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Home My WebLink AboutItem 08 First Reading of Ordinance for FY 2024 Budget Amendment City of Ocoee ▪ 1 N. Bluford Avenue ▪ Ocoee, Florida 34761 Phone: (407) 905-3100 ▪ www.ocoee.org STAFF REPORT Meeting Date: February 20, 2024 Item #: 8 Contact Name: Rebecca Roberts Department Director: Rebecca Roberts Contact Number: Ext. 1520 City Manager: Robert Frank Subject: First Reading of Ordinance for FY 2024 Budget Amendment. (Finance Director Roberts) Background Summary: On March 5, 2024, the Finance Department will present for City Commission approval the issuance of a $10 million note to partially fund the construction of the new Police Regional Training Facility, with the funds expected shortly thereafter. As per the City Charter, the Commission must authorize the use of all new revenue sources. Consequently, the Finance Department is presenting the anticipated receipt of the note funds for Commission consideration. The $10 million will be recorded as revenue in the General Fund and, after deducting any issuance costs, transferred to the Capital Projects fund. This transfer is earmarked specifically for the Regional Training Facility. The City is mandated to conduct an annual analysis of the performance of its self-funded health insurance fund, based on the calendar year, with the latest assessment covering the year 2023. State regulations stipulate that all self-insured funds must maintain a fund balance of at least 16% relative to claims (approximately 2 months claims coverage). Our analysis indicates that, due to an extraordinary increase in claims and administrative costs, our reserves have fallen to 23%. Further examination reveals that, without an augmentation in fund contributions, the balance is projected to dip below the required minimum by the end of the calendar year 2024. Therefore, an increase in employer contributions is deemed necessary across all operating funds, as outlined below: Page 178 of 309 City of Ocoee ▪ 1 N. Bluford Avenue ▪ Ocoee, Florida 34761 Phone: (407) 905-3100 ▪ www.ocoee.org The Finance Department collaborates consistently with City project managers to assess the progress of capital projects, aiming to pinpoint completed projects and any remaining funds that can be refunded to the General Fund reserves. In the course of our evaluation, we have identified several such projects. Finance has identified $2,290,312 that can be returned to the General Fund reserves. Furthermore, Finance regularly scrutinizes the City's capital expenditures to ensure optimal utilization of various funding sources. An opportunity was identified to enhance the use of a portion of the Capital Improvement Bond (CIB) funds and a segment of the Fire Impact Fee funds. Finance is reallocating $329,231 from a closed CIB-funded project to an eligible open project, freeing up the same amount to be returned to the General Fund reserve. Additionally, Finance has identified an opportunity to allocate available and eligible Fire Impact Fee funds for the recently approved purchase of a tower truck, thereby making an additional $1,500,000 available for return to the General Fund reserves. Issue: Should the Honorable Mayor and City Commissioners approve the proposed budget amendment as described and detailed in the attached schedule? Recommendations: Staff recommends that the Honorable Mayor and City Commissioners approve the proposed budget amendment as described and detailed in the attached schedule. Attachments: 1. Ordinance 2. Mid Year Amendment Schedule 2024 Financial Impacts: The fund balances of the funds detailed in the attachment will be affected by this amendment. Type of Item: First Reading Page 179 of 309 ORDINANCE NO. 2024- AN ORDINANCE OF THE CITY OF OCOEE, ORANGE COUNTY, FLORIDA, RELATING TO THE CITY BUDGET; AMENDING THE CITY BUDGET ADOPTED BY ORDINANCE 2023-17 FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2023 AND ENDING SEPTEMBER 30, 2024 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, 2023, and ending September 30, 2024, as adopted by Ordinance 2023-17 is hereby amended as follows: Increase of revenues totaling $10,000,000 in the General Fund, for the receipt of proceeds from the issuance of the Capital Improvement Note for the construction of the Police Regional Training Facility. Increase of appropriations totaling $7,136,407 in the General Fund, an increase of $197,000 in the Water/Wastewater Fund, an increase of $35,500 in the Stormwater Fund, an increase of $5,000 in the Solid Waste Fund, an increase of $1,500,000 in the Fire Impact Fee Fund, and an increase in the CRA Fund of $7,900 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. A reallocation of capital project funding and refunding of General Fund expenditures of $3,790,312, as shown in detail, attached hereto and incorporated herein by reference are hereby confirmed, adopted and approved in all respects by the City Commission of the City of Ocoee. SECTION 3.Appropriations. There are expressly appropriated out of anticipated revenues and monies necessary to meet the supplemental appropriations stipulated by and in said amended final budget. SECTION 4.Severability. If any section, subsection, sentence, clause, phrase or portion of this Ordinance is for any reason held invalid or unconstitutional by any court of competent jurisdiction, such portion shall be deemed a separate, distinct and independent provision and such holding shall not affect the validity of the remaining portion hereto. SECTION 5.Effective Date. This Ordinance shall become effective ten (10) days after its passage and adoption. PASSED AND ADOPTED this _______ day of ________________________, 2024. Space intentionally left blank Page 180 of 309 ATTEST: APPROVED: CITY OF OCOEE, FLORIDA Melanie Sibbitt, City Clerk Rusty Johnson, Mayor (SEAL) ADVERTISED ______________________, 2024. READ FIRST TIME __________________, 2024. READ SECOND TIME AND ADOPTED ___________________________________, 2024. UNDER AGENDA ITEM NO. ________ FOR USE AND RELIANCE ONLY BY THE CITY OF OCOEE, FLORIDA; APPROVED AS TO FORM AND LEGALITY this ______ day of ______________, 2024. FISHBACK DOMINICK By: Rick Geller, City Attorney Page 181 of 309 General Fund General Government Loan Proceeds 10,000,000$ Police Regional Training Facility (5,710,534)$ Employer Health Insurance Contributions (1,425,873)$ Tower Truck Expenditure (Fund Balance) 1,500,000$ Residual Capital Project Recovery (Fund Balance) 2,290,312$ Total Impact on General Fund Fund Balance 6,653,905$ Fire Impact Fees Tower Truck Expenditure Transfer (1,500,000)$ Water/Wastewater Fund Employer Health Insurance Contributions (197,000)$ Stormwater Fund Employer Health Insurance Contributions (35,500)$ Solid Wase Fund Employer Health Insurance Contributions (5,000)$ CRA Employer Health Insurance Contributions (7,900)$ FY 2024 Budget Amendment Schedule Prepared by: Rebecca Roberts 2/8/2024 Page 182 of 309