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, Ordinance No. 2019-12, Ordinance No. 2019-14 and Ordinance No. 2019-19 to adjust the operating and capital budget for actual and projected expenditures (Director of Budget and Project Management)
Staff requests first and final reading.
Background:
The proposed ordinance requests a net increase of $282,000 to the Hurricane Harvey budget.
General Fund
$158,940 is requested to be reallocated from Streets & Traffic personnel services to cover the following:
• Insurance Related Items (Non-departmental)
o An increase of $108,403 in remaining payments to Texas Municipal League Intergovernmental Risk Pool related to worker’s compensation and insurance all coverages in FY2019. The City had a large worker’s comp audit last year, in addition to the City increasing this year’s payroll, which resulted in additional billing. An additional $33,037 is needed to cover account overages mainly due to unexpected costs associated with lawsuit settlement ($31,000), which was not budgeted for in FY2019.
• City Attorney Professional Services
o An increase of $17,500 to cover legal representation for matters involving Jimmy Changas, Comcast Franchise Fee Dispute, MUD #6, and Project Epic.
Utility Fund
• Personnel Related Items
o $53,660 is requested to be reallocated from Line Repair personnel services to Utility Fund Non-Departmental to cover the remaining payments to Texas Municipal League Intergovernmental Risk Pool related to worker’s compensation and insurance all coverages in FY2019. The amount due in excess of the City’s budget is due to a last year’s worker’s comp audit and an increase in this year’s payroll.
Special Revenue Fund
Rollover Purchase Order:
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.”
Hurricane Harvey Fund ($331,894) - $151,631 for outstanding contract rolled to FY2019 for disaster recover consulting services from Ardurra Group, LLC. The two-year agreement with Ardurra Group was approved by Council on January 23, 2018 agenda item 9H. Council also approved to increase the contract with Ardurra Group on 6/26/18 agenda item 11G. The rollover amount for the contract increase totaled $180,263.
Hurricane Harvey Fund: Increase of $282,000 to cover damages related to Hurricane Harvey. The majority of the increase is due to the second amendment to the Ardurra Group contract approved by Council on April 23, 2019 for $200,000. The remaining expenses ($82,000) include design services for the renovation to the Dallas Salmon Wastewater Treatment Plant Administration building ($48,500), roof repairs at 144 Park Avenue ($14,500), as well as installation of control panels at Amber Lane Lift Station and CC Crossing Lift Station. This fund tracks all expenses related to Harvey which will assist in reporting required by FEMA. The Hurricane Harvey fund was established in September 2017 with $3,000,000 transferred from the General Fund. The budget increase is covered with cash in the Hurricane Harvey fund.
General Fund
The requested adjustment to the General Fund is an increase of $158,940; decrease of $158,940 resulting in a net adjustment of zero; no increase to the General Fund appropriation.
Utility Fund
The requested adjustment to the Utility Fund is an increase of $53,660 and is offset by a decrease of $53,660, resulting in a net adjustment of zero; no increase to the total Utility Fund appropriation.
Special Revenue Fund - Hurricane Harvey
The requested adjustment to the Hurricane Harvey Fund is an increase of $282,000; decrease of zero, resulting in a net increase of $282,000. The total fund appropriation amended budget of $610,920 increases by $282,000 to $892,920.
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 the cash fund balance within the Hurricane Harvey fund.
STRATEGIC PLANNING
{x} NOT APPLICABLE