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Home My WebLink About06/18/2019 09 Unappropriated Funds Appropriations; 2019 Budget Amendment to\'4\lyy tbxk ik 1 PP1-:4P PPP g. A P p P 1 PPi ittYlltYlt.\ta. BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 9. For Meeting of: June 18, 2019 ITEM TITLE: Ordinance amending the 2019 Budget for the City of Yakima; and making appropriations from Unappropriated Fund Balances within various Funds for expenditure during 2019 for various purposes including 2018 encumbrances (First Reading) SUBMITTED BY: Steve Groom, Director of Finance and Budget Jennifer Morris, Financial Services Officer SUMMARY EXPLANATION: This appropriation for prior year encumbrances is part of the annual budgeting process.Attached is an ordinance amending the 2019 Budget to provide appropriations for the encumbrances outstanding at the close of the 2018 Fiscal year and to provide appropriations for projects or programs that were uncertain and therefore not included at the time of the 2019 Budget adoption. 2018 encumbrances listed on the attached report represent orders for goods or services - principally vehicles with long procurement lead times - included in the 2018 Budget that were authorized, but that were not received or performed by the end of the year.An appropriation needs to be carried forward to avoid these payments impacting 2019's Budget. This action will amend the 2019 Budget for these expenditures.Additionally, there are adjustments and corrections to the 2019 Budget that are now known and are more fully described both in the cover memo and the supporting schedule. ITEM BUDGETED: NA STRATEGIC PRIORITY: Public Trust and Accountability APPROVED FOR ' SUBMITTAL: City Manager STAFF RECOMMENDATION: First reading of Ordinance with second reading on July 2nd. 2 BOARD/COMMITTEE RECOMMENDATION: ATTACHMENTS: Description Upload Date Type D Cowr Memo 611 2019 Cevcr Memo 0 ordinance 6122019 Cover Memo D SudF)ert Sr hcdulc 9 31/201'1 CoverMemo 3 '* l FINANCE TO: Mayor and City Council Cliff Moore, City Manager FROM: Steve Groom, Director of Finance and Budget Jen Morris, Financial Services Officer DATE: June 11, 2019 RE: 2019 Budget Ordinance - 2018 Carryforward This budget ordinance accomplishes two things for the 2019 Budget year: adjusts for prior year encumbrances which are expected to be paid during 2019 and effects course corrections based on new information for the 2019 Budget year itself. These are both recurring annual budget processes and staff expects further 2019 course corrections as the year progresses. Most of these corrections are outside of the General Fund. Staff requests approval of the 2019 budget per the attached detail spreadsheet, described in more detail as follows: 2018 Encumbrances. These are commitments for specific goods or services that were properly approved and authorized within the 2018 budget, but not received or performed by Dec. 31 st and will be paid during 2019 The timing of this adjustment is intended to be when complete information is available. An appropriation needs to be carried forward to avoid these payments impacting 2019's budget. Therefore this action amends the 2019 Budget appropriation for these expenditures. A very large portion of this adjustment is for the Equipment Rental Fund, for purchase of vehicles and equipment that have a long purchase lead-time. Additionally, offsetting revenue and expense for CDBG grants of$3,250,217 not yet obligated are also carried forward. All of these expenditures were included in the 2018 budget and as result are revenue-neutral to the 2019 Budget — these simply renew expenditure authority. General Fund roll-forward is $21,200 which was authorized in 2018. 2019 corrections. The adjustments and corrections to the 2019 budget that are now known that were not known at the time of adoption, are submitted: 1) A correction to CBD Capital Improvement fund for 2016 Plaza design expenditures funded by donations, subsequently refunded. In August 2016, City council authorized design work to be funded 50% by private donations and 50% by Real Estate Excise Tax (REET) 2. When donations were refunded following the 2018 referendum results, the Capital Improvement Fund was left with a deficit balance, therefore a transfer from REET 2 will resolve and close out the process. 2) Transportation Benefit District revenue and expense are both increased based on current projections. The 2018 budget of $550,000 was forecast for the initial 6-month period in 2018 and should have been increased to full-year forecast for 2019. Current estimate of $1,450,000 is based on four months actuals and an average of $120,000 per month. 