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HomeMy WebLinkAboutItem 07 First Reading of Ordinance for Fiscal Year 2020 Budget Amendment. 11 ocoee florida AGENDA ITEM COVER SHEET Meeting Date: April 21, 2020 Item # Reviewed By: Contact Name: Rebecca Roberts Department Director: Rebecca Robert Contact Number: 1520 City Manager: Subject: FY2020 Budget Amendment Background Summary: The City Commission adopted an annual operating budget for the city on September 25, 2019. Subsequent to the adoption of the budget staff identified the need for additional appropriations in the General Fund, the Sanitation Fund and the Wastewater Fund. The total General Fund budget adopted at that time was $52,476,498. • The Police Department requires an additional appropriation of $103,082 to cover the escalating costs of sending certified mail to persons not paying the red-light camera fines. • The Police Department requires an additional appropriation of $47,470 to cover the purchase of vehicles. During the annual budget process, the Commission approved a budget of $210,000 for the purchase of 5 replacement Police sedans. Those sedans are no longer available due to a manufacturing shutdown. The PD is replacing those 5 sedans with 5 Dodge Durango's, at an additional cost of$47,470. • General Government requires an additional $115,000 appropriation to cover anticipated costs of COVID- 19 supplies, other pandemic response costs, and to cover additional costs for consulting services. • An additional $13M appropriation is required in the General Fund to cover the additional costs of building city hall. This appropriation will be funded by a $13M bond/loan issued on behalf of the City. • Public Works requires an additional appropriation of $40,000 to cover unanticipated costs associated with repairing and/or replacing HVAC systems at several City facilities. • An additional appropriation of $1.4 million for a total of $2.1 million is required in the Road Impact Fee Fund to begin construction of the intersection of Fullers Cross and Ocoee Apopka Rd. This is a joint project with Orange County who will reimburse the City for its half of the total cost. The reimbursement will be redeposited into Road Impact Fees. • The General Fund will receive an additional $258,000 from Duke Energy for franchise fees, which were not originally budgeted for. Police Impact Fees were budgeted for the purchase of 6 additional Dodge Chargers required to meet the demand as new officers were added to the force. As: indicated above, those vehicles are no longer available and were replaced by 6 Ford Explorers at an additional cost of $72,528. An additional appropriation in Police Impact Fees is necessary to cover this additional cost. The total Solid Waste Fund budget adopted at the time was $3,473,331. At the time of the budget adoption, the City planned to privatize solid waste collection at the beginning of the new calendar year. The City also planned for the private operator to purchase all the City's equipment and employ all the City's sanitation truck drivers. Due to unavoidable conditions, the private company did not assume full collections until April 6, 2020, and the terms of the transition changed. Therefore, the Sanitation Fund incurred additional expenses not foreseen in the annual budget process. As a result, the Sanitation Fund is significantly underfunded and requires an infusion of funding from the General Fund of$500,000 to balance its operating budget. Any surplus funds remaining in the Fund after the books are closed and audited will be returned to the General Fund. The City incurred unforeseen expenses for emergency repairs at SR 50 and Bluford Ave. To replenish the Wastewater R&R fund to the minimum fund balance required under the City's bond covenants, an additional appropriation of$1.5 million for a transfer from the Water/Wastewater Fund is required. Issue: Should the City Commission approve additional appropriations for the General Fund of $805,552, the Police Impact Fee Fund of $72,528, the Sanitation Fund of $500,000, the Road Impact Fee Fund of $2,100,000, the Wastewater Fund of $1,500,000 to balance the budget as required by Article VI, C-38 of the City Charter, and an increase in General Fund Franchise Fee Revenue of$258,000? Recommendations: Staff recommends the City Commission approve additional appropriations for the General Fund of $805,552, the Police Impact Fee Fund of $72,528, the Sanitation Fund of $500,000, the Road Impact Fee