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, and Ordinance No. 2020-18 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 $40,758 to the General Fund, net increase of $2,000,000 to the Coronavirus Relief Fund (Special Revenue Fund), $44,100 increase to the Fleet Fund and $2,489,132 increase to the Capital Budget.
If approved, the proposed ordinance would amend the City’s FY2020 budget to incorporate proposed adjustments for:
General Fund
Emergency Medical Services ($45,258):
• $40,758 increase to purchase additional medical supplies needed due to high demand related to COVID19. This expense will be offset 100% by the CARES Act Provider Relief Fund grant that was received on April 17, 2020 and credited to 0100-48916 CARES Provider Relief - EMS grant account in the General Fund.
• $4,500 increase to cover overages based on year-end estimates from the department. This expense will be covered by savings in Project Management’s Contractual Services budget.
Utility Fund
Personnel Related Item - Budget reallocation to cover departmental overages based on year-end estimates:
Utility Billing ($31,530):
• $13,700 increase in Professional Services to pay for a temporary worker to manage the department workload.
• $14,865 increase in Postage and Freight to cover year-to-date actuals.
• $2,525 increase in Operating Supplies for the purchase of a new drop box due to heavy leaking and multiple repairs.
• $440 increase in Uniform Expense to cover uniform cleaning for the Meter Technicians for the remainder of the fiscal year. These expenses will be offset by salary savings from Line Repair. Utility Billing will need an amendment in the 4th quarter to cover overages in Overtime due to departmental workload.
Internal Service Funds:
Fleet ($44,100): increase of $44,100 of which $20,000 is requested to cover fleet maintenance and repair charges for the remainder of FY2020. With increased maintenance and repair costs on aging fleet, higher than anticipated accident repairs, increased purchase of stocked items due to Covid-19, and Hurricane Laura this account is experiencing a shortage. $24,100 is requested to cover costs related to the lift post purchased in FY2019 that was not received until FY2020. Due to the amount not meeting the threshold of $25,000, budget was not increased in FY2020 to cover the expense.
Coronavirus Relief Fund ($2,000,000) - The City of League City was awarded $5,734,300 from the State, as part of the Coronavirus Relief Fund (CRF). An initial 20-percent allocation of $1,146,860 was received and credited to revenue account 8020-48917 CARES Relief Grant. The City has until December 30, 2020 to spend the funds or the money will be sent back to the State treasury. Setting the FY2020 fund budget at $2,000,000 is to cover current and future anticipated charges due to the Coronavirus. Currently, the City has spent approximately $1,516,685 of which $470,633.38 of charges are pending (mainly salary) that are waiting to be reimbursed by the end of September 2020. The remaining reimbursement for the CRF grant in FY2021 is $4,217,615.
CAPITAL BUDGET - EXHIBIT B:
If approved, the proposed ordinance would amend the City’s FY2020 Capital Budget to add the following projects as shown on Exhibit B ($2,489,132):
FEMA Drainage Projects ($2,489,132) - In the aftermath of the Hurricane Harvey flooding, City Staff identified damage to our local drainage infrastructure and began working with FEMA through their Public Assistance Program. Approved by Council on July 14, 2020 two design contracts for project DR2008 FEMA Drainage, were awarded to Kimley Horn (item 9I) and Gauge Engineering (item 9H), to begin engineering.
Kimley Horn
Design for Magnolia Creek - DR2008A
Gauge Engineering
Design for Gum Bayou - DR2008B
Interurban/Power Ditch - DR2008C
Newport Ditch - DR2008D
Northpoint Detention Pond - DR2008E
Robinson Bayou - DR2008F
Genco Canal - DR2008G
These projects are being added to the Capital Budget as a Capital Improvement Project for FY2020.
Funding:
General Fund
The requested adjustment to the General Fund is an increase of $45,258; decrease of $4,500, resulting in a net increase of $40,758. The total fund appropriation amended budget of $84,087,094 increases by $40,758 to $84,127,852. The increase of $40,758 will be offset by the CARES Act Provider Relief Fund grant that was received on April 17, 2020 and credited to 0100-48916 CARES Provider Relief - EMS grant account in the General Fund.
Utility Fund
The requested adjustment to the Utility Fund is an increase of $31,530; decrease of $31,530, resulting in a net adjustment of zero dollars. There is no increase to the Utility Fund appropriation.
Special Revenue Fund - Coronavirus Relief Fund
The requested adjustment to the Coronavirus Relief Fund is an increase of $2,000,000 for a total fund appropriation amended budget of 2,000,000. An initial 20-percent allocation of $1,146,860 was received and credited to revenue account 8020-48917 CARES Relief Grant.
Internal Service Fund - Fleet
The requested adjustment to the Fleet Fund is an increase of $44,100. The total fund appropriation amended budget of $1,721,858 increases by $44,100 to $1,765,958.
Capital Budget
The requested adjustment to the Capital Budget is an increase of $2,489,132. The total fund appropriation amended budget of $115,015,942 increases by $2,489,132 to $117,505,074.
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 General Fund, Utility Fund, Coronavirus Relief Fund, Fleet, and Capital Budget Funds - see narrative and attachments.
STRATEGIC PLANNING
{X} NOT APPLICABLE