Title
Consider and take action on an ordinance amending the City of League City, Texas, Governmental, Proprietary, and Capital Funds Budget for Fiscal Year 2020 by amending Ordinance No. 2019-24 & Ordinance No. 2020-13 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 a net increase of $165,665 to the Utility Fund, net increase of $6,115 to 4B Maintenance & Operations fund, and $20,538 increase to the Hurricane Harvey Fund.
If approved, the proposed ordinance would amend the City’s FY2020 budget to incorporate proposed adjustments for:
General Fund
Personnel Related Items - Budget reallocations to cover departmental overages based on year end estimates:
• $23,594 is to be reallocated from Project Management to City Auditor to cover overages in Separation Pay due to the retirement of the City Auditor.
• $42,885 is requested to be reallocated from salary savings in Emergency Management to Solid Waste to cover an overage in Solid Waste Contractual Services - Refuse. This increase in cost is due to growth in number of customers which is billed to the customers and is offset by revenue collected.
• $222,595 is requested to be reallocated from salary savings in Accounting & Purchasing to cover remaining payments totaling $175,490 to Texas Municipal League Intergovernmental Risk Pool related to worker’s compensation and insurance all coverages in FY2020. An increase of $45,648 is also needed to cover the General Fund windstorm portion.
• $73,155 is requested to be reallocated from Public Works Administration Personnel Services to Communications due to 1.00 FTE moving from Public Works Administration to Communications in October 2019.
• $7,000 is requested to be reallocated from Project Management Personnel Services to Human Resources Professional Services to cover an increase in psychological evaluations related to Police Officer involved shootings.
Utility Fund
Water ($12,395) - increase due to a grant application request approved by Council on March 24, 2020 agenda item 9B for the 2019 Water Conservation Grant Program for the utilization of Satellite Imagery Leak Detection Analysis with Utilis, Inc. Funds have been received and will be credited to account 1020-48915 HGSD Water Conservation Grant.
Wastewater ($84,000) - increase $84,000 due to unforeseen operational expenditures related to SCADA HMI software update for DSWWTP and SWWRF, an emergency repair to the 1.5M belt press, and step screen mechanical failure all located at the DSWWTP.
Insurance Related Items (Non-Departmental) $69,270- an increase of $55,510 is requested to cover remaining payments to Texas Municipal League Intergovernmental Risk Pool related to worker’s compensation and insurance all coverages in FY2020. An increase of 13,760 is also needed to cover the Utility Fund portion of windstorm.
While this amendment increases the Utility Fund appropriation by $165,665, revenues are estimated to end the year at $426,685 over budget. The anticipated increase in revenue more than offsets the increase to expenses in this budget amendment, keeping the fund revenue more than expenses for the year.
Internal Service Funds:
Hurricane Harvey ($20,528) - increase of $20,528 to partially fund the rental and service agreement with Boxx Modular for a 36-month rental of temporary modular office building at the Dallas Salmon Wastewater Treatment Plant (DSWWTP). Council approved this item on May 12, 2020 agenda 11B.
The increase will come from fund balance.
4B Park Operations ($6,115) - increase of $6,115 due to increase in Windstorm for the 4B portion. The increase will be funded from fund balance.
CAPITAL BUDGET - EXHIBIT B:
If approved, the proposed ordinance would amend the City’s FY2020 Capital Budget as shown on Exhibit B ($199,808):
• Addition of SH3 Hike & Bike Trail Connector project:
o TxDOT is constructing a bike lane along SH 3 that turns into an off-road hike and bike trail as it ends at FM 518. With the City’s trail along Walker Street, extending the trail south from SH3 at FM518 to Walker Street would provide connectivity to the City’s east/west trail system.
o TxDOT requested the City participate at $199,808 to extend the TxDOT Hike & Bike trail from FM518 to Walker Street along SH3.
o With participation of this trail, future 4B funding programmed for TxDOT trails along SH96 and FM270 would be eliminated. The future trails will be covered by TxDOT on SH96 and would be included with the street widening along FM270.
o Staff presented the hike & bike trail extension to 4B at their June meeting and the 4B Corporation Board did not approve adding the project to be funded with 4B sales tax.
o This budget amendment would add the project to the current CIP, establish a budget of $199,808 with funding split 50/50 between Parks Dedication Fees and Misc Capital Projects cash.
Funding:
General Fund
The requested adjustment to the General Fund is an increase of $369,229; decrease of $369,229, resulting in a net adjustment of $0. There is no increase to the General Fund appropriation.
Utility Fund
The requested adjustment to the Utility Fund is an increase of $165,665. This increase will be offset by increased revenue, including grant proceeds credited to account 1020-48915 HGSD Water Conservation Grant. The total fund appropriation amended budget of $38,789,970 increases by $165,665 to $38,955,635.
Special Revenue Fund - Hurricane Harvey Fund
The requested adjustment to the Hurricane Harvey Fund is an increase of $20,538; decrease of $0, resulting in a net increase of $20,538. The total fund appropriation amended budget of $1,897,472 increases by $20,538 to $1,918,010.
Special Revenue Fund - 4B Maintenance & Operations Fund
The requested adjustment to 4B Maintenance & Operations Fund is an increase of $6,115; decrease of $0, resulting in a net increase of $6,115 The total fund appropriation amended budget of $2,337,907 increases by $6,115 to $2,344,022.
Capital Budget
The requested adjustment to the Capital Budget is an increase of $199,808; decrease of $0, resulting in a net adjustment of $199,808. The total fund appropriation amended budget of $114,816,134 by $199,808 to $115,015,942.
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 Utility Fund, Hurricane Harvey Fund, 4B Maintenance & Operations Fund and Capital Funds - see narrative and attachments.
STRATEGIC PLANNING
{X} NOT APPLICABLE