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: January 17, 2023
TO: Kent Cagle, City Manager
FROM: Miranda Drake, Assistant Director of Finance
SUBJECT: Budget Amendment
BACKGROUND AND FINDINGS:
The budget amendment predominantly addresses three major initiatives that include carrying forward funds from FY 2022 to FY 2023 for contracts and commitments that were not completed in FY 2022; appropriating funds for specific grants; and amending operational funds.
Carry Forward -
City Charter (Article VII, Section 71) states that all appropriations shall lapse at the end of the fiscal year to the extent that they shall not have been expended or lawfully encumbered. During the course of a fiscal year, there are contracts and commitments that are entered into by the City that being in the current fiscal year and are completed in the next fiscal year.
A number of outstanding contracts and commitments for projects and/or services were not completed nor received by the City prior to the close of the fiscal year ending September 30, 2022. In order to complete contracted projects and/or services, FY 2022 appropriations need to be carried forward to the FY 2023 Annual Budget.
|
FY 2022 Carry Forwards |
Expenditure Budget |
|
General Fund |
$925,858 |
|
Special Revenue Funds |
392,168 |
|
Internal Service Funds |
159,707 |
|
Water & Sewer Fund |
30,400 |
|
Aviation Fund |
4,150 |
|
TOTAL |
$1,512,283 |
Grant Budget Amendments -
There are six (6) different grant items addressed in this budget amendment:
1. In FY 2022, the City Council appropriated the Coronavirus State and Local Fiscal Recovery Funds (ARPA) of $29,117,907 to fund items to include restoring positions for the Killeen Civic and Conference Center (KCCC), deferred maintenance for KCCC, Grants to the Arts, Public Safety Premium Pay, Boys and Girls Club, Business Assistance, Downtown Events, Mental Health Program for Police and Fire, additional route for Hill Country Transit (HOP), Non-Profit Organization Assistance and multiple capital improvement program (CIP) projects to include Emergency Operations Center and parks. The City Charter allows the CIP projects to roll forward to the next budget year. The other non-CIP items are included in this budget amendment.
2. The American Rescue Plan Act of 2021 appropriated funding to provide housing, services and shelter to individuals experiencing homelessness and other vulnerable populations. The federal award was $1,778,641. The FY 2023 Budget included $1,745,243. This was estimated based on the proposed amount to be spent in FY 2022. The actual amount spent in FY 2022 came in less than anticipated. This budget amendment appropriates the remaining grant balance of $12,645 for the revenues and expenditures.
3. The City of Killeen received a $100,000 grant from PETCO in FY 2021 and FY 2022 that was not fully expended. This budget amendment appropriates the fund balance for eligible uses.
4. Appropriate the remaining balance of the Federal Aviation Administration (FAA) grant for the Airport Aircraft Hangar #1.
5. Appropriate the remaining balances of the FAA grants for the Coronavirus Response & Relief Supplemental Appropriations Act (CRRSA) - Concessions Relief, American Rescue Plan Act (ARPA) and ARPA - Concession Relief.
6. In FY 2020, the City was awarded a Covid Emergency Supplemental Funding grant to be used to expand Public Safety social distancing system. This budget amendment appropriates the remaining grant funds.
|
Grants |
Revenue Budget |
|
General Fund |
$2,277,893 |
|
Aviation AIP Grant Fund |
478,340 |
|
Hotel Occupancy Tax Fund |
308,214 |
|
Aviation Fund |
214,038 |
|
Information Technology Fund |
102,918 |
|
HOME-ARP Fund |
12,645 |
|
TOTAL |
$3,394,048 |
|
Grants |
Expenditure Budget |
|
General Fund |
$2,277,893 |
|
Aviation AIP Grant Fund |
249,500 |
|
Hotel Occupancy Tax Fund |
308,214 |
|
Information Technology Fund |
102,918 |
|
Animal Donations Fund |
64,072 |
|
HOME-ARP Fund |
12,645 |
|
TOTAL |
$3,015,242 |
Operational Items Budget Amendments -
There are five (5) items addressed in this budget amendment:
1. $9,904 was remaining in FY 2022 for the elderly transportation program. This budget amendment appropriates the remaining balance to the current FY 2023 Budget of $40,000 for this program. With the unexpected announcement of Cove Taxi closing at the end of last fiscal year, the additional funding will assist with continuation of the vital program utilizing the new services available through Hill Country Transit.
2. The City Council provided a motion of direction on January 11, 2022 to appropriate the Killeen Public Facility Corporation (KPFC) closing cost for youth programs. This budget amendment appropriates the remaining balance of those funds ($150,000).
3. During FY 2023, the City has received three (3) TxDOT reimbursement checks for Rosewood construction project. This budget amendment recognizes the revenue received and appropriates $45,000 to pay for the Letter of Map Revision as required by FEMA.
4. In November, a Solid Waste roll off truck was involved in a one-vehicle accident. The unit was damaged beyond economic repair and deemed a total loss by our insurance carrier, TML. This budget amendment appropriates the insurance proceeds of $100,426 and the expenditure of $236,652 needed to purchase a replacement roll off truck.
5. This budget amendment cleans up four (4) interfund transfers to match the offsetting transfer.
|
Operational Items |
Revenue Budget |
|
Solid Waste CIP Fund |
$166,243 |
|
Governmental CIP Fund |
107,545 |
|
Information Technology ISF Fund |
(1,243) |
|
Risk Management ISF Fund |
27 |
|
Water & Sewer CIP Fund |
(175,741) |
|
TOTAL |
$96,831 |
|
Operational Items |
Expenditure Budget |
|
Solid Waste CIP Fund |
$236,652 |
|
Governmental CIP Fund |
45,000 |
|
General Fund |
159,904 |
|
TOTAL |
$441,556 |
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 budget amendment is for FY 2023, and includes:
• General Fund - increase of $2,277,893 in revenues and $3,363,655 in expenditures.
• Water and Sewer Fund - increase of $0 in revenues and $30,400 in expenses.
• Aviation Funds - increase of $214,038 in revenues and $4,150 in expenses.
• Special Revenue Funds - increase of $320,859 in revenues and $777,099 in expenditures.
• Internal Service Funds - increase of $101,702 in revenues and $262,625 in expenses.
• Capital Improvement Project Funds - increase of $576,387 in revenues and $531,152 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