Title
HOLD a public hearing and consider an ordinance amending the FY 2023 Annual Budget of the City of Killeen to adjust revenue and expenditure accounts in multiple funds.
Summary
DATE: September 19, 2023
TO: Kent Cagle, City Manager
FROM: Miranda Drake, Assistant Director of Finance
SUBJECT: Budget Amendment
BACKGROUND AND FINDINGS:
The Year End Budget Amendment serves to align budgets with projected revenues and expenditures. The City Charter authorizes the City Manager to approve budget amendments between accounts of the same department and fund. The City Council must approve budget amendments between accounts of different departments and to increase the overall budget of a fund.
The amendment focuses on sixteen non-grant initiatives and appropriates funds as follows:
1. Accounting for revenue received from reimbursable Texas Task Force 1 deployments and offsetting Fire Department overtime expenses.
2. Addressing insurance proceeds for claims across different General Fund departments, including claims for traffic control equipment and a fire claim from the Chamber of Commerce.
3. Appropriating revenue across multiple funds from reimbursable FEMA events (Winter Storm & COVID) and appropriating the General Fund's portion to address the Fire Department's budget shortfall caused by separation pay expenditures.
4. Recognizing the acquisition of newly leased assets in the General Fund, including a SendPro P Series Meter Mail Machine and a Canon Digital Copier at the Finance Department, Canon Digital Copiers at Human Resources, and Code Enforcement, Turf Equipment at Parks & Recreation, and a SendPro Mail Machine at the Police Department.
5. Facilitating the transfer of three assets (mowers) from the General Fund to the Solid Waste Fund.
6. Transferring funds within the Water & Sewer Fund to account for the additional costs incurred from water purchases from Bell County Water Control Improvement District (WCID) #1.
7. Recognizing the acquisition of a new leased asset in the Water & Sewer Fund, specifically a SendPro Mail Machine at Utility Collections.
8. Transferring funds within the Water & Sewer Fund to accommodate increased costs for recently leased office equipment (postage machine).
9. Recognizing the acquisition of a new leased asset in the Solid Waste Fund, specifically a Canon Digital Copier.
10. Transferring funds within the Solid Waste Fund to account for the initial year of property tax charged in arrears for a leased Wheel Loader and addressing an arbitrage shortage in Solid Waste Debt Service.
11. Transferring funds within the Fleet Services Fund to accommodate increased costs for recently leased office equipment (printer).
12. Appropriating additional Mixed Beverage revenue and corresponding expenses directly tied to the increase in revenue and allocating extra funds to address Accounting Services expenses for two additional audits.
13. Recognizing the acquisition of a new leased asset in the Community Development Block Grant (CDBG) Fund, specifically a Canon Digital copier.
14. Appropriating Special Revenue Fund revenue for Opioid Settlement funds and Park Development Fund.
15. Accounting for TML insurance proceeds related to the December 2022 freeze damage to the Family Aquatics Center, which was originally covered with Governmental CIP Contingency funding.
16. Closing out two completed bond funds: Fund 386 Water & Sewer Improvement Bond Series 2013 and Fund 576 Drainage Utility CO Bond Series 2006.
|
Fund |
Revenues |
Expenditure |
|
General Fund |
$801,154 |
$797,754 |
|
Water & Sewer Fund |
141,283 |
54,728 |
|
Solid Waste Fund |
19,615 |
8,093 |
|
Drainage Utility Fund |
55,977 |
- |
|
Aviation Fund |
4,201 |
- |
|
Hotel Occupancy Tax Fund |
108,883 |
73,167 |
|
Community Development Block Grant Fund |
4,738 |
4,738 |
|
Park Development Benefit Fund |
8,400 |
- |
|
Opioid Settlement Fund |
168,152 |
- |
|
CIP/Bond Funds |
198,331 |
198,331 |
|
Total |
$1,510,734 |
$1,136,811 |
The amendment includes one grant related item:
1. GRK Passenger Terminal Improvement. Appropriate revenue for an BIL Airport Infrastructure Grant from the FAA and the offsetting project expense. Appropriate the required match from the Passenger Facility Charge Fund.
|
Fund |
Revenues |
Expenditure |
|
Aviation AIP Grants Fund |
$267,322 |
$267,322 |
|
Aviation PFC Fund |
- |
29,703 |
|
Total |
$267,322 |
$297,025 |
THE ALTERNATIVES CONSIDERED:
Option 1 - Do not approve the ordinance amending the FY 2023 Annual Budget.
Option 2 - Approve the ordinance amending the FY 2023 Annual Budget.
Which alternative is recommended? Why?
Option 2 is recommended to approve the ordinance amending the FY 2023 Annual Budget.
CONFORMITY TO CITY POLICY:
The City’s Financial Governance Policies, Section V. Budget Administration (B)(1) states that City Council may amend or change the budget by ordinance.
FINANCIAL IMPACT:
What is the amount of the expenditure in the current fiscal year? For future years?
This FY 2023 budget amendment includes:
• General Fund: increase $801,154 in revenues and $797,754 in expenditures
• Water and Sewer Fund: increase $141,283 in revenues and $54,728 in expenses
• Solid Waste Fund: increase $19,615 in revenues and $8,093 in expenses
• Drainage Fund: increase $55,977 in revenues and $0 in expenses
• Aviation Fund: increase $4,201 in revenues and $0 in expenses
• Hotel Occupancy Tax Fund: increase $108,883 in revenues and $73,167 in expenses
• Other Special Revenue Funds: increase $181,290 in revenues and $4,738 in expenditures
• Capital Improvement Program Funds: increase $465,653 in revenues and $495,356 in expenses
Is this a one-time or recurring expenditure?
One-time
Is this expenditure budgeted?
Upon approval of the attached ordinance amending the FY 2023 Annual Budget.
If not, where will the money come from?
N/A
Is there a sufficient amount in the budgeted line-item for this expenditure?
Upon approval of the attached ordinance amending the FY 2023 Annual Budget.
RECOMMENDATION:
City Council approve the ordinance amending the FY 2023 Annual Budget.
DEPARTMENTAL CLEARANCES:
Legal
ATTACHED SUPPORTING DOCUMENTS:
Ordinance