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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