Item 7AAGENDA ITEM # 7A
MARCH 23, 2009
CITY OF ATLANTIC BEACH
CITY COMMISSION MEETING
STAFF REPORT
AGENDA ITEM: ORDINANCE N0.20-09-96 AMENDING THE OPERATING
BUDGET FOR THE CITY OF ATLANTIC BEACH,
FLORIDA FOR FISCAL YEAR BEGINNING OCTOBER 1,
2008 AND ENDING SEPTEMBER 30, 2009.
SUBMITTED BY: Nelson Van Liere, Finance Director
DATE: March 12, 2009
BACKGROUND: This ordinance will address three items as described briefly below:
The original operating budget adopted by the City Commission proposed obtaining a loan
in FY-2009 to fund the construction of a water well for $800,000 and the design of the
sewer plant upgrades associated with the TMDL mandates for $510,000. After
consulting with the City's financial advisor, City management has determined that due to
the current economic situation, it would be better to temporarily borrow the immediate
funds needed from the City's General Fund, and reimburse the General Fund with loan
proceeds in FY-2010. The General Fund currently has an unreserved fund balance of
over $6,000,000. Interest earnings on these funds would be substantially lower than the
cost of borrowing the funds from outside sources.
After working with the engineers, the City has chosen a plan that includes abandoning the
Buccaneer Sewer Plant and upgrading Sewer Plant #1. This plan puts more of the
engineering costs upfront; and, as a result, our design estimate for this year will be
significantly higher. The City is ready to award a contract for the design and engineering
work. Accordingly, a budget increase of $590,000 is needed to proceed.
This ordinance authorizes the transfer from the General Fund to the Public Utility Fund
for the amount that the City would have borrowed. The request also increases the amount
needed from $1,310,000 to $1,900,000, to enable the City to award the contract to design
the entire project this fiscal year.
2. The original FY-2009 budget did not include funding for the purchase of the Buckman
Trust property. This ordinance provides funds from Convention Development Taxes for
the purchase.
The FY-2009 budget did not include funding for the FDLE Byrne Grant that was applied
for and awarded during the current fiscal year. This reimbursable grant will provide
monies to purchase audio video recording equipment for the police department. This
ordinance increases revenues and expenditures in the amount of $1,735. No City match
is required.
BUDGET: See Attached Ordinance
RECOMMENDATION: Adopt Ordinance 20-09-96
ATTACHMENT: Ordinance 20-09-96
REVIEWED BY CITY MANAGER
AGENDA ITEM # 7A
MARCH 23, 2009
ORDINANCE NO. 20-09-96
AN ORDINANCE AMENDING THE OPERATING BUDGET FOR THE
CITY OF ATLANTIC BEACH, FLORIDA FOR FISCAL YEAR
BEGINNING OCTOBER 1, 2008 AND ENDING SEPTEMBER 30, 2009.
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 originally budgeted to borrow funds for the Public Utility projects for
the current year and instead has opted to cover the initial design and well construction with funds
from the General Fund. Those funds would then be returned to the General Fund when a loan for
construction for the sewer plant upgrades is obtained, and
WHEREAS, the City has been in negotiations to purchase 350 acres of wetlands for some
time and has now come to an agreement. This ordinance funds the City's share of the purchase from
convention development taxes, and
WHEREAS, the City has been awarded an Edward Byrne Memorial Justice Assistance
Grant by the Florida Department of Law Enforcement to purchase audio video recording equipment
to reduce crime and improve public safety.
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 2008/2009 Budget be amended as follows:
GENERAL FUND
Revenues:
Non-Departmental
Federal Grants -Public Safety $1,735
Total Revenues: $1,735
Expenses:
Non-Departmental
Transfer to the Public Utility Fund $1,900,000
Police
Patrol
Machinery & Equipment $1,735
Total Expenses: $1,901,735
AGENDA ITEM # 7A
MARCH 23, 2009
Fund Balance: <$1,900,000>
PUBLIC UTILITY FUND
Revenues:
Transfer from General Fund $1,900,000
Non Divisional
Loan Proceeds <$1,310,000>
Total Revenues: $590,000
Expenses:
Capital Outlay
Water Production -Improvements $590,000
Fund Balance: $0
CONVENTION DEVELOPMENT TAX FUND
Expenses:
Capital Outlay -Land $185,000
Fund Balance: ($185,000)
2. This ordinance shall take effect immediately upon its adoption.
Passed by the City Commission on first reading this day of March, 2009.
Passed by the City Commission on second and final reading this day of April, 2009.
John S. Meserve
Mayor /Presiding Officer
Approved as to form and correctness: ATTEST:
Alan C. Jensen, Esquire
City Attorney
Donna L. Bartle, CMC
City Clerk