Title
Consider and take action on an ordinance amending the City of League City, Texas, Governmental, Proprietary, and Capital Funds Budget for Fiscal Year 2019 by amending Ordinance No. 2018-27 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 General Fund with a net increase $859,537, an increase to Hotel/Motel Tax Fund of $175,000, Public Access Channel Fund of $118,710, Hurricane Harvey Fund of $79,026, Disaster Preparedness Fund of $28,793, as well as an increase in Capital Replacement Fund of $1,297,587.
If approved, the proposed ordinance would amend the City’s FY2019 budget to incorporate proposed adjustments for:
GENERAL FUND:
• Merit Increases: $589,812 budgeted in Non-Departmental and then reallocated to each department based on actual merit increases.
• Personnel Related Items:
o $21,000 is requested to be moved from General Fund Non-Departmental to Municipal Courts personnel services to cover an increase in pay for the Municipal Court Judge that was approved by Council on January 22, 2019 item 15B.
• Accounting: an additional $30,000 is requested to cover expenses for the Investment Advisory Consultant contract approved by Council on November 13, 2018 item 9E, which will be offset by an increase in the same amount to revenue account Interest Earned.
• Fire: $25,200 increase to rent bunker gear for cadets for both the current and Fall classes, and tuition for enrollment of the Fall class at the College of the Mainland.
• Fire Marshal ($154,255):
o $79,255 increase approved by Council on February 26, 2019 agenda 9B to purchase a 26-foot custom arson command trailer from Rolltechs Specialty Vehicles, LLC. The trailer will be entirely funded by a grant received from the Office of the Governor - Homeland Security Grant Division 2018 State Homeland Security Program.
o $45,000 increase to purchase a fire sprinkler system demo side by side trailer which will be offset by grant revenue. This item was approved by Council on January 22, 2019 agenda 9B.
o $30,000 increase to receive funding from the Texas Commission on Environmental Quality through the Houston Galveston Area Council for Solid Waste Grant to implement illegal dumping enforcement program by means of surveillance cameras. Council approved this item on September 25, 2018 item 9G.
• Economic Development: $57,342 increase to cover professional services related to financial and marketing analysis for Project Epic.
UTILITY FUND:
• Merit Increases: $101,580 budgeted in Non-Departmental and then reallocated to each department based on actual merit increases.
SPECIAL REVENUE FUNDS:
• Hotel/Motel Tax Fund: increase of $175,000 to renovate the interior and exterior parts of the Ghirardi House. This project was approved by Council on September 11, 2018 in the Capital Improvement Plan FY2019-2023.
ROLLOVER PURCHASE ORDERS:
Increase is due to purchases made in FY2018 for which goods and services were not received as of September 30, 2018. The increase is in accordance with the FY2019 Adopted Budget ordinance 2018-27, section 6, “That the budget for FY 2019 shall be increased for valid outstanding encumbrances at the conclusion of FY 2018. 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:
• General Fund ($650,082):
o Streets & Traffic: $59,793 for the purchase of a trailer mounted 8-inch Dri-Prime Pump and $35,430 for 3 street lights install by TNMP at South Shore Blvd and Riley’s Landing
o Project Management: $28,633 to cover the Freese & Nichols contract
o Fire: $31,950 for the purchase of a breathing air compressor, $34,542 for airpacks for T3, $75,000 for a contract with Metro Fire Apparatus Specialist Inc.
