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, Ordinance 2024-20 and Ordinance 2024-27 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 an increase to the General Fund of $50,000, Utility Fund with a net increase of $49,102, $299,090 to establish the EEC Block Grant Fund, $3,632,430 to establish the CDBG-MIT Fund, and an increase of $1,750,000 to the Hurricane Beryl Fund.
If approved, the proposed ordinance would amend the City’s FY2024 budget to incorporate proposed adjustments for the following:
Items previously approved by City Council ($4,030,622):
General Fund ($50,000)
• An increase in the Planning department of $50,000 for oil well inspection services that will be reimbursed by the developer. City Council approved on May 9, 2023, item 6D.
Utility Fund ($49,102):
• Line Repair - Increase of $49,102 for the emergency repair of the 24-inch Ductile Iron Force Main from East Main Lift Station located at FM2094 and Davis Road. This item was previously approved by Council on 9/10/24 Agenda Item 6J.
• Wastewater - Reallocation of $108,000 from Water Department Water Contract Purchases to Wastewater Sludge Removal for emergency wet hauling for the emergency repair of the 24-inch Ductile Iron Force Main from East Main Lift Station located at FM2094 and Davis Road. This item was previously approved by Council on 9/10/24 Agenda Item 6K.
EEC Block Grant Fund ($299,090):
• Increase of $299,090 to establish the EEC Block Grant fund. A $155,210 grant from the Energy Efficiency and Conservation Block Grant through the US Department of Energy was awarded on July 23, 2024. The grant application approved by City Council on April 9, 2024 (Item 6K) addresses the energy efficiency upgrades needed at Lynn Gripon Park at Countryside. The contract for construction services related to the Retrofit Lighting Project was awarded to Techline Sports Lighting LLC by City Council on August 13, 2024 (Item 6E).
CDBG-MIT Grant Fund ($3,632,430):
• Revenue of $200,000 from CIP Sales Tax fund to establish the CDBG-MIT Grant fund. The grant is 100% reimbursable once expenses are incurred and submitted to the GLO. The $200,000 represents anticipated expenses in FY2024 and funds will be returned to the CIP Sales Tax fund for other project expenses once reimbursed.
The $15,561,500 grant from the H-GAC administered Community Development Block Grant Mitigation Program was awarded on April 23, 2024 that addresses strategic and high-impact activities to mitigate disaster risks and reduce future losses in areas impacted by disasters. The requested budget is for six (6) Drainage projects, including: 2023 FEMA FIRM Update DR2301, 2023 MDP CRS Update DR2302, Main & Wesley Ph 2 DR2303, 2023 MDP Updates - 5 subdivisions DR2304, 2023 Historic District Master Drainage Plan DR2305, Interurban Neighborhood Drainage DR2306, along with Administrative fees to Grant Works.
The budget amendment includes $3,632,430 for amount of contracts committed in FY2024.
Hurricane Beryl Fund ($1,750,000): requesting a transfer of $1,750,000 to the Hurricane Beryl Fund from CIP miscellaneous cash. The fund has an available balance and the transfer of cash from CIP to the Hurricane Beryl fund will not delay a project in FY2024. A large portion of Hurricane Beryl expenses are anticipated to be reimbursed through insurance and FEMA, allowing the funds to be returned to CIP.
SUMMARY:
General Fund
The requested adjustment to the General Fund is an increase of $50,000 with revenue of the same. Total fund appropriation increases from the current budget of $103,628,284 to $103,678,284.
Utility Fund
The requested adjustment to the Utility Fund is an increase of $49,102 from the current budget of $47,996,089 to $48,045,191.
EEC Block Grant Fund
The requested fund adjustment to the EEC Block Grant Fund is an increase of $299,090 due to the creation of the fund with a transfer from CIP Reinvestment Cash fund 5017. Once reimbursed by the grant, the fund balance of $155,210 will be transferred to CIP Reinvestment Cash fund 5017.
CDBG-MIT Fund
The increase to the CDBG-MIT Fund is establishing a budget in FY2024 for projected expenses of $3,632,430 due to the acceptance of a $15.56 million grant to be used towards drainage projects.
Hurricane Beryl Fund
The requested adjustment to the Hurricane Beryl Fund is an increase of $1,750,000 due to the quantity of debris removal exceeding initial estimates. This increase results in a total fund appropriation increase from $1,500,000 to $3,250,000. A large portion of Hurricane Beryl expenses are anticipated to be reimbursed through insurance and FEMA.
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
Attachments:
1. Proposed Ordinance with Exhibits A, B, and C
FUNDING
{X} Funds are available from General Fund, Utility Fund, EEC Block Grant Fund, CDBG-MIT Fund, and Hurricane Beryl Fund - see narrative and attachments
STRATEGIC PLANNING
{X} NOT APPLICABLE