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Agenda Item 7D - Ordinance 20-14-127CITY OF ATLANTIC BEACH CITY COMMISSION MEETING STAFF REPORT AGEN DA ITEM: Budget Ordinance# 20-1 4-1 27 AN ORDINANC E AMENDING THE OPERATING BUDGET FOR THE CITY OF ATLANTIC BEACH, FLORIDA FOR FIS CA L YEAR BEGINNING OCTOBER 1, 2013 AND ENDING SEPTEMBER 30, 2014, AND PROVIDING AN EFFECTIVE DAT E. SUBMITTED BY: Nelson Van Liere, Ci ty Manager DATE: May 15,20 14 /\GEN OA ITEM II 70 JUN 8 9, 2014 BACKGROUND: Thi s proposed ordina nce wi ll accomp li sh a number of budget adjustment s to address previ ously discusse d exp enditures and gran t awards that were not included in the or igi nal budget: • Debt Service Fund closu re and tran sfer unu se d fund s of -$2,500 to the General Fund , up on payoff of th e 1999 Sun Trust Revenue Refunding Bond; • In creased net expenses of $52,500 in th e administrative divisions of the Genera l Fund f or se verance payment s rela ted to th e te rmin ati on of the prior Cit y Manager and City Attorney and hir ing a sea rch firm to ass ist with a permanent repl acements, offset by the sav ings associate d wi th th e vaca ncy created in the F in ance Department resu ltin g from ass ignment of th e Finance Directo r as the in te rim City Manager; • Aid to th e Fri end s of Atl an tic Beach Eleme nt ary (FABE) o f $14,65 0 to ass ist with the resurfacing of the t rack at the e leme nt ary sc hoo l; • Gra nt award/con tra ct adjustments of increa sed net revenues for th e CDBG grant of $65,263, reduced revenues of $5,220 from the FDEP ADA ped /bik e path gran t award because eli gibl e expen ses were less than ant icip ated; and , in crease d g rant revenues of $116,250 from a FE MA Ha zard Mit igation award for th e Donner Subdivi sio n sewe r up grades; • Approva l of a $24,000 co ntrac t fo r CRA to perform a site feasibility study for a new Police building ; • Co ntr act extensio n app rova l w ith Advanced Di sposal Serv ices for sanitation se rvices , effec tive Jun e 1, with in creased comme rcia l tippage charges for the remai nd er of fi sca l year 20 14 of $50,000; and , • General Employee's Retirement Plan ex pense increa se of $80,000 for six emplo yees exercising th eir Deferred Retirement Optio n Plan (D ROP) ben efit opti on. BUDGET: The budget it ems above increase revenues and expe nses$ 179,883 and $224,745 re s pectively, with an overa ll red uction in fund ba lances of $44,862. RECOMMENDATION: Approve Ordin ance #20-14-12 7 ATTACHMENTS: Ordina11 ce # 20-14-127 REVIEWED BY CITY MANAGER: :::zt ?-"'~ dth:.,£ ORDINANCE NO. 20-14-127 AN ORDINANCE AMENDING THE OPERATING BUDGET FOR THE CITY OF ATLANTIC BEACH, FLORIDA FOR FISCAL YEAR BEGINNING OCTOBER 1, 2013 AND ENDING SEPTEMBER 30, 2014, AND PROVIDING AN EFFECTIVE DATE. AGENDA ITEM # 7D JUNE 9, 2014 WHEREAS, the City Charter of the City of Atlantic Beach requires that the City Commission approve all budgetary increases and transfers at the fund level, and WHEREAS, the nature of budgetary systems and those day-to-day decisions affecting such budgetary systems require adjustments from time-to-time, and WHEREAS, the City paid off the 1999 SunTrust Revenue Refunding Bond and is returning unused funds from the closed out Debt Service Fund to the General Fund, and WHEREAS, the City is amending the Operating Budget to add net funds totaling $52,500 for the increase in expenses in the administrative divisions of the General Fund for the termination and severance payments of the prior City Manager and City Attorney and a search firm to assist with replacing the City Manager, offset by a salary reduction associated with a vacancy in the Finance Department as a result of the assignment of the Finance Director as interim City Manager, and WHEREAS, the City has agreed to assist the Friends of Atlantic Beach Elementary (FABE) with their request for $14,650 of funding to resurface the running track at Atlantic Beach Elementary School, and WHEREAS, various grants were awarded or agreements executed subsequent to adoption of the Original budget, CDBG grant adjustments result in a net increase of revenues of $65,263; the FDEP ADA pedestrian/bike path grant revenues are being reduced $5,220 to reflect a reduction in eligible expense reimbursement; and, Utilities Fund revenues are being increased $116,250 for the Hazard Mitigation grant award from FEMA for the Donner Subdivision sewer upgrades, and WHEREAS, the City has agreed to enter into a contract with CRA to perform a site feasibility study for a new Police building, resulting in increased expenses of $24,000, and WHEREAS, the City awarded a contract extension with Advanced Disposal Services (ADS) for sanitation services, effective June 2014, additional funds of $50,000 for four months of commercial tippage are being added to the Sanitation Fund, and WHEREAS, the number of eligible employees that enter the Deferred Retirement Option Program (DROP) each year is unpredictable, the six employees exercising this option represent an additional $80,000 needed in the General Employees' Retirement Plan for DROP payments. AGENDA ITEM# 70 JUNE 9, 2014 NOW, THEREFORE, BE IT ENACTED BY THE CITY COMMISSION UN BEHALF OF THE PEOPLE OF THE CITY OF ATLANTIC BEACH, FLORIDA, that; 1. The Fiscal Year 2013/2014 Budget to be amended as follows: Revenues: Transfer from Debt Service Fund Expenses: Administration City Manager Salary-Special Pay Finance Salary Legal Professional Services General Government Professional Services Recreation Administration GENERAL FUND Aid to Government Agencies/Schools Total Expenses: Fund Balance $2,454 $100,000 (80,000) 22,000 10,500 14 650 $67,150 ($64,696) COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUND Revenues: Federal Grant-CDBG FY 2013-14 Expenses: Parks and Recreation Improvements Donner Ball Field Fund Balance Expenses: Non-Departmental Principal-SunTrust 99 Transfer to General Fund Total Expenses: Fund Balance DEBT SERVICE FUND $66,399 $1,136 $65,263 $5 2 454 $2,459 ($2,459) CAPITAL PROJECTS FUND Expenses: Police Professional Services Fund Balance CAP IMPRV -MARSH MASTER PLAN FUND Revenues: Federal Grant-DEP CM-245-ADA Ped/Bike Trail at Tideviews Preserve Fund Balance AGENDA ITEM# 7D JUNE 9, 2014 $24,000 ($24,000) ($5,220) ($5,220) PUBLIC UTILITIES-WATER AND SEWER UTILITY FUNDS COMBINED Revenues: Federal Grant-FEMA(HMGP)-4068-Donner Sub Sewer Upgrades Fund Balance: SANITATION FUND Expenses: Sanitation Other Contract Services -ADS Fund Balance: GENERAL EMPLOYEES' RETIREMENT SYSTEM FUND Expenses: DROP Payments Fund Balance 2. This ordinance shall take effect immediately upon its adoption. Passed by the City Commission on first reading this __ day of 2014. $116,250 $116,250 $50,000 ($50,000) $80,000 ($80,000) Passed by the City Commission on second and final reading this __ day of 2014. Carolyn Woods Mayor I Presiding Officer Approved as to form and correctness: Richard Commando City Attorney ATTEST: Donna L. Bartle, CMC City Clerk