Item 6BCITY OF MEMORANDUM
SOUTHLAKE June 9, 2020
To: Shana Yelverton, City Manager
From: Sharen Jackson, Chief Financial Officer
Subject: Ordinance No. 1230, 2nd Reading, Approving and adopting the
revised Annual Budget for Fiscal Year 2020.
Action
Requested: Approval of Ordinance 1230, adopting the revised Annual
Budget for Fiscal Year 2020.
Background
Information: The purpose of this item is to seek City Council consideration
and adoption of the revised Fiscal Year 2020 annual budget.
As discussed at the May 19 City Council meeting, the City's
adopted budget must be revised to incorporate adjustments
to revenue projections and to acknowledge changes to
planned expenditures. Please note that staff continues to
adjust projections as information becomes available, so it is
possible that there may be changes to the budget amendment
between first and second reading. Staff has examined each
fund within the City budget to determine what changes need
to be made.
The FY 2020 budget was developed pre-COVID 19 and as a
result of the economic impact there are various revenue
streams that require adjustments to reduce revenue
projections ($8.5 million):
• Sales Tax (General, SPDC, CCPD, CEDC)
• Hotel Tax
• Fines (General Fund)
• Charges for Services (CEDC)
• Other utility charges -late fees (Utility Fund)
• Interest Income (operating)
As discussed on May 19th, staff took several budget
stabilization measures to reduce cost and minimize the
spread of COVID-19. The proposed budget adjustment
includes a reduction of operating expenditures of $1.3 million
and reduction of fund transfers for projects and master plan
implementation.
Financial
Considerations: The purposed budget adjustments address the COVID-19
financial impact to revenue projections and planned projects.
Strategic Link: F1: Adhere to financial management principles and budget
Citizen Input/
Board Review: Public hearing scheduled for June 16th
Legal Review: N/A
Alternatives: Deny or direct staff to modify revised budget figures for FY
2020
Supporting
Documents: Ordinance No. 1230
Fiscal Year 2020 Revised Budget (Exhibit A)
Staff
Recommendation: Approval of Ordinance No. 1230
ORDINANCE NO. 1230
AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF SOUTHLAKE, TEXAS, REVISING THE
BUDGET FIGURES FOR FISCAL YEAR 2020,
BEGINNING OCTOBER 1, 2019,.AND TERMINATING
SEPTEMBER 30, 2020, AND MAKING
APPROPRIATIONS FOR EACH DEPARTMENT,
PROJECT AND ACCOUNT; REPEALING
CONFLICTING ORDINANCES; PROVIDING A
SAVINGS AND SEVERABILITY CLAUSE; AND
DECLARING AN EFFECTIVE DATE.
WHEREAS, the City Manager has prepared a revision of certain figures in the 2020
budget which was approved by City Council with Ordinance No. 1224 on September 17,
2019 and submitted same to the City Council; and,
WHEREAS, a copy of said amendment is attached hereto as Exhibit "A" and
incorporated herein for all purposes; and
WHEREAS, the City Council has studied the Budget Amendment and has
determined that the Budget Amendment attached hereto is in the best interest of the City.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF SOUTHLAKE, TEXAS:
Section 1. That all of the above premises are found to be true and correct and
are incorporated into the body of this Ordinance as if copied in their entirety.
Section 2. That the revised figures, prepared and submitted by the City
Manager for the 2020 budget, be, and the same are hereby, in all things, approved and
appropriated, and any necessary transfers between accounts and departments are hereby
authorized, approved, and appropriated.
Section 3. That the Budget Amendment attached hereto as Exhibit "A" and
incorporated herein for all purposes is adopted for the Fiscal Year beginning October 1,
2019 and ending September 30, 2020; and there is hereby appropriated from the funds
indicated such projects, operations, activities, purchases and other expenditures as
proposed in the Budget.
Section 4. That the City Manager has determined that there are necessary
revenue and expenditure adjustments to those estimated in the 2020 approved budget.
Section 5. That any and all ordinances, resolutions, rules, regulations, policies
or provisions in conflict with the provisions of this Ordinance are hereby repealed and
rescinded to the extent of conflict herewith.
