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Exh 8AAGENllA ITEM #8A SEPTEMBER 8, 2003 CITY OF ATLANTIC BEACH CITY COMMISSION STAFF REPORT Agenda Item: Ordinance No. 20-03-61 amending the Fiscal Ycar ended September 30, 2003 Operating Budget Date: September 2, 2003 Submitted By: Nelson Van Liere, Finance Director Background: Subsequent to the original budget adoption, events have occurred causing a need to adjust the budget. Some of the adjustments are the result of items the City Commission has already acted on or are aware of. The following is a brief description of the adjustments that. the attached budget ordinance addresses. ^ While developing the FY-04 Proposed Budget, we determined that the Dutton Island Construction project was a more appropriate use of Convention Development Tax Fund monies than the Town Center Phase II project. $100,000 of the Dutton Island Project cost is being moved to the Convention Development Tax Fund. The Town Center Phase II project, with an amended budget estimate of $131,345, will now be funded from the Better Jacksonville % Cent Sales Tax Fund monies. • The Local Law Enforcement Block Grant - FY 2001 Program Fund revenues will be adjusted to reflect earnings on grant money received in advance, prior to the payment of the grant-related expenditures. Additional expenses and City match were required to meet the 75/25% grant/City match ratio. The net effect of these transactions is a decrease of$131 to Fund Balance. The Local Law Enforcement Block Grant -Emergency Radio Communication was determined to be a City of Jacksonville grant. The $81,000 expense and related grant reimbursement impacts the City of Jacksonville's budget, so, the City of Atlantic Beach's budget will be revised accordingly. The radios will remain the property of the City of Jacksonville, though they will be used by the City of Atlantic Beach's Public Safety Department. ^ The Local Law Enforcement Block Grant - FY 2002 Data Conversion Fund requires a budget adjustment to transfer excess grant match back to the contributing fund -the Police Special Revenue Fund - to close this fund. The net effect of this transaction is a $645 decrease to Fund Balance. The Byrne Grant -Jordan Park Community Center is a FY-02 grant. No revenues were budgeted for this grant in FY-03. A budget adjustment to reflect the final receipt of grant proceeds in FY-03 in the amount of $4,713 and a $2,214 transfer of excess grant match back to the contributing fund -the Police Special Revenue Fund - is needed to close this fund. The net effect of these transactions is a $2,499 increase to Fund Balance. AGENDA ITEM #3A SEPTEMBER 3, 2003 • The expense budget for contract services to the City of Jacksonville in the Sanitation Fund will be increased by $17,039 for higher than anticipated annual tippage fees. Vehicle repairs not covered under the First Vehicle contract have been higher than anticipated this fiscal year, as a result of additional repairs to the Menzie excavator, accidents, and attempts to extend the useful life of several vehicles. The City estimates an additional $10,000 may be needed in the Fleet Maintenance Fund expense budget, offset by an increase to the internal service charge revenue. ^ The casualty insurance premiums, received by the Police Pension Fund in accordance with Florida Statute Section (F.S.) 185, were $18,402 higher than originally budgeted. The revenue budget is being adjusted to reflect this increase, and an offsetting increase to the expense budget is being made. Retiroment payments have exceeded original budget by $6,550 due to an unforeseen, retroactive disability retirement. The remaining $11,852 will be added to the professional services expense category to provide for increased attorney fees and actuarial services related to the disability pension, D.R.O.P. plan preparation and review, and evaluation of benefit