Title
An Ordinance approving Amendment No. 11 to the Budget for the Fiscal Year ending June 30, 2023, as adopted by Ordinance No. 9441, Ordinance No. 9442, Ordinance No. 9449, Ordinance No. 9450, and Ordinance No. 9451, by amending the authorized expenditures to projected year amounts for the City. (F&BC 3/6/23)
Body
Issue/Request:
An Ordinance approving Amendment No. 11 to the Budget for the Fiscal Year ending June 30, 2023, as adopted by Ordinance No. 9441, Ordinance No. 9442, Ordinance No. 9449, Ordinance No. 9450, and Ordinance No. 9451, by amending the authorized expenditures to projected year amounts for the City.
Key Issues:
Part of the Budget process is monitoring the current fiscal year budget and adjusting as needed. Once we hit the mid-point of the year we do a review of expenditures to date and identify unexpected expenditures. We then look forward to determine based on anticipated expenditures, if each Department has enough spending authority for the remainder of the fiscal year.
This year's Projections Budget Amendment includes two types of updates to the current fiscal year budget: i) increasing the spending authority for Departments that anticipate needing a higher amount; and ii) transfers that need to occur to pay a department for services performed by another department.
Below is a brief description of the situations that cause the need for additional spending authority by Department.
Proposed City Council Motion:
FIRST MOTION: I move for a second reading of An Ordinance approving Amendment No. 11 to the Budget for the Fiscal Year ending June 30, 2023, as adopted by Ordinance No. 9441, Ordinance No. 9442, Ordinance No. 9449, Ordinance No. 9450, and Ordinance No. 9451, by amending the authorized expenditures to projected year amounts for the City.
SECOND MOTION: I move for adoption of An Ordinance approving Amendment No. 11 to the Budget for the Fiscal Year ending June 30, 2023, as adopted by Ordinance No. 9441, Ordinance No. 9442, Ordinance No. 9449, Ordinance No. 9450, and Ordinance No. 9451, by amending the authorized expenditures to projected year amounts for the City.
Background:
Public Works Engineering: The Engineering division is slightly over budget as they have been able to maintain close to full staffing. They have one purchase, bucket truck upgrade that was impacted by prices rising by $45,879. There is a request for an increase in spending authority of $12,883 and a transfer of additional funds, $45,879, to the Fleet account for the bucket truck upgrade.
Public Works Operations is transferring additional funds of $23,862 to Fleet due to the increased costs of vehicle equipment. Because of vacancy savings no additional spending authority is requested.
Parks: Parks experienced increases from several contracted services and natural gas price increases at all facilities.
Parks also had several unexpected expenses:
-Elevator repair at Longview Community Center $79,500 and additional asphalt work, paid from Parks and Recreation Fund creating need for additional $97,526.
-Roof repair at Gamber Center $5,000, unplanned concrete repair $3,000, and an increase in personnel expenses to provide services for increased attendance creating need for additional $26,384.
-Summit Waves additional security cost $20,000, additional personnel expenses because of increased attendance at the park $47,000, and new water fountains and locker room fans $23,000 creating need for additional $72,139.
-Heater repair at Longview Community Center $13,000 creating need for additional $15,605.
Public Safety Sales Tax (PSST): During the submission of the original budget the approval of the transfer for the SRO vehicle for $35,000 was missed. This is a clean up for a transfer request. There is no request for an increase in spending authority.
Public Safety Equipment Replacement Program (PSERP): Due to the retirement of a K-9 officer the Police department needs to start the process of obtaining a new K-9 to go with the retiring officer's replacement. $17,000 is requested.
Water Utilities: Water is not seeking additional spending authority. Because of inflationary costs a new replacement vehicle costs more than anticipated, requiring an additional transfer of $15,882 to Fleet.
Airport: The need for additional aviation fuel is the main reason for the increase of $324,414 needed in the Airport budget. Airport is also requests an increased transfer of $800 to Fleet to cover the salvage value of the old tug that they want to keep in service as a back up to the new tug and to meet additional service demand.
Fleet: Fleet is not seeking any additional spending authority, but will receive additional $121,423 transferred from Public Works Engineering, Public Works Operations, Public Safety Sales Tax, and Airport for the reasons stated in each department.
Overall the General Fund is projected to spend approximately $600,000 less than budgeted. The other operating funds are projected to spend approximately $2,2 million less than projected.
Presenter
Rick Gentry, Budget Manager
Recommendation
Recommendation: Staff recommends approval of the Ordinance.
Committee Recommendation
Recommendation: A motion was made by Councilmember Shields, seconded by Councilmember Hodges, that TMP-2564 be recommended for approval to the City Council. The motion carried by a unanimous 4-0 vote.