Section 6. If any section, article, paragraph, sentence, clause, phrase or word
in this Ordinance, or application thereto any person or circumstances is held invalid or
unconstitutional by a Court of competent jurisdiction, such holding shall not affect the
validity of the remaining portions of this Ordinance; and the City Council hereby declares
it would have passed such remaining portions of this Ordinance despite such invalidity,
which remaining portions shall remain in full force and effect.
Section 7. That the necessity of adopting and approving a proposed budget for
the next fiscal year as required by the laws of the State of Texas requires that this Ordinance
shall take effect immediately from and after its passage, and it is accordingly so ordained.
PASSED AND APPROVED on first reading this day of
, 2020.
Laura Hill, Mayor
ATTEST:
Amy Shelley
City Secretary
PASSED AND APPROVED ON second reading this day of
2020.
Laura Hill, Mayor
Amy Shelley
City Secretary
City Attorney
Date:
Adopted:
Effective:
Exhibit A
GENERALFUND
2020 Revised Budget
2020
Original
Adopted
2020
Revised
Budget
$ Increase/
(Decrease)
Adopted
% Increase/
-Decrease
REVENUES
Ad Valorem Taxes
$25,285,331
$25,285,331
($0)
0.0%
Sales Tax
15,000,000
11,924,500
(3,075,500)
-20.5%
Franchise Taxes
2,976,885
2,976,885
0
0.0%
Fines
1,209,000
920;0001
(289,000)
-23.9%
Charges for Services
1,193,751
1,183,751
(10,000)
-0.8%
Permits/Fees
1,772,400
1,272,400
0
0.0%
Miscellaneous
348,000
348,000';
0
0.0%
Interest Income
400.000
230,000'
17( 0.000)
-42.5%
Total Revenues
$48,185,367
$44,640;867
($3,544,500)
-7.4%
EXPENDITURES
City Secretary
$527,181
$527,181
$0
0.0%
Human Resources
866,157
$854;147'
(12,010)
-1.4%
City Manager
1,034,611
1,030,346
(4,265)
-0.4%
Information Technology
2,858,866
2,835;874'
(22,992)
-0.8%
Communications
486,472
477;656
(8,816)
-1.8%
Support Services
1.781.845
1.781,845 !
0
0.0%
General Gov. Total
$7,555,132
$7,507,049
($48,083)
-0.6%
Finance
1,555,758
1,527,280
(28,478)
-1.8%
Municipal Court
783,514
772;601
(10,913)
-1.4%
Teen Court
169.891
169.891
(0)
0.0%
Finance Total
$2,509.163
2 469J7
($39,391)
-1.6%
Fire
9,582,184
9,463,7171
(118,467)
-1.2%
Police
7,444,294
7,301,705'
(142,589)
-1.9%
Public Safety Support
1.424.540
1.424 540:
0
0.0%
Public Safety Total
$18.451.018
$18.189;962'
($261,056)
-1.4%
Streets/Drainage
1,537,964
1,537;964
0
0.0%
Facility Maintenance
1,669,954
1,669,954
0
0.0%
Public Works Admin
1.638.718
1.638,718'
0
0.0%
Public Works Total
$4,846.636
846636'
$_0
0.0%
Building Inspections
1,197,284
1,160,554
(36,730)
-3.1%
Planning
1.096.605
1.096,605
0
0.0%
Planning and Dev Total
$2,293.889
2 257 159'
($36,730)
-1.6%
Economic Development
154.872
154,872 +
0
0.0%
Economic Dev. Total
$154,872
$154,872
$_0
0.0%
Community Services
1,383,507
1,362;391'1
(21,116)
-1.5%
Parks and Recreation
3,881,877
3,864,638
(17,239)
-0.4%
Library Services
811.072
793,062
1( 8.010)
-2.2%
Community Svcs. Total
$6,076.456
6 020 091
($56,365)
-0.9%
Total Expenditures
$41,887,166
$41,445,541
($441,625)
-1.1%
Net Revenues
$Sf 29$241
$ 2';
(83.102.8751
Lease Proceeds
$0
$0:
$0
Transfers In
2,089,357
2,089,357'
(0)
Transfers Out
($8.050.000)
($5,550,000)
2.500.000
Total Other Sources (Uses)
(55.960.643)
($3.460643k
$�
Beginning Fund Balance
$10,132,202
$10,132;2021
Residual Equity Transfer
$0
$0
Ending Fund Balance
$10.469.760'
Fund balance percentage
25.00%
23.81%
GENERAL FUND
Strategic Initiative Fund
2020 Revised Budget
2020
Original
Adopted
2020
Revised
Amended
