A. Audited Beginning Fund Balance Adjustment AWS
City Council Agenda Item Meeting Date February 5, 2018
Issue/Agenda Title: Resolution No. 3791 providing for a supplemental budget and making appropriation/total requirement changes for the Fiscal Year 2017-2018. Prepared by: Mike Murzynsky Proposed Motion: I move to adopt Resolution No. 3792 with Attachment "A", a resolution adopting a supplemental budget for fiscal year 2017-18 and making appropriation increases and changes for fiscal year 2017-18. Background information: The supplemental budget for Fiscal Year 2017-18 is presented to Council for approval and the adjustments are as follows: A. B. C. D. E. F. G.
Audited Beginning Fund Balance adjustment Allocate Contingency to cover projected payroll increases from Salary Survey Record Henck Bequest for Library Adjust Abatement Expenses Adjust IT Budget due to increase cost for City Hall Security Project Correct Project Allocations for Capital Projects in Funds 402 and 403 Public Works Adjustments
Note: the letter listed above corresponds with the adjustment column on Attachment A.
A. Audited Beginning Fund Balance Adjustment: The City recently completed the 2016-17 Fiscal Year and the prudent thing to do is to adjust the 2017-18 Beginning Fund Balances to the Actual Beginning Fund Balance. Below is the listing of funds followed by the actual beginning fund balances, noted as FY 2017, as compared to the FY 2018 Budgeted Beginning Fund Balances. The final column lists the actual adjustment necessary to match the previous two columns. As in the past, the beginning fund balances are increased (or decreased) and the offset is recorded in contingency line item. As Council can see, the majority of the funds ended the 2016-17 with positive balances, which is always the goal. The ones with negative balances are funds, which can run a negative balance due (Debt Service and Capital Projects) to timing of expenditures and projects completing earlier than planned.
City of Newport ENDING FUND ACTUAL BALANCES
GOVERNMENTAL FUNDS Genera l Fund Ai rport Fund Room Ta x Fund Aga te Bea ch Cl os ure Fund Ca pi ta l Project Fund Genera l Debt Fund Street Fund Li ne Undergroundi ng Fund SDC Fund Pa rks & Recrea ti on Fund Bui l di ng Ins pecti on Fund Publ i c Pa rki ng Fund Res erve Fund Ca pi ta l Improvements Fund Hous i ng Fund Total Governmental Funds
BUSINESS TYPE FUNDS Wa ter Fund Sewer Fund Publ i c Works Fund Total Business Type Funds
Fund 101 $ 220 230 254 402 303 251 252 253 201 240 211 404 405 212 $
601 602 701 $
FY2017 3,357,335 255,294 227,989 1,339,564 2,616,685 4,103 428,054 761,011 1,391,244 518,225 633,127 287,373 714,012 633,424 112,742 13,280,182
FY2017 $1,356,789 1,325,502 52,816 2,735,107
Budget Adjustment
FY 2018 Budget $
$
3,087,489 185,297 270,775 1,064,673 2,660,104 4,829 365,300 782,481 1,227,332 301,088 513,206 282,099 676,533 372,000 106,405 11,899,611
x$ x x x x x x x x x x x x x x $
263,296 69,997 (42,786) 274,891 (43,419) (726) 62,754 (21,470) 163,912 217,137 119,921 5,274 37,479 261,424 6,337 1,374,021
Budget FY 2018 Budget Adjustment $ 1,300,896 x 55,893 1,204,987 x 120,515 31,650 x 21,166 $ 2,537,533 $ 197,574
B. Allocated Contingency set aside for the Salary Survey Results Attachment B (for the related detail) lists out the projected salary costs (per City Manager’s calculation) as compared to what was set aside during last year’s creation of the 2017-18 Budget, Finance calculations (summary below). Please note, the numbers from the Finance column were used in the Legal Notice but they have been corrected to match Spencer’s number, the resultant change does not affect the bottom line because we are moving contingency. The main reason for the legal notice was for the creation of interfund transfers in other funds, not the movement of contingency. Those type of budget adjustments may be handled with a resolution transfer which include the part-time salary adjustment for fund 201, Parks and Recreation. An additional $45K was allocated from Parks Contingency to the various departments, this is noted as B2 (below) and on Attachment A. Fund 101 201 201 B2 220 240 251 601 602 701 711
Budget 7,313,481 1,128,403 559,981 453,494 829,897 658,724 622,167 11,566,147
Budget - COLA 7,460,597 1,176,466 45,000 458,008 834,467 658,724 641,290 11,274,552
Finance City Manager 147,116 170,028 48,063 27,348 45,000 45,000 11,228 4,476 4,514 600 4,570 11,724 7,872 19,123 9,564 26,520 268,386 314,360
