City Council

Agenda Request

Agenda Of:

November 17, 2009

Agenda Request No:

vii-a

Initiated By:

Bryan Guinn

Budget Manager

Responsible Department:

Budget & Research

Presented By:

Jennifer Brown

Budget & Research Director

Department Head:

Jennifer Brown

Budget & Research Director

 

 

Additional Department. Head (s):

N/A

Subject / Proceeding:

Amend Fiscal Year 2010 Budget

First and Final Consideration of Ordinance No. 1766

Exhibits:

Summary of Budget Revisions by Fund

Ordinance no. 1766

Exhibit A- Income Statements

Clearances

Approval

Legal:

Joe Morris,

City Attorney

Executive Director:

N/A

Purchasing:

N/A

Asst. City Manager:

Karen Glynn

Budget:

Jennifer Brown

Budget & Research Director

City Manager:

Allen Bogard

Budget

Expenditure Required:  $

N/A

Current Budget:  $

N/A

Additional Funding:  $

13,881,985 in Revenues

16,755,235 in Expenditures

 

Recommended Action

Consideration and approval of Ordinance No. 1766 amending the FY2010 budget in the amount of $13,881,985 in revenues and $16,755,235 in expenditures.

Executive Summary

The City’s fiscal year ended September 30, 2009; unaudited figures show the City ended the year better than anticipated.  At year-end there were contracts, capital purchases, and other items that were approved and budgeted in FY2009, but the actual expenditures were not completed by the end of the fiscal year.  Consistent with the City’s Financial Management Policy Statements and prior year practices, the appropriation for these items lapsed at year-end.  The savings result in an increase to the ending fund balance, which provides funds to re-establish the appropriation in the current fiscal year.

 

The General Fund shows an ending fund balance of $21,089,783, which is $3.8 million higher than the revised budget. Expenditures are $3.09 million less than the revised budget, of which $1.96 million is recommended to carry over, resulting in a net savings of $1.1 million. Most of this amount ($741,000) is salary savings that resulted from management’s decision to hold positions vacant rather than filling all positions approved in the budget. 

 

The General Fund carryover request totals $1,961,661 in expenditures. Major items in the carryover include: replacement of a ladder truck for the Fire Department, build out of city facilities, furnishing and repairs of facilities that were in progress at year end, funds for the City’s 50th anniversary celebration, an operational review of the Fire Department, two vehicles, license plate recognition cameras, video cameras for police motorcycles, and other planned one-time projects that were in progress but not complete at year-end. General Fund carryovers are offset by $1,134,214 in anticipated revenues, which represents the proceeds from anticipated lease/purchase financing of the fire truck and the Assistance to Firefighters Grant awarded in 2009.

 

The Utility Enterprise Fund has an ending cash equivalent balance of $5,943,631, which is $1.12 million greater than the budgeted ending balance.  This is due to revenues being approximately $763,000 greater than budgeted as a result of dry weather conditions and operating expenditures being approximately $498,000 lower than budgeted. Carryovers in the utility fund total $131,257 and represent industrial pretreatment program expenses, an operational review of the department, legal services for water rights, a replacement fluoride pump for the Austin Parkway water plant, and a GIS rating system for the sanitary sewer system.

 

The Surface Water Fund has an ending cash equivalent balance of $3,561,817, which is $2.15 million greater than the budgeted ending balance. Of this amount, $1,168,700 is requested to carryover for pay as you go capital projects. The fund realized higher than expected revenues due to the dry weather over the summer months, leading to a higher than anticipated ending balance.

 

The Airport Fund ended the year with a cash equivalent balance of $2,630,940, which is $498,887 higher than anticipated in the budget. The Airport realized savings from vacant positions as well as reduced fuel and other operating expenditures.  Carryovers total $192,358 and represent RAMP grant and pay as you go capital improvement projects that were in progress but not completed at year end.

 

The Tourism Fund ended the year with a fund balance of $1,638,652, which is $172,760 higher than budgeted.  Carryovers totaling $108,551 will fund ongoing artifact preservation and storage at Imperial Sugar, plus an update to the Shop Sugar Land website.

 

The Community Development Block Grant had $242,284 in funds remaining in program year 2008 funding, including $91,552 in ARRA funding. The CDBG program year differs from the City’s fiscal year, and these funds typically are not spent within the City’s fiscal year.  Carryover totals $242,284 in revenues and expenditures.

 

The Fleet Replacement Fund has an ending balance of $1,593,248, which is $410,734 higher than budgeted.  Funds for replacement vehicles that were ordered but not received by year end totaling $258,488 need to be re-appropriated in the FY2010 budget and are requested to carry over.

 

The Technology Replacement Fund ended the year with a balance of $712,382, which is $199,654 higher than budgeted.  Carryover requests total $173,960 in this fund and represent projects that were in progress but not completed at year end, mainly in the Police Department data center.

 

The Law Enforcement Block Grant fund had two grants in progress at year end totaling $38,868.  The grants are being utilized to purchase additional license plate recognition cameras and place a surveillance camera in the parking lot at Imperial Park.  Carryovers include revenues and expenditures to appropriate the grant funds in FY2010.

