Title
Consider and take action on an ordinance amending the City of League City, Texas, Governmental, Proprietary, and Capital Funds Budget for Fiscal Year 2017 by amending Ordinance No. 2016-30, Ordinance No. 2017-02, Ordinance No. 2017-09, Ordinance No. 2017-17, Ordinance No. 2017-24, and Ordinance No. 2017-30 to adjust the operating and capital budget for actual and projected expenditures (Director of Budget & Project Management)
Staff requests first and final reading.
Background:
The proposed ordinance requests adjustments to the following funds: General Fund with zero net increase; Utility Fund with zero net increase; increase the appropriation to the Hurricane Harvey Fund; and increase the appropriation to Employee Benefit Fund.
If approved, the proposed ordinance would amend the City’s FY2017 operating budget as shown on Exhibit A to incorporate proposed adjustments for; departments that are fully staffed and are not able to meet vacancy savings targets, increased water contract purchases costs, property insurance, the transfer to tax increments and for year-end accrual of anticipated health insurance claims incurred in FY2017.
• Personnel Related Items - Vacancy Savings not met- Reallocations from other departments:
o $1,275 is requested to be reallocated from the Communications to Economic Development based on the year-end personnel services
o $36,040 is requested to be reallocated from the Fire Department to EMS based on year-end personnel services
• Water Contract Purchases: $119,000 reallocate from Line Repair savings in Utility System Repairs, Gasoline/Oil and Concrete, and Asphalt & Aggregate to Water department for increase in water contract purchases due to additional demand
• Transfer to Tax Increment: $109,630 reallocate from 380 Agreements to General Fund Transfer to Tax Increment for increase in taxes collected over the FY2017 budgeted amount
• Utility Fund Non-Departmental: $9,000 reallocate from Utility Billing postage savings to Utility Fund Non-Departmental for increase in allocation of property insurance to the Utility Fund over the FY2017 budgeted amount
• Employee Benefit Fund: $321,183 increase to Health Insurance for year-end accrual of anticipated health insurance claims incurred in FY2017
• Hurricane Harvey Fund: $624,880 increase to Hurricane Harvey expenses which are offset by FEMA Grant Revenue
If approved, the proposed ordinance would amend the City’s FY2017 capital budget as shown on Exhibit B to add a project for the Leisure Lane Sanitary Sewer Line Extension ($102,094) as approved by Council (9/12/17 Item 10G). This project will be funded through the Miscellaneous Capital Projects Fund with project cost being reimbursed by the property owners benefitting from this project.
General Fund
The requested adjustments to the General Fund total $146,945 with the entire amount being offset by allocations from other departments. This results in a net adjustment of zero; no increase to the total General Fund appropriation.
Utility Fund
The requested adjustments to the Utility Fund total $128,000 with the entire amount being offset by allocations from other departments. This results in a net adjustment of zero; no increase to the total Utility Fund appropriation.
Hurricane Harvey Fund
The requested adjustment to the Hurricane Harvey Fund is an increase of $624,880 to reflect actual expenses in FY2017 and is offset by FEMA Grant Revenue Proceeds. This increase results in a total fund appropriation of $2,000,000 to $2,624,880.
Employee Benefit Fund
The requested adjustment to the Employee Benefit Fund in the amount of $321,183 results in a total fund appropriation increase from the current budget of $6,378,004 to $6,699,187.
Attachments:
• Data Sheet
• 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
• 9/12/17 Agenda Item 10G
FUNDING
(X) Funds are available from Hurricane Harvey Fund, Employee Benefit Fund, and Miscellaneous Capital Projects Fund - see narrative and attachments