Also increasing the appropriation for this fund by $16,600 for the transfer to Emergency Communications Fund for the reimbursement of accrued leave payment for the Emergency Communications District.
Debt Service Fund (211)
Increasing the appropriation of this fund by $1,382,275 to cover the net costs of prepayment of the GO Bond Series 2011 and GO Refunding Bond Series 2011.
Equipment Replacement Fund (310)
Additional Revenue of $785,000 reflects the special year-end appropriation transfer from the General Fund as referenced above.
Capital Projects Fund (311)
Additional revenue of $9,100,000 for the transfer from General Fund for FY 2023 projects. Additional revenue of $660,260 for a portion of the American Rescue Plan ARP Act allocations equal to the expenditures. Additional revenue of $350.000 reflects the year-end appropriation transfer from the Public Works Project Fund.
Increasing the appropriation of this fund by $660,260 to cover the cost for engineering services for the Drainage Basin Master Plan and an increase in the appropriation of this fund for $350,000 to cover engineering costs for Split Log Road Phase III preliminary engineering.
Facilities Maintenance Fund (312)
Additional revenue of $195,000 reflects the special year-end appropriation transfer from the General Fund as referenced above.
Insurance Fund (320)
Additional revenue of $385,000 reflects stop loss (reinsurance) amounts received for payments of individual medical claims above the stop loss base amount. Note that additional stop loss payments may be received for claims incurred prior to June 30, 2022.
Increasing the appropriation of this fund by the same $385,000 for incremental medical claims that could occur before June 30, 2022.
Water and Sewer Fund (412)
Additional revenue for a portion of the American Rescue Plan (ARP) act allocation of $2,500,000. FY 2022 expenses estimated to be greater than $2,500,000. An appropriation increase in this fund of $17,925 for mid-year 6% salary increase for all Water Services employees excluding Director and Assistant Director and office personnel who received 3% and an appropriation increase to this fund for $46,870 for one-time lump sum payment.
Emergency Communications District Fund (450)
An increase in revenue of $16,600 for the terminal leave payment transfer from the Post Employment Benefits Fund referenced above.
An appropriation increase in this fund of $4,900 for mid-year 3% salary increase, $26,780 for one-time lump sum payments, and $16,600 terminal leave payments for a retired employee.
Summary
The recommended budget appropriations amendments are required to meet the legal requirements for compliance with annual budget appropriations. Whenever possible, budget amendments for the current fiscal year should be carried out before the end of the fiscal year and prior to the beginning of the independent audit for FY 2022.
Should the City Commission have any questions concerning this information, please contact the Finance Director. |