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, Ordinance No. 2020-18 and Ordinance No. 2020-27 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 a net increase of $4,600,000 to the General Fund, $126,725 to General Fund Debt Service, $3,643,673 to Coronavirus Relief Fund, and $188,462 to Hazard Mitigation Grant Program (HMGP) TDEM Disaster Recovery Fund.
General Fund
• Personnel Related Items ($264,935) - Budget reallocations to cover preliminary year-end overages:
o $6,503 is requested to be reallocated from City Secretary to City Manager to cover overages in Personnel Services.
o $8,651 is requested to be reallocated from Police to Animal Control to cover overages in Separation Pay not budgeted for in FY2020.
o $174,815 is requested to be reallocated from Fire to Emergency Medical Services to cover overages in Separation Pay not budgeted for in FY2020 and Overtime.
o $1,903 is requested to be reallocated from Fire Marshal to Emergency Management to cover an overage in Separation Pay not budgeted for in FY2020.
o $28,280 is requested to be reallocated from Streets & Traffic to Building to cover overages in Personnel Services.
o $37,008 is requested to be reallocated from Streets & Traffic to Neighborhood Services to cover overages in Personnel Services, Gas & Oil, Postage & Freight and Advertising & Recording.
o $7,775 is requested to be reallocated from Streets & Traffic to Economic Development to cover overages in Personnel Services.
• Transfer to Tax Increment; $209,654 is requested to be reallocated from Streets & Traffic to cover overages in Transfer to Tax Increment due to an increase in taxes collected over FY2020 budgeted amount.
• Solid Waste: $36,124 is requested to be reallocated from Streets & Traffic to Solid Waste to cover an overage in Contractual Services. Solid Waste expenditures total $6.51M and are offset by revenue collected for refuse collection fees totaling $6.58M.
• Transfer to CIP to Cash Fund Projects: $1,600,000 is requested to be moved from the General Fund balance to the Capital Improvement Plan to supplement the streets & drainage CIP program. This is possible as $5.64 million in General Fund were moved to the Coronavirus Relief Fund.
Transfer to COVID-19: $3,000,000 is requested to be moved from the General Fund balance to the Coronavirus Relief Fund to be used for non-budgeted COVID expenses. The COVID expenses will be funded from the CARES Act reimbursement that occurred in FY2020. At the end of FY2020, $5.64M in COVID expenses were reimbursed.
General Fund Debt Service
• Transfer to Tax Increment: An increase of $62,576 is requested to cover an overage in Transfer to Tax Increment due to an increase in taxes collected over FY2020 budgeted amount. The increase will come from fund balance.
Bond Refunding Items ($64,149):
o An increase of $64,149 is requested to cover debt service contribution to refunding in related to the 2019 Refunding along with the 2019 GO Prop A and B refunding. The increase will come from fund balance.
Special Revenue Fund - Coronavirus Relief Fund
• An increase of $3,643,673 is requested to cover FY2020 year-end expenses related to Coronavirus. This increase will be offset by revenues in accounts 8020-48917 CARES Relief Grant and 8020-49100 Transfer from General Fund.
Special Revenue Fund - HGMP TDEM Disaster Recovery (FEMA HMGP Harvey)
• The Hazard Mitigation Grant Program (HMGP) Disaster Recovery Fund tracks all eligible expenses related to drainage improvement and flood hazard mitigation projects to be reimbursed by the Texas Department of Emergency Department and the Federal Emergency Management Agency’s HMGP award. Currently projects to be funded are:
o Citywide 2D Modeling
o Brittany Bay Drainage Improvements
o Oaks of Clear Creek North Detention
o FM518 & Wesley Dr. Drainage Improvements
The City of League City has currently been granted $1,362,938.25 in HMGP funds. The City may be obligated additional HMGP funds in the future. An increase of $188,462 for the Hazard Mitigation Grant Program (HMGP) TDEM Disaster Recovery (FEMA HMGP Harvey) to cover expenses that occurred in FY2020. The increase will be offset by revenue account 2125-48550 HMGP Disaster Recovery Grant.
Funding:
General Fund
The requested adjustment to the General Fund is an increase of $5,110,713; decrease of $510,713, resulting in a net adjustment of $4,600,000. The total fund appropriation amended budget of $84,127,852 increases by $4,600,000 to $88,727,852. This is possible as $5.64 million in General Fund were moved to the Coronavirus Relief Fund.
General Fund Debt Service
The requested adjustment to the General Fund Debt Service is an increase of $126,725. The total fund appropriation amended budget of $13,258,843 increases by $126,725 to $13,385,568.
Special Revenue Fund - Coronavirus Relief Fund
The requested adjustment to the Coronavirus Relief Fund is an increase of $3,643,673. The total fund appropriation amended budget of $2,000,000 increases by $3,643,673 to $5,643,673.
Special Revenue Fund - HMGP TDEM Disaster Recovery Fund
The requested adjustment to the HMGP TDEM Disaster Recovery Fund is an increase of $188,462. The total fund appropriation amended budget of $0 increases by $188,462 to $188,462.
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, General Fund Debt Service, Special Revenue Fund - Coronavirus Relief Fund, and Special Revenue Fund - HMGP TDEM Disaster Recovery Fund.
STRATEGIC PLANNING
{X} NOT APPLICABLE