Title
Consider and take action on an ordinance amending the City of League City, Texas, Governmental, Proprietary, and Capital Funds Budget for Fiscal Year 2024 by amending Ordinance No. 2023-28, Ordinance 2023-33, Ordinance 2023-47, Ordinance 2023-48, Ordinance 2023-49, & Ordinance 2024-12 to adjust the operating and capital budget for actual and projected expenditures (Assistant City Manager - CFO)
Staff requests approval on first and final reading.
Background:
The proposed ordinance requests a net increase of $225,000 and seven full-time-equivalent (7 FTE) positions to the General Fund, $950,000 to the Utility Fund, $1,936,099 to The Ballpark at League City fund, and approximately $623,535 to Special Revenue Funds.
If approved, the proposed ordinance would amend the City’s FY2024 budget to incorporate proposed adjustments for:
General Fund
Merit ($162,524): A reallocation of $162,524 is requested to move funding from non-departmental to departments as implemented in the FY2024 merit.
City Secretary ($85,000): A budget increase of $85,000 is requested for election expenses associated with the January 13, 2024 special election ($85,000) and required deposit for the November 2024 election.
Police (6 FTE): The police department is requesting to formally add 6 FTE Police Officer positions. These positions have been included in the past several year’s adopted budgets as overhire authority. The latest testing cycle produced qualified candidates to hire which triggers formally adding the FTEs to the budget. The positions are associated with a COPS grant they were awarded in FY2024 for the hiring of 6 additional police officers, which is estimated at $93,750 in grant revenue in FY2024 as the officers were hired May 2024. FY2025 will include $250,000 in grant revenue for the same six (6) officers.
Engineering (1 FTE): Staff is requesting to add 1 FTE for an Engineering Technician position to the Engineering department. In the FY2024 budget, the department has a Civil Engineer position that is vacant and due to current market conditions, has not been filled all year. The Executive Director has requested the Civil Engineer position be downgraded to two Engineering Tech positions based on current workload needs. The Civil Engineer position has been reclassified to the lower graded Engineering Tech title and this additional FTE request will help meet the additional demand from increased development activity.
Accounting ($134,000):
A budget increase of $134,000 is requested to cover estimated banking fees for General Fund transactions for the remainder of FY2024. The increase is attributable to increased use of credit cards, increase in building permit revenue/transaction volume, and new credit card merchant services contract. The increase is offset by credit card fee revenue which is estimated to end FY2024 at $177,325 over budget.
Utility Fund
Line Repair ($100,000): $100,000 bulkhead repair related to MUD 43 previously approved by City Council during executive session February 28, 2023. The damage to the bulkhead occurred during a previous emergency repair to a 24” water main.
Utility Billing ($850,000):
• Staff is requesting an additional $250,000 for the purchase of water meters to keep pace with current housing starts. The meters will be offset by additional revenue.
• An increase of $600,000 is requested to cover anticipated banking fees tied to utility bill payments for the remainder of FY2024. The increase is attributable to the increased use of credit cards and new credit card merchant services contract.
The Ballpark at League City
If approved, this request will increase the FY2024 budget by $1,936,099 which is offset by incoming sales revenue and create the position count to add 38.5 new FTEs for staffing to The Ballpark at League City Fund. There is also one (1) position that has been reclassed from General Fund Accounting for a total Ballpark position count of 39.5 FTEs.
Special Revenue Funds
Chapter 59 Seizure Fund ($120,000): increase of $120,000 is requested to purchase vehicles for the Community Impact Unit. These vehicles, which are driven by detectives, will replace aged, seized vehicles that are not part of the capital replacement program.
4B Maintenance & Operations Fund ($165,000): increase of $165,000 to cover the replacement of 4 HVAC units at Hometown Heroes Park. City Council approved on April 9, 2024 Agenda item 11A.
Coronavirus Fund ($53,380): If approved, this request will transfer the remaining balance of approximately $243,601 in the Coronavirus fund to the Technology Fund. $190,221 was included in the FY2024 adopted budget. This will bring the original COVID fund to zero.
Hurricane Uri fund ($219,643): Previously approved by City Council October 10, 2023 Item 6D, the remaining balance of approximately $219,643 will transfer from the Hurricane Uri fund to establish a fund balance for the OPEB Trust Fund.
COVID FEMA PA fund ($65,512): Previously approved by City Council October 10, 2023 Item 6D, the remaining balance of approximately $65,512 in the COVID FEMA PA fund to establish a fund balance in the OPEB Trust fund.
CAPITAL BUDGET - EXHIBIT B
If approved, the proposed budget would amend the City’s FY2024 Capital Budget to add three (3) projects and remove one (1) as shown on Exhibit B:
• This request is to add $125,000 in funds for Bay Area Blvd. & Grissom Road Traffic Signals. This project is an agreement between Harris Co and the City of Friendswood and is funded with a 50% grant awarded in May 2024. Total estimated cost of the project is $500,000 of which COF and COLC will each contribute 25% of the total cost for this project with COLC’s expected cost $125,000. This agreement will be presented to City Council for approval at this meeting.
• As approved by City Council on April 23, 2024, this request will add the Mar Bella Walk Path on Isla Vista Drive (PK2403). Funding is split between reinvestment sidewalk cash, the 4B and Mar Bella HOA.
• As approved previously by City Council, this amendment removes the Newport & Ellis Landing Subdivision Drainage Improvements project.
In addition to the data sheet this packet includes:
• Budget Ordinance and Exhibit A, B & C - Exhibit A details how these adjustments affect the approved budgets by fund and department; Exhibit B details the Capital Budget; and Exhibit C details the citywide summary
TOTAL BY FUNDS:
General Fund
The requested adjustment to the General Fund expenditure budget is an increase of $381,524, an addition of seven (7) FTEs, and a decrease of $162,524; resulting in a net increase of $219,000 and an addition of seven (7) FTEs. Of the $219,000 net increase, $85,000 is for election expenses from the special election and November 24 election prepays and $134,000 is to cover the cost of banking fees. Banking fees are offset by $177,325 in anticipated additional revenue.
The total fund appropriation amended budget of $103,409,284 increases by $219,000 to $103,628,284.
Utility Fund
The requested adjustment to the Utility Fund is an increase of $950,000.
The amended budget of $46,765,084 increases by $950,000 to $47,654,645.
The Ballpark at League City Fund
The requested adjustment to the Ballpark at League City Fund is an increase of $1,936,099. Funding is available from sales revenue.
The total amended budget of $1,000,000 increases by $1,936,099 to $2,936,099.
Chapter 59 Fund
The total amended budget of $2,000 increases by $120,000 to $122,000.
4B Maintenance & Operations Fund
The total amended budget of $2,481,653 increases by $165,000 to $2,646,653.
Coronavirus Fund
The total amended budget of $190,221 increases by approximately $53,380 to $243,601 to close out the
remaining balance within this fund.
Winter Storm Uri Fund
The total amended budget of $0 increases by approximately $219,643 to $219,643 to close out the remaining balance within this fund.
COVID FEMA PA Fund
The total amended budget of $0 increases by approximately $65,512 to $65,512 to close out the remaining balance within this fund.
Attachments:
1. Data Sheet
2. Proposed Ordinance with Exhibits A, B, C
FUNDING
{X} Funds are available from the General Fund, Utility Fund, The Ballpark at League City Fund, Chapter 59 Fund, 4B M&O Fund, Coronavirus Fund, Winter Storm Uri Fund and COVID FEMA PA Fund.
STRATEGIC PLANNING
{X} NOT APPLICABLE