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 and Ordinance No. 2017-02 to adjust the operating and capital budget for actual and projected expenditures (Assistant City Manager)
Staff requests first and final reading.
Background:
The proposed ordinance requests adjustments to the General Fund with a $278,259 increase and the Capital Budget with a $390,950 increase.
If approved, the proposed ordinance would amend the City’s FY 2017 budget to incorporate proposed adjustments for:
• 3D Leica Scanner Grant: $116,440 increase to Police equipment for the purchase of a 3D Leica Scanner equipment funded with a grant approved by Council 3/8/16 Item 10A.
• Solid Waste Grant: $111,819 increase to Solid Waste contract services for expenses related to the household hazardous waste collection event at Gulf Greyhound Park on April 8, 2017. These expenses are funded with an HGAC grant approved by Council 12/13/16 Item 10D ($87,523); Republic Waste contribution ($22,609); and the remaining ($1,688) from penalties assessed for missed trash pickup.
• SETH Grant: $50,000 increase to Planning department - Direct Housing Rehab for expenses related to residential housing repairs and improvements to qualified grant candidates. These expenses are funded with a Southeast Texas Housing Rehabilitation Grant.
• Capital Budget:
o $390,950 increase in Wastewater Capital Recovery Funding to the Utility Debt Service Fund to pay for a portion of the 2008 Revenue Bond. This bond was used to construct SWWRF, Dallas Salmon WWTP Expansion, and the Magnolia Creek FM Diversion projects. These projects capital recovery fee (CRF) contribution was analyzed and determined to qualify for an additional $1.95M in CRF expenses. The total of $1.95M was broken into five annual transfers of $390,950. The first transfer was made in FY2016 with this amendment representing the second transfer.
o The addition of a new project named West Side Well and BPS and establish FY2017 funding with the cancellation of New Water Line Dickinson BPS to Strawberry ($30,000); Annual Water System Improvements ($1,452,915); and New Well and Generator at South Shore Elevated ($300,000). This change has a zero net effect on capital budget appropriations.
• Rollover Purchase Orders: The increase is due to purchases made in FY 2016 for which goods and services were not received after September 30, 2016. The increase is in accordance with the FY 2017 Adopted Budget ordinance 2016-30, section 6, “That the budget for FY 2017 shall be increased for valid outstanding encumbrances at the conclusion of FY 2016. Said increased appropriations shall be equal to the outstanding and valid encumbrances in excess of $25,000 per purchase and shall be recorded in the appropriate accounts.” Department budgets were increased as follows:
o General Fund ($353,391):
§ Police: $48,750 for the purchase of rifle plates
§ Streets: $72,800 for painting of jersey barriers on Bay Area Blvd
§ Planning: $49,000 form based code
§ Parks Operations: $92,841 for balance of Parks Master Trail study and water truck purchase
§ Non-departmental: $90,000 for INEOS 380 Agreement payment
o Utility Fund ($71,210):
§ Wastewater: $71,210 repair of blower at SWWRF
o Capital Replacement Fund ($418,017): purchase to replace vehicle units 114, 113, 130, 143, 158, 110, 112, 117, and 124
General Fund
The requested adjustment to the General Fund in the amount of $278,259 results in a total fund appropriation increase from the original budget of $75,056,639 to $75,334,898.
Capital Budget
The requested adjustment to the Capital Budget in the amount of $390,950 with the entire amount being funded by an increase in the wastewater capital recovery fees results in the total amended program appropriation from $65,098,179 to $65,489,129.
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; Exhibit C details the citywide summary
Attachments:
1. Data Sheet
2. Proposed Ordinance with Exhibits A, B and C
FUNDING
{X} Funds are available from the General Fund and Wastewater CRF Fund - see narrative and attachments