Item 7E AGENDA ITEM # 7E
NOVEMBER S, 2010
CITY OF ATLANTIC BEACH
CITY COMMISSION MEETING
STAFF REPORT
AGENDA ITEM: ORDINANCE 20 -10 -106: AN ORDINANCE
AMENDING THE OPERATING BUDGET
FOR THE CITY OF ATLANTIC BEACH,
FLORIDA FOR FISCAL YEAR BEGINNING
OCTOBER 1, 2009 AND ENDING
SEPTEMBER 30, 2010.
DATE: October 29, 2010
SUBMITTED BY: Nelson Van Liere, Finance Director c -
BACKGROUND: At the close of every year, a year end budget modification is necessary
to reallocate the resources that were not encumbered by year end so
that they may be available for fiscal year 2011. Since the budget for
the new year is adopted before the previous year is finished, municipal
governments are allowed sixty days after year end to make final
adjustments.
This budget ordinance addresses two issues:
1.) Reduce the transfer from the Utility Fund to the General Fund
for 2010 because we did not borrow those funds to repay the General
Fund for the design of the TMDL as planned. The borrowing of the
funds is now scheduled for 2011.
2.) To fund expenses in the retirement plans for additional retirees
not anticipated and for investment returns and management fees higher
than originally projected.
ATTACHMENTS: ORDINANCE NUMBER 20 -10 -106
RECOMMENDATION: Approve ordinance number 20 -10 -106
CITY MANAGER APPRO •
AGENDA ITEM # 7E
NOVEMBER 8, 2010
ORDINANCE NO. 20-10-106
AN ORDINANCE AMENDING THE OPERATING BUDGET
FOR THE CITY OF ATLANTIC BEACH, FLORIDA FOR
FISCAL YEAR BEGINNING OCTOBER 1, 2009 AND
ENDING SEPTEMBER 30, 2010.
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 fiscal year operating budget should be amended at year end to reflect last
minute changes affecting the flow of resources into the new year. Those items are funded with funds
that either were redirected or were not spent in 2010, so that they may be available to fund the 2011
budget as approved, and
WHEREAS, the proposed adjustment related to the General Fund and the Public
Utilities Fund was presented at the 2011 budget workshop and is already reflected in the final
budget as part of the Current Year Estimate presentation for 2010. This adjustment transfer from
the Utility to the General Fund as a result of the financing for the project being pushed back to
2011, and
WHEREAS, both the General and Police Retirement Systems' expense for managing the
investments exceeded the budget in 2010. The increase is due to a change in investment
strategies, whereby the new management fee structure charges professional fees as an expense
instead of netting them against the returns.
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 2009/2010 Budget to be amended as follows:
GENERAL FUND
Revenues:
Non Operating Transfers — From Sewer Fund <$892,560>
Fund Balance <$892,560>
PUBLIC UTILITIES FUND
Expenses:
Transfers Out — General Fund <892,560>
Fund Balance $892,920
AGENDA ITEM # 7E
NOVEMBER 8, 2010
GENERAL EMPLOYEES RETIREMENT SYSTEM
Expenses:
Operating Expenses — Professional Services $10,200
Fund Balance: <$10,200>
POLICE EMPLOYEES RETIREMENT SYSTEM
Expenses:
Operating Expenses — Professional Services $4,750
Benefits Paid — Service Retirement Payments 18,615
Total Expenses $23,365
Fund Balance: <$23,365>
2. This ordinance shall take effect immediately upon its adoption.
Passed by the City Commission on first reading this day of November, 2010.
Passed by the City Commission on second and final reading this day of November, 2010.
Mike Borno
Mayor / Presiding Officer
Approved as to form and correctness: ATTEST:
Alan C. Jensen, Esquire Donna L. Bartle, CMC
City Attorney City Clerk