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Agenda Item 7C - Budget Ordinance 20-14-127CITY OF ATLANTI C BEACH CITY COMMIS SION ME ETING STAF F REPORT AGEN DA ITEM: Budget Ordinance# 20-14-127 AN ORDINANCE AMENDING THE OPERATING BUDG ET FOR THE CITY OF ATLANTIC BEACH, FLORIDA FOR FISCAL YEA R BEGINNING OCTOBER 1, 2013 AND ENDING SEPTEMBER 30 , 2014, AND PROVIDI NG AN EFFECTIVE DATE . SU BMITTED BY: Nelson VanLiere, C ity Manager e_ DATE: J une 10,2014 AGENDA ITEM II 7C JULY 14 ,20 14 BACKGROUND: This p roposed ordinance wi ll accomplish a number of bud get adjustments to add ress previously discussed expend itures and gra nt awards that were not inc luded in the origina l budget: • Debt Service Fund c losure and tr ans fer unused funds of -$2,500 to the General Fund, upon payoff of the 1999 Sun Trust Revenue Refunding Bond; • Increased ne t expenses of $52,500 in the ad mini s trati ve divisions of the General Fund for severance payments re la ted to the term in atio n of th e prior City Manager and City Attorney and hiring a searc h firm to assist with a permanent repl acements, offset by the savings associated w ith th e vaca ncy created in the Fi nance Department resu lting f rom assignment of the Finance Director as the interim City Manager; • Aid to the Friends of Atlantic Beach E lementary (FAB E) of$14,650 to assist with the res urfacing of the track at t he e lement ary school; • Gra nt award /contract adjus tm e nts of increased net revenu es for the CDBG grant of $65 ,263 , reduce d reve nues of $5,220 from the FDEP ADA ped/bike patb g ra nt award beca use eli gi bl e expenses were le ss than a nticipated; and , increased g rant revenues of $11 6,250 from a FEMA Hazard Miti gation awar d for the Donner S ubd ivision sewer upgrades; • Approval of a $24,00 0 contract for CRA to perform a s it e fea sibility s tudy fo r a ne w Po li ce building; • Contract extension approval w ith Advanced Dispos a l Services fo r sanitation se rvices, effecti ve Jun e 1, with i ncreas ed commercia l tip page cha rges for th e remainder of fiscal year 20 14 of $50,000; and, • Genera l E mp loyee's Retirement Plan expense increase of $250,000 for s ix employees exerc isi ng their Deferred Retirement Opti o n Plan (DROP) benefit opti on and a lump- sum death benefit payable t o th e employee's estate. BUDGET: The bud get item s a bove increase revenues and expenses $ 179,883 a nd $394 ,74 5 respectively, wi th a n overall reduct ion in fund balances of $214,862 . RECOMMEN DATIO N: Approve Ord ina nce #20 -1 4-127 ATTACHMENTS: Ordi nance# 20-14-127 REVIEWED BY CITY MANAGER : --rl V ~ ;1U'-tA 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# 7C JULY 14, 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 (F ABE) 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) or receive retirement benefits each year is unpredictable, six employees exercising the DROP option and a lump-sum death benefit payable to the employee's estate represent an additional $42,000 and $208,000, respectively, needed in the General Employees' Retirement Plan to fund these payments. AGENDA ITEM# 7C JULY 14,2014 NOW, THEREFORE, BE IT ENACTED BY THE CITY COMMISSION ON 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# 7C JULY 14,2014 $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 Benefits Lump-Sum Distribution Total Expenses: 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) $42,000 $208,000 $250,000 ($250,000) 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 Komando, Esquire City Attorney ATTEST: Donna L. Bartle, CMC City Clerk