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HomeMy WebLinkAboutItem 07 First Reading of Ordinance for FY 2020 Budget Amendment 40-Arr ocoe florida AGENDA ITEM COVER SHEET Meeting Date: April 20, 2021 Item # 7 Reviewed By: Contact Name: Rebecca Roberts Department Director: Re c s Contact Number: 1520 City Manager: Subject: FY2020 Budget Amendment Background Summary: The City Commission adopted an annual operating budget for the City on September 23, 2020. Subsequent to the adoption of the budget staff identified the need for additional appropriations in the General Fund, the Storm Water Fund, Water Fund and the Wastewater fund. These appropriations are being presented at this time in lieu of delaying completion of capital projects (City Hall, downtown streetscapes and utility work, Clarke Road design and construction) until funded in next year's budget. There are also Water/Wastewater appropriations recommended related to emergency line repair costs. The total General Fund budget adopted at that time was $52,988,188. • Street Operations requires an additional $1,633,296 appropriation to cover the planned costs to complete the Oakland Avenue Phase II —Taylor to Bluford downtown project. • General Government requires an additional $4,975,000 appropriation for: o An interfund loan of $4,250,000 to the Stormwater Fund to cover a portion of the costs of constructing the Master Stormwater Pond. The loan allows the City to fund this planned project internally. The inter-fund loan will be repaid at the prevailing rate of interest over 10 years. o $725,000 for downtown property acquisitions. • Police Operations requires $56,000 for the replacement of a K-9 unit recently damaged in an automobile accident. All or a portion of the expenditure will be reimbursed by insurance proceeds. Should the insurance company determine the vehicle is repairable, funds will be used for repair only. The Transportation (Road) Impact Fee fund adopted a budget of$2,503,287. The fund requires an appropriation of $4,634,480 for the design and construction of the Clarke Road widening project as described by the third amendment to the Development Agreement of the Arden Park PUD The Stormwater Fund adopted a budget of $4,493,123. The Stormwater Fund requires an additional appropriation of$2,900,000 to cover the remaining costs of the Master Stormwater Pond not covered by the inter- fund loan. The Water/Wastewater fund adopted a budget of$14,902,173. The Water/Wastwater fund requires an additional appropriation of $1,358,000 to cover the costs of planned projects which have moved forward ahead of schedule and to reimburse the R&R fund for unforeseen expenditures related to the force main rupture at Clarke Rd. and the failure of a clarifying rod. Adopting this budget amendment will not affect millage rates nor utility fees charged to customers. Issue: Should the City Commission approve additional appropriations for the General Fund of $11,298,776, the Stormwater Fund of $2,900,000, the Transportation Impact Fee fund of $4,634,480 and $1,358,000 for the Water/Wastewater Fund. The loan between the General Fund will be repaid at the prevailing rate of interest over 10 years. Recommendations: Staff recommends the City Commission approve additional appropriations for the General Fund of $11,298,776, the Stormwater Fund of $2,900,000, the Transportation Impact Fee fund of $4,634,480 and $1,358,000 for the Water/Wastewater Fund. Attachments: Detailed budget adjust schedule Loan Amortization Schedule Financial Impact: This amendment to the budget will have a ($2,214,296) impact to the General Fund balance, a ($2,900,000) impact on the Stormwater Fund (fund) balance, a ($4,634,480) impact on the Transportation (Road) Impact Fee fund, and a ($1,358,000) impact to the Water/Wastewater Fund balance. The loan between the General Fund and the Stormwater Fund does not have an immediate impact on those fund balances. All of these allocations were anticipated by staff and sufficient funds are available to move these projects forward at this time. 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. won o��p N/A Review ed by ( ) N/A 2 Schedule of Budget Amendments Budget Year2020/2021 Stormwater Fund Downtwon Master Plan Implementation (2,900,000) (2,900,000) General Fund Downtwon Master Plan Implementation (6,608,296) Repair/Replace K9 Vehicle (56,000) (6,664,296) Transportation Impact Fee Fund Clark Road Widening Project (4,634,480) (4,634,480) Water/Wastewater Fund Downtwon Master Plan Implementation (385,000) Utility Service area improvements/replacements/annexations (473,000) Reimburse R&R Fund (500,000) (1,358,000) Loan Amortization Schedule Inter-Fund Loan from the General Fund to the Stormwater Fund Loan amount $ 4,250,000.00 Annual interest rate 1.90% Loan period in years 10 Start date of loan 9/1/2021 Monthly payment $ 428,709.82 Number of payments 10 Total interest $ 37,098.25 Total cost of loan $ 4,287,098.25 Payment Beginning Ending No. Date Balance Payment Principal Interest Balance 1 10/1/2021 $ 4,250,000.00 $ 428,709.82 $ 421,980.66 $ 6,729.17 $ 3,828,019.34 2 11/1/2021 $ 3,828,019.34 $ 428,709.82 $ 422,648.79 $ 6,061.03 $ 3,405,370.55 3 12/1/2021 $ 3,405,370.55 $ 428,709.82 $ 423,317.99 $ 5,391.84 $ 2,982,052.56 4 1/1/2022 $ 2,982,052.56 $ 428,709.82 $ 423,988.24 $ 4,721.58 $ 2,558,064.32 5 2/1/2022 $ 2,558,064.32 $ 428,709.82 $ 424,659.56 $ 4,050.27 $ 2,133,404.76 6 3/1/2022 $ 2,133,404.76 $ 428,709.82 $ 425,331.93 $ 3,377.89 $ 1,708,072.83 7 4/1/2022 $ 1,708,072.83 $ 428,709.82 $ 426,005.38 $ 2,704.45 $ 1,282,067.45 8 5/1/2022 $ 1,282,067.45 $ 428,709.82 $ 426,679.88 $ 2,029.94 $ 855,387.57 9 6/1/2022 $ 855,387.57 $ 428,709.82 $ 427,355.46 $ 1,354.36 $ 428,032.11 10 7/1/2022 $ 428,032.11 $ 428,709.82 $ 428,032.11 $ 677.72 $ 0.00 ORDINANCE NO. 2021- AN ORDINANCE OF THE CITY OF OCOEE, ORANGE COUNTY, FLORIDA, RELATING TO THE CITY BUDGET; AMENDING THE CITY BUDGET ADOPTED BY ORDINANCE 2020-23 FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2020 AND ENDING SEPTEMBER 30, 2021 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, 2020, and ending September 30, 2021, as adopted by Ordinance 2020-23 is hereby amended as follows: Increase of appropriations totaling $6,664,296 in the General Fund, increase of $2,900,000 in the Stormwater Fund, and increase of $4,634,480 in the Transportation (Road) Impact Fee fund, and an increase of$1,358,000 in the Water/Wastewater Fund 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. ATTEST: APPROVED: CITY OF OCOEE,FLORIDA Melanie Sibbitt, City Clerk Rusty Johnson, Mayor (SEAL) Advertised Read First Time Read Second Time and Adopted FOR USE AND RELIANCE ONLY BY THE CITY OF OCOEE,APPROVED AS TO FORM APPROVED BY THE OCOEE CITY AND LEGALITY,THIS DAY OF COMMISSION AT A MEETING HELD ,2021. ON , 2021 UNDER AGENDA ITEM NO. SHUFFIELD LOWMAN&WILSON,P.A. By: City Attorney