Loading...
HomeMy WebLinkAboutItem 08 First Reading of Ordinance for FY 2025 Budget Amendment City of Ocoee ▪ 1 N. Bluford Avenue ▪ Ocoee, Florida 34761 Phone: (407) 905-3100 ▪ www.ocoee.org STAFF REPORT Meeting Date: April 1, 2025 Item #: 8 Contact Name: Eileen Meruena Department Director: Vanna Lawitzke Contact Number: Ext. 1517 City Manager: Craig Shadrix Subject: First Reading of Ordinance for FY 2025 Budget Amendment. (Chief Accountant Meruena) Background Summary: On December 11, 2024, the City Commission approved the City's annual operating budget. After the budget was adopted, the City faced unexpected demands that have created a need for a budget amendment. These unexpected needs include new program opportunities, particularly within Parks & Leisure Services, as well as additional funding requirements for essential services such as the General Fund and Water/Wastewater Fund. Additionally, rising costs related to the City’s health insurance program became evident, further necessitating the need for a budget amendment for the cumulative costs of the health insurance program across all funds. The total adopted General Fund budget was $75,835,480. However, the General Fund requires an additional expense of $5,835,797 for the following: • Employer Health Insurance contributions of $1,254,895 due to escalating claims. • Transfer of appropriations in the amount of $4,500,000 as a loan between the General Fund to the Water / Wastewater Fund implementing the Seventh Amendment to the Lease Agreement for Forest Lake Golf Club. • Police Operations require $80,902 for an unanticipated increase in the contractual services and legal expenses. In relation to this requirement, the Finance Department has identified $529,611 that can be returned to the General Fund reserves out of the remaining funds from Capital Fund completed projects. This lowers the total Fund requirement from the General Fund Balance to $5,306,186. The Recreation Program fund budget adopted was $141,554. The Recreation Program Fund requires the accounting of additional revenues and expenses since the City Commission approved the takeover of Ocoee Little League operations. Operational control began on February 8, 2025. The City received revenue from this program in addition to the $12,000 check issued by the Ocoee Little League Board as a revenue source. • Ocoee Little League Baseball Revenue of $42,000.00. • Ocoee Little League Baseball Expenses of $27,000.00. Page 525 of 1085 City of Ocoee ▪ 1 N. Bluford Avenue ▪ Ocoee, Florida 34761 Phone: (407) 905-3100 ▪ www.ocoee.org The Water/Wastewater fund adopted a budget of $23,681,574. The Water/Wastewater fund requires an additional appropriation of $869,137 for: • Lower Floridian aquifer well at Forest Lake Golf as back up to reclaim (Orange County Reclaim Issue) for $250,000. • North Service Area Reclaimed Water feasibility study for back up to reclaim (Orange County Reclaim Issue) for $50,000. • Supporting Consulting Services Reclaimed Water discussions with Apopka and Winter Garden for reclaim back up (Orange County Reclaim Issue) for $100,000. • Legal Expenses for Seventh Amendment to the Lease Agreement for Forest Lake Golf Club for $250,000. • Additional Consulting Services for various ongoing projects for $25,000. • Employer Health Insurance contributions of $194,137 due to escalating claims. Additionally, the Water/Wastewater fund will receive a supplemental appropriation of Loan from the General fund implementing the Seventh Amendment to the Lease Agreement for Forest Lake Golf Club in the amount of $4,500,000. The Stormwater fund adopted a budget of $4,243,000. The Stormwater fund requires an additional appropriation of $43,323 for: • Employer Health Insurance contributions due to escalating claims. The Solid Waste fund adopted a budget of $4,371,185. The Solid Waste fund requires an additional appropriation of $11,092 for: • Employer Health Insurance contributions due to escalating claims. The Community Redevelopment Agency (CRA) adopted a budget of $10,064,744. The CRA fund requires an additional appropriation of $9,553 for: • Employer Health Insurance contributions due to escalating claims. Issue: Should the Honorable Mayor and City Commissioners approve the proposed budget amendment as described and detailed in the attached schedule? Recommendations: Staff recommends the Honorable Mayor and City Commissioner approve the proposed budget amendment as described and detailed in the attached schedule. Attachments: 1. Ordinance for FY 2025 Budget Amendment Page 526 of 1085 City of Ocoee ▪ 1 N. Bluford Avenue ▪ Ocoee, Florida 34761 Phone: (407) 905-3100 ▪ www.ocoee.org 2. Mid-Year Amendment Schedule 2025 Financial Impacts: The fund balances of the fund detailed in the attachment will be affected by this amendment. Type of Item: First Reading Page 527 of 1085 ORDINANCE NO. 2025- AN ORDINANCE OF THE CITY OF OCOEE, ORANGE COUNTY, FLORIDA, RELATING TO THE CITY BUDGET; AMENDING THE CITY BUDGET ADOPTED BY ORDINANCE 2024-28 FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2024 AND ENDING SEPTEMBER 30, 2025 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, 2024, and ending September 30, 2025, as adopted by Ordinance 2024-28 is hereby amended as follows: Increase of revenues totaling $42,000 in the Recreation Program Fund for the receipt of proceeds from the Youth Baseball League Registration and remaining fund balance transferred by the Little League Board. Increase of appropriations totaling $27,000 in the Recreation Program Fund , an increase of $5,835,797 in the General Fund, an increase of $869,137 in the Water/Wastewater Fund, an increase of $43,323 in the Stormwater Fund, an increase of $11,092 in the Solid Waste Fund, and an increase of $9,553 in the CRA 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. PASSED AND ADOPTED this day of , 2025. Space intentionally left blank Page 528 of 1085 ATTEST:APPROVED: CITY OF OCOEE, FLORIDA Melanie Sibbitt, City Clerk Rusty Johnson, Mayor (SEAL) ADVERTISED , 2025. READ FIRST TIME , 2025. READ SECOND TIME AND ADOPTED , 2025. UNDER AGENDA ITEM NO. FOR USE AND RELIANCE ONLY BY THE CITY OF OCOEE, FLORIDA; APPROVED AS TO FORM AND LEGALITY this day of , 2025. FISHBACK DOMINICK By: Rick Geller, City Attorney Page 529 of 1085 FY 2025 Budget Amendment Schedule Recreation Program Fund Youth Baseball League Revenue $(42,000.00) Youth Baseball League Costs $27,000.00 Total Impact on Recreation Program Fund $(15,000.00) General Fund Police Dept American Traffic Solutions - 4.5% CPI increase per contract $18,170.00 Police Dept Code Enforcement Abatement - increase in contractor prices $2,500.00 Police Dept Legal Expenses - to cover the negative balance and future fees $60,232.00 Employer Health Insurance Contributions $1,254,895.04 Loan to Water/Wastewater Fund - Forest Lake Golf Club (Lease termination)$4,500,000.00 Total Impact on General Fund $5,835,797.04 Completed Jobs from Prior Years (529,611.00) From Fund Balance $5,306,186.04 Water/Wastewater Fund Loan from General Fund - Forest Lake Golf Club (Lease termination)$(4,500,000.00) Lower Floridan aquifer well at golf course design - back up to reclaim $250,000.00 North Service Area Reclaimed Water Feasibility Study $50,000.00 Supporting Consulting Services Reclaimed Water Discussions with Apopka and Winter Garden $100,000.00 Legal Expenses for Forest Lake Golf Club $250,000.00 Additional Consulting Services $25,000.00 Employer Health Insurance Contributions $194,137.03 Total Impact on Water/Wastewater Fund $(3,630,862.97) Stormwater Fund Employer Health Insurance Contributions $43,323.09 Solid Wase Fund Employer Health Insurance Contributions $11,092.19 CRA Employer Health Insurance Contributions $9,552.65 Page 530 of 1085