City of Alexandria, Virginia
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MEMORANDUM
DATE: JANUARY 6, 2016
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 an Ordinance to Make Supplemental Appropriations for the Support of the City Government for Fiscal Year 2016. [ROLL-CALL VOTE]
BODY
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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 1) on January 23, 2016.
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 yet 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. Attachment 3 lists the new grants and changes in funding levels compared to the amount estimated in the FY 2016 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. The appropriation of Equipment Replacement Fund Balance to pay for new purchases not included in the FY 2016 Appropriation. This appropriation of $7,340 provides budget authority for an Automated External Defibrillator (AED) for a new fire engine. The vehicle and the AED were budgeted in FY 2014 and the funds for the vehicle were encumbered, but the funds for the AED were not. This authorization will appropriate the funds to the current fiscal year.
Section 2. The appropriation of grant revenues accepted by departments, which need adjustment in FY 2016 or are not yet appropriated. 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 $1,882,852.
Section 3. The appropriation of donations and other special revenues received but not appropriated in the FY 2016 Operating Budget. This appropriation of $445,075 includes $45,000 to General Services in court filing revenue that is limited in use to Courthouse-related facility work. The funds will be used to replace courtroom audio equipment, paint General District courtrooms and refinish benches. In addition, the appropriation includes $56,902 to the Department of Recreation, Parks and Cultural Activities, including $6,233 in landscaping donations and contributions and $50,669 to establish the correct budget authority for various special events accounts that are funded through full cost recovery. The appropriation also includes $174,000 to Planning and Zoning from Trellis Agreement funds that will be used for the Carlyle Vitality Initiative and $56,408 in remaining funds from the Sprint/Nextel settlement funds to Non-Departmental that will be used for emergency radio equipment. The remainder of the appropriation is for the Department of Transportation and Environmental Services to appropriate $9,765 in donations and contributions for bike lanes and pedestrian improvements and $103,000 for Capital Bikeshare operating costs.
Section 4. The appropriation of $550,000 of project budget authority from grant revenues, donations, fees, Developer Contributions and SUP Conditions of Capital Improvement Program funds. This appropriation will provide budget authority of $550,000 to correct an omission in the CIP from a prior year. Revenue has been received from Comcast and the funds were transferred appropriately, but the budget authority was not correctly identified. This makes the necessary correction.
Section 5. The transfer of General Fund Budget Authority Between Departments. Existing resources in the Non-Departmental debt service account are recommended to be transferred to the City Attorney’s Office to cover costs already incurred for outside legal expertise for several complex cases under litigation. The amount proposed for transfer is $475,000. The FY 2016 budget assumed a debt repayment amount that reflected a slightly different repayment schedule than was ultimately structured for the August 2015 debt issuance. This savings is available to fund the additional litigation costs in FY 2016.
Section 6. The appropriation of General Fund revenue. This appropriation of $197,126 of General Fund Revenue will support the costs associated with 5 parking enforcement officers for 5 months of the fiscal year. The partial year cost of the employees is $94,771, plus $102,356 in uniform and equipment costs is expected to be fully offset by an increase in parking ticket revenue (Fines and Forfeitures).
FISCAL IMPACT: The six sections of the ordinance appropriate a total of $3,082,393 as follows:
Section 1 Appropriation of Equipment Replacement Fund Balance $ 7,340
Section 2 Appropriation of grant revenues authorized and adjusted but not $ 1,882,852
appropriated in Fiscal Year 2015.
Section 3 Appropriation of donations, fees and other special revenue $ 445,075
Section 4 Appropriation of Capital Improvement Program revenues $ 550,000
previously unbudgeted.
Section 5 Transfer of General Fund Budget Authority. $ 0
Section 6 Appropriation of General Fund Revenue $ 197,126
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:
Kendel Taylor, Finance Director
Morgan Routt, Budget Director, OMB