 

The Law Enforcement Fund ended the year with a balance of $9,546, which is $6,391 higher than anticipated.  This fund had $2,571 in funds for projects budgeted in FY09 that were not completed by year end.  The carryover request re-establishes a budget of $2,571 in FY2010.  Remaining funds are recommended for appropriation through the annual budget process.

 

Capital Projects are budgeted for the duration of the project and any funding for projects in progress at year-end automatically carryover so they are not included in the totals given.  However, the FY10 Capital Projects fund reflects the $1 million reduction in bond proceeds and expenditures for the Recreation Center that was approved by City Council on November 3, 2009.

 

The City’s two corporations each have carryovers that will be considered at their December meetings.  The Sugar Land 4B Corporation’s bylaws require City Council approval of budget amendments.  Those carryovers will be brought to City Council for approval in January.

 

The proposed ordinance also amends the FY2010 budget to reflect the following budget adjustments that have been approved by City Council since the budget was approved in September: 

 

Fund

Description

Rev/Exp Amount

Solid Waste

HGAC Solid Waste Grant 

$     13,459

General

FCCA Animal Shelter Donation

2,600

General

Bulletproof Vest Grant 

11,159

Capital Projects

Recreation Center 

(1,000,000)

 

The budget ordinance includes $13,439,401 in revenues and $13,449,319 in expenditures that will result from two refunding bonds, approved by City Council on October 20th and closing on November 24, 2009. Approval of the attached ordinance will formally establish the appropriation in the FY2010 budget and facilitate completion of these expenditures.

 

To summarize, the attached ordinance amends the budget to appropriate funds as follows:

 

 

Council Approved Adjustments

Refunding Bonds

Carryover Requests

Total

Revenues

(972,782)

13,439,401

1,415,366

13,881,985

Expenditures

(972,782)

13,449,319

4,278,698

16,755,235

 

 

 

 

 

 

 

 

 

 

Exhibits

 

 

City of Sugar Land

Proposed Budget Adjustments

Summary Schedule of Revenues & Expenditures

 

FY10

Approved

2009

Proposed

FY10

 

Adopted

Budget

Bond

Carry Over

Adjusted

 

Budget

Adjustments

Refundings

Requests

Budget

REVENUES

General Fund

$  61,692,640

 $      13,759

 $    1,134,214

 $ 62,840,613

Tourism Fund

         1,699,629

       1,699,629

CDBG Fund

            338,940

        242,284

            581,224

Fleet Fund

            938,956

         938,956

Hi-Tech Fund

            875,562

          875,562

Debt Service Fund

      20,820,431

     4,660,441

       25,480,872

Utility Fund

      28,930,110

     8,778,960

   37,709,070

Airport Fund

      11,229,979

    11,229,979

Surface Water Fund

      15,085,235

  15,085,235

Solid Waste Fund

         4,953,685

              13,459

     4,967,144

Law Enforcement Grant

              -

    38,868

             38,868

Law Enforcement Fund

       -

                        -

General CIP

     59,158,376

     (1,000,000)

   

58,158,376

Total Revenues

    205,723,544

          (972,782)

      13,439,401

     1,415,366

   219,605,529

     

EXPENDITURES

General Fund

      65,041,286

              13,759

1,961,661

67,016,706

Tourism Fund

         1,147,198

          108,551

 1,255,749

CDBG Fund

            338,940

         242,284

         581,224

Fleet Fund

         1,414,430

         258,488

  1,672,918

Hi-Tech Fund

            939,882

         173,960

   1,113,842

Debt Service Fund

      19,805,097

     4,663,839

  24,468,936

Utility Fund

      28,077,806

    8,785,480

        131,257

  36,994,543

Airport Fund

      10,896,562

         192,358

   11,088,920

Surface Water

      11,750,607

     1,168,700

  12,919,307

Solid Waste Fund

         4,930,666

              13,459

                      -

  4,944,125

Law Enforcement Grant

        -

     38,868

            38,868

Law Enforcement Fund

            -

             2,571

      2,571

General CIP

  60,820,376

 (1,000,000)

 

59,820,376

Total Expenditures

 $ 205,162,849

 $   (972,782)

 $13,449,319

 $ 4,278,698

 $ 221,918,084


ORDINANCE NO. 1766

 

AN ORDINANCE AMENDING THE FISCAL YEAR 2009-2010 BUDGET FOR THE CITY OF SUGAR LAND, TEXAS TO PROVIDE THAT THE REVISED BUDGET FOR CERTAIN FUNDS BE ADOPTED AS THE BUDGETED AMOUNT FOR THOSE FUNDS. 

 

 

BE IT ORDAINED BY THE CITY COUNCIL

OF THE CITY OF SUGAR LAND, TEXAS:

 

            Section 1.  That the budget of the City of Sugar Land, Texas, for the fiscal year ending September 30, 2010, as adopted by Ordinance No. 1756, is amended to reflect the revised budget for certain funds as shown in the attached Exhibit A.

 

            Section 2.  That this ordinance is adopted upon one reading in compliance with Section 6.03 of the City Charter.

 

            APPROVED on ______________________, 2009.

 

 

           

                                                                                    ________________________

                                                                                    James A. Thompson, Mayor

 

 

 

ATTEST:                                                                     Reviewed for Legal Compliance:

 

                                                                                   

___________________________                             

Glenda Gundermann, City Secretary

 

 

Attachment:    Exhibit A – FY10 Budget (13 pages)