Item 7AMEMORANDUM
December 27, 2010
TO: Shana Yelverton, City Manager
FROM: Sharen Elam, Director of Finance Ext. 8042
SUBJECT: Ordinance No. 878 -A, 2 nd Reading, Amending Ordinance No. 878, amending
FY 2004 -05 Annual Budget.
Action Requested: City Council consideration of Ordinance No. 878 -A to amend the FY 2004-
05 Annual Budget.
Background
Information: Ordinance No. 878 -A is presented to the Council to reflect the proposed
changes to the Adopted FY 2004 -05 Annual Budget. The amendments to
the General Fund budget reflect an increase of $1,330,000 to revenue,
$18,714 in personnel and $384,510 in capital requests.
Revenue had the following amendments:
• Ad Valorem Taxes reflects a proposed increase of $300,000 due to
the increase in collection rate and the result of 2004 protested
properties.
• 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 decrease of $450,000 due to the reduction
of citations issued for the year.
• Permits /fees reflect a proposed increase of $730,000 due to the
significant increase in permits issued for the fiscal year.
Total proposed increase in revenue for fiscal year 2004 -05 is $1,330,000.
Expenditures had the following amendments:
• Division 106, Finance Department request reflect a proposed
increase of $18,714 in personnel cost to hire a purchasing agent to
monitor the procurement card program and assist with the
monitoring of city contracts. If this item is approved, the impact on
2005 -06 budget would be approximately $56,143 for salary and
benefits.
• Division 131, Fire Services reflects a proposed net increase of
$384,510 to purchase a fire engine. City Council approved a lease
purchase of the fire engine for this fiscal year. The purpose of this
request is to purchase rather than lease a 2005 Pierce triple
combination pumper. The City would save $93,607 in finance
charges over the next 7 years.
Total proposed increase in expenditures for fiscal year 2004 -05 is $403,224.
Financial
Considerations: The proposed amendment increases the budgeted revenues and expenditures
by $1,080,000 and $403,224, respectively. Fund integrity will be
maintained, as the proposed adjustments reflect the general fund balance at
28.14% ($6,831,113). This is above the adopted Fund Balance Policy,
which states a minimum balance of 15% and an optimum balance of 25 %.
Citizen Input/
Board Review: Public Hearing, 2nd reading scheduled for June 21, 2005
Legal Review: N/A
Alternatives: The alternative is not to amend the budget and forgo the proposed revisions.
Supporting
Documents: Ordinance No. 878 -A and Exhibit A.
Staff
Recommendation: Approval of Ordinance No. 878 -A by the City Council.
ORDINANCE NO. 878 -A
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SOUTHLAKE,
TEXAS, REVISING THE BUDGET FIGURES FOR FISCAL YEAR 2004 -05
BEGINNING OCTOBER 1, 2004, AND TERMINATING SEPTEMBER 30, 2005, 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 2004 -05 budget which was approved
by City Council with Ordinance No. 878 on September 21, 2004, and submitted same to the City Council; and,
and
WHEREAS, a copy of said amendment is attached hereto as Exhibit "A" and incorporated herein for all purposes:
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 2004 -05 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, 2004, and ending September 30, 2005; 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 2004 -05 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 , 2005.
ATTEST:
Andy Wambsganss, Mayor
Lori Farwell, City Secretary
PASSED AND APPROVED ON second reading this day of , 2005.
ATTEST:
Lori Farwell, City Secretary-
APPROVED AS TO FORM:
City Attorney
Date:
Adopted:
Effective:
Andy Wambsganss, Mayor
GENERAL
FUND
2004 -05 Budget
Amendment
Attachment A
ADOPTED AMENDED
Budget Budget Increase!
M XLN � IJES
Y 21704 -05 FY 2004 -03
Ad Valorem "Faxes
$10,796,6.39 $11,D96,639 300,000.00
Sales Tax
5,333,040 6,083,0011 754,040 -00
Franchise Fees
1,794,518 1,794,518 -
Fincs
1,310,000 960,000 (454,000 00)
Charges Far Services
570,940 574,944 -
PermiUlFees
798,6617 1,528,660 730,000 00
Miscellaneous
426,282 425,282
Interest Income
150.00 154.1]611}
Total Revenues
$21,150,039 $22,510,039 1,330:000 00
EXPENDLIUM
City Secretary
$292,877 %292,877 -
Hurnan Resources
319,361 319,351 -
City Manager
478,955 478,955 -
5uppon Services
1078.417 31178.41
1General GoverumentTata.1
4169 04 4,169,604 -
Firrat3Ce
714,484 733,198 18,714,40
Municipal Cowl
430,807 430,807 -
�NIimicipal Court -Teen CoUrt
Finance Total
74 -668 74.668 -
1.219 3_ ,7.38.673 18,714.00
i -ire
3,241,912 3,626,422 384,510.00
Police
4,992,922 4,992,922 -
Pu blic Safety Support
1,329,155 1,329,155 -
Building
915,451 885.451
Public Safety Total
1"9A44 10.533.950 4,51 0_00
SZeets/Drainage
1,834,644 1,834,644 -
Public Works Administration
839.747 $39 7?
Public Works Tota
62. 74 XII J 5,x,4,391
Planning
592.659 592.659 -
PlaaningTotal
5921 592,659
EconDm Development
218,125 328.125
Fconomle Development Total
328.123 32&12
Community Services
444,393 444,393 -
Parks and Recreation
2,663,749 2,663,749 -
Library Services
446,083. 446.083
I
I
Community 5er+'iees Total
3,554.225 3,554,225 -
Total F- xpenditnres
U2a$18,A43 S23-391,627 4173.334.110
Excess (deficiency) of
Revenue over Expenditures
($1,809,364) ($981,588) $926,776
OTHER FINANCING
SOURCES. AND WSES
I
Proceeds from leaselCO (net)
$o $0 -
Tranr fe,r In -Other Funds
0 D -
Transfer To -Other Funds
( 887,913 ( 98� 7,913] -
Total Other Sourcest(Uses)
($887,913)
Excess (deficiency) of
Revenueslother sources over Exp.
7 1'$1.769.501 ]
FUND BALANCE OCT 1
$8,600,614 $8,600,614
Change in reserved f=und balaam
$0 $a
ENDING FUND BALANCE
$5,41}4,337 $6.$31,.1.1.3.
fund balance percentage
j 24.73° 29. 1494