C. Record Henck Bequest for Library Director of Library, Ted Smith, has requested that we record a $66,000 bequest from the Hencke family. We are showing a deposit of the proceeds in the General Fund with a transfer to the Library Reserve fund, the 404 Reserve Fund. The monies will be held in the Reserve for Future Expenditures so it rolls forward to the next fiscal year, where projects are earmarked using the funds. D. Abatement expenses for 2017-18 Fiscal Year Derrick Tokos has requested an additional $50,000 to help fund the final expenses related to the 70th Street slide. The General Fund has available contingency (from the additional beginning fund) to cover the additional costs, that is the proposed funding. E. Information Tech – City Hall (CH) Security System The City had funded $30,000 to complete the CH Security project in the 2017-18 Fiscal Year. When the bids were opened, it was found that the Prevailing Wage threshold was crossed so the total project cost increased another $45,000. Because of this increase a $5,000 project contingency was created. Again, with the addition beginning fund balance, a transfer of contingency is used to fund the project. F&G
Combined Project and Other Public Work Adjustments
G1 – The project, 16001, Water Supply Place Based Planning Study, has received additional funding from Oregon Community Foundation ($20,000) and Meyer Memorial trust ($185,000) so it will be recorded in the Local State Grant category and the project budget (expenditures) increased by the $205,000. G2 – additional funding for the Fire Station Seismic Retrofit will be transferred from the City Facilities fund for $50,000 and $24,000 will be transferred from the Fire Departments Capital Purchase to the Capital Project, fund 402, - General and added to project 14005 G3 – Additional funding of $203,000 is being transferred from fund 403, project 15033, Sanitary Sewer Replacement (Hurbert between 3rd and 6th) to fund 402, project 12015, Bay/Moore. G4 - Additional funding of $59,832 is being transferred from fund 403, project 14012, Pave Parking lot at WTF to fund 403, project 14014, Water Plant Demolition. G5 – within fund 402, $16,443 is being transferred from project 16003, Olsson Creek Sewer to project 16006, NE 54th Storm Sewer and this project will be closed. G6 – Highway 20 Culvert Repair – this project was paid for within the Street Fund, 251, and fund 602, Sewer fund and Public Works would like to move the Sewer Contingency funding to fund 403 and consolidate the costs in a new project 17003. Thus, $25,618 in actual costs will be moved from the 251 and $13,430 in actual costs will be moved from the Sewer fund 602. The budget part, $40,000 of Sewer Contingency will be transferred from 602 to fund 403 and a new project of $40,000 will be created named Highway 20 Culvert Repair. Fiscal Notes: Finance will continue to reconcile the Capital Project fund, 402 and 403 so more adjustments are forthcoming. The funds included in this supplemental budget are the only ones requiring an adjustment. The individual fund information is noted on Attachment A –the total City budget. Alternatives: None Attachments: Resolution 3791 Attachment A – Original budget with subsequent adjustments Attachment B – Payroll Allocation tables
Issue/Agenda Title: Resolution No. 3791 providing for a supplemental budget and making appropriation/total requirement changes for the Fiscal Year 2017-2018. Prepared by: Mike Murzynsky Proposed Motion: I move to adopt Resolution No. 3792 with Attachment "A", a resolution adopting a supplemental budget for fiscal year 2017-18 and making appropriation increases and changes for fiscal year 2017-18. Background information: The supplemental budget for Fiscal Year 2017-18 is presented to Council for approval and the adjustments are as follows: A. B. C. D. E. F. G.
Audited Beginning Fund Balance adjustment Allocate Contingency to cover projected payroll increases from Salary Survey Record Henck Bequest for Library Adjust Abatement Expenses Adjust IT Budget due to increase cost for City Hall Security Project Correct Project Allocations for Capital Projects in Funds 402 and 403 Public Works Adjustments
Note: the letter listed above corresponds with the adjustment column on Attachment A.
A. Audited Beginning Fund Balance Adjustment: The City recently completed the 2016-17 Fiscal Year and the prudent thing to do is to adjust the 2017-18 Beginning Fund Balances to the Actual Beginning Fund Balance. Below is the listing of funds followed by the actual beginning fund balances, noted as FY 2017, as compared to the FY 2018 Budgeted Beginning Fund Balances. The final column lists the actual adjustment necessary to match the previous two columns. As in the past, the beginning fund balances are increased (or decreased) and the offset is recorded in contingency line item. As Council can see, the majority of the funds ended the 2016-17 with positive balances, which is always the goal. The ones with negative balances are funds, which can run a negative balance due (Debt Service and Capital Projects) to timing of expenditures and projects completing earlier than planned.
City of Newport ENDING FUND ACTUAL BALANCES
GOVERNMENTAL FUNDS Genera l Fund Ai rport Fund Room Ta x Fund Aga te Bea ch Cl os ure Fund Ca pi ta l Project Fund Genera l Debt Fund Street Fund Li ne Undergroundi ng Fund SDC Fund Pa rks & Recrea ti on Fund Bui l di ng Ins pecti on Fund Publ i c Pa rki ng Fund Res erve Fund Ca pi ta l Improvements Fund Hous i ng Fund Total Governmental Funds
BUSINESS TYPE FUNDS Wa ter Fund Sewer Fund Publ i c Works Fund Total Business Type Funds
Fund 101 $ 220 230 254 402 303 251 252 253 201 240 211 404 405 212 $
601 602 701 $
FY2017 3,357,335 255,294 227,989 1,339,564 2,616,685 4,103 428,054 761,011 1,391,244 518,225 633,127 287,373 714,012 633,424 112,742 13,280,182
FY2017 $1,356,789 1,325,502 52,816 2,735,107
Budget Adjustment
FY 2018 Budget $
$
3,087,489 185,297 270,775 1,064,673 2,660,104 4,829 365,300 782,481 1,227,332 301,088 513,206 282,099 676,533 372,000 106,405 11,899,611
x$ x x x x x x x x x x x x x x $
263,296 69,997 (42,786) 274,891 (43,419) (726) 62,754 (21,470) 163,912 217,137 119,921 5,274 37,479 261,424 6,337 1,374,021
Budget FY 2018 Budget Adjustment $ 1,300,896 x 55,893 1,204,987 x 120,515 31,650 x 21,166 $ 2,537,533 $ 197,574
B. Allocated Contingency set aside for the Salary Survey Results Attachment B (for the related detail) lists out the projected salary costs (per City Manager’s calculation) as compared to what was set aside during last year’s creation of the 2017-18 Budget, Finance calculations (summary below). Please note, the numbers from the Finance column were used in the Legal Notice but they have been corrected to match Spencer’s number, the resultant change does not affect the bottom line because we are moving contingency. The main reason for the legal notice was for the creation of interfund transfers in other funds, not the movement of contingency. Those type of budget adjustments may be handled with a resolution transfer which include the part-time salary adjustment for fund 201, Parks and Recreation. An additional $45K was allocated from Parks Contingency to the various departments, this is noted as B2 (below) and on Attachment A. Fund 101 201 201 B2 220 240 251 601 602 701 711
Budget 7,313,481 1,128,403 559,981 453,494 829,897 658,724 622,167 11,566,147
Budget - COLA 7,460,597 1,176,466 45,000 458,008 834,467 658,724 641,290 11,274,552
Finance City Manager 147,116 170,028 48,063 27,348 45,000 45,000 11,228 4,476 4,514 600 4,570 11,724 7,872 19,123 9,564 26,520 268,386 314,360
C. Record Henck Bequest for Library Director of Library, Ted Smith, has requested that we record a $66,000 bequest from the Hencke family. We are showing a deposit of the proceeds in the General Fund with a transfer to the Library Reserve fund, the 404 Reserve Fund. The monies will be held in the Reserve for Future Expenditures so it rolls forward to the next fiscal year, where projects are earmarked using the funds. D. Abatement expenses for 2017-18 Fiscal Year Derrick Tokos has requested an additional $50,000 to help fund the final expenses related to the 70th Street slide. The General Fund has available contingency (from the additional beginning fund) to cover the additional costs, that is the proposed funding. E. Information Tech – City Hall (CH) Security System The City had funded $30,000 to complete the CH Security project in the 2017-18 Fiscal Year. When the bids were opened, it was found that the Prevailing Wage threshold was crossed so the total project cost increased another $45,000. Because of this increase a $5,000 project contingency was created. Again, with the addition beginning fund balance, a transfer of contingency is used to fund the project. F&G
Combined Project and Other Public Work Adjustments
G1 – The project, 16001, Water Supply Place Based Planning Study, has received additional funding from Oregon Community Foundation ($20,000) and Meyer Memorial trust ($185,000) so it will be recorded in the Local State Grant category and the project budget (expenditures) increased by the $205,000. G2 – additional funding for the Fire Station Seismic Retrofit will be transferred from the City Facilities fund for $50,000 and $24,000 will be transferred from the Fire Departments Capital Purchase to the Capital Project, fund 402, - General and added to project 14005 G3 – Additional funding of $203,000 is being transferred from fund 403, project 15033, Sanitary Sewer Replacement (Hurbert between 3rd and 6th) to fund 402, project 12015, Bay/Moore. G4 - Additional funding of $59,832 is being transferred from fund 403, project 14012, Pave Parking lot at WTF to fund 403, project 14014, Water Plant Demolition. G5 – within fund 402, $16,443 is being transferred from project 16003, Olsson Creek Sewer to project 16006, NE 54th Storm Sewer and this project will be closed. G6 – Highway 20 Culvert Repair – this project was paid for within the Street Fund, 251, and fund 602, Sewer fund and Public Works would like to move the Sewer Contingency funding to fund 403 and consolidate the costs in a new project 17003. Thus, $25,618 in actual costs will be moved from the 251 and $13,430 in actual costs will be moved from the Sewer fund 602. The budget part, $40,000 of Sewer Contingency will be transferred from 602 to fund 403 and a new project of $40,000 will be created named Highway 20 Culvert Repair. Fiscal Notes: Finance will continue to reconcile the Capital Project fund, 402 and 403 so more adjustments are forthcoming. The funds included in this supplemental budget are the only ones requiring an adjustment. The individual fund information is noted on Attachment A –the total City budget. Alternatives: None Attachments: Resolution 3791 Attachment A – Original budget with subsequent adjustments Attachment B – Payroll Allocation tables
