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Agenda Item 7AAGENDA ITEM # 7A JUNE 10, 2013 ORDINANCE NO. 20-13-123 AN ORDINANCE AMENDING THE OPERATING BUDGET FOR THE CITY OF ATLANTIC BEACH, FLORIDA FOR FISCAL YEAR BEGINNING OCTOBER 1, 2012 AND ENDING SEPTEMBER 30, 2013, AND PROVIDING AN EFFECTIVE DATE. 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 adopted the original budget for 2013 without including funds for employee raises due to pending union negotiations at the time. Those raises are included in this amendment totaling $29,924 city -wide, and WHEREAS, this proposed ordinance funds the City negotiated buy -down of personal leave balances to a maximum of 680 hours in conjunction with eliminating the ability for employees to cash in unused personal leave in the future. This buy -down was not budgeted, but was partially off -set by the unused budget that was approved for the employee selected cash -in program. The original budget for cash -ins of $129,748, less the City mandated buy -down to 680 hours of $102,739 and less the December budgeted cash -ins of $49,815 leaves a budget shortfall of $22,806 city -wide, and WHEREAS, the City hired a labor attorney to assist the City Manager with labor negotiations that was not budgeted. This proposed ordinance adds an additional $32,300 to the General Fund legal budget, and WHEREAS, the City has also agreed to transfer the employee contributions to date of those employees not vested in the General Employee Retirement System defined benefit plan into a defined contribution plan with interest together with a 100% City match as a way of closing the Defined Benefit plan to all unvested employees hired after September 2008 and future general employees. This proposed ordinance includes $66,638 for that purpose. The ordinance also includes a small change in the employee contributions to the Defined Benefit plan as a result of the employees being removed from that system, and WHEREAS, this proposed ordinance creates a budget for the revenues and expenses of the new trust fund to reflect the initial deposit of the City's matched contributions, but not include at this time a budget for the City's match of employee contributions made between implementation and the end of the year. This will be addressed with the year end adjustment due to the inability to predict participation at this time, and WHEREAS, the City Commission has authorized foreclosure on a residential property located at 765 Sabalo Road for unpaid code enforcement fines and property taxes. A settlement was reached requiring the City to pay the owner $4,000 along with the taxes and miscellaneous fees to acquire the property for a total of $13,040, and WHEREAS, the City Commission has agreed to assist with the funding of the Jacksonville Beach Fourth of July fireworks display by contributing $5,000. AGENDA ITEM # 7A JUNE 10, 2013 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 2012/2013 Budget to be amended as follows: GENERAL FUND Expenses: Salary and Benefits of all departments per attached Schedule A City Administration Legal Division Professional Services Non - Departmental Land Purchase Jacksonville Beach fireworks display Transfer to General Employee Profit Sharing Plan - match Total Expenses: Fund Balance $98,312 32,300 13,040 5,000 66,638 $215,290 $215,290 PUBLIC UTILITIES — WATER AND SEWER UTILITY FUNDS COMBINED Expenses: Salary and Benefits of all departments per attached Schedule A $13,878 Fund Balance: (13,878) SANITATION FUND Expenses: Salary and Benefits per attached Schedule A ($280) Fund Balance: $280 BUILDING CODE ENFORCEMENT FUND Expenses: Salary and Benefits per attached Schedule A $3,125 Fund Balance: ($3,125) STORM WATER UTILITY FUND Expenses: Salary and Benefits per attached Schedule A $4,325 Fund Balance: ($4,325) Ordinance No. 20 -13 -123 Page 2 of 3 GENERAL EMPLOYEE RETIREMENT TRUST FUND Revenues: Employee Contributions — Those leaving the system Employee Contributions — Those to pay 1% more Total Revenues Expenses: Pension Contribution Refunds — Transferred to 401 Fund Balance AGENDA ITEM # 7A JUNE 10, 2013 ($7,906) $7,477 ($429) $66,638 ($67,067) GENERAL EMPLOYEE DEFINED CONTRIBUTION PLAN Revenues: Contributions from City $66,638 Fund Balance $66,638 2. This ordinance shall take effect immediately upon its adoption. Passed by the City Commission on first reading this 13th day of May 2013. Passed by the City Commission on second and final reading this 10'h day of June 2013. Mike Borno Mayor / Presiding Officer Approved as to form and correctness: ATTEST: Alan C. Jensen, Esquire City Attorney Donna L. Bartle, CMC City Clerk Ordinance No. 20 -13 -123 Page 3 of 3