City of Alexandria, Virginia
________________
MEMORANDUM
DATE: JUNE 20, 2017
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
FROM: MARK B. JINKS, CITY MANAGER /s/
DOCKET TITLE:
TITLE
Public Hearing, Second Reading and Final Passage of a Supplemental Appropriation Ordinance for the Support of the City Government for FY 2017. [ROLL-CALL VOTE]
BODY
_________________________________________________________________
ISSUE: Consideration of a Supplemental Appropriation Ordinance for the support of the City government for FY 2017.
RECOMMENDATION: That City Council pass this proposed Ordinance (Attachment 2) on June 24, 2017.
DISCUSSION: Near the end of each fiscal year a Supplemental Appropriation Ordinance is presented for Council consideration in order to reflect additional grant revenues, donations and other technical appropriation adjustments previously planned but not yet enacted. This Ordinance includes the appropriation of City Grants, Other Special Revenue and Potomac Yard Funds. In addition, General Fund Balance is being appropriated at this time. Staff recommends the FY 2017 Appropriations Ordinance be amended to accomplish the following:
(1) Appropriation of grant revenue accepted or adjusted by the City in FY 2017, for specific programs, but not yet appropriated. A listing of grants is included as Attachment 3 and totals a reduction of budget authority of $215,142. The majority of this deappropriation eliminates budget authority in TES projects and closes out the accounts. All of the adjustments are described in Attachment 3.
(2) The appropriation of Equipment Replacement Fund Balance to pay for new purchases not included in the FY 2017 Appropriation. This appropriation of $531,372 of Internal Services Fund Balance to replace existing vehicles. This appropriation includes $521,672 to the Fire Department to replace six light duty vehicles and $9,700 to the Department of Project Implementation to fund the difference between the budgeted and the actual costs of two vehicle replacements.
(3) Appropriation of General Fund Revenue. The total appropriation of $511,667 includes $300,000 to the Department of Planning and Zoning to provide funds for consultants to begin work on the Ad Hoc Joint City Schools Facility Investment Task Force. The revenue will be received in FY 2017 from the increase in the Real Property tax rate approved by City Council in the FY 2018 Operating Budget. The remaining appropriation of $211,667 provides funding for the Alexandria Health Department, from FY 2016 Year End Settlement funds (unexpended City matching funds returned to the locality), which will be used for equipment and training.
(4) The transfer of General Fund Budget Authority Between Departments. This appropriation change will authorize the transfer of $15,812 from the Department of General Services to the Department of Community and Human Services to fund the EBT/SNAP Coordinator supporting the Farmer’s Market. An additional transfer of $0.4 million is recommended from a Non-Departmental account to the Office of the City Attorney. The savings in the Non-Departmental account comes from a reduction in the amount of debt service needed in FY 2017 as a result of refunding existing debt. It is being transferred to the Office of the City Attorney to cover higher than budgeted expenses for outside legal services.
(5) The appropriation of donations and other special revenues received but not appropriated in the FY 2017 Operating Budget. This appropriation totaling $731,250 is primarily composed of an appropriation to the Alexandria Police Department, including $0.5 million in federal seized assets and $0.2 million in Treasury seized assets. The funds will be used for equipment and training. The remaining appropriation includes $31,250 to the Finance Department for Pension-funded expenses that were not included in the FY 2017 Approved Budget.
(6) The appropriation of Sanitary Sewer Funds received but not yet appropriated. This proposed appropriation of $1,314,431 recognizes revenue received in a prior year that was not appropriated for this fiscal year. The funds are part of the approved interfund transfer from the Sanitary Sewer Fund to the Capital Improvement Fund.
(7) The appropriation of project budget authority from grant revenues, donations, fees, Developer Contributions and SUP Conditions of Capital Improvement Program funds. This total appropriation of $1,084,375 includes a reduction of $550,000 that was appropriated in error in February. The grant of $0.9 million that was appropriated to purchase the Reeder House was wired directly by the State granting agency to the seller and did not pass through the City. The remaining $350,000 is the grant amount that was paid to the City and transferred to the property owner. The appropriation also includes $165,000 in donations for the ice well that are being reappropriated to reimburse the Office of Historic Alexandria Capital Facility Maintenance Program account (CFPM) and $160,000 to appropriate Comcast Revenues that have been received but were not appropriated in the correct fiscal year. In addition, there are $1.6 million of project budget increases for Transportation projects ($0.3 million for the King Street Metro Parking Lot, $1.18 million to recognize Environmental Restoration developer contributions and $50,000 for Traffic Control Upgrades, also from developer contributions). These increases are offset by a reduction of $0.2 million for the Edsall Road Street Improvements Project, which is now completed. This budget reduction closes out the project. Details of these projects are included in Attachment 3.
FISCAL IMPACT: The seven sections of the ordinance appropriate a total of $3,957,953 as follows:
Section 1 Appropriation of grant revenue authorized and adjusted,
but not yet appropriated ($215,142)
Section 2 Appropriation of Equipment Replacement Fund Balance $531,372
Section 3 Appropriation of General Fund Revenue $511,667
Section 4 Transfer of General Fund Budget Authority Between Departments $0
Section 5 Appropriation of Other Special Revenue $731,250
Section 6 Appropriation of Sanitary Sewer Fund Balance $1,314,431
Section 7 Appropriation of Capital Improvement Program Funds $1,084,375
ATTACHMENTS:
Attachment 1. Ordinance Cover
Attachment 2. Ordinance to Amend Fiscal Year 2017 Operating Budget
Attachment 3. Listing of Fiscal Year 2017 Grant Authorization and Adjustments
STAFF:
Kendel Taylor, Finance Director
Morgan Routt, Budget Director