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HomeMy WebLinkAboutORD 2019-81 - FY2019 Budget Year EndORDINANCE NO. AN ORDINANCE OF THE CITY OF GEORGETOWN, TEXAS, AMENDING THE 2019 ANNUAL BUDGET FOR YEAR-END OBLIGATIONS THAT WERE NOT KNOWN AT THE TIME THE BUDGET WAS ADOPTED, APPROPRIATING THE VARIOUS AMOUNTS THEREOF, AND REPEALING ALL ORDINANCES OR PARTS OF ORDINANCES IN CONFLICT THEREWITH. WHEREAS, the City has available revenues and ending Fund Balances in the Fleet, IT, South Georgetown Tax Increment Reinvestment Zone, Rivery Tax Increment Reinvestment Zone, Transportation, PEG, Electric and Water funds for Fiscal Year 2019; and WHEREAS, the City is aware of obligations not currently funded in the fiscal year 2019 Budget in the following funds: Fleet, IT, South Georgetown Tax Increment Reinvestment Zone, Rivery Tax Increment Reinvestment Zone, Transportation, PEG, Electric and Water; and WHEREAS, the changes were unknown and unforeseeable at the time the fiscal year 2019 budget was approved; and WHEREAS, the City Charterand State law allows for changes in the Annual Operating Plan by a Council majority plus one in emergency situations and for municipal purposes; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF GEORGETOWN, TEXAS, THAT: SECTION 1. The facts and recitations contained in the preamble of this ordinance are hereby found and declared to be true and correct, and are incorporated by reference herein and expressly made a part hereof, as if copied verbatim. SECTION 2. The amendment to the 2019 Annual Budget of the revenues of the City of Georgetown and expenses of conducting the affairs thereof, is in all things adopted and approved as an addition to the previously approved budget of the current revenues and expenses as well as fixed charges against said City for the fiscal year beginning October 1, 2018 and ending September 30, 2019. A copy of the amendment is attached hereto as Exhibit "A" incorporated by reference herein. SECTION 3. The total of $8,030,439 is hereby released from appropriation for payments of expenditures and payments of the funds and included in the Exhibit "A". SECTION 4 All ordinances and resolutions, or parts of ordinances and resolutions, in conflict with this Ordinance are hereby repealed, and are no longer of any force and effect. This ordinance complies with the vision statement of the Georgetown 2030 Plan. SECTION 5. If any provision of this ordinance or application thereof to any person or circumstance, shall be held invalid, such invalidity shall not affect the other provisions, or application thereof, of this ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this ordinance are hereby declared to be severable. SECTION 6. The Mayor is hereby authorized to sign this ordinance and the City Secretary to attest. This ordinance shall become effective upon adoption of its second and final reading by the City Council of the City of Georgetown, Texas. PASSED AND APPROVED on First Reading on the 26th day of November, 2019. PASSED AND APPROVED on Second Reading on the 10th day of December, 2019. ATTEST: R byn D nsmore City Secretary APP AS TO FO Charlie McNabb City Attorney THE CITY F GEORGETOWN: By: Dale Ross Mayor mrating Revenues Currenl Ooeralino Revenue rerating Expenses Current Operating Expenses CRR Credits Purchased Power Transfer Out - ROI Exhibit A - Budget Amendment Impact of This 2019 Approved 2019 Amended Budaet Action/CAFR Budget $ 19,337,779 $ (440,251) $ $ (3,000,000) $ 178,241 $ $ 53,185,477 $ 5,280,082 $ $ 4.325.000 $ (500.000) $ Non -Operating Revenues Grant Revenue S 100,000 $ (100,000) $ Transfer In S 548,104 $ 1.647.905 $ Sale of Assets - Scrap material $ 10,000 $ 10,340 $ Sale of Asset - Fleet $ 5 481,927 $ Sale of Asset - WSSC $ $ 356,895 $ Sale of Asset - Fiber $ - $ 645.045 $ Renewable Enerov Credits $ $ 722,381 $ Non -Operating Expenses CIP $ 4,017,007 $ (159,842) $ Current Debt Service $ 4,422,155 $ 500 $ Interest Expense - Reimbursement from Water $ - $ (305,234) $ Principal Expertise - Reimbursement from Water $ $ (470.000) $ Talon-Ooeratino Expenses S 8.439.162 E f934.5761 S Rate Stabilization S 147.079 S 2.1 10 - Electrvc Fund There are several proposed amendments in the Electric Fund both on the revenue and expense accounts. The purchased power budget 85.677.807 must be amended to $58,465,559 and the CRR Credits be amended 