City of Alexandria, Virginia
________________
MEMORANDUM
DATE: OCTOBER 7, 2015
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
FROM: MARK B. JINKS, CITY MANAGER /s/
DOCKET TITLE:
TITLE
Public Hearing, Second Reading and Passage of an Ordinance to Make Supplemental Appropriations for the Support of the City Government for Fiscal Year 2016. [ROLL-CALL VOTE]
BODY
_________________________________________________________________
ISSUE: Consideration of a Reappropriation Ordinance to amend Fiscal Year 2016 Appropriation.
RECOMMENDATION: That City Council hold a public hearing and pass the proposed ordinance (attachment 2) on October 17, 2015.
DISCUSSION: Each year, City staff submits a Reappropriation Ordinance to City Council to reappropriate monies authorized by City Council in the prior fiscal year but not expended as of June 30. By City Charter, all appropriations lapse at the end of the fiscal year. When budgeted goods and services are ordered prior to the end of the previous fiscal year, but not delivered until the next fiscal year, monies need to be reappropriated to cover the expenditures paid in the current fiscal year. The various sections throughout this document provide spending authority in the current fiscal year for projects and initiatives already established by City Council.
In addition to encumbered or obligated funds, the ordinance establishes budget authority in the current year for revenues received in the current or prior year that have not been appropriated. When possible, the current year operating budget includes an estimated amount for grants and other special revenue and the budget is adjusted, via this ordinance, when the actual revenue amount is awarded. Grants, fees, donations and other special revenues are restricted in purpose. Where relevant, staff has referenced the City Council docket item or action that pertains to the appropriation. Many of the programs and services in the Office of Housing and the Department of Community and Human Services are funded with state and federal appropriations that are not tied to specific grant applications. Funds are allocated to the City based on existing programs, clients, or regional agreements. Resources for these departments are utilized to leverage General Funds or minimize the impact on the General Fund, while furthering the goals and objectives of the City Council Strategic Plan. Attachment 3 lists the new grants and changes in funding levels compared to the amount estimated in the FY 2015 Approved Operating Budget. Where significant, staff has described how the funding change will impact services.
Staff recommends that the Fiscal Year (FY) 2016 Appropriation be amended to accomplish the following purposes:
Section 1. Reappropriation of Equipment Replacement Fund Balance to pay for commitments, in the form of encumbrances, established prior to June 30, 2015, but not paid by that date. This appropriation includes encumbrances totaling $2,579,874 of Equipment Replacement Reserve Fund obligations (primarily for vehicles and equipment ordered in FY 2015 but not delivered until FY 2016).
Section 2. Reappropriation of revenues received but not appropriated. This appropriation includes program income, loan repayments and Housing Trust Funds in the amount of $4,160,166, including approximately $3.0 million of Housing Trust Fund monies ($1.9 million reserved for Beauregard affordable housing), $0.2 million of loan repayments and developer contributions, and $1.0 million of federal revenue that has been carried over from a prior year. Reappropriated revenues will be used for loan and rehabilitation programs and other affordable housing initiatives.
Section 3. Appropriation of grant revenues authorized and adjusted but not appropriated in FY 2016. The grants in this section reflect grant revenues that are included as estimates in the current year budget that are being adjusted to reflect the actual award, as well as new grants. New grant applications are approved by City Council. Where applicable, the date of the City Council meeting is included in the comments, as well as how the funds will be utilized. A listing of grants is included (Attachment 3) and totals $1,998,179.
Section 4. Appropriation of Donations and Other Special Revenues received but not appropriated in the FY 2016 Operating Budget. There is a net balance of $54,208 in the Code Administration Fund that is requested for appropriation and use in FY 2016.
Section 5. Appropriation of Other Special Revenues. This appropriation of $86,100 includes other special revenues received but not appropriated in the FY 2016 Operating Budget. Several of the City’s Public Safety and Justice Agencies receive funds in the form of Seized Assets. These funds are not allowed to be budgeted annually as part of a regular operating budget, and there are restrictions as to their utilization. This appropriation includes $10,826 in federal seized assets and $75,274 in state seized assets for the Commonwealth’s Attorney’s Office to purchase supplies and equipment for these programs throughout the year.
Section 6. Appropriation of $770,555 of General Fund balance (derived from unexpended FY 2015 funding). This appropriation includes $250,000 to TES of unexpended General Fund resources from FY 2015 to complete needed sidewalk repairs; $150,000 to provide preciously unbudgeted expenses related to the Dominion 230kV Line proposal; $100,000 for fiscal impact analysis of new development; $65,475 required General Fund grant match for a port security grant awarded to the Fire Department; $50,000 of unexpended General Fund resources from FY 2015 for survey data collection; $100,000 for a neighborhood planning consulting services for the North Old Town Small Area Plan process for the Department of Planning and Zoning; $34,000 of unexpended General Fund resources from FY 2015 requested to support the Law Library in FY 2016; and $21,080 to provide previously unbudgeted expenses to allow the Commonwealth’s Attorney’s Office to prosecute a high profile case that has been moved to another jurisdiction.
Section 7. Appropriation of General Obligation Bond Proceeds. This appropriation includes $10,645,678 in bond proceeds from the recent bond refinancing approved by City Council in March 2015.
FISCAL IMPACT: The seven sections of the ordinance appropriate a total of $20,294,760 as follows:
Section 1. Reappropriation of monies encumbered as of June 30, 2015. $ 2,579,874
Section 2. Reappropriation of expenditures to be funded by grant revenues. $ 4,160,166
Section 3. Appropriation of grant revenues authorized and adjusted but not $ 1,998,179
appropriated in Fiscal Year 2016.
Section 4. Appropriation of residual balances in accounts to be funded from $ 54,208
donations, fees and other special revenue.
Section 5. Appropriation of residual balances in accounts to be funded from $ 86,100
donations, fees and other special revenue.
Section 6. Appropriation of General Fund Balance. $ 770,555
Section 7. Appropriation of General Obligation Bond Proceeds $ 10,645,678
ATTACHMENTS:
Attachment 1: Ordinance Cover to Amend Fiscal Year 2016 Appropriation
Attachment 2: Ordinance to Amend Fiscal Year 2016 Appropriation
Attachment 3: Listing of Fiscal Year 2016 City of Alexandria Grant Adjustments
STAFF:
Laura Triggs, Deputy City Manager
Kendel Taylor, Finance Director
Morgan Routt, Acting Budget Director, OMB