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HomeMy WebLinkAboutPO 7308: FY24-25 BUDGET AMENDMENT NO. 06 Ciry of or( r11tu�� It www.Po rtArth u rTx.gov INTEROFFICE MEMORANDUM Date: 01/07/2025 To: The Honorable Mayor and City Council Through: Ronald Burton, CPM, City Manager From: Lynda"Lyn" Boswell, M.A., ICMA-CM, Finance Director RE: P.O. 7308 — FY24-25 Budget Amendment No. 06 Introduction: A budget amendment is requested to increase appropriations in the General Fund (001), Water & Sewer Capital Fund (405) due to critical capital project needs described in PR 23143 and PR 24140 and Water and Sewer Fund (410) due to unforeseen emergency described in PR 24108. Background: The FY 24-25 budget was approved on September 24, 2024 by Ordinance No. 24-50. This is the 6th Amendment. Budget Amendment 1 passed on October 7, 2024 as Ordinance No. 24-56. Budget Amendment 2 passed on November 6, 2024 as Ordinance No. 24-63. Budget Amendment 3 passed on December 3, 2024 as Ordinance No. 24-68. Budget Amendment 4 passed on December 17, 2024 as Ordinance 24-70. Budget Amendment 5 passed on January 14 as Ordinance 25- The capital project for Water and Sewer Capital is due to a TCEQ issue found in 2021, and remedies are required to be addressed before more serious deterioration occurs. Additionally, a change order is requested from approved Resolution No. 24-122. An emergency repair issue finally resolved this month in the Water and Sewer Fund. Budget Impact: This creates an increased appropriations in the General Fund (001) by $3,265,000 by using reserves not anticipated in the current budget, then transferring that amount thereby increasing appropriation in the Water and Sewer Capital Fund (405) by $3,135,000 and increasing appropriation in the Water and Sewer Fund (410) by $130,000. Recommendation: It is recommended that the City Council approve Proposed Ordinance 7308 to amend the budget as discussed/outlined above. "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. 7308 01/17/2025 LYN Page 1 of 5 ORDINANCE NO. AN APPROPRIATION ORDINANCE AMENDING THE CITY OF PORT ARTHUR BUDGET FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2024 AND ENDING SEPTEMBER 30, 2025, INCREASING GENERAL FUND (001) BY $3,265,000 AND TRANSFERRING THAT AMOUNT THEREBY INCREASING WATER AND SEWER CAPITAL FUND(405)BY$3,135,000 AND WATER AND SEWER FUND (410) BY$130,000. WHEREAS, in accordance with Article XII, Section 2, of the City Charter, the Director of Finance ensures that budget appropriations are not exceeded; and WHEREAS, the City Council may make budget amendments for municipal purposes under Section 102.010 under the Texas Local Government Code; and WHEREAS, on September 24, 2024, the City Council approved and adopted Ordinance 24-50, which appropriated the 2024-2025 budget; and WHEREAS, on October 24, 2024, the City Council approved and adopted Ordinance 24-56, which amended the appropriation of the 2024-2025 budget; and WHEREAS, on November 6, 2024, the City Council approved and adopted Ordinance 24-63, which amended the appropriation of the 2024-2025 budget; and WHEREAS, on December 3, 2024, the City Council approved and adopted Ordinance 24-68, which amended the appropriation of the 2024-2025 budget; and WHEREAS, on December 17, 2024, the City Council approved and adopted Ordinance 24-70, which amended the appropriation of the 2024-2025 budget; and WHEREAS, on January 14, 2025, the City Council approved and adopted Ordinance 25-05, which amended the appropriation of the 2024-2025 budget; and WHEREAS, the PR No. 24143, Water and Sewer Capital Project will incur additional expenses approximately $2.7 million, and with potential contingency, the transfer from the General Fund will be P. O. 7308 01/17/2025 LYN Page 2 of 5 $3,000,000 to provide enough available funds for the Water and Sewer Capital Project within the FY 2024-2025 budget; and WHEREAS, the PR No. 24140, Water and Sewer Capital Project change order is $135,000, requiring a transfer from the General Fund for$135,000 to provide enough available funds for the Water and Sewer Capital Project within the FY 2024-2025 budget; and WHEREAS,the Water and Sewer Fund had an emergency with a generator which finally resolved at a cost of$130,000 according to PR No.24108,requiring a transfer from the General Fund for$130,000 to provide enough available funds for the Water and Sewer Fund within the FY 2024-2025 budget; and WHEREAS, the Council has directed that alternative means be achieved to fund enterprise projects and fund,and not seeing any other alternative means,the General Fund will subsidize the projects and expenses since the Water and Sewer Capital Fund and Water and Sewer Fund (i.e. the Enterprise) have no remaining funds for these expenditures; and WHEREAS, the transfer from General Fund to the Water and Sewer Capital Fund and to the Water and Sewer Fund does not create a due to/due from as presently, no future is projected today by which Water and Sewer Capital Fund and Water and Sewer Fund will have enough in revenue to refund the subsidy; and WHEREAS,Exhibit"A" shows the fund changes and subsequent revised budget appropriation. 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 Fund's Budget be increased as shown: P. O. 7308 01/17/2025 LYN Page 3 of 5 Fund Description Fund Amount General Fund 001 3,265,000 Water and Sewer Capital Fund 405 3,135,000 Water and Sewer Fund 410 130,000 Section 3. That Section 4 of Ordinance 24-50 is amended to read: That there be and is hereby appropriated the sum of One Hundred Million, Three Hundred One Thousand,Four Hundred Forty Dollars($100,301,440)for the General Fund,Four Million,Two Hundred Thirty-Three Thousand, Four Hundred Dollars ($4,233,400) for the Water and Sewer Capital Fund, and Thirty-Seven Million, Three Hundred Twenty Thousand, Nine Hundred Thirty Dollars (37,320,930) for the Water and Sewer Fund. Original Amended Amended Amended Revised Budget Budget No. 01 Budget No.3 Budget No.05 Budget Appropriation General Fund 96,940,368 5,973 90,099 3,265,000 100,301,440 Water and 1,098,400 0 0 3,135,000 4,233,400 Sewer Capital Fund Water and 37,190,930 130,000 37,320,930 Sewer Fund Section 4. That a copy of the caption of this Ordinance be spread upon the minutes of the City Council. Section 5. That this Ordinance shall be effective immediately. READ, ADOPTED, AND APPROVED, this day of , 2025, AD at a Regular Meeting of the City Council of the City of Port Arthur, Texas by the following vote: Ayes: Mayor Councilmembers: NOES: P. O. 7308 01/17/2025 LYN Page 4 of 5 Thurman Bill Bartie Mayor ATTEST: Sherri Bellard, TMRC City Secretary P. O. 7308 01/17/2025 LYN Page 4 of 4 APPROVED AS TO Roxann Pais Cotroneo, City Attorney APPROV ( ADMINISTRATION: Ronald on, CPM Ci anager Lynd " yn"Boswell, M.A., IC -CM Director of Finance Exhibit "A" N N N N N N A A A A A A x) F-� F' N F, rD O O A A A A -1, CO CO 0 0 W W M rD m C CD rr rD cD rD fD CD fD a) a) v aU • T 3 T 3 -n Q C Q C Q C N 7 N = N CD Q fCD 0- rD 0 < G G T fD CD (D C -, - 7 C a) a) O rt a) T T C C Q 0 3 0 Q1 W W V1 N t-+ 1-, F� -co O W W WWWOOF O O O In U1 0 0 0 0 0 0 0 0 0 O O O O O O O ai C- O O O O O O O to 71 0 0 0 0 0 0 0• C 0 0 0 0 0 0 0 ai T 00 C 7 0. Z C 3 a. 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