8 to $-2,821,759. This is a result of increased costs for purchase power and transmission of purchased power. The following actions mitigate these increased costs. First, staff proposes to sell land 18,897,528 owned by the Electric fund to the Fleet Fund. This site on FM1460 will (2,821,759) be the future home of the Fleet Services Shop identified in the 58,465,559 facilities study. The land sale totals $481,927. There is a 3.825.000 corresponding amendment in the Fleet Fund. Next, staff proposes the Water Fund purchase the Electric Fund's portion of the Westside Service Center as well as reimburse the debt service payments made for the facility in the past. The purchase of 2.196,009 the building totals $356,895, while the previously paid debt service 20,340 principal and interest totaled $470,000 and $305,234 respectively. 481,927 The Water Fund will also assume the remaining liability on the facility, 356,895 shown as $1,562.500 under non -operating transfers in. 645,045 The third proposed amendment is to increase the transfer amount 722 381 from the South Georgetown TIRZ Fund tot the Electric Fund by an additional $85,405 for capital infrastructure investment from previous fiscal years. This is also under non -operating transfer in. Fourth, the amendment proposes selling a portion of the City's fiber 3,857,165 network owned and operated by Electric to the IT Fund for $645K. A 4,422,655 multi -year plan will be developed to sell the remainder to IT and (305,234) allocate costs to all using departments. 470,000 Other amendments include recognizing utility revenue ($12M), 7 504,586 decreasing operating expenses ($440K), decreasing the Return on 3 3,47 Investment transfer to the General Fund ($500K), recognizing not moving forward with the Bloomberg Grant ($100K), selling Renewable 2,250,413 Energy Credits in the amount of $722K, selling scrap material for an additional $10K, increasing debt service expense by $500 to account A n2l 000 'for handling fees, and decreasing capital project expense by $160K. 2019 Approved Impact of This 2019 Amended Budget 9 Action/CAFR Budget Adjustment 263 - PEG Fun Beginning Fund Balance $ - $ 17,653 $ 17,653 The proposed amendment in this fund is to recognize additional available beginning fund balance from FY2018, and $8.374 of Revenues additional PEG Fee revenue of $6,933 and interest of $1,441 to offset PEG Fee Revenue $ 160,000 $ 6,933 $ 166,933 expense overages that total $422 for minor communications Interest $ $ 1,441 $ 1.441 equipment. 'Total Revenues $ 160,000 $ 8,374 S 168,374 Expenses PEG Fee Expenditure $ 20,000 $ 422 $ 20,422 'Total Ex enses $ 20.000 $ 422 $ 20.422 Ending Fund Balance $ 140,000 $ 25,605 S 165,605 Available Fund Balance 5 140,000 $ 25,605 $ 165.605 2019 Approved Impact of This 2019 Amended Budget ActionlCAFR Budget 'us met 294 - Rivery TIRZ Fund Beginning Fund Balance $ 209,626 $ 5,200 $ 214,826 The proposed amendment in this fund is to recognize additional $5,200 of available beginning balance from FY2018, and $43,375 of Revenues additional revenue to offset $817 of debt service charges that should Tax Revenue $ 375,981 $ $ 375,981 have been included in the original FY2019 Budget. County Partnership $ 275,000 $ 41,206 $ 316,206 Interest $ 1.500 $ 2,169 $ 3,669 'Total Revenues $ 652,481 $ 43,375 3 695,856 Expenses Transfer for Debt Service $ 591.768 $ 817 $ 592.585 Ending Fund Balance $ 270.339 $ 47,758 S 318,097 Available Fund Balance $ 270,339 $ 47,758 $ 318,097 2019 Approved Impact This 2019 Amended Budget 9 CAFR Adjustment Budget 9 Adjustment 281 - Transportation Fund Beginning Fund Balance $ (83,188) $ 63,295 $ (19,893) This fund serves as a special revenue pass through for the part ofthe Revenues Southwest Bypass Project in partnership with the County. To close County Reimbursement $ 83,188 $ (51.683) $ 31,505 out the project, staff expensed an additional $10,820 that was not budgeted in 2019. The City is working with the County to recover the receivable for completed work and then will close out the fund. Any Total Revenues $ 83.188 $ (51,683) S 31,505 Expenses remaining fund balance will be moved into the General Capital Southwest Bypass Project $ - $ 10,820 $ 10,820 Projects fund with the rest of the phases of the Southwest Bypass project. Total Expenses $ $ 10,820 S 10,820 Ending Fund Balance $ $ 792 $ 792 Available Fund