o EMS: $13,205 for ambulance radios, $36,250 for a Chevrolet C3500 Chassis, $193,900 for an ambulance box, $1,000 for H-GAC contract fee, $57,130 for Physio control, $5,115 for a flashback system, and $20,792 for medical supplies needed for the new ambulance
o Non-Departmental: $57,342 to cover Professional Services related to financial and marketing analysis for Project Epic
• Internal Service Fund - Capital Replacement Fund ($1,297,587):
o $369,759 for the purchase of a pumper truck
o $25,415 for installation of labor for upfitting vehicles
o $4,368 for upfitting equipment
o $32,200 for Unit 10 Fire Chief vehicle replacement
o $11,457 for radios for Fire Chief vehicle replacement
o $383,999 for Hurricane Harvey vehicle replacements
o $31,118 for Ford Explorer replacement
o $17,500 for graphics on vehicle replacements
o $1,250 for graphics on patrol vehicle replacements
o $420,521 for Tower 3
• Special Revenue Funds -
o Hurricane Harvey ($79,026): $39,376 for the removal of existing operator and installation of replacement gate operator and $39,650 for two Aqua Aerobic Systems
o Public Access Channel: $118,710 for the SWAGIT Upgrade to Council Chambers and Civic Center
o Disaster Preparedness Donation Fund: $28,793 for the purchase of new rescue dive gear
If approved, the proposed ordinance would amend the City’s FY2019 Capital budget as shown on Exhibit B ($486,780):
o addition of a new project named SSH/SH96 Improvements & Median Cut ($411,780). This project will construct a right turn lane Northbound on South Shore Blvd at SH96 a section that was previously designed with the intersection improvements that was unable to be constructed due to statatory contract limits regarding the TxDOT requested change order. The second portion of the project will be the design and construction of a median cut on SSH Blvd to provide enhanced access to the New Fire Station 6.
o addition of a new project named 16-inch Water Trunk Line from SSH BPS to FM2094 ($75,000). Due to staff's desire to time this project with the TxDOT FM518 Hike & Bike Trail construction which is located along the same route, staff requests adding to the FY2019 capital budget to begin design of the water line immediately. This water trunk line is approximately 3,800 LF from the South Shore Booster Pump Station to FM2094.
General Fund
The requested adjustment to the General Fund is an increase of $1,527,691; decrease of $668,154 resulting in a net increase $859,537. The net increase of $859,537 is due to FY18 purchase rollovers totaling $650,082, $79,255 to purchase with grant funds a 26-foot custom arson command trailer (Fire Marshal), $45,000 to purchase a fire sprinkler system demo side by side trailer, $30,000 Investment Advisor related cost (Accounting), $30,000 increase for grant funding to implement illegal dumping enforcement program and $25,200 for rental gear for cadets and tuition for classes (Fire). Of the $859,537; $154,255 is offset by grant revenue, $30,000 is offset by interest income revenue, $650,082 is FY18 rollover purchases and $25,200 for the Fire department cadets. The total fund appropriation adopted budget of $78,733,936 increases by $859,537 to $79,593,473.
Utility Fund
The requested adjustment to the Utility Fund is an increase of $101,580 and is offset by a decrease of $101,580, resulting in a net adjustment of zero; no increase to the total Utility Fund appropriation.
Capital Replacement Fund
The requested adjustment to the Capital Replacement Fund is an increase of $1,297,587; decrease of zero, resulting in a net increase of $1,297,587. The total fund appropriation amended budget of $2,109,000 increases by $1,297,587 to $3,406,587.
Special Revenue Fund - Hotel/Motel Occupancy Fund
The requested adjustment to the Hotel/Motel Occupancy Fund is an increase of $175,000; decrease of zero, resulting in a net increase of $175,000. The total fund appropriation amended budget of $824,028 increases by $175,000 to $999,028.
Special Revenue Fund - Hurricane Harvey Fund
The requested adjustment to the Hurricane Harvey Fund is an increase of $79,026; decrease of zero, resulting in a net increase of $79,026. The total fund appropriation amended budget of $200,000 increases by $79,026 to $279,026.
Special Revenue Fund - Public Access Channel Fund
The requested adjustment to the Public Access Channel Fund is an increase of $118,710; decrease of zero, resulting in a net increase of $118,710. The total fund appropriation amended budget of $90,601 increases by $118,710 to $209,311.
Special Revenue Fund - Disaster Preparedness Donation Fund
The requested adjustment to the Disaster Preparedness Donation Fund is an increase of $28,793; decrease of zero, resulting in a net increase of $28,793. The total fund appropriation amended budget of $0 increases by $28,793 to $28,793.
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
Funding
{X} Funds are available from General Fund, Capital Replacement Fund, Hotel/Motel Occupancy Fund, Hurricane Harvey Fund, Public Access Fund Disaster Preparedness Donation Fund and Capital Improvement Plan - see narrative and attachments
STRATEGIC PLANNING
{x} NOT APPLICABLE