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11/06/2012 04I 2012 Budget Amendment; Misc Appropriations • i G �} , � J� BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. For Meeting of: November 6, 2012 ITEM TITLE: Second reading of an Ordinance amending the 2012 budget for the City of Yakima; and making appropriations from Unappropriated Fund Balances within various Funds for expenditure during 2012 as noted in the summary attached. SUBMITTED BY: Cindy Epperson, Director of Finance & Budget CONTACT Cindy Epperson, 576 -6771 PERSON /TELEPHONE: SUMMARY EXPLANATION: During the development of the 2013 preliminary budget and the review of 2012 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. The 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 Schedule I (specify) Contract: Mail to: Contract Term: Amount: Expiration Date: Insurance Required? No Funding Fees and Fund Balances in Various Phone: Source: Funds APPROVED FOR SUBMITTAL: City Manager 411 tl STAFF RECOMMENDATION: Pass Ordinance after second reading at the November 6, 2012 meeting. BOARD /COMMISSION RECOMMENDATION: ATTACHMENTS: Click to download ❑ Appropriation Summary ❑ Appropriation Ordinance ❑ 2012 Appropriation Schedule I • • 000 - General Fund No net use of reserves o Transfer to Yakima Redevelopment Area (YRDA) Fund $900,000 At the September 25, 2012 Study Session, part of the discussion was the City's need to match the State's annual $1 million commitment of sales tax as authorized by the Local Infrastructure Financing Tool (LIFT) legislation in order to make necessary improvements in the Yakima Redevelopment Area. Match is basically any local revenue except for revenue derived from the State. Originally, County SIED loans and grants were considered to be match, but since the SIED funding is originally derived from the State, it really cannot be counted as match, which left the City short of matching the $1 million for 2012. As the 2012 budget estimates were developed, revenues are coming in stronger than anticipated, and General Fund is in the position to make a one -time contribution of $900,000 for the YRDA improvements out of current revenues. In a separate item on the October 16 meeting agenda, the City is proposing to enter into an interlocal agreement with Yakima County which sets forth the allocation of expense on the major roadwork in LIFT area. Reimbursement to the County from this General Fund transfer is considered to be a valid match. • 141 - Street & Traffic Eng. Fund Total net use of reserves $230,000 o Snow and Ice Control $230,000 In January of 2012, the City experienced a major snow storm with snow accumulations large enough to require an expanded plowing effort. (This was the first year in over 15 years that needed this higher level of response). Originally, the additional cost was estimated to be about $400,000, but we delayed an appropriation until later in the year when we could determine the net appropriation required at the total fund level. An appropriation of $230,000 is required to • adequately budget for the 2012 street operation. Note The Street Fund carries a higher fund balance as a percentage of the expenditure budget than most other operating funds because major snow storms are likely but unpredictable, both in frequency and cost to respond. • 173 - Tourism Promotion Area Fund - No net use of reserves o Transfer Assessment to YVVCB $50,000 o Revenue - Tourism Promotion Area Assessment $50,000 In the fall of 2011, the hoteliers in the Yakima Tourism Promotion Area agreed to raise the room night assessment, and an estimate of the increased revenue was budgeted. This year the revenue is exceeding the original estimate. The Yakima Valley Visitors and Convention Bureau (YVVCB) is contracted by the City to manage this program under the guidance of the TPA Commission. The contract stipulates that all funds collected are turned over to YVVCB monthly, so that if we collect more than budgeted, we are required to remit the balance. TPA proceeds can only be used for tourism promotion activities as approved by the TPA Commission. • 331 -Parks & Rec. Capital Fund Total net use of reserves $40,000 o Upper Kiwanis Park project -soil quality change order $40,000 The Kiwanis Park Women's Fastpitch and Little League Ball Field project required a change order to accommodate soil quality and profile conditions discovered after the bid was awarded. The extra cost for purchase, delivery and placement of the proper drainage soil type cost the bulk of the final change order. This project requires an additional $40,000 appropriation to complete. The estimated reserve balance at the end of 2012 after Kiwanis Park project completion is about $75,000. 0 • 462- Transit Operating Fund - No net use of reserves o Repair and Maintenance - Ellensburg Route $80,000 The new Ellensburg transit route operated in partnership with Hope Source has been very well - received. In response, some of the peak times are using large buses, and there have been some supplemental routes established. The additional usage coupled with the age and condition of the buses obtained for this pilot program has caused greater vehicle maintenance costs: Like General Fund noted above, Transit revenue estimates are exceeding the budget, so that this additional expense will not create a use of reserves for the fund. ill III ORDINANCE NO. 2012 - AN ORDINANCE amending the 2012 budget for the City of Yakima; and making appropriations from Unappropriated Fund Balances within various Funds for expenditure during 2012 to provide for improvements in the Yakima Redevelopment Area; snow and ice control costs; remittance of the Tourism Promotion Area assessments; a soil quality change order for Upper Kiwanis Park project; and repair and maintenance of buses used on the new Ellensburg route. WHEREAS, the various funds indicated on the attached Schedule I contain Unappropriated Fund Balances available for appropriation and expenditures during 2012 in various amounts to provide for improvements in the Yakima Redevelopment Area, s now and ice control costs; remittance of the Tourism Promotion Area assessments; a soil quality change order for Upper Kiwanis Park project; and repair and maintenance of buses used on the new Ellensburg route, all.as.listed in the attached Schedule, and WHEREAS, at the time of the adoption of the 2012 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 2012, 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 day of , 2012 MICAH CAWLEY, MAYOR ATTEST: CITY CLERK First Reading: Publication Date: • Effective Date: Cepperson 10/29/2012 City of Yakima 2012 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 GENERAL FUND 000.099 645.0000 59755.550 $900,000 $900,000 Transfer to Yakima Redevelopment Area Fund Net Use of Fund Balance $900,000 YAKIMA REDEVELOPMENT AREA 323 323.322.2337.59510.410 $900,000 Street Infrastructure Design- Mifsite Parkway Total Expenditures $900,000 Yakima Redevelopment Area - Revenue 323.323 322.0000.39755.OPT $900,000 Transfer from General Fund to match LIFT expenses Total Revenues $900,000 Net Use of Fund Balance $0 STREET & TRAFFIC ENG FUND 141.141.524.0000 54266 120 $25,000 Snow & Ice Control- Overtime 141 141.524 0000.54266.312 $90,000 Snow & Ice Control -De -icing Supplies 141 141 524 0000.54266.410 $115,000 $230,000 Snow & Ice Control- Professional Services Net Use of Fund Balance $230,000 TOURISM PROMOTION AREA FUND 173.173.324 0000.57110.410 $50,000 Remit Assessment to YVVCC Total Expenditures $50,000 Toursim Promotion area - Revenue 173.173.324 0000 31810 OPA $50,000 Tourism Promotion Area Assessment Total Revenues $50,000 Net Use of Fund Balance $0 PARKS & REC CAPITAL FUND 331 331 428.2212.59476 650 $40,000 $40,000 Upper Kiwanis Park improvements -Soil mix Net Use of Fund Balance $40,000 TRANSIT FUND 462.462.513.T642.54750 480 $80,000 $80,000 Repair & Maintenance - Ellensburg Route Net Use of Fund Balance $80,000 cje 10/8/2012 Page 1 of 1