Fund of $1,400,000, the Wastewater Fund of $1,500,000 to balance the budget as required by Article VI, C-38 of the City Charter, and an increase in General Fund Franchise Fee Revenue of $258,000. Attachments: Detailed budget adjust schedule Financial Impact: This amendment to the budget will have a ($805,552) impact to the General Fund balance, a ($72,528) impact on the Police Impact Fee Fund balance, the Road Impact Fee Fund of $1,050,000 and a $500,000 impact to the Solid Waste Fund balance. The transfer from the Water/Wastewater Fund to the Wastewater R&R Fund has no impact on the fund balance overall. Type of Item: (please mark with an "x") Public Hearing For Clerk's Dept Use: Ordinance First Reading Consent Agenda Ordinance Second Reading Public Hearing Resolution Regular Agenda X Commission Approval Discussion&Direction Original Document/Contract Attached for Execution by City Clerk Original Document/Contract Held by Department for Execution Reviewed by City Attorney N/A Reviewed by Finance Dept. N/A Review ed by ( ) N/A 2 ORDINANCE NO. 2020- AN ORDINANCE OF THE CITY OF OCOEE, ORANGE COUNTY, FLORIDA, RELATING TO THE CITY BUDGET; AMENDING THE CITY BUDGET ADOPTED BY ORDINANCE 2019-026 FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2019 AND ENDING SEPTEMBER 30, 2020 BY PROVIDING FOR INCREASE OF APPROPRIATIONS; PROVIDING FOR SEVERABILITY; PROVIDING AN EFFECTIVE DATE. SECTION 1. Authority. The City Commission of the City of Ocoee has the authority to adopt this Ordinance pursuant to Article VIII of the Constitution of the State of Florida, Chapter 166 Florida Statutes, and Section C-38 of Article VI of the Charter of the City of Ocoee. SECTION 2. Intent and Purposes. The City of Ocoee budget for the Fiscal Year beginning October 1, 2019, and ending September 30, 2020, as adopted by Ordinance 2019-026 is hereby amended as follows: Increase of appropriations totaling $13,805,552 in the General Fund, increase of$13,000,000 bond/loan revenue in the General Fund, increase of appropriations of$72,528 in the Police Impact Fees Fund, an increase of $500,000 in the Sanitation Fund, an increase of appropriations in the Road Impact Fees Fund of $1,400,000, increase of appropriations of $1,500,000 in the Water/Wastewater Fund, and an increase in General Fund Franchise Fee revenue of $258,000 as shown in detail, attached hereto and incorporated herein by reference are hereby confirmed, adopted and approved in all respects by the City Commission of the City of Ocoee. SECTION 3. Appropriations. There are expressly appropriated out of anticipated revenues and monies necessary to meet the supplemental appropriations stipulated by and in said amended final budget. SECTION 4. Severability. If any section, subsection, sentence, clause, phrase or portion of this Ordinance is for any reason held invalid or unconstitutional by any court of competent jurisdiction, such portion shall be deemed a separate, distinct and independent provision and such holding shall not affect the validity of the remaining portion hereto. SECTION 5. Effective Date. This Ordinance shall become effective ten (10) days after its passage and adoption. 1 ATTEST: APPROVED: CITY OF OCOEE, FLORIDA Melanie Sibbitt, City Clerk Rusty Johnson, Mayor (SEAL) Advertised Read First Time Read Second Time and Adopted APPROVED BY THE OCOEE CITY FOR USE AND RELIANCE ONLY BY THE COMMISSION AT A MEETING HELD CITY OF OCOEE,APPROVED AS TO ON ,2020 FORM AND LEGALITY, THIS_DAY OF UNDER AGENDA ITEM NO. ,2020. SHUFFIELD LOWMAN & WILSON, P.A. By: City Attorney 2 FY 2019/20 Budget Amendment Fund 001 106 108 402 401 407 General Ledger Account Account Number General Fund Road Impact Fees Police Impact Fees Sanitation Fund Water/Wastewater Wastewater R&R Salaries 001-521-00-1200 (61,008) Consulting Services 001-516-00-3400 (15,000) Postage and Freight 001-521-00-4200 (42,074) Vehicle Replacement 001-521-00-6401 (47,470) (72,528) Operating Supplies 001-516-00-5202 (100,000) Capital Improvements(City Hall) 001-516-00-6302 (13,000,000) Capital Improvements 001-519-00-6302 (40,000) (2,100,000) Transfer Out 001-516-00-9000 (500,000) Transfers Out R&R 401-533-00-9104 (1,500,000) Transfers In 407-38-1000 1,500,000 Transfers In 402-38-1000 500,000 Electric Franchise Fees 001-31-3100 258,000 Other Revenue Sources(Bond/Loan) 001-38-2001 13,000,000 Fund Fund Balance (547,552) (2,100,000) (72,528) 500,000 (1,500,000) 1,500,000 • Prepared by: Rebecca Roberts,CPA Finance Director City of Ocoee 4/15/2020