increases required by F.S. Section 185. Budget: The impact on the individual fund budgets is as described above. Recommendation: The City Commission approve Ordinance No. 20-03-61 amending the Fiscal Year ended September 30, 2003 Operating Budget. Attachments: Reviewed by Cit; Ordinance No. 20-03-61 AGENllA ITEM t18A SEPTEMBER 8, 2003 ORDINANCE N0.20-03-61 AN ORDINANCE AMENDING THE OPERATING BUDGET FOR THE CITY OF ATLANTIC BEACH, FLORH)A FOR THE FISCAL YEAR BEGIlYNING OCTOBER 1, 2002 AND ENDING SEPTEMBER 30, 2003. WHEREAS, the City Charter of the City ofAtlantic 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 BEIIALF OF THE PEOPLE OF THE CITY OF ATLANTIC BEACH, FLORH)A, that; The Fiscal Year 2002/2003 Operating Budget be amended as follows: Convention Development Tax Fund Expenses: Non-Divisional Capital Outlay Improvements -Town Center Phase III Improvements -Dutton Island Construction Total Expenses: Fund Balance Decrease: Better Jacksonville'/x Cent Sales Tax Fund Expenses: Public Works Capital Outlay Improvements -Town Center Phase III Non-Divisional Capital Outlay Improvements -Dutton Island Construction Total Expenses: $<75,000> 100.000 .$25,000 $<25,000> $131,345 <100.000> 531,345 Fund Balance Decrease: $~i1,345> AGENDA ITEM #8r~ SEI'TEMIIER 8, 2003 Local Law Enforcement Block Grant - FY 2001 Program Fund Revenues: Interest Earnings -Allocated $41 Transfers In From Police Special Revenue Fund 279 Total Revenues: $320 Expenses: Police Administration Capital Outlay Computer Equipment $45l Total Expenses: $451 Fund Balance Decrease: $<131> Local Law Enforcement Block Grant -Emergency Radio Comm Fund Revenues: Intergovernmental Grant Proceeds - U.S. DepaRment of Justice $<81.000> Total Revenues: $<81,000> Expenses: Police Administration Capital Outlay Machinery and Equipment $<81.000> Total Expenses: $<81,000> Fund Balance Change: $0 Local Law Enforcement Block Grant - FY 2002 Data Conversion Fund Expenses: Non-Divisional Transfers Out To Police Special Revenue Fund $645 Total Expenses: $645 Fund Balance Decrease: $<645> AGENDA ITEM ltBA SEPTEMBER 8, 2003 $yrne Grant -Jordan Park Community Center Fund Revenues: Intergovernmental Grant Proceeds -Florida Department of Law Enforcement Total Revenues: Expenses: Non-Divisional Transfers Out To Police Special Revanue Fund Total Expenses: Fund Balance Increase: Police Special Revenue Fund Revenues: Transfers In From Byrne Grant -Jordan Park Community Center From Local Law Enforcement Block Grant - FY 2002 Data Conv Total Revenues: Expenses: Non-Divisional Transfers Out To Local Law Enforc Block Grant - FY 2001 Program Grant Total Expenses: Fund Balance Increase: Sanitation Fund Expenses: Sanitation $4 713 $4,713 $2 214 $2,214 $2,499 $2,214 645 $2,859 $27~ 5279 52,580 Operating Expenses Other Contract Services-City ofJacksonville-Tippage Fees $17.039 Total Expenses: 17,039 Fund Balance Decrease: 5<17,039> ACENllA ITEM #8A SEPTEn1I3Eli 8, 2003 Fleet Maintenance Fund Revenues: Internal Service Charges Charges for Services Total Revenues: Expenses: Fleet Maintenance Operating Expenses . Other Contract Services -First Vehicle -Non-Contract Total Expenses: Fund Balance Change: Police Pension Fund Revenues: Taxes Casualty Insurance Premium Tax Section 185 Total Revenues: Expenses: Operating Expenses Professional Services Police Employee Retirement Payments Total Expenses: Fund Balance Change: 2. This ordinance shall take effect immediately upon its adoption. Passed by the City Commission on first reading this day of September 2003. Passed by the City Commission on second and final reading this day of September 2003. $10.000 $10,000 $10.000 Slo,ooo 50 $18 402 $18,402 $11,852 6 518,402 50 John S. Meserve Mayor /Presiding Officer AGENllA ITEM l18A SEP'fEA113E12 8, 2003 Approved as to form and correctness: Alan C. Jensen, Esquire City Attorney ATTEST: Maureen King, CMC City Clerk