$ Increase/
(Decrease)
Adopted
% Increase/
-Decrease
REVENUES
Interest
50,000
35000'
1( 5,000)
-30.0%
Total Revenues
$50,000
$35,000
($15,000)
0.0%
EXPENDITURES
Infrastructure Maintenance
$0
$0
$0
0.0%
Community Enhancement
175,000
175,000
0
0.0%
Technology Infrastructure
0
0
0
0.0%
Capital Acquisition
48,598
4&598
0
0.0%
Total Expenditures
$223,598
$223,598
$0
0.0%
Net Revenues'
Transfer from other funds
$5,750,000
$4,250,000 i
(1,500,000)
Transfer to other funds
(7,200,000)
(4,450,000)
2,750,000
($1.450.0001
"t i
Total Other Sources/(Uses)
Beginning Fund Balance
$4,218,873
$4,218,873
Ending Fund Balance
GENERAL FUND
Facility Maintenance
2020 Revised Budget
2020
Original
Adopted
2020
Revised
Amended
$ Increase/
(Decrease)
Adopted
% Increase/
-Decrease
REVENUES
Interest
100,000
700003(
0,000)
-30O%
Total Revenues
$100,000
$70,000
($30,000)
0.0%
EXPENDITURES
Operations
$2,500
$2,500
$0
0.0%
Capital
0
0
0
0.0%
Total Expenditures
$2,500
$2,500
$0
0.0%
Net Revenues
$977
MUM
Transfer from other funds
$1,500,000
$0
(1,500,000)
Transfer to other funds
L$-01
4jo
0
Total Other Sources/(Uses)
IL5QQM
f,0
($1.500.000)
Beginning Fund Balance
$6,669,356
$6,669,356'
Ending Fund Balance
25S Sf
GENERAL FUND
Economic Investment Fund
2020 Revised Budget
2020
Original
Adopted
2020
Revised
Amended
$ Increase/
(Decrease)
Adopted
% Increase/
-Decrease
REVENUES
Interest
30,000
'I 21,0009(
,000)
-30.0%
Total Revenues
$30,000
$21,000
($9,000)
0.0%
EXPENDITURES
Operations
$0
$100,000
$100,000
999999900.0%
Capital
0
0'
0
0.0%
Total Expenditures
$0
' $100,000'
$100,000
499999950.0%
Net Revenues
$aa&m
AMMI
Transfer from other funds
$150,000
$150,000 "
0
Transfer to other funds
L$ jo
!
0
Total Other Sources/(Uses)
150.000
fl 1Q
Beginning Fund Balance
$2,419,211
$2,419,211
Ending Fund Balance
$2599211
$211'
GENERAL FUND
Technology Infrastructure and Security Fund
2020 Revised Budget
2020
2020
$ Increase/
Original
Revised
(Decrease)
% Increase/
Adopted
Amended
Adopted
-Decrease
REVENUES
Miscellaneous
420,000
420,000
0
0.0%
Interest
52.500
X000
1( 4,500)
-27.6%
Total Revenues
$472,500
$458,000
($14,500)
0.0%
EXPENDITURES
Cutomer Enhancements
21,338
21,338:
0
0.0%
Information Security
0
0
0
0.0%
Business Contunity
441,500
441,500
0
0.0%
Security Equipment and Infrastructure
712,000
232,000'
(480,000)
-67.4%
Technology Infrastructure
1.290,305
490 30580(
0,000)
-62.0%
Total Expenditures
$2,465,143
$1,185,143
($1,280,000)
-51.9%
Net Revenues
($1.992.64311
71.7,143}
Transfer from other funds
$3,500,000
$2,250,000
(1,250,000)
Transfer to other funds
0
Total Other Sources/(Uses)
1$1.250.000)
Beginning Fund Balance
$3,080,873
$3,080,873'
Ending Fund Balance
$4 F3 34
SPECIAL REVENUE FUND
Hotel Occupancy
2020 Revised Budget
2020
Original
Adopted
2020
Revised
Amended
$ Increase/
(Decrease)
Adopted
% Increase/
-Decrease
REVENUES
Taxes
$1,385,283
$671,862
($713,421)
-51.5%
Interest
20,000
14.4005(
600)
-28.0%
Total Revenues
$1,405,283
$686,262'
($719,021)
-51.2%
EXPENDITURES
Personnel
$201,185
$201,185
$0
0.0%
Operations
627,189
567,189'
(60,000)
-M%
Capital
0
0'
0
0.0%
Total Expenditures
$828,374
$768,374
($60,000)
-7.2%
Net Revenues
Transfer to other funds
($467,004)
($56 212
410,792
�
Total Other Sources/(Uses)
($467,004)
Beginning Fund Balance
$1,614,250
$1,614,250'
Ending Fund Balance
$1.724.15
X1:.476.926
UTILITY FUND
2020 Revised Budget
2020
Original
Adopted
2020
Revised
Amended
$ Increase/
(Decrease)
Adopted
% Increase/
-Decrease
REVENUES
Miscellaneous
$124,500
$124,500'.
$0
0.0%
Interest Income
228,000
163,000
(65,000)
-28.5%
Water Sales -residential
15,573,702
15,573,702
0
0.0%
Water Sales -commercial
4,392,583
4,392,583
0
0.0%
Sewer Sales
7,900,000
7,900,000
0
0.0%
Sanitation Sales
1,970,000
1,970,000
0
0.0%
Other utility charges
456,800
311 80014(
5.000)
-31.7%
Total Revenues
$30,645,585
$30,435,585 i
($210,000)
-0.7%
EXPENSES
Debt Service
4,307,673
4,307,673
0
0.0%
Utility Billing
607,701
607,701 '
0
0.0%
Water
13,605,710
13,568,490
(37,220)
-0.3%
Wastewater
6,325,592
6,301,959
(23,633)
-0.4%
Sanitation
1,674,996
1,674,996 i
0
0.0%
Total Expenses
$26,521,672
$26,460,819
($60,853)
-0.2%
Net Revenues
Transfers In
$0
$0
Transfers Out
(1,225,823)
(1.225.823)
Total Other Sources (Uses)
($1.225.823)
f$1225.823)'
Beginning working capital
$8,061,535
$8,061,535
Ending fund balance
X10.959.625
X10.810.478
No. of days working capital
151
149
TIF OPERATING FUND
2020 Revised Budget
2020
Original
Adopted
2020
Revised
Amended
$ Increase/
(Decrease)
Adopted
% Increase/
-Decrease
REVENUES
Ad Valorem
$9,387,095
$9,387,095
($0)
0.0%
Interest Income
$9,000
$9,000:
$00
0.0%
Total Revenues
$9,396,095
$9,396,095
($0)
0.0%
EXPENDITURES
Personnel
$274,320
$274,320
$0
0.0%
Operations
$7,161,584
$7,641,584
480,000
6.7%
Capital
$55,000
$55,000
0
0.0%
Total Expenditures
$7,490,904
$7,970,904:
$480,000
6.4%
Net Revenues
$1,905 191
1 43519
480 001
Transfers Out -General Fund
0
0
Transfers Out -Debt Service
0
0
Total Other Sources (Uses)
$_Q
$Q I
Beginning Fund Balance
$2,687,079
$2,687,079'
Prior period adjustment
Ending Fund Balance
4 2 270
4 112 2
CRIME CONTROL DISTRICT FUND
2020 Revised Budget
2020
Original
Adopted
2020
Revised
Amended
$ Increase/
(Decrease)
Adopted
% Increase/
-Decrease
REVENUES
Sales Tax
$1,881,000
$1,408,601
($472,399)
-25.1%
Miscellaneous Income
$0
$0
$0
0.0%
Interest Income
$95,000
$66,500;'
($28,500)
-30.0%
Total Revenues
$1,976,000
$1,475,101
($500,899)
-25.3%
EXPENDITURES
Personnel
$1,161,249
$1,161,249'''
$0
0.0%
Operations
$232,503
$232,503
0
0.0%
Capital
$510,419
510 419'
0
0.0%
$1,904,171'
Total Expenditures
$1,904,171
$0
0.0%
Net RevenuesZ_1.829
0
Transfers In -SPDC
$0
$0'i
Transfer out -Crime Control CIP
($400,000)
($400,000)
0
Transfers Out -General Fund7(
9 040)7(
9.040)1
0
Total Other Sources (Uses)
($479.04010
Beginning Fund Balance
$4,209,042
$4,029,621
Ending Fund Balance
$3,801,831
$121 X111
SPDC - OPERATING FUND
Parks/Recreation
2020 Revised Budget
2020
Original
Adopted
2020
Revised
Amended
$ Increase/
(Decrease)
Adopted
% Increase/
-Decrease
REVENUES
Sales Tax
$7,650,000
$5,788,859
($1,861,141)
-24.3%
Rental Income
153,824
153,824
0
0.0%
Interest
145,000
145.000
0
0.0%
Total Revenues
$7,948,824
1 $6,087,683 i
($1,861,141)
-23.4%
EXPENDITURES
Personnel
$230,184
$230,184
$0
0.0%
Operations
$1,273,980
$1,273,980
0
0.0%
Capital
$67,200
$67,200
0
0.0%
Total Expenditures
$1,571,364
$1,571,364
$0
0.0%
Net Revenues
77 4
4 51 ` 1
($1.861.1411
Transfers Out
(7,136,222)
(7,136,222)
$0
Proceeds from C.O. Sale
0
0
Total Other Sources (Uses)
($7.136.222)
t$7.136.222i'
Beginning Fund Balance
$9,517,283
$9,5'i17,283
Ending Fund Balance
8 758 521
: $6,897 380
CEDC - OPERATING FUND
Parks/Recreation
2020 Revised Budget
2020
Original
Adopted
2020
Revised
Amended
$ Increase/
(Decrease)
Adopted
% Increase/
-Decrease
REVENUES
Sales Tax
$5,650,340
$4,263,741
($1,386,599)
-24.5%
Charges for Services
2,524,105
2,358,337
(165,768)
-6.6%
Interest
140,000
98,000
(42,000)
-30.0%
Total Revenues
$8,314,445
$6,720,078
($1,594,367)
-19.2%
EXPENDITURES
Personnel
$2,447,207
$2,408,407
($38,800)
-1.6%
Operations
$1,856,463
$1,856,463
0
0.0%
Capital
$00
$0
0
0.0%
Total Expenditures
$4,303,670
$4,264,870
($38,800)
-0.9%
Net Revenues
$4,010,7752
4 24$
($1.555.567)
Transfers Out
(332,578)
(332,578)
$0
Transfer out -Replacement Fund
(160,000)
(160,000)
$0
Transfer Debt Service
(2,429,906)
(2,429,906)
$0
Total Other Sources (Uses)
($2.922.484)
l$2922.484Y'
00
Beginning Fund Balance
$6,816,942
$6,816,942'
Ending Fund Balance
$7,905,233349
'
Public Art
2020 Revised Budget
2020
Original
Adopted
2020
Revised
Amended
$ Increase/
(Decrease)
Adopted
% Increase/
-Decrease
REVENUES
Miscellaneous
$0
f $0
$0
0.0%
Interest Income
$8,500
$6,375 !
($2,125)
-25.0%
Total Revenues
$8,500
$6,375 +
($2,125)
EXPENDITURES
Operations
$69,000
$69,000
$0
0.0%
Capital
L
$0',
0
0.0%
Total Expenditures
$69,000
$69,000
$0
0.0%
Net Revenues
Transfers In -Hotel
210,792
0
(210,792)
Transfers Out -10(
0.000){
10( 0,000)
0
Total Other Sources (Uses)
li
$0
Beginning Fund Balance
$531,766
$531,766'
Q
i Oj
Ending Fund Balance
i
VEHICLE REPLACEMENT
2020 Revised Budget
2020
Original
Adopted
2020
Revised
Amended
$ Increase/
(Decrease)
Adopted
% Increase/
-Decrease
REVENUES
Miscellaneous
$75,000
$75,000:
$0
0.0%
Interest Income
$90,500
S90,500
$00
0.0%
Total Revenues
$165,500
$165,500
$0
EXPENDITURES
Capital3
291 000
$3,291.000 i
0
0.0%
Total Expenditures
$3,291,000
$3,291,000
$0
0.0%
Net Revenues
($3.125.5001
' ($3.125.500}
$00
Transfers In -General Fund
2,000,000
1,000,000
(1,000,000)
Transfers Out -Debt Service
0
0
0
Total Other Sources (Uses)
=Qam
SO
Beginning Fund Balance
$6,783,206
$6,783,206
Ending Fund Balance
$5657- w
$46WZM6