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Home My WebLink About10/18/2011 16 Miscellaneous Expenses; Budget Amendment and Appropriations ® BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. I For Meeting Of October 18, 2011 ITEM TITLE: An Ordinance Amending the 2011 Budget and making Appropriations in various funds to provide for increased 911 telephone costs; Integrated Public Safety System (IPSS); Lincoln Avenue railroad underpass project costs; and to replace a damaged Refuse truck. SUBMITTED BY: Finance Department CONTACT PERSON /TELEPHONE: Cindy Epperson, Dep. Director of Accounting & Budgeting /575 -6070 SUMMARY EXPLANATION: During the development of the 2012 preliminary budget and the review of 2011 budget trends and estimates, several instances of additional unbudgeted expenditures that exceeded the total fund budget authority were noted. Some of these increases come with additional revenues to support them and others would need to be paid from the affected fund balance. None of the appropriations require the use of general fund or general 40 fund reserves. Following page provides a summary of the appropriation and is summarized by fund; the bulleted line item identifies the net impact on the fund balance, if any. The sub - bullets identify (a) the increased costs, followed by (b) additional revenues, when applicable. Where revenues are not identified, the fund reserves (or fund balances) are adequate to cover the additional costs. (See attachment for official proposed appropriation.) (Continued on next page.) Resolution Ordinance X Other (Specify) Schedule Funding Source: Grants, Fees and Fund Balances in Various Funds Approved for Submittal: 7"` City Manager STAFF RECOMMENDATION: Pass ordinance COUNCIL ACTION: Read Ordinance by title only at the October 4, 2011 meeting. • 151 - Public Safety Communications Fund -- No net use of reserves o Increased 911 telephone costs $165,000 o Revenue - Interlocal Payment for Services - -911 $165,000 At the end of 2010 the County Commissioners had the option to raise the local 911 excise tax from the current rate of $.50 to $.70. By exercising this option the local 911 would have not only generated additional revenue to cover local expenses, the then current state funding mechanism would remain in place, covering network expenses in Yakima County. The County Commissioners elected not to implement the tax; therefore approx. $280,000 expenses were shifted to the local 911 and to 2011 operating expenses. About $115,000 of the adopted 2011 budget could be redirected toward this expense, so that the budget increase is only $165,000. • • 125- Community Relations Fund Total net use of reserves $95,000 o Local Match for IPSS Project $95,000 At the time the IPSS project was authorized limited funding sources had been secured; however, as part of the Interlocal Agreement, the City of Yakima and Yakima county agreed to jointly cover all costs that were not ultimately secured from other sources. While the project is not yet complete, many major milestones have been rnet allowing updated projected funding estimates to be made. And since these funds may be required prior to the end of 2011, an appropriation of these funds is necessary at this time. Total project costs are est. at $2.2M; the city's portion of the unfunded and non= appropriated balance of these costs is approx. $95,000. The city planned to cover their portion of these costs from the Community Relations Fund balance; which contemplates technology improvements in communications. Current fund balance is slightly over_.$900,000 at the beginning of 2011, assisting with the IPSS project would be an acceptable use of these reserves. • 392- Cumulative Reserve for Capital Imprvmt. Fund - No net use of reserves o Lincoln Ave. Railroad Underpass project $4,000,000 o Revenue - Federal Hiway Administration Grant $4,000,000 Council has been apprised of the cost overruns associated with the failure of the original underground seal on the Lincoln Avenue railroad underpass project. After significant additional research, the seal design was modified, and the new process resulted in a net change order of approximately $4 million. Since funding was secured for both the Lincoln Ave and Martin Luther King Blvd (MLK) underpasses, the. Federal Hiway Administration Grant could be redirected from MLK to Lincoln Ave. Additional funding will need to be secured to complete the MLK project. • 551- Equipment Rental and Replacement Fund - Total net $100,000 o Replace damaged Refuse Truck $230,000 o Revenue - Insurance Reimbursement $130,000 Earlier this year, an engine fire destroyed one of the City's Refuse trucks. The City's property insurance carrier set the replacement value at $230,000. Since the program includes a deductible of $100,000, we received $130,000 from the insurance company. We anticipate that the truck will cost about $280,000 to replace, however savings on the two Refuse trucks purchased earlier in the year will make up the $50,000 difference in the 2011 budget. Refuse's balance in the Equipment Rental replacement fund will be sufficient to cover the deductible by the end of 2012. The insurance carrier is conducting an investigation, and any recovery from a third party will come first to the City to be applied toward the deductible. ORDINANCE NO. 2011 AN ORDINANCE amending the 2011 budget for the City of Yakima; and making appropriations from Unappropriated Fund Balances within various Funds for expenditure . during 2011 to provide for increased 911 telephone costs; Integrated Public Safety System costs; Lincoln Avenue Railroad Underpass project costs; and to replace a damaged Refuse truck. WHEREAS, the various funds indicated on the attached Schedule I contain Unappropriated Fund Balances available for appropriation and expenditures during 2011 in various amounts to provide for increased 911 telephone costs; Integrated Public Safety System costs; Lincoln Avenue Railroad Underpass project costs; and to replace a damaged Refuse truck, all as listed in the attached Schedule, and WHEREAS, at the time of the adoption of the 2011 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 2011, 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 18 day of October, 2011. Micah Cawley, Mayor ATTEST: City Clerk First Reading: October 4, 2011 Publication Date: Effective Date: 1 10 Cepperson 10/12/2011 • City of Yakima • 2011 Appropriation Schedule • • SCHEDULE I Appropriate out of unappropriated fund balances of the various funds and in the various • - amounts and for the purposes as described: ACCOUNT AMOUNT FUND TOT. DESCRIPTION PUBLIC SAFETY COMMUNICATIONS 151.151.120.0000.52870.421 $165,000 911 Telephone Costs Total Expenditures $165,000 Public Safety Communications- Revenue 151.151.124.0000.33828.911 $165,000 Interlocal payment for services -911 • Total Revenues $165,000 Net Use of Fund Balance $0 • COMMUNITY RELATIONS 125.125.434.0000.59473.630 $95,000 $95,000 Local match for Integrated Regional Public Safety System Net Use of Fund Balance $95,000 CUMULATIVE RESERVE FOR CAPITAL IMPROVE. 392.392.528.1818.59550.650 $4,000,000 Lincoln Ave. Railroad Underpass Project - Total Expenditures $4,000,000 Change order to correct the bottom seal (net of deduciton) Cum Res for Cap Imp.- Revenue 392.392.528.1818.33320.2FH $4,000,000 Federal Hiway Administration grant Total Revenues $4,000,060 Net Use of Fund Balance $0 EQUIPMENT REPLACEMENT FUND 551.552.636.ER06.59448.644 $230,000 Replace damaged Refuse Truck Total Expenditures $230,000 Equipment Rental Revenues 551.552.634.0000.39530.INR $130,000 Insurance Reimbursement Total Revenues $130,000 Net Use of Fund Balance $100,000 cje 10/12/2011