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Home My WebLink AboutPO 6749: FY 18-19 BUDGET AMENDMENT NUMBER 3 ___. _. City of 4 )'1 nrt rthu Ir ., www.PortArthurTx.gov INTEROFFICE MEMORANDUM Date: January 10, 2019 To: The Honorable Mayor and City Council Through: Harvey Robinson, Interim City Manager From: Andrew Vasquez, Finance Director RE: P.O. 6749 - FY18-19 Budget Amendment Number 3 Introduction: A budget amendment is requested to establish the Gaming Special Revenue Fund,to fund unbudgeted expenses related to repairs of City Hall, and to fund increased drainage activity. Gaming Fund The amendment establishes the Gaming Special Fund by transferring $989,356 from the General Fund into the Gaming Special Fund. These funds have accumulated in the General Fund since the gaming regulations began in 2015. The amendment also moves $109,856 from the current FY19 General Fund budget Gaming Division expenditures, $45,000 from General Fund transfers for Capital Reserve and $24,200 from General Fund Information Technology Department to create the budget for the Gaming Fund. All amounts transferred have been previously approved in the FY2018-2019 Adopted Budget. (See Attachment) Public Works In addition, a total of$350,000 is requested to increase the Public Works Department appropriation for unanticipated expenditures in the Facilities Maintenance Division($250,000) and the Drainage Division($100,000). The amendment increases Public Works Facilities Maintenance by $250,000 to continue to maintain City Hall for the remainder of the fiscal year. Due to years of deferred maintenance, City Hall has experienced major damage and system failures in recent months. So far this year, $174,000 has been spent for unexpected costs to remediate mold and asbestos, seal exterior building leaks, restore flooring and drywall, repair major plumbing failures, etc. These costs were not included in the original budget. The majority of the cost was for a contract to Action Restoration in the amount of$111,950 which was approved by Council on 9/25/18. Further work needs to be done to seal and repair water damages on the fourth floor. Staff does not have firm estimates for the work. This amendment request of$250,000 includes $76,000 above what has been spent to date for this and other unforeseen issues. "Remember,we are here to serve the Citizens of Port Arthur" P.O.Box 1089 X Port Arthur,Texas 77641-1089 X 409.983.8101 X FAX 409.982.6743 �J City of 4 ort rfhU�r 7PluS www.PortArthurTx.gov The amendment increases the Public Works Drainage maintenance budget by $100,000 to increase the amount of work done to clear ditches throughout the City. The original budget planned for the clearing of approximate 28 ditches. In order to continue to address the backlog of drainage maintenance, staff is requesting this additional funding. For example, the budget did not include funding for contract work for $33,900 which was recently awarded for 5800 LF of ditch line clearing in the Stonegate area. Background: The FY 18-19 budget was approved on September 11, 2018. This is the third budget amendment requested for this budget year. Budget Impact: The above requests will increase the appropriation to the General Fund by $1,160,320 and decrease the ending fund balance by a total of$1,460,320. The Gaming Fund appropriation for FY19 will be $179,056 and the ending fund balance is expected to be $1,110,320. Recommendation: The attached Proposed Ordinance No. 6749 amends the budget to move gaming activities into a separate fund as well as increase the Public Works Budget and we recommend that the City Council approve it as presented. "Remember,we are here to serve the Citizens of Port Arthur" P.O.Box 1089 X Port Arthur,Texas 77641-1089 X 409.983.8101 X FAX 409.982.6743 GAMING FUND(New) 2018-2019 BUDGET Dev Services/ Gaming Div IT Capital Res Total Revenues FY19 Gaming Machine Permits 300,000 Transfer In-General Fund(Beginning Bal) 989,376 Total Revenues 1,289,376 Expenditures Salaries and Benefits Regular Earnings 34,691 34,691 Overtime Earnings 35,000 35,000 Social Security 5,332 5,332 Retirement - - Workers Compensation 407 407 Terminating Pay L526 1,526 Total Salaries and Benefits 76.956 - - 76,956 Supplies and Materials Office Supplies 7,000 7,000 Minor Equipment 2,700 2,700 IT Equipment(From IT Budget) 24,200 24,200 Other Supplies and Material 2,200 2,200 Total Supplies and Materials 11,900 24.200 - 36,100 Contractual Service Advertising 3.000 3,000 Communications 18.000 18,000 Total Contractual Services 21,000 - - 21,000 Capital Outlay Equipment(From Fund 625 Capital Reserve) 45,000 45,000 Total Capital Outlay - - 45,000 45,000 Total Expenditures and Transfers 109.856 24,200 45,000 179,056 Net Revenues/(Expenditures) 1,110,320 Fund Balances Beginning of Year - End of Year $ 1,110,320 P. O. NO. 6749 KD 1.10.18 ORDINANCE NO. AN APPROPRIATION ORDINANCE AMENDING THE CITY OF PORT ARTHUR BUDGET FOR THE FISCAL YEAR BEGINNING OCTOBER 1,2018 AND ENDING SEPTEMBER 30, 2019 BY $1,160,320 FOR THE GENERAL FUND, AND BY $179,056 FOR THE GAMING FUND. WHEREAS, in accordance with Article XII, Section 9, of the City Charter, the City Council may make emergency appropriations from time to time; and WHEREAS, the City Council may make budget amendments for emergencies under Section 102.009 and for Municipal purposes under Section 102.010 Local Government Code; and WHEREAS, on September 11, 2018, the City Council approved and adopted Ordinance 18-50 which appropriated the 2018-2019 budget; and WHEREAS, on October 30, 2018, the City Council approved and adopted ordinance No. 18-66, which amended ordinance No. 18-50. WHEREAS, on November 6, 2018, the City Council approved and adopted ordinance No. 18-68, which amended ordinance No. 18-66. NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR: Section 1. That the facts and opinions in the preamble are true and correct. Section 2. That the following funds/departments Budget be increased (decreased) as shown: General Fund Information Technology $ (24,200) Development Services $ (109,856) Public Works $ 350.000 Transfers Out $ 944,376 Gaming Fund $ 179,056 Section 3. That Section 4 of Ordinance 18-50 is amended to read: That there be and is hereby appropriated the sum of Seventy Million, Five Hundred Twelve Thousand, Four Hundred Sixty Four Dollars ($70,512,464) to the General Fund for the payment of the Operating Expenses,and necessary Capital Outlay for the City Government for the following Departments and uses: Department or Use Amended Inc./(Dec) Amended Budget Appropriation Budget Administration $ 1,613,294 $ 1,613,294 City Secretary 2,097,232 2,097,232 City Attorney 1,127,621 1,127,621 Finance 2,288,445 2,288,445 Information Technology 1,772,046 (24,200) 1,747,846 Human Resources 813,215 813,215 Development Services 5,986,202 (109,856) 5,876,346 Civic Center 774,571 774,571 Police 20,509,145 20,509,145 Fire 13,905,674 13,905,674 Public Works 7,962,925 350,000 8,312,925 Health 1,500,621 1,500,621 Parks & Recreation 3,048,723 3,048,723 Library 1,274,655 1,274,655 Transfers to Other Funds 4,677,775 944,376 5,622,151 Total $ 69,352,144 $ 1,160,320 $ 70,512,464 Section 4. That Section 24 of Ordinance 18-50 is added to read: That there be and is hereby appropriated the sum of One Hundred Seventy Nine Thousand, Fifty Six Dollars($179,056)to the newly created Gaming Fund for the enforcement of gaming regulations within Port Arthur. Section 5. That unassigned Fund Balance in the General Fund shall be decreased by $1,460,320 and the estimated Fund Balance in the Gaming Fund shall be increased by $1,110,320 at the end of this fiscal year if all other revenues and expenditures come in as budgeted. Section 6. That a copy of the caption of this Ordinance be spread upon the minutes of the City Council. Section 7. That this Ordinance shall be effective immediately. READ, ADOPTED, AND APPROVED, this day of January, 2019. AD. at a Regular Meeting of the City Council of the City of Port Arthur. Texas by the following vote: Ayes: Mayor Councilmembers: NOES: Derrick Freeman, Mayor ATTEST: Sherri Bellard, City Secretary APPROVED AS TO FORM: Valecia Tizeno, City Attorney APPROVED FOR ADMINISTRATION: Harvey Robinson, Interim City Manager Andrew Vasquez, Director of Finance