Balance S $ 792 $ 792 2019 Approved Impact of This 2019 Amended Budget Action/CAFR Budget Ad'ustment 296 South Geor etown TIRZ Fun Beginning Fund Balance S 237,186 $ - $ 237,186 The proposed amendment in this fund is to recognize $85,405 of .additional revenue from ad valorem taxes and allocated interest, Revenues Staff is proposing to transfer the additional revenue to the Electric Property Tax $ 309,418 $ 80,295 $ 389,713 :Fund for reimbursement of capital improvement from previous fiscal Interest S 1.500 $ 5.110 $ 6,610 'years. At the mid -year amendment, a transfer of $548,104 was made Ito Electric also for capital reimbursement Total Revenues $ 310.918 $ 05.405 S 396.323 Expenses Transfers $ 548,104 $ 85.405 $ 633,509 Total Expenses $ $0.104 ; 85,405 $ 633,509 Ending Fund Batance $ - i. - S - 2019 Approved Impact of This 2019 Amended Budget Action/CAFR Budget Adjustment 520 -Fleet Fun Beginning Fund Balance $ 4,760,280 $ 28,736 S 4,789,016 This amendment is the corresponding transfer out from the Fleet Fund to the Electric Fund to purchase land on FM1460 for a future Revenues Fleet Services Shop identified in the facilities assessment. The Current Fleet Revenue $ 6,238,717 $ - $ 6,238,717 amendment uses available fund balance in the Fleet Fund. Interest $ - S - 5 Total Revenues S 6,238,717 5 $ 6,238,717 Expenses Current Fleet Expenses $ 6,714,072 $ - $ 6.714.072 Purchase of Land $ $ 481,927 $ 481,927 Total Expenses S 6.714.072 $ 481.927 S 7.195.999 a S 479,322 S S 2,750,003 $ (453,191 2019 Approved Impact of This 2019 Amended Budget 9 Action/CAFR Budget Ad'ustment 0 - IT Fund Beginning Fund Balance $ 2,732,490 $ - $ 2,732,490 The amendment recognizes additional interest earnings in the IT Fund. Staff is proposing selling a portion of the fiber network owned Revenues by Electric to the IT Fund. This transaction would purchase all the IT Fees $ 6,845,851 $ $ 6,845,851 fiber infrastructure installed by electric from 2003 to 2011 at a cost of Transfers $ 115,000 $ $ 115,000 $645,045. In FY2020, staff will create a multi -year plan to transfer the Interest $ 6,000 $ 45,582 $ 51,582 remainder of the shared asset to the IT Fund and allocate back operating and maintenance expenses. Total Revenues $ 6,966,851 S 45,5132 S 7,012,433 Expenses Personnel and Operations $ 6,546,619 $ $ 6,546,619 Capital $ 706.450 $ 645,045 $ 1,351,495 Transfers $ 376.500 $ $ 376.500 Total Expenses S 7.629.569 S 645.045 S 8.274.614 744 S .............. Available Fund Balance 2019 Approved Impact of This 2019 Amended Budget ActionlCAFR Budget Adjustment 660-Water Fun Beginning Fund Balance $ 89,159,703 $ (31,169) $ 89,128,534 Staff is proposing the Water Fund purchase the Electric Fund's portion of the Westside Service Center. The amendment to the Operating Revenues Water Fund includes recognizing revenue in the amount of $8.2M for Current Operating Revenue $ 59,719.104 $ 8.158.943 $ 67.878.047 water sales to customers, charges to customers, and development fees. Expenses are amended to reimburse Electric $470,000 for previously paid principal and $305,234 in previously paid interest Total Operating Revenues S 59,719,104 $ 8,158,943 $ 67.878,047 Operating Expenses Additionally, the Water Fund will reimburse the Electric Fund Current Operating Expenses $ 37.432,854 $ - $ 37.432.854 $356,895 for the cash portion used to construct the West Side Service Center. The proposed amendment transfers the remaining debt liability of $1.5M from the Electric Fund to the Water Fund. Total Operating Expenses S 37,432,854 $ $ 37.432 854 Non -Operating Revenues Finally, the conservation allocation is amended by $528K to recognize Current Non -Operating Revenues $ $ costs of conservation programs that primarily benefit water use. :Tntal Nnn-Onerarina ttevnmmn S - S 4 1Non-Operating Expenses Current Non -Operating Expense Transfer Out - WSSC Purchase of Asset - WSSC Cash Portion Interest Expense - WSSC Principal Expense - WSSC Reallocation of Conservation Fund Balance .Available Fund Balance Total Amended Expense Appropriation $ 91,918,051 $ $ 91,918,051 $ - $ 1,562,500 $ 1,562,500 $ $ 356,895 $ 356,895 $ $ 305,234 8 305,234 $ $ 470,000 $ 470,000 $ $ 527,878 $ _ 527,878 $ 91.918.051 $ 3.222.507 $ 95.140.558 5 19.527.902 $ 4,905,267 $ 24,433,169 S 7,498,183 S - S 7,498,183 $ 9,500.000 $ $ 9.500.000 5 2,529,719 6 4,905,267 S 7,434,986 $ 8,030,439