3) A $44,365 YakCorps assessment that was not known at time of budget adoption that is allocated and billed to participants 4 '* l FINANCE 4) Eliminating an expenditure from General Fund and charging appropriately to Risk Management to reflect the correct salaries classification for these expenditures, improving the General Fund position by $8,801. 5) Department of Archeology grant was awarded after budget was adopted; a $3,000 increase in expenditure is needed together with recognition of$12,000 in revenue. 6) PFD revenue increase was budgeted but $59,110 Capital Theatre expense was omitted in the budget ordinance. 7) Transfer of $153,445 debt service from Traffic Engineering LED to General Fund for a financing substitution. In 2018, due to on-going legal issues with the LED streetlight project contractor, a substitution was requested and approved by the Washington State Local Option Capital Lending (LOCAL) program to apply proceeds of the 2017 LED borrowing to purchase of fire apparatus. Staff expects further 2019 course-correction budget adjustments later in the year, as new information becomes available that is not fully known at this time. 5 ORDINANCE NO. 2019- AN ORDINANCE amending the 2019 Budget for the City of Yakima; and making appropriations from Unappropriated Fund Balances within various Funds for expenditure during 2019 for various purposes including 2018 encumbrances. WHEREAS, the various funds indicated on the attached Schedule contain Unappropriated Fund Balances available for appropriation and expenditures during 2019 in various amounts and for the purposes mentioned in the attached Schedule; and WHEREAS, at the time of the adoption of the 2019 budget it could not reasonably have been foreseen that the appropriation provided for by this ordinance would be required; and the City Council declares that an emergency exists of the type contemplated by RCW 35.33.091 and that it is in the best interests of the City to make the appropriation herein provided; now, therefore, BE IT ORDAINED BY THE CITY OF YAKIMA: Section 1. Appropriations are hereby made, for expenditure during 2019, from Unappropriated Fund Balances in the various Funds to the various accounts and in the various amounts, and for the various specific purposes, all as specified in the Schedule attached hereto and incorporated herein. Section 2. This ordinance is one making an appropriation and shall take effect immediately upon its passage, approval and publication as provided by law and by the City Charter. PASSED BY THE CITY COUNCIL, signed and approved this 2'day of July, 2019. Kathy Coffey, Mayor ATTEST: Sonya Clear Tee, City Clerk First Reading: June 18, 2019 Publication Date: July 5, 2019 Effective Date: July 5, 2019 City of Yakima 2019 Budget Amendment-2018 Encumbrances and 2019 Corrections DRAFT From Fund To Fund Expenditure Revenue Description # I Fund Name !Account# # I Fund Name !Account# $ $ Dr(Cr) Dr(Cr) Carryforward of encumbrance from 2018 prior year budget: 1 General Fund Prior Yr Fund Bal 1 General Fund 3132800 19,591.35 (19,591.35) TYR Tactical,QUOTE#:TYR-2018-001128DG-YAKIMA PD V2 1 General Fund Prior Yr Fund Bal 1 General Fund 6723500 1,574.89 (1,574.89) CDW,Surface Pro 141 Streets Prior Yr Fund Bal 141 Streets 4343112 4,977.20 (4,977.20) Consolidated Electrical Dist.,Check With Mike 331 Parks Capital Prior Yr Fund Bal 331 Parks Capital 5436300 65,593.65 (65,593.65) Landscape Structures,HGAC Contract#PR11-18 for Play Structure Lions Park 422 Airport Capital Prior Yr Fund Bal 422 Airport Capital 2916450 19,588.53 (19,588.53) Bailiff Enterprises,Deicer 462 Transit Prior Yr Fund Bal 462 Transit 4543500 1,891.34 (1,891.34) Nex Computers,Transit ADA Announcement Bus 74 Bid 11608 462 Transit Prior Yr Fund Bal 462 Transit 4543500 20,613.58 (20,613.58) Apollo Video Technology,Transit Cameras GSA Contract#GS-07F-0776X Quol 464 Transit Capital Prior Yr Fund Bal 464 Transit Capital 4516300 95,919.46 (95,919.46) Hanover Displays,Transit Destination Sign Systems and Retrofit Bid 11830 464 Transit Capital Prior Yr Fund Bal 464 Transit Capital 4516410 6,461.41 (6,461.41) Motorola Solutions,Radio Quote#O0 0 00 046 1813 NASPO ValuePoint Grande Truck 552 Equip Rental Prior Yr Fund Bal Center Equip Rental 5526440 347,086.12 (347,086.12) Grande Truck Center,HGAC HT06-18-MACK CAB&CHASSIS 552 Equip Rental Prior Yr Fund Bal 552 Equip Rental 5526440 148,728.47 (148,728.47) Grande Truck Center,HGAC CONTRACT HT06-18-2020 MACK 64FR CAB AND 552 Equip Rental Prior Yr Fund Bal 552 Equip Rental 5526440 343,626.97 (343,626.97) Owen Equipment,SOURCEWELL CONTRACT#122017-FSC-VACTOR SEWER C 552 Equip Rental Prior Yr Fund Bal 552 Equip Rental 5526440 344,759.82 (344,759.82) Freightliner Northwest,FREIGHTLINER MT55 CHASSIS&18FOOT UTILIMASTE 552 Equip Rental Prior Yr Fund Bal 552 Equip Rental 5526440 53,633.38 (53,633.38) BPR Operating,6"Gorman Pump 552 Equip Rental Prior Yr Fund Bal 552 Equip Rental 5526440 9,044.06 (9,044.06) Olympic Trailer,2019 Pi TS162 DUAL AXLE,9,990GVWR TILT TRAILER 552 Irrigation Truck 8956541 475 Irrigation Truck 7820092 $ 36,000.00 $ (36,000.00) Irrigation Vehicle reserve transfer 552 fund balance-reserves paid in 552 Trucks 5526440 $ 756,120.81 $ (756,120.81) Refuse trucks not yet invoiced,18-month lead time 560 PW Admin Prior Yr Fund Bal 560 PW Admin 4934803 6,492.00 (6,492.00) Installation and programming of one card reader and 52 2,281,703.04 (2,281,703.04) 124 CDBG Rev 8956809 124 ONDS 2414820 3,250,217.00 (972,933.00) Bringing forward both revenue and expense for ONDS CDBG/HOME obligate( 124 HOME Rev 8956808 (2,277,284.00) Bringing forward both revenue and expense for ONDS CDBG/HOME obligate( Transfer Between Funds to correct negative Plaza balance due to prior year construction(donations refunded) 321 CBD Cap lmpr 8950050 321 CBD Cap lmpr Fund Bal $ 520,000.00 20152016 Plaza Design-Conley/Gustafson Guthrie Nichol/ 342 REET1 Fund Bal 342 REET1 7140055 $ (520,000.00) 20152016 Plaza Design-Conley/Gustafson Guthrie Nichol/ $ 520,000.00 $ (520,000.00) Additional TBD Revenue based on actual receipts to-date 344 TBD Revenue 8951710 344 Contsruction Proj 7176500 $ 800,000.00 (800,000) YakCorps allocation correction 151 Publ Safety Comm Fund Bal 151 Publ Safety Comm 3434811 1,051.44 (1,051) Additional YakCorp Assessment not incl.in 2019 budget 003 3%Crim Justc Fund Bal 003 3%Crim Justc 3514811 7,314.36 (7,314) Additional YakCorp Assessment not incl.in 2019 budget 632 Yakcorps 8953818 632 Yakcorps 6324100 36,000.00 (36,000) YakCorps allocated spending,supplemental billing $ 44,365.80 $ (44,365.80) Transfer to Risk Management Fund,2019 budget reflected General Fund incorrectly 001 General Fund 3512100 001 General Fund Fund Bal $ (685.78) Move Temporary Salaries to Risk Management 001 General Fund 3512310 001 General Fund Fund Bal (139.66) Move Temporary Salaries to Risk Management 5/31/2019 1 of 2 2019 Budget Year-end Amendment 2018 encumbrances 05-23-2019 City of Yakima 2019 Budget Amendment-2018 Encumbrances and 2019 Corrections DRAFT FromFund ToFund Expenditure Revenue Description # Fund Name Account# #Fund Name Account# $ $ 001 General Fund 3512700 001 General Fund Fund Bal (34.08) Move Temporary Salaries to Risk Management 001 General Fund 3511120 001 General Fund Fund Bal (7,941.90) Move Temporary Salaries to Risk Management 515 Risk Management Fund Bal 515 Risk Management 6682100 685.78 Move Temporary Salaries to Risk Management 515 Risk Management Fund Bal 515 Risk Management 6682310 139.66 Move Temporary Salaries to Risk Management 515 Risk Management Fund Bal 515 Risk Management 6682700 34.08 Move Temporary Salaries to Risk Management 515 Risk Management Fund Bal 515 Risk Management 6681120 7,941.90 Move Temporary Salaries to Risk Management $ 001 General Fund Fund Bal 001 General Fund 2164100 $ 3,000.00 Archeology grant 001 General Fund 8953318 001 General Fund Fund Bal (12,000) Revenue Archeology bra nt $ 3,000.00 $ (12,000.00) Transfer Between Funds to correct Capitol Theatre expense increases approved but omitted from Budget documentation 171 Capitol Theatre 2714110 171 Capitol Theatre 8950050 $ 25,000.00 $ 29,555.00 Management Fees 171 Capitol Theatre 2714510 $ 2,555.00 Rentals 171 Capitol Theatre 2713500 $ 2,000.00 Small Tools 174 Cap Th PFD 2730055 174 Cap Th PFD $ 29,555.00 $ 29,555.00 Transfer Out PFD $ 59,110.00 $ 59,110.00 Correction to Internal City Service Allocation 1 General Fund 8954901 1 General Fund fund balance 16,757.00 (16,757.00) Add'I Gen Fund Revenue to balance city service charge allocation 154 Dispatch fund balance 154 Dispatch 3414192 99,737.00 (99,737.00) Add.'Dispatch expense to balance city service charge allocation 116,494.00 (116,494.00) 141 LED Debt Prin 8797500 1 Fire Truck Debt Service 8827500 108,744.53 (108,744.53) Fire Truck Debt Service principal from LED to GF 141 LED Debt int 8798300 1 Fire Truck Debt int 8828300 44,700.81 (44,700.81) Fire Truck Debt Service interest from LED to GF $ 153,445.34 $ (153,445.34) 5/31/2019 2 of 2 2019 Budget Year-end Amendment 2018 encumbrances 05-23-2019