Item 8CLlty 01 NOUMaKe, A exas
MEMORANDUM
TO: Shana Yelverton, City Manager
FROM: Sharen Elam., Director of Finance
SUBJECT: Ordinance No. 889 -A, 1 St Reading, Amending Ordinance No. 889 amending
Fiscal Year 2005 -06 Annual Budget.
Action Requested: City Council consideration of Ordinance No„ 889 -A to amend the FY 2005 -06
Annual Budget
Background
Information: Ordinance No. 889 -A is presented to the Council to reflect the proposed
changes to the Adopted FY 2005 -06 Annual Budget.
The amendments to the General Fund budget reflect an increase of
$940,000 to revenue, $507,024 in expenditures,
Revenue had the following amendments:
• Sales tax revenue reflects a proposed increase of $750,000 due to the
significant increase in sales tax collections for the first six months of the
fiscal year.
• Fines reflect a proposed increase of $190,000 due to multiple reasons,
First, the increase in citations and warrants cleared for the first half of the
fiscal year and second, due to the change in posting cash bonds (timing
issue).
Total proposed increase in revenue for fiscal year 2005 -06 is $940,000.
Expenditures had the following amendments:
• Support Services department request reflect a proposed increase of
$205,448. $32,448 is required for the construction and maintenance of
the wireless pilot program implemented this fiscal year. The remaining
$173,000 is requested for the first phase of implementation of the IT
Study currently underway. There are key areas that are deemed
necessary to immediately begin addressing this fiscal year:
o Integrated Foundational Systems: The consulting team that
we hired to conduct the IT Alignment Study is nearing the
completion of a draft report of their recommendations. Based on
the IT Alignment Steering Committee weekly meetings with the
consulting team and their preliminary recommendations, it is
March 29, 2006
very evident that they will recommend some wide ranging
recommendations to improve process effectiveness and efficiency
through the use of new technology solutions to support key City
functional areas (e.g., finance, accounting, fixed assets, utility
billing, human resources, fleet management, etc,), that are
missing key functionality, make reporting difficult if not
impossible and are driven by manual business processes, In
order to get a head start on defining the organization's
requirements, identifying and evaluating vendors, evaluating
various software solutions and selecting the appropriate
software to meet the city's needs, the IT Alignment Steering
Committee is recommending that we make a $98,000 mid -year
amendment to the General Fund to begin that process.
o It is also the IT Alignment Steering Committee
recommendation that the City retain the necessary technical
expertise to assist the City in process development and solution
selection by assisting in defining the City's process
requirements, identifying and evaluating various software
vendors and products, writing the RFP and assisting with final
selection of the most appropriate software solutions for a
number of our work processes including; financial management,
accounting, fixed assets, utility billing, human resources and
fleet management. Additional technical expertise is needed
because it is likely that the appropriate software solution is will
be, not one enterprise wide solution, but a number of "best of
breed" software products that can be interfaced with one
another.
o The City does not currently have on staff the expertise to
perform this solution selection function, nor does the IT staff
have sufficient time to do all of the required tasks, The City of
Frisco recently went through a software selection process very
similar to this one that took 14 months. The City of Southlake
cannot wait that long for a solution to our technology needs in
the areas identified because of the enormous loss in efficiency
and productivity currently being experienced due to the lack of
functional or non - existent systems.
a Immediate Process Improvements: There are two additional
projects that are process specific that the IT Alignment Steering
Committee suggests funding solution selection and
implementation with a mid -year budget amendment. The first
project would include the development of a new process for the
Development Review Committee, The amount of development
that is currently occurring in the City is beginning to overwhelm
our current resources. F'oIlowing the decline of development in
the Iate 1990's the staff of the Planning Department and other
positions associated with the development process were
March 29, 2006
reduced. Now that development activity is increasing, we
believe that the additional work load can be handled by
implementing a technological solution. It is estimated that the
amount of time involved in the Development Review Process
can be reduced by as much as 15% saving the City $10,187
annually. The other area where substantial time savings can be
made with the implementation of a technological solution is in
the on -line purchase order processing. Currently, the purchase
order process is an entirely manual process costing time and
funds that could be spent far more productively. It is estimated
that with the appropriate technological solution, whether with
existing software or new software would result in $43,873
saving and allow those resources to be applied to higher priority
issues. The total mid -year budget adjustment for these two
projects would be $75,000.
Finance Department request reflect a proposed increase of $22,576 to
outsource the payroll processing. The current process is extremely
inefficient where there is triple entry of the same data between
individual departments and finance. This was also an area of high
importance from the IT Study.
Public Safety Support request reflect a proposed increase of $39,000,
$29,000 of the request is to address the need for a promotional process
within the Department of Public Safety. The department currently has
$11,000 budgeted for this process and needs an additional $29,000 to
hire an outside firm to create and conduct the promotional process~ The
remaining the $10,000 is requested to match the Pre - Disaster
Mitigation Grant funds from the Federal Emergency Management
Agency. The city was notified on September 26, 2005 that we were
awarded $30,000 in federal funds, which is 75% cost of the total
project cost of'$40,000 leaving 25% or $10,000 from local funds.
Streets /drainage department request reflect a proposed increase of
$220,000 for underground utilities at the Shops of Southlake site.
Early this year, Council directed staff to proceed with the project. This
is the formal process to fund the project previously discussed.
• Economic Development department request reflect a proposed increase
of $20,000 for city branding. Leadership Southlake presented the city
branding concept at the March 21, 2006 City Council meeting. Based
on the reaction from the presentation, staff wanted to earmark funds to
begin the process if City Council chooses to proceed with the concept.
Currently, we have $6,000 in the budget for the redesign of the city's
logo and if the amendment is approved this will bring the total budget
to begin the process to $26,000,
March 29, 2006
Total proposed increase in expenditures for fiscal year 2005 -06 is $507,024.
Fund integrity will be maintained, as the proposed amendments reflect the
general fund balance at 32.65% ($7,993,528). This is above the adopted Fund
Balance Policy, which states minimum balance of 15% and an optimum
balance of 25 %. During the upcoming budget process for FY 2006 -07 staff
will recommend a transfer to the Strategic Initiative Fund from the General
Fund of any excess balance over 25 %.
The amendments to the Utility Fund budget reflect an increase of
$500,000 to revenue, $223,813 in expenditures,
Revenue had the following amendments:
• Water sales - residential and Water sales - commercial reflects a proposed
increase of $300,000 and $200,000, respectively due to the drought we
experienced over the last several months.
Total proposed increase in revenue for the fiscal year 2005 -06 is $500,000
Expenses had the following amendments:
• Water department proposed an increase of $223,813 to purchase
additional transponders for the auto read system. The City uses an
electronic water meter reading system and has been in the process of
changing the platform, We have reached a point in the process where
the first generation transponders (early 1990's) are failing at an
extremely high rate which makes the process of reading meters very
labor intensive with large numbers of meters having to be read
manually, Staff has analyzed the cost of replacing the old meter
transponders over various periods of time and determined that a
twenty -four month replacement program is in the City's best interest.
The total cost of the program is $859,303, To continue with
replacement program the cost is $223,813 which will purchase about
1,600 transponders ranging from $116 to $4,460 each. Failure to
continue with the program will increase the time required to read the
meters and potentially negatively impact the revenue for the utility
fund.
Fund integrity will be maintained, as the proposed amendments reflect the
utility fund ending the fiscal year with 70 days of working capital which is
within the city's goal of 65 days.
The amendments to the Park Dedication Fund budget reflect an increase
of $62,500 in expenditures.
Expenditures had the following amendments:
March 29, 2006
On March 21, 2006, City Council approved the amendment to Schriekei,
Rollins, and Associates, Inc. contract for to include the conceptual planning
and schematic design for Bicentennial Park (east) for an amount not to exceed
$62,500, This is the formal process to fund the amendment.
Fund integrity will be maintained, as the proposed amendment reflects the fund
to end the fiscal year with $105,935 in fund balance.
The amendments to the Vehicle Replacement Fund budget reflect an
increase of $26,100 in expenditures,
Expenditures had the following amendments:
Public works management study included a recommendation to hire a Fleet
Coordinator. The position will assists in managing, planning and coordinating
fleet maintenance for the City. The position would be funded by the vehicle
replacement fund which would require a budget amendment of $26,100 for
salary and benefits for half the year. The position would have an estimated
annual impact of $55,000 for fiscal year 200607 to the vehicle replacement
fund.
Fund integrity will be maintained, as the proposed amendment reflects the fund
to end the fiscal year with $2,312,775 in fund balance.
The amendments to the SPDC- Capital improvement Budget reflect an
increase of $103,625 in expenditures.
Expenditures had the following amendments:
$37,825 requested to address asbestos abatement for Bob .Tones Nature Center
building. Park and Board approved this item on February 16, 2006 and SPDC
approved this item on March 21, 2006.
The remaining balance of the request of $65,800 is the funding for the design,
engineering and construction of the Loop Road parking lot to Bob Tones Park.
On February 21, 2006, City Council approved an amendment to Dunkin, Sims,
Stoffels, Inc. to include the design and engineering of the Loop Road parking
lot improvements at Bob Tones Park for an amount not to exceed $5,800. The
construction of the Loop Road parking lot resulted in an increase of $60,000 to
the project cost.
Financial
March 29, 2006
Considerations: Outlined above
Citizen Input/
Board Review: None required
Legal Review: None required
Alternatives: Approve, deny or modify
Supporting
Documents: Ordinance No. 889 -A
Amended Budget (Attachment A)
Staff
Recommendation: Approve Ordinance No. 889 -A
ORDINANCE NO. 889-A
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
SOUTHLAKE, TEXAS, REVISING THE BUDGET FIGURES FOR
FISCAL YEAR 2005 -06 BEGINNING OCTOBER 1, 2005, AND
TERMINATING SEPTEMBER 30, 2006, 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 2005 -06
budget which was approved by City Council with Ordinance No. 889 on September 20, 2005, 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
2005 -06 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, 2005, and ending
September 30, 2006; 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 revenues available for
appropriation in excess of those estimated in the 2005 -06 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.
2006.
PASSED AND APPROVED on first reading this day of ,
Andy Wambsganss, Mayor
ATTEST:
Lori Farwell, City Secretary
2006.
PASSED AND APPROVED ON second reading this day of
Andy Warnbsganss, Mayor
ATTEST:
Lori Farwell, City Secretary
APPROVED AS TO FORM:
City Attorney
Date:
Adopted:
Effective:
GENERA. FUND
2005 -06 Budget Amendment
Attachment A
ADOPTED
AMENDED
Budget
Budget
Increase/
REVENUES
FY 2005 -06
FY 2005 -06
(Decrease
Ad Valorem Taxes
$12,131,944
$12,131,944
-
Sales Tax
6,707,650
7,457,650
750,000
Franchise Fees
2,093,641
2,093,641
-
Fines
710,000
900,000
190,000
Charges for Services
616,300
616,300
-
Permits/Fees
1,274,660
1,274,660
-
Miscellaneous
405,482
405,482
Interest Income
175.000
175.000
Total Revenues
$24,114,677
$25,054,677
940,000
EXPENDITURES
City Secretary
$324,334
$324,334
-
Human Resources
363,365
363,365
-
City Manager
594,050
594,050
-
Support Services
3.227.807
3.433.255
205.448
General Government Total
4,509,556
4,715,004
205.448
Finance
864,607
887,183
22,576
Municipal Court
477,319
477,319
Municipal Court -Teen Court
75.268
75.268
Finance Total
1,417,194
1,439,770
22.576
Fire
3,405,240
3,405,240
-
Police
5,189,349
5,189,349
-
Public Safety Support
1,481,083
1,520,083
39,000
Building
863.750
863.750
Public Safety Total
10,939,422
10,978,422
39.000
Streets/Drainage
1,665,072
1,885,072
220,000
Public Works Administration
883.240
883.240
-
Public Works Total
2,5
2,768,312
220.000
Planning
656383
656.383
-
Planning Total
656,383
656,383
-
Economic Development
336.399
356.399
20.000
Economic Development Total
33_ 6 399
356,399
20.000
Community Services
465,100
465,100
-
Parks and Recreation
2,665,134
2,665,134
Library Services
435.292
435.292
Community Services Total
3,565,526
3,565,526
Total Expenditures
523,972,792
$24,479 _ ,
507.024
Excess (deficiency) of
Revenue over Expenditures
$141.885
$574.861
432,976
OTHER FINANCING
SOURCES AND .USES/
Proceeds from lease /CO (net)
$0
$0
-
Transfer In- Other Funds
0
0
-
Transfer To -Other Funds
(3.160.000)
3.160.000
-
Total Other Sources /(Uses)
($3,160,000)
($3,160,000)
-
Excess (deficiency) of
Revenues /other sources over Exp.
($3.018.115)
($2.585.139)
FUND BALANCE OCT 1
$9,186,774
$10,578,667
Change in reserved fund balance
$0
$0
ENDING FUND BALANCE
$6.168.659
$7.993.528
fund balance percentage
25.73%
32.65%
UTILITY FUND
2005 -06 Budget .Amendment
Attachment A
ADOPTED
AMENDED
Budget
Budget
Increase/
REVENUES
FY 2005 -06
FY 2005 -06
fDecreasel
Water Sales - residential
$8,300,000
$8,600,000
300,000
Water Sales - commercial
2,600,000
2,800,000
200,000
Sewer Sales
3,500,000
3,500,000
-
Sanitation Sales
940,000
940,000
-
Other utility charges
273,000
273,000
-
Miscellaneous
75,000
75,000
-
Interest Income
65.000
65.000
-
Total Revenues
515,753,000
$16,253,000
500,000
EXPENSES
Water
$7,689,367
$7,913,180
223,813
Utility Billing
285,640
285,640
-
Sewer
1,444,966
1,444,966
-
Sanitation
705,000
705,000
-
Debt Service
5 ,958.268
5958168
-
Total Expenses
$16,083,241
$16,307,054
223,813
Excess (deficiency) of
Revenue over Expenses
( 5330.241 1
(154_054
276,187
OTHER FINANCING
SOURCES AND (U SES
Transfer In -Other Funds
50
$0
Developer Contributions
$50,000
$50,000
Transfer Out -Other Funds
0
0
Total Other Sources /(Uses)
$50,000
$50,000
Excess (deficiency) of
Revenues and other sources
over Expenses
($280.241
($4.054
PARK DEDICATION FUND
2005 -06 Budget Amendment
Attachment A
ADOPTED
AMENDED
Budget
Budget
Increase/
REVENUES
FY 2005 -06
FY 2005 -06
Decrease
Permits/Fees
$ 60,000
$ 60,000
$ -
Miscellaneous
-
-
Interest
6.600
6,600
-
Total Revenues
$ 66,600
$ 66,600
$ -
EXPENDITURES
Parks and Recreation
$ -
$ -
$ -
Park Improvements
505,000
567,500
62,500
Land
-
-
Total Expenditures
$ 505,000
$ 567,500
$ 62,500
Net Revenues
$ (438,400)
$ 500,900
$ 62,500
Bond proceeds
-
-
-
Transfer to other funds
-
-
Total Other Sources /(Uses)
$ -
$ -
$ -
Beginning Fund Balance
$ 545,252
$ 606,838
61,586
Ending Fund Balance
S 106.852
$ 105.938
$ LI4)
VEHICLE REPLACEMENT FUND
2005 -06 Budget Amendment
Attachment A
ADOPTED
AMENDED
Budget
Budget
Increase/
REVENUES
FY 2005 -06
FY 2005 -06
Decrease
Miscellaneous
$
48,000
$ 48,000
$ -
Interest Income
25,000
25,000
-
Total Revenues
$
73,000
$ 73,000
$ -
EXPENDITURES
Personnel
$
-
$ 26, 100
$ 26,100
Capital
282,500
282,500
-
Total Expenditures
$
282,500
$ 308,600
$ 26,100
Net Revenues
(209,500)
(235,600)
(26,100.00)
Transfers In- General Fund
-
-
-
Transfers Out -Debt Service
-
-
Total Other Sources (Uses)
-
Beginning Fund Balance
$
2,548,375
$ 2,548,375
$ -
Ending Fund Balance
$
2,338,875
$ 2,312,775
$ (26
Bob Jeha.Pmk Oavdopmont
:. Estimated Acluaf as f
P7olecicc.l = 7Ymwos
6admate W
Complela
Total
:. , :'. Pnoposod
budoft
Adopted
!Adapted
Adapted
Adopted
- 5
10,094 $
10,000
Spe_al PtoJam02-C3
FY300SW0 -
FY 2000!07
FY 2007100
FY 2oi;J;i
FY 2604110
carry Fonxard BU!anca
'. 5 1- 128.682
10,422: 5
$ 1.128.882
.14,642? 5
240.057
S 165.057
5 18.057
5 (55.943)
Imereat eaminpn
S 1.200
5 300
s 1500
':s 75,000 S
25.000
S SO.=
s 25.000
5 50,000
Opt, Pund Trnnerer
$
8DO.000 S
793.655 S
8,344 5
800,600
Namre Cantor imprcvomants
's
:i3(I,a6Q :: s
Gram Prooeetle
:: 5
5 ,•
S -
` -5
S
110.679
s -
i]eOauPRNASalohla0
�'- S -
S 117.500
S 117500
'b 200,1300. : S
700.000
5 200.000
S 100.000
S 200.000
Bomd Noceadn
5 -
5
�_
� S - X4,500;000 S
5 UCO.O,BQ
8
",500.000
T,,.el Praceeda
5 53700
S 117.800
5 171.500
:5 4,775,000 S
125,000
5 2.750.000
5 125,000
5 2750,000
Totd Ava3ebla Punch
'; 5 1- 102.562
$ 117,500
5 1300.382
'.iS 4,769,842:: S
365.057
S 2- 915.057
S 144.057
S 2084.057
Bob Jeha.Pmk Oavdopmont
5`
<:_'! : =30,SM 5
S 181.000
$30,908 S
30905
Nalora Canlarlmpewamerm
S
10 - 5
- 5
10,094 $
10,000
Spe_al PtoJam02-C3
s
' s
- 5
9,564 S
9,584
Sbvdel Pmj.c3 c3-04
S
10,422: 5
- S
.16,422 5
Oop Palk
53li,aa0;'.
s
- s
30,060 s
30.000
me - hn,p Pond.
20D. 000 5
- S
235,060 5
235,000
park PMp.nyporohnaa.Evans
$
8DO.000 S
793.655 S
8,344 5
800,600
Namre Cantor imprcvomants
's
:i3(I,a6Q :: s
- s
86.606 5
66.606
S 116070_ S
110.679
pr.p ...
MldCNap Funda It)
5
1,800,000 -.:
RoYnland AANk5rMn Perk CevetapmanI 91
&oAJopen Palk Oevolapmem(PadJnp ln77 t3)
liberty Pnrkat Shehonwoed {4V
'S
476,000::
Land Adulation p1
5: ::2,500,909
Lezrukan Fnu7y 1
S.':
i x;412.000
TW lmp,mmeata (N. of FM 1700)
S
11'1;180,'
BlcentnnnEal woof Fphmd llalda and roods ;Iii
S' - :-
.I 33D,000;':
f0rkwacdl5.Ixr. Unaer Pan; 101
5
:81.906'
Coker HAWBike TIae ;7d)
$
Aahacmeabalamenl for Bap Jonoa Namre Center Buldmp
0csign an anglneednp at7he Loop Road pnrLpp 10l.50ii Jonaa
Farn.1 Pmperiy 0welapment 1717
5
70,009`:
NoGa corns Park lmPrwementa ll2i
'5
:187,000.
Kos:a Park lmprovemenm [731
$
82,000i'
Community 5eMcea Ot5xo (74)
5 : :
: : : : :. :'BQ9.09Q : :
In-bno Harkey REak Shoda Gwe:mO(45y
S
.270,900
Chesapeake Palk lmomvemam3 ;16)
$
::148,000 i1
Bob Jon" Palk N.Ith Playground Covar(17)
$
'90,0
A"Mure May Rubbamod Sudnca(16)
:5
: : : -
IOab Jones - North Pmypround Rubberized Surfadnp (101
!Skala Patk(20)
5
77.000
EM%BicYde Dip 111 ^ ��
S
:72.0{1.0.',: -__
_ ----------- _____
Bherfann;d Earl Oranege ]mprwmm�ah (Y>2)
S
35,OOQ
........ ____...»»
» ».....__.._.__
EI- ema-al Waal Dnonapn Relaft.n Pond (237
S
:5270,006.
Ramadan Comer S0) _____________
Tdtat Project
Ex�dlltrres
PmjeclRnervO (45(- axrludas JAaS:hinp Fundahand AcgviaRlsn7
Total Proceed. Lea. Total CommUments
S 783.658 S 585,906 S 1.285,548
S 14,842
S 206.060 $ 400.009 5 290,000 s 400.0991
5
S 1.330.909
s 61 000
s 70 000
s 37,625
5 27fl 966
S 200.000 S 2.500,000 S 200.000 S 1,704,000
96,000 - 55,360
? S 165,057 S 19,067 S (55,943) S 954,647
Mid-par amendment
5
70.009
S 181.000
5..».._. (100 •--------------
-- -------
--
s
800.ODO
s
270.900
s 148.909
5 90.090
s 90.000
5 78.tl99
S
77 -006
5 27fl 966
S 200.000 S 2.500,000 S 200.000 S 1,704,000
96,000 - 55,360
? S 165,057 S 19,067 S (55,943) S 954,647
Mid-par amendment