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Exh 7AAGENDA ITEM #7A JUNE 27, 20U5 CITY OI' ATLANTIC BEACH CITY COMMISSION MEETING STAFF REPORT AGENDA ITEM: ORDINANCE N0.20-05-71 AMENDING THE OPERATING BUDGET FOR THE CITY OF ATLANTIC BEACH, FLORIDA FOR FISCAL YEAR BEGINNING OCTOBER 1, 2004 AND ENDING SEPTEMBER 30, 2005. SUBMITTED BY: Nelson Van Liere Finance Director DATE: June 20, 2005 BACKGROUND: During the year, the City makes adjustments to budgetary accounts to fund items not anticipated during the initial budget process. Most of the items listed below have already been discussed in previous commission meetings. The ordinance proposed accomplishes the following: Legal Expenditures for settlements and arbitrations related to personnel issues are more than anticipated requiring an increase in that division's budget of $22,000. The City Commission travel and training budget requires additional funds due to expenditures for related to the Florida League of Cities and other commission related travel exceeding original estimates. An increase of $3,800 is proposed. The Water Utility Fund requires an adjustment of $25,622 to fund the 10% contingency for the 2005 Beach Avenue Water Main project. The anticipated contingency is necessary due to the old condition of the existing underground utilities that may cause additional contract expenditures during the project. Utility Revenue Debt Service. This proposed amendment reflects a reallocation of debt expenditures between the Water, Sewer and Storm Water funds as a result of final project costs. It also reduces the overall expense to the three funds by $108,678 related to the refunding of the 1996 issue with the 2004 issue. The Sanitation Utility budget requires an increase in the budget for the payment of tippage to the City of Jacksonville as a provision of an inter-local agreement for landfill services. The City of Atlantic Beach must pay the tippage for all new AGENDA ITEM #7A JUNE 27, 2005 commercial and multi-residential accounts since the agreement. Turnover in these locations has been higher than anticipated. An additional $8,000 should be sufficient for this year's requirement. Community Development Block Grant. To amend the revenue and expense budgets to reflect previously approved funds rolling over from last year. The majority of these funds are for a drainage project on George and Dudley Street. BUDGET: Miscellaneous adjustments to the fiscal year 2005 Operating Budget as proposed above. RECOMMENDATION: Approve Ordinance No. 20-OS-71. ATTACHMENTS: Ordinance No. 20-OS-71 E REVIEWED BY CITY MANAGER: AGENDA ITENI #7A JUNE 27, 2005 ORDINANCE NO. 20-OS-71 AN ORDINANCE AMENDING THE OPERATING BUDGET FOR THE CITY OF ATLANTIC BEACH, FLORIDA FOR FISCAL YEAR BEGINNING OCTOBER 1, 2004 AND ENDING SEPTEMBER 30, 2005. 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. 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 2004/2005 Final Budget be amended as follows: General Fund Expenses: City Commission Operating Expenses Travel and Training Legal Services Operating Expenses Professional Services Total Expenses: Decrease in Fund Balance: Sewer Utility Fund Expenses: Non -Divisional Debt Service Principal Interest Total Expenses: Increase in Fund Balance: Water Utility Fund 3,800 22,000 525,800 <525,800> $<4,743> <69,283> ~574,026> 574,026 Expenses: Non -Divisional Debt Service AGENDA ITEM #7A JUNE 27, 2005 Principal Interest Water Distribution Capital Outlay Infrastructure Improvements Decrease in Fund Balance: Storm Water Utility Fund Expenses: Non -Divisional Debt Service Principal Interest Total Expenses: Decrease in Fund Balance: f Sanitation Utility Expenses: Operating Expenses -Contract Services Decrease in Fund Balance: Community Development Block Grant Revenues: Grant Proceeds Expenses: Operating Expenses Aid to Private Citizens Capital Outlay ' Improvements other than buildings Total Expenses: Increase in Fund Balance: $39,474 49,559 25,622 <$114,665> <$34,731> <88,954> <$123,685> 5123,685 8,000 <58,000> 5109,402 486 3,397 53,883 ~ 105,519> 2. This ordinance shall take effect immediately upon its adoption. Passed by the City Commission on first reading this day of July, 2005. Passed by the City Commission on second and final reading this day of July, 2005 AGENDA ITEM #7A JUNE 27, ?005 John 9. Meserve Mayor /Presiding Officer Approved as to form and correctness: ATTEST: Alan C. Jensen, Esquire Donna Bussey City Attorney City Clerk F.