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HomeMy WebLinkAboutSummary FormDate: 3/13/2013 AGENDA ITEM SUMMARY FORM FILE ID: /.3 00 R Requesting Department: Management & Budget Commission Meeting Date: 3/28/2013 District Impacted: Various Type: ® Resolution ❑ Ordinance ❑ Emergency Ordinance ❑ Discussion Item ❑ Other Subject: Fiscal Year 2011-12 Close-out Budget Adjustment. Purpose of Item: Law Department Matter ID No. To propose changes to final budget amounts to better reflect FY2011-12 operations. Background Information: See Attached. Budget Impact Analysis YES Is this item related to revenue? YES Is this item an expenditure? If so, please identify funding source below. General Account No: Various Special Revenue Account No: Various CIP Project No: IN_g, NO Is this item funded by Homeland Defense/Neighborhood Improvement Bonds? Start Up Capital Cost: Maintenance Cost: Total Fiscal Impact: Final Approvals (SIGN AND DATE) CIP Budget If using or receiving capital funds Grants Risk Management (/ Purchasing - Dept. Director Chief City Manager Page 1 of 1 AGENDA ITEM SUMMARY FORM CONTINUED BACKGROUND INFORMATION Background for General Fund Amendment Each year as the annual audit is completed; findings may result in the need to amend the City's previously approved budget allocation so that expenditures do not exceed the allocated budget. These adjustments are necessary due to previously unknown or unforeseen expenses that must be made, but were not previously allocated; or expenses that were disclosed to the Commission but were not previously allocated. The FY 2011-12 City's Adopted General Fund Budget totaled $483.25 million. This amendment increases the previously Adopted Budget by $23.19 million, to a revised total of $506.44 million. This increase in the General Fund is primarily due to the implementation of the Governmental Accounting Standards Board (GASB) Statement 54. As you may recall, this change requires that revenues from Public Services Taxes (PST), Local Option Gas Tax (LOGT), and the Grapeland Water Park that were previously budgeted under Special Revenue Fund be consolidated with General Fund (the FY2012-13 Budget includes this adjustment). One adjustment was needed as a result of pass -through section 175 revenue and expenditures that must be recorded in the City's financial system, but is not truly an operating cost of the City and as such is not budgeted. Additionally, there is a need to adjust a couple of departments due to higher than budgeted expenditures. The increased allocation was done and offset with reduction of unspent allocations within the General Fund without increasing the overall budget. The list that follows denotes the areas of increased adjustment and summarizes the principal reasons for the required adjustments. Attachment 1 shows how the consolidation of the PST, LOGT, and Grapeland Water Park into the General Fund impacted various line items in the budget. Additionally, the operating units that required increases in allocation and the operating units that were reduced in order to offset the increases are also depicted therein. Adjustments to the General Fund Revenue Line Items (GASB -54 Impacts) Franchise Fees and Other Taxes The FY 2011-12 Adopted Budget of $36.35 million is increased by $62.71 million to a revised total of $99.06 million. The increase is due to the consolidation of Public Service Taxes budgeted amount of $56.14 million and Local Option Gas Tax in the amount $6.57 million from Special Revenue Fund to General Fund (Note the corresponding decrease in the Special Revenue Fund). Charges for Services The FY 2011-12 Adopted Budget of $81.90 million is increased by $1.27 million to a revised total of $83.17 million. The increase is due to the consolidation of Grapeland Water Theme Park from Special Revenue Fund to General Fund in the amount of $1.27 million as required by GASB 54. (Note the corresponding decrease in the Special Revenue Fund). BACKGROUND INFORMATION CONT. Page 2 of 5 Transfers -In The FY 2011-12 Adopted Budget of $46.11 million for this line item is decreased by $40.79 million to a revised total of $5.32 million. This decrease is the result of the aforementioned consolidation of funds. The funds do not have to be transferred in because they are now recorded as part of the General Fund. This is the amount that would have been transferred to the General Fund after the obligations in LOGT and PST had been met. Transfers -Out The FY 2011-12 Adopted Budget of $8.91 million for this line item is increased by $21.92 million to a revised total of $30.83 million. This increase is the result of reporting PST and LOGT in the General Fund as noted earlier. Therefore, all committed transfer -outs to Debt Service, CIP, and Public Facilities that were previously executed under PST and LOGT are now done by General Fund. Adjustments to Expenditures (reallocation of funding with no impact on the overall budget) Capital Improvement Administration The FY 2011-12 Adopted Budget of $2.38 million is increased by $262,800, to a revised total of $2.64 million. The increase is primarily due to higher than budgeted operating expenditures related to the Red Light Camera vendor payments. The Red Light Camera revenues exceeded the budget by $1.76 million resulting in a corresponding increase to expenditures of $700,000 (40 percent of revenue) for vendor payments to the service provider ATS. The above mentioned unbudgeted expense of $700,000 was partially offset by savings in other budgeted line items. Solid Waste The FY 2011-12 Adopted Budget of $18.93 million is increased by $1.21 million, to a revised total of $20.14 million. The increase is primarily due to the cost of Tipping Fees. When the proposed budget was created, the implementation of "Single Stream Recycling" was factored in for FY 2011-12; single stream recycling did not get implemented until October 1, 2012. In addition to not having the anticipated reduction in garbage tonnage due to recycling, the actual tonnage disposed increased over the prior year by 6.5% to 151,319 tons. Parks and Recreation The FY 2011-12 Adopted Budget of $21.89 million is increased by $1.27 to a revised total of $23.16 million. The increase is due to the transfer of Grapeland Water Park revenue and expenses from the Special Revenue Fund to the General Fund as required by the GASB 54 accounting changes, as noted above. BACKGROUND INFORMATION CONT. Page 3 of 5 Fire The FY 2011-12 Adopted Budget of $68.10 million is increased by $3.82 million, to a revised total of $71.92 million. The increase is needed to reflect the pass -through posting of a $5.20 million expense related to the transfer of State Secondary Pension contribution (S.S. Section 175). This transaction is neutral to the City's finances because the revenue received offsets this expenditure. The above mentioned unbudgeted expense was partially offset by lower than budgeted operating costs. Police The FY 2011-12 Adopted Budget of $117.61 million is being increased by $838,700 to a revised total of $118.45 million. The increase is needed to reflect the pass -through posting of a $4.29 million expense related to the transfer of State Secondary Pension contribution (S.S. Section 185). This transaction is neutral to the City's finances because the revenue received offsets this expenditure. The above mentioned unbudgeted expense was partially offset by lower than budgeted operating costs in the Department. Non -Departmental Expenses The Non -Departmental portion of the City's Budget did not need to be amended as it was not exceeded; in fact, $6.13 million of unused allocation in the Non -Departmental budget was removed to offset the increases in other areas noted above. Background to Debt Service Fund Amendment The FY 2011-12 Adopted Budget of $66.125 million is increased by $4,600 to a revised total Debt Service Fund Budget of $66.129 million. The increase is due to higher than anticipated expenses attributable to a newspaper advertising informing the public that the Series 1990 bonds would be called. Background to Special Revenue Fund Amendments Each year as the annual audit is completed, it may be necessary to amend the City's previously approved budget allocation so that the budget aligns with the expenditures. These adjustments in the Special Revenue Funds are necessary due to the acceptance of additional grants and the receipt of new program revenues that were not previously allocated as part of the original budget adopted by the City Commission. The End -of -Year Amendment appropriates the sum total of grants accepted by the Commission during the fiscal year that were also expensed. These grants include actual cash awards as well as BACKGROUND INFORMATION CONT. Page 4of 5 reimbursement grants such as the Community Development Block Grants and the ARRA CD grant. Other adjustments to the Special Revenue funds result from a budget modification to correct the allocation of a Transportation grant and the appropriation of the remaining prior year fund balance for the ARRA CD grants. Furthermore, there is the change that resulted from the changes in accounting methodology that was described in the General Fund above. The Special Revenue Fund Budget that was initially approved by the City Commission in September of 2011 and amended in May of 2012 totaled $223.16 million. This Budget Amendment adds $8.44 million for a revised total Special Revenue Fund Budget of $231.61million. Then, the accounting methodology change removes $63.99 million from Special Revenue and adds it to the General Fund; the final revised Special Revenue Budget is $167.62 million. These budget changes are further described below. General Special Revenue (GSR) and Transportation and Transit (T&T) funds The FY 2011-12 Adopted Budget of $9.5 million for GSR is increased by $1.47 million to a revised total of $10.98 million. The increase is due to a budget modification correcting the budget allocation of the Florida Department of Transportation (FDOT) grants for the Trolley operations. This was incorrectly budgeted in the Transportation and Transit fund; note that that fund is reduced below for the same amount. The overall impact of this budgetary transaction is zero. The FY 2011-12 Adopted Budget of $19.9 million for T&T is decreased by $1.47 million to a revised total of $18.42 million. The decrease is due to a budget modification to correct the budget allocation of the FDOT grants as noted above under the GSR fund description. Community Development The FY 2011-12 Adopted Budget of $38.4 million is increased by $7.95 million to a revised total of $46.35 million. The increase is primarily due to additional budget allocations as per previously approved Commission actions (CD ESG: Res. #11-0484; CD HOPWA: Res. #12-0111; CD-S8 Vouchers Program: Res. #11-0483; CD Poverty Initiative: Res. #12-0290; CD S8 Mod Rehab: Res. #11-0483; and CD S8 Mod. Rehab 2: Res. #11-0483 (total $7.39 million)). Another adjustment required is in the CD Section 108 Debt Fund account for a pass through revenue and expenditure of a debt payment for the Special Obligation Southeast Overtown Park West ($562,000) that was not previously budgeted in that fund. Lastly, an adjustment is made related to a programmatic revision in the CD Home Fund that resulted in a budget reduction of $64,500 that was offset by an equal increase in the CD Housing Loan Recovery Fund; having a zero net impact to the overall CD budget. BACKGROUND INFORMATION CONT. Page 5of5 Homeless Program The FY 2011-12 Adopted Budget of $1.42 million is increased by $99,700 to a revised total of $1.52 million. The increase is due to an additional budget allocation as per Res. #12-075. Public Facilities The FY 2011-12 Adopted Budget of $15.39 million is increased by $65,700 to a revised total of $15.45 million. The increase is due to -a higher than anticipated transfer -out to the debt payment for the Convention Center Special Obligation Bond. The added cost was offset by higher revenues generated by the Knight Center; the transfer of the higher amount is required per the bond covenant. ARRA CD The FY 2011-12 Adopted Budget of $1.25 million is increased by $325,900 to a revised total of $1.58 million. The increase is due to a budget allocation and expense of remaining fund balance that was not previously allocated. The grant expenses were authorized by Res. #09-0215 Homelessness Prevention Rapid Re -Housing Program and Res. #09-0261 Community Development Block Grant Recovery Act. Attachments: