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Home My WebLink AboutPO 6785: FY18-19 BUDGET AMENDMENT NUMBER 7 ,_. City of ort rthu�— Texas www.PortArthurTx.gov INTEROFFICE MEMORANDUM Date: June 12, 2019 To: The Honorable Mayor and City Council Through: Rebecca Underhill, Interim City Manager From: Kandy Daniel, Interim Finance Director RE: P.O. 6785 - FY18-19 Budget Amendment Number 7 Introduction: Budget amendments are requested to appropriate additional funds in the General Fund, Solid Waste Fund, Capital Improvement Fund and the Library Special Fund to make sufficient funds available to cover expenditures previously recommended and approved by City Council, or anticipated needs to complete the fiscal year $254,500 is requested to increase the Fire Department appropriation. Unexpected additional maintenance costs have occurred, including a new roof for Station 2 ($87,000) and unanticipated vehicle repairs ($95,000). And personnel costs have been increased to fund payment in lieu of holiday pay which was not budgeted but a requirement of the Fire fighter Contract($72,500). Since Fire has full employment, there was no savings to cover this expense. $375,000 is requested to increase the Street Division budget to create a more aggressive pothole patching program as discussed at the workshop on June 11, 2019. Funds will be used to pay for a pothole patching machine ($200,000),road testing services, ($100,000), and personnel costs ($75,000) for 4 additional Equipment Operator 1 positions. $270,000 is requested to increase the Parks & Recreation budget for the purchase a slope mower to assist with the mowing program as previously discussed with City Council. Transfers Out in the General Fund is requested to be reduced by $773,000. This amount was transferred out by Ordinance number 18-68 on November 26, 2018 to pay for unfunded "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 City of 4 1 ort rthu — Texas www.Po rtArt h u rTx.gov expenditures and close out the Cheniere Water Improvement Projects. Cheniere reimbursed the City for this cost and therefore the transfer will not be needed. $200,000 is requested to increase the Solid Waste Fund appropriation for unanticipated expenditures in the Landfill Division for the hauling of materials for daily cover thru September 30,2019. A $300,000 amendment was made on March 19, 2019 but it has been determined that additional funds will be needed. Contracting for this additional service is presented to City Council for approval at this meeting. $2,346,000 is requested to increase the appropriation for Street Capital Improvements. The remaining fund balance will be appropriated ($1,781,000) and additional funds will be transferred from previous bond issues ($565,000) in order to fund more street projects this fiscal year. A separate list of the streets will be provided. $15,000 is requested to increase the appropriation in the Library Special Fund for courtyard landscaping and other projects. Revenue was received for this amount from the Jack& Jill foundation,therefore the fund balance remains unchanged. Background: The FY 18-19 budget was approved on September 11, 2018. This is the seventh budget amendment requested for this budget year. Budget Impact: The above requests decrease the ending fund balance by $126,500 in the General Fund, by $200,000 in the Solid Waste Fund, and by $1,781,000 in the Capital Improvement Fund. Recommendation: The attached Proposed Ordinance No. 6785 amends the budget to provide sufficient funding in the General Fund, Solid Waste Fund,the Capital Improvement Fund and the Library Special Fund as outlined above 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 P. O. NO. 6785 KD 6.18.19 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 $126,500 FOR THE GENERAL FUND, $200,000 FOR THE SOLID WASTE FUND, $2,346,000 FOR THE CAPITAL IMPROVEMENT FUND, AND $15,000 FOR THE LIBRARY SPECIAL 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. WHEREAS, on January 15, 2019, the City Council approved and adopted ordinance No. 19-02, which amended ordinance No. 18-68. WHEREAS, on March 19, 2019, the City Council approved and adopted ordinance No. 19-09, which amended ordinance No. 19-02. WHEREAS, on April 15, 2019, the City Council approved and adopted ordinance No. 19-16, which amended ordinance No. 19-09. WHEREAS,on June 4,2019,the City Council approved and adopted ordinance No. 19-28,which amended ordinance No. 19-16. 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 Fire $ 254,500 Public Works $ 375,000 Parks& Recreation $ 270,000 Transfers Out $ (773.000) Solid Waste Fund $ 200,000 Capital Improvement Fund $2,346,000 Library Special Fund $ 15,000 Section 3. That Section 4 of Ordinance 18-50 is amended to read: That there be and is hereby appropriated the sum of Seventy One Million, Three Hundred Ninety Six Thousand, Four Hundred Seventy Five Dollars ($71,396,475)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 $ 1,905,094 $ 1,905,094 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 1,747,846 1,747,846 Human Resources 813,215 813,215 Development Services 5,876,346 5,876,346 Civic Center 872,571 872,571 Police 20,509,145 20,509,145 Fire 13,905,674 254,500 14,160,174 Public Works 8,574,925 375,000 8,949,925 Health 1,500,621 1,500,621 Parks &Recreation 3,048,723 270,000 3,318,723 Library 1,274,655 1,274,655 Transfers to Other Funds 5,727,862 (773.000) 4,954,862 Total $ 71,269,975 $ 126. 00 $ 71,396,475 Section 4. That Section 7 of Ordinance 18-50 is amended to read: That there be and is hereby appropriated the sum of Eight Million, Seven Hundred Thirty Three Thousand, Seven Hundred Thirty Dollars ($8,733,730)to the Solid Waste Fund for the payment of the Operating Expenses, and necessary Capital Outlay for the Solid Waste Department. Section 5. That Section 14 of Ordinance 18-50 is amended to read: That there be and is hereby appropriated the sum of Sixteen Million, Three Hundred Ninety Nine Thousand, Eight Hundred Fifty Nine Dollars ($16,399,859) to the Capital Improvement Fund for the payment of improvements to City infrastructure, roads, and other capital outlay. Section 6. That Section 17 of Ordinance 18-50 is amended to read: That there be and is hereby appropriated the sum of Forty Thousand Dollars ($40,000) to the Library Special Fund for the payment of eligible expenses. Section 7. That the General Fund estimated unassigned fund balance shall be decreased by $126,500, the Solid Waste Fund shall be decreased by $200,000, and the Capital Improvement Fund shall be decreased by $1,781,000 if all other revenues and expenditures come in as budgeted. Section 8. That a copy of the caption of this Ordinance be spread upon the minutes of the City Council. Section 9. That this Ordinance shall be effective immediately. READ, ADOPTED, AND APPROVED, this day of June, 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: a, k(ACA4( 8-0 Va ecia Tiz o, City Attorney PROVED FOR ADMINISTRATION: i Rebecca Underhill, Interim City Manager Kandy Daniel